What types of business are provided by African state? What are the most popular business models in the country? Read the article to learn how to star your own business in Africa.
South African state has appeared in the world market after an exit from isolation in the mid-nineties of the last century. At once after that, the rich natural and manpower resources of the country have begun to attract entrepreneurs and international specialists from around the world. It became a push of development of national economy and its exit to modern economic indicators. Being guided by economy level indicators, and also by development of other financial and economic spheres of the countries of African continent, the Republic of South Africa occupies the top place in this list. About a third of GDP and also almost a half of industrial production and agricultural products of the whole African continent belong to this state. For this reason, many future entrepreneurs wish to open business in Africa. What is the best business intelligence for this country?
The Republic of South Africa has diversified economy, which is provided by the following spheres and business ideas:
- Agricultural industry;
- Mining and processing industry;
- Mechanical engineering;
- Real estate and construction;
- Trade sphere;
- Metal industry;
- Service trade.
There are three main financial instruments in the market of the state:
- The Johannesburg Exchange;
- The Futures Exchange of Republic of South Africa;
- The Exchange of Bonds of the Republic of South Africa.
Unlike many other countries of Africa, the republic can brag of the biggest and developed transportation network on the continent. Convenient infrastructure plays a huge role in the economic sphere of the state.
The government of the country is interested in inflow of investors and supports them in the legislation. To open business in the Republic of South Africa without restrictions concerning the size of entity is possible. Besides, the country does not apply for a share of the entity. It helps with occurrence on the market and provides inexpensive natural resources and the electric power.
The government of the country has started several financial programs, which are supported by the beginning companies. But the business should work for development of economic industry of the country. Support is provided to the companies, which are involved in various industries. Especially the attention is deserved by such spheres as mechanical engineering, automotive industry, tourism, marketing projects, technologies, innovations and other spheres. The programs support not only national entrepreneurs, but also help foreign business to develop.
According to the legislation of the state, it is possible to open business in the territory of South Africa on condition of two factors: the business acquisition amount should be at least 40 000 dollars and the entity has to provide with workplace at least four citizens of the Republic of South Africa.
Perspective entrepreneurs also should not have criminal records – it is checked carefully. The following important stage is money transfer into the account of any Republic of South Africa bank. After that future entrepreneur receives residence permit and is authorized to go on the territory of the country and to begin the business.
There are several types of business model:
- Sole proprietor company with one owner;
- Joint business with other partners;
- Closed corporation, in which only physical persons can participate;
- Closed or open entity;
- Registration of the legal entity, which was formed out on the territory of the state, as external company in the territory of the republic.
To register business in the territory of the state, it is necessary to pass through some obligatory steps:
- Reservation of the name of the business entity;
- Creation of the constitutive treaty of the entity and its charter;
- Official approval of the director of the entity in writing form;
- Receipt of the official post address.
A foreign businessman can manage the entity by means of local representation of the firm or through affiliate enterprise.