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Start a business in South Africa: law, taxes, wages, customs and logistics

South Africa has the most industrialised and diversified economy on the continent, combining a large services sector (finance, retail, real estate) with a significant mining and manufacturing base — including automotive assembly, agro-processing, chemicals and metallurgy — and serves as a regional hub and export platform for the rest of Sub-Saharan Africa.

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South Africa at a glance

Currency	rand sud-africain (R)
Legal system	Mixte
Time to register	1 to 3 working days via BizPortal (up to 5 during periods of high demand); the SARS tax number is issued automatically (secondary source).
Cost to register	Approximately R175 in total (R50 for name reservation plus R125 for incorporation) via BizPortal (secondary source).
VAT	15%, with mandatory registration above R1 million in annual turnover (the threshold is set to rise to R2.3 million from 1 April 2026).
Corporate income tax	27% of taxable profit (for financial years from 2023 onward).
Minimum wage	National Minimum Wage of ZAR 28.79 per hour in 2025, equivalent to roughly ZAR 5,614 per month on a 45-hour week.
Employer social contributions	Unemployment Insurance Fund (UIF) contributions of 1% employer plus 1% employee (capped at about R177.12 per month), a 1% Skills Development Levy (SDL) paid by the employer (with an exemption for payrolls under R500,000), plus mandatory COIDA workplace-injury cover.

Steps to register a company in South Africa

Reserve the company name with the Companies and Intellectual Property Commission (CIPC) via BizPortal
File the Memorandum of Incorporation (MOI) and register the private company (Pty Ltd) through the CIPC
Obtain the CIPC registration number and certificate
Register for corporate income tax with SARS (tax number)
Register for VAT with SARS (mandatory above the turnover threshold)
Register as an employer for PAYE and the Skills Development Levy with SARS, and for UIF and COIDA
Open a business bank account (FICA requirements) and, where relevant, obtain a B-BBEE certificate

Common legal forms

Form	Minimum capital
PTY — Private company (Pty) Ltd	none
PUB — Public company (Ltd)	—
NPC — Non-profit company	none
SP — Sole proprietorship	none

Investment code

There is no single investment code. The Section 12I tax allowance is closed to new applications (the programme has expired, though already-approved projects continue), but other incentives remain: the Section 12B allowance for renewable energy, a 150% R&D deduction, the Employment Tax Incentive, the Black Industrialists Scheme (run by the DTIC), and the Special Economic Zones (SEZ) regime.

Taxation in South Africa

General corporate income tax regime
Small Business Corporation regime (gross income up to R20 million): 0% on the first R95,750 of taxable income, then a progressive scale up to 27% above R550,000
Turnover tax for micro-businesses (threshold not verified)
Withholding tax: 20% withholding tax on dividends (reduced under tax treaties); 15% on interest paid to non-residents (exemptions may apply); 15% on royalties.
Incentives: In Special Economic Zones: a reduced 15% corporate tax rate and a 10% building-cost allowance, both available until 1 January 2031. R&D spending can be deducted at 150% subject to approval.

Employment, wages and social contributions in South Africa

Minimum wage: National Minimum Wage of ZAR 28.79 per hour in 2025, equivalent to roughly ZAR 5,614 per month on a 45-hour week.
Rough order of magnitude for a qualified employee in the urban formal sector (a manager/senior technician earns substantially more), converted at an approximate 2026 exchange rate; figures should be validated locally.
Employer contributions: Unemployment Insurance Fund (UIF) contributions of 1% employer plus 1% employee (capped at about R177.12 per month), a 1% Skills Development Levy (SDL) paid by the employer (with an exemption for payrolls under R500,000), plus mandatory COIDA workplace-injury cover.
The informal sector remains sizeable, but the formal labour market is well structured: a labour-inspection or UIF audit can lead to back payments and penalties. A gradual formalisation path is recommended: internships and apprenticeships, then declared fixed-term contracts, then permanent contracts under a simplified regime.

Customs and trade in South Africa

Import licensing applies to certain products, alongside anti-dumping measures and mandatory NRCS/SABS standards; export restrictions are limited and targeted.

SACU (Southern African Customs Union)
SADC (free trade area)
EU-SADC Economic Partnership Agreement (in force)
AfCFTA (ratified, progressive implementation)
AGOA: renewed through end of December 2026 for eligible countries; South Africa's own eligibility is uncertain (Forbes Africa, January 2026)

Logistics in South Africa

Durban — Southern Africa's leading container port and the gateway to the N3 trade corridor.

Richards Bay — Bulk terminal for coal and other minerals.

