If you have the intention to expand into new markets such as South Africa, there are a variety of factors you need to consider. Firstly, when developing new business in different territories, a branch office in a foreign country may carry with it certain risks. However these can be tackled head on with consummate ease if you are well prepared and understand how to set up your firm accordingly. Yet, how can you ensure you have everything in place when it comes to creating a new South African branch?
Overview of essentials
There are a host of aspects you should note when taking the decision to create a new branch in this particular country. It will influence your business whilst providing new and existing challenges to manage the overall strategy. Procedures that you will have to factor in feature;
- Structure of ownership.
- Legal structure and contracts.
- Foreign exchange issues.
If you have decided to set up a separate branch in South Africa you will need to perform a number of different tasks. This features registering with the South African jurisdiction. This is in spite of the fact that shareholders as well as directors located wherever your official headquarters are. The next stage is to obtain a registration number for South Africa. Known as a “Memorandum of Association” you would need to operate your business according to the laws outlined. Other registrations details you will need include;
- Finding a responsible individual such as a native South African to deal with corporate affairs.
- Registering with the CIPRO where they will need to front all operations relating to this new branch.
Finding a site
Considered to be one of the most important factors is where you choose your new branch location. Ask for advice as well as enquiring about the potential office space for rent. Whether you require a small workplace or a larger office with hundreds of square feet, there are plenty of workspace solutions available. When it comes to taking out an office rental you need to ensure that;
- You have a budget and stick to it.
- It is in a good location within close proximity of your employees.
Meetings and Conferences
Once you have found your dream office, then you will want to look at getting in the right furniture not to mention set up your IT solutions. This can be easily done thanks to the wide
variety of office rental companies and serviced office blocks that have access to the latest state of the art technology. In addition to this, you should ponder whether or not you want to make the necessary interior improvements in order to portray the correct image to both clients and prospective companies. Meanwhile, there are a host of other options you can take out to get you going such as;
- Reception and virtual office services.
- Meeting rooms or business lounges for cost effective use.
When setting up a new branch, an auditor must be hired in order to take care of all the finances. It is of course restricted to the turnover of any business you perform within South Africa. Specifically for taxation purposes, these records can also be utilised by your global auditors if necessary. The usual tax rate for a new branch of this nature is 34% on the overall net profit.
There are plenty of selections that you need to look at as far as finalising all your branch office details are concerned. But if you follow these steps efficiently, it will ensure you follow the right path to setting up the ideal office division in South Africa.
Sofia Walton is a traveler enthusiast who enjoys outdoor activities. She occasionally writes for blogs as a guest author on topics relating to her hobbies and travels.