In the article I’ll tell you about Starting a Business in Africa – Do It The Right Way. Africa is one of the most populous continents in the world. In fact, it is second to Asia in terms of the number of people per square area. Today, there are over one billion people in Africa. This means that Africa has one of the biggest demands in terms of commodities, services, housing, etc. The number of people equates to the number of job and business opportunities in this country. There are many people to offer services to; hence, the opportunity for businesses is extremely high.
With this information, there is high assurance that doing business in this country would be lucrative especially when one knows how to invest money the right way.
Once you know what kind of business you want to venture into, then it would be wise to understand the proper procedures in starting a business in Africa. First, the company name has to be registered with the Registrar of Companies. Once the name of the company is passed, it is automatically reserved in the Registrar’s data base, that is, if there are no names already in existence. There is payment for the registration and it takes three days or longer to finish.
Next on the list is to acquire a certificate to start business because the law requires all businesses to be registered and reserved before the company can begin transaction of any kind. Once payment is done, it takes around five to seven days to finish the lodging of formation documentation with CIPRO in Pretorea, Gauteng Province, South Africa.
The third step is to open a bank account and this has no fee and takes only a day. Step four requires the registration with the office of the local receiver of revenues for the following: income tax, employee withholding tax, and VAT. This has no charge and takes 12 days to finish. Once the relevant office for South African Revenue is given, the income tax number may now be granted. In connection with the VAT, the company is also required to procure a service officer who must also be a resident of the said country.
Since the first of February 2008, the application has been simplified and from seven page document, the company only has to deal with a four page document. The fifth step is to register the company to the Department of Labor for the Unemployment Insurance. This takes four days and must be done hand in hand with step four. