doing business fact sheet 2014
Launching a business in South Africa is a straightforward process. According to the World Bank, it can be measured through four criteria: procedures required to establish a business, the associated time, the associated cost, and the minimum capital requirement. Entrepreneurs can expect to go through 5 steps to launch a business in South Africa, over 19 days on average, at a cost equal to 0.3% of the economy’s income per capita (Gross National Income), i.e. USD112.88 according to World Bank estimates. There is no minimum capital requirement to obtain a business registration number, compared with the OECD average of 10.4% of Gross National Income.
Compared to India, Brazil and other OECD countries, South Africa has a competitive advantage in its ease of starting a business with low associated costs and time. There are fewer procedures required to starting a business in South Africa, which has been significantly facilitated by the new Companies Act (which has been recently promulgated), as well as the South African government’s commitment to creating a business environment conducive to economic growth and sustainability.