Business emigration to South Africa h1>
How to open a business in South Africa.
How to open a business in South Africa.
Famous for the whole world of Sun City, where the annual contest “Miss World” is held; and there are the largest casinos after Las Vegas – the creation of our compatriot, the former Odessa resident Saul Kerzner. Solomon Kerzner grew rich in South Africa on speculation with diamond and uranium shares and built the city of his dream Sun City 110 km from Johannesburg, right in the crater of the volcano.
Less famous Russians include jewelry stores, travel companies, car repair shops, factories for dressing skins and making leather goods.
One of the most profitable businesses in South Africa is tourism. 5 million travelers visit the Republic of South Africa every year. They go on a safari to the Kruger National Park (the world’s second largest nature reserve), to the habitats of the Zulu and Bushmen, the oldest African tribes still living in the Stone Age.
The former Russian Elena Kulik eight years ago moved to South Africa and opened in Johannesburg travel agency Golden Route Africa. In Russia, Lena graduated from VGIK, nine years worked as editor of the television “Travel Club”, traveled the whole world. According to her, the South African Republic made a strong impression on her, and she stayed here forever.
I’m fascinated by South Africa. According to UNESCO, in Johannesburg the best climate in the world is mild and dry. The city is located at an altitude of about 1200 meters above sea level. It’s never hot here. In the winter, snow falls in the mountains.
But most of all I love South Africa for the tax climate. Here all conditions are created for people to grow rich and develop their business. For example, small businesses do not pay a profit tax at all. Businessmen declare in the tax declaration that they are investing their profits in the development of their business. In this case, the legislation exempts them from tax.
So I decided to do tourism. In June 1995, I registered my company. Co-owner of Golden Route Africa – Tatiana Katz, also from Russia, in the late 80’s, she was engaged in organizing tours of Russian art groups in South Africa. She, like me, has a great organizing experience. Today our company is a member of The South Africa Tourism Service Association. This association accepts firms with an impeccable reputation, having at least three recommendations from renowned South African lawyers, auditors, etc.
Starting capital of $ 40 thousand we invested in the purchase of computers, office equipment, the publication of brochures about our company and advertising. We rented an office with an area of 30 square meters. meters in the prestigious area of Johannesburg – Wendewood.
It is very important to have an office in an elite area. In some quarters of Johannesburg you can not go even during the day. With the advent of the black government in South Africa, street crime has become the No. 1 problem.
$ 1 thousand had to spend on security, the purchase of surveillance cameras. 460 rand a month ($ 85) we deduct to the security company for round-the-clock protection of the office.
The first six months developed tourist routes, negotiated with hotels, transport companies and air carriers. Tourists began to take in late 1995. And in half a year the invested capital was repaid.
Now the turnover of the company is $ 800 thousand – 1 million per year. We accept 300 – 400 people a year from Russia, Latvia, Kazakhstan, Israel, the USA, Brazil, Japan and other countries. We are satisfied with such a flow, we do not want to grow. We try to keep the brand. Our guides are famous throughout South Africa. Many travel companies repeatedly tried to buy them. Our three guides are Russian doctors of science, great clever ones. Their salary is $ 100 per hour.
Another employee is a secretary-referent. She is African, extremely smart and smart. So we pay her 4,5 thousand rand a month ($ 850).
$ 12,000 a year is spent for participation in international tourism exhibitions.
At 3 thousand rand a year ($ 600) costs membership in the South African Tourist Association (admission fee of only $ 100). That’s all our expenses.
Our business brings up to 200-250 thousand rans of book profit per month ($ 40-50 thousand).
Net profit – about $ 18- 20 thousand per month.
Everything here is cheap: food, clothing, transport, education. The consumer basket for a family of three people of medium income – $ 500 per month (food, accommodation, entertainment, travel).
As for the problems of South Africa – this is AIDS and street hooligans. Once we had to fire the guide who was walking around Russian tourists and showed them the two most illicit and criminal districts of Johannesburg – Alexander and Hilbrow. From such excursions the reputation of the company suffers.
Evgeny Evreinov, owner of Katia Export and Import:
“In South Africa, I’ve been living for five years, and I took up business two years ago. I’m not new to furniture business. I’m a Muscovite, but I owned a furniture factory in Siberia. In Russia, this business is one hundred percent criminal. In South Africa do not know what a mafia is.
I’m doing my favorite thing. I make all furniture manually. The niche of the exclusive furniture market is kept in South Africa by whites. Black also works in furniture factories, but they produce running, cheaper products. Among them there are few talented workers, they are not artists.
I started the business from scratch. To begin with, he invested $ 100,000. With this money I bought two hectares of land, a residential two-story mansion (360 sq. Meters) with European-quality repair and a swimming pool, two cars (cargo and passenger), built a workshop on the site. I hired four workers. Two of them are Russian – they help me in the manufacture of furniture, two black – in the back-office. For the latter need constant attention, a little turned away – they are already sleeping.
I brought the machines worth $ 20,000 from Russia. Here I bought equipment for about $ 20 thousand, $ 3 – 4 thousand spent on manual machines, drills.
This year has paid back all the initial costs.
My customers are mostly Dutch and English. Today they are in fashion products from Zimbabwean teak, other hardwoods. Especially good are wooden chairs with gilding in Empire style, decorated with zebra skins. Such chairs are, for example, in the Palace Hotel in Sun City. Tourists will look at them and run to me to order exactly the same.
I spend my free time with my family on the shores of the Indian Ocean, travel a lot, hunt. I leave for 20 – 30 km from the city and get into the wild savanna or bush.
To begin with, you need to send a letter in an arbitrary form to the South African Ministry of the Interior with a message that you want to start a business in this country (telephone Home Affairs: 011-836-3228). In the envelope you need to attach an extract from your bank account, confirming that you have $ 40,000. As immigration lawyers say, the main thing is not to have complaints from the South African police department and not to be wanted in Interpol.
In the case of a positive response from the Ministry of Internal Affairs of South Africa in the embassy in Moscow, you will be offered to transfer money to an account in any South African bank (the largest – Volkskas Bank). And then they will give out a temporary residence permit (its value is $ 30-40). He gives the right to enter this country, conduct business in its territory and receive dividends.
Next, you will have to register a South African company. The registration fee is $ 300–400 depending on the city where you plan to open your business. Approximately $ 20 will be taken by a local lawyer for processing documents and filing them with the South African Chamber of Commerce. Term of registration – 4–6 months.
Having a registration certificate on hand, you can apply for a permanent residence permit. The cost of permanent residence is about $ 1,000. He gives equal rights with South African citizens, except for the right to receive social benefits.
Having lived in South Africa for a total of five years, you automatically become a South African citizen. The state fee for the issuance of a passport is about $ 1,000. A couple of years ago this procedure was free. But due to the influx of immigrants into the country, the Ministry of Internal Affairs of South Africa is overloaded with work. This fee is a kind of payment for their diligence.