Foreign companies planning this move must make the correct decisions, especially if planning to relocate staff or hire locally and operate their payroll. In the latter case, the essential first step is to establish a legal entity in the country, with the most attractive choice being a private company whose shareholders have limited liability. South Africa’s economy poses challenges but attracts many international companies. Subsidiaries of foreign corporations include Mercedes-Benz, Nissan, Toyota and Volkswagen from the automotive sector alone.
The World Bank identifies that Foreign Direct Investment will have a critical influence in fueling growth, creating jobs and relieving high unemployment, with incoming companies attracted by a combination of low operating costs and well-developed logistics and infrastructure. South Africa provides Special Economic Zones (SEZ) and Industrial Development Zones (IDZ) with the possibility of preferential corporate tax rates. This is plainly an attraction for incoming companies, but the temptations and attractions come with risks. However, there is a no-risk route to access South Africa’s potentially rewarding market.
Bradford Jacobs’ Professional Employer Organisation (PEO) and Employer of Record (EOR) platforms and networks provide complete answers to every question your company will encounter before you move into the economy, especially when it comes to operating payroll.