Cape Town — Handles fruit, automotive parts and containers.

Ngqura (Coega) — Container and transshipment terminal.

Corridor N3 Durban-Gauteng corridor — A major road and rail artery to the country's interior.

Corridor Maputo Corridor — Connects Gauteng to Maputo, Mozambique.

Corridor North-South Corridor — Trade route toward Zimbabwe, Zambia and the DR Congo.

Port turnaround times can be affected by congestion and equipment maintenance issues; performance indicators published by Transnet should be checked for current figures.

Financing in South Africa

Central bank: South African Reserve Bank (SARB), covering the rand within the Common Monetary Area.
Banking system: A sophisticated and concentrated banking sector led by a few large groups (Standard Bank, FirstRand, Absa, Nedbank, Capitec); lending rates track the SARB's repo rate.
Exchange regime: The rand floats freely, but exchange controls persist, administered by licensed banks and the SARB's Financial Surveillance Department; dividend repatriation is possible on declaration.
Stock exchange: Johannesburg Stock Exchange (JSE), the largest exchange in Africa, with an AltX segment for smaller companies.
Mobile money: M-Pesa (Vodacom), MTN MoMo, PayShap (instant payments)

Key sectors in South Africa

Automotive and components — Supported by the APDP programme, with strong export integration into the EU market.
Mining and beneficiation — Platinum-group metals, manganese and chrome, with a policy push toward local value addition.
Agro-industry — A major exporter of citrus, wine, fruit and sugar, both processed and fresh.
Finance and fintech — Banking, insurance and payments, home to many pan-African corporate headquarters.
Renewable energy and hydrogen — The REIPPPP programme, critical minerals, and green-hydrogen development at Coega.
Digital services and data centres — A connectivity and cloud hub for the wider African market.

Local institutions in South Africa

Department of Trade, Industry and Competition (DTIC) — Pretoria. Leads industrial policy, investment incentives and trade policy. thedtic.gov.za
National Treasury (NT) — Pretoria. Finance ministry: budget, tax policy and economic legislation. treasury.gov.za
Department of Employment and Labour (DEL) — Pretoria. Labour law, sector minimum wages, workplace safety, UIF and the Compensation Fund. labour.gov.za
Invest SA (Invest SA) — Pretoria. The DTIC's investment desk, supporting investors and providing information on incentives. investsa.gov.za
South African Revenue Service (SARS) — Pretoria. Tax and customs administration: corporate tax, VAT, PAYE, SDL and customs (via eFiling). sars.gov.za
International Trade Administration Commission (ITAC) — Pretoria. Issues import/export permits and administers trade-remedy measures. itac.org.za
Industrial Development Corporation (IDC) — Johannesburg. Development bank providing loans and equity for industry, mining and processing. idc.co.za
Development Bank of Southern Africa (DBSA) — Midrand. Development bank for infrastructure and large projects. dbsa.org
South African Reserve Bank (SARB) — Pretoria. Central bank and administrator of exchange controls (Financial Surveillance). resbank.co.za
Coega Development Corporation (CDC) — Gqeberha. Manages the Coega Special Economic Zone and the Port of Ngqura. coega.co.za

Frequently asked questions

How long does it take to register a company in South Africa?

Registration via BizPortal typically takes 1 to 3 working days (up to 5 in busy periods); the SARS tax number is issued automatically.

How much does it cost to register a company in South Africa?

Roughly R175 in total via BizPortal, made up of a R50 name-reservation fee and a R125 incorporation fee (secondary source).

What is the VAT rate in South Africa?

The standard VAT rate is 15%, with mandatory registration above R1 million in annual turnover (rising to R2.3 million from 1 April 2026).

What is the corporate income tax rate in South Africa?

The standard rate is 27% of taxable profit; a reduced Small Business Corporation scale applies for smaller companies, and Special Economic Zone enterprises can qualify for a 15% rate.

What is the minimum wage in South Africa?

The National Minimum Wage was ZAR 28.79 per hour in 2025, equivalent to roughly ZAR 5,614 per month on a 45-hour week.

Is South Africa a common law or civil law country?

South Africa has a mixed legal system combining Roman-Dutch civil law with English common law. It is not a member of the OHADA system.

What is South Africa's currency?

The South African rand (ZAR), which floats freely, though exchange controls administered by the Reserve Bank still apply to certain transactions.

What is South Africa's main port?

Durban is the leading container port in Southern Africa and the anchor of the N3 trade corridor; Richards Bay, Cape Town and Ngqura (Coega) are the other major ports.

Sources

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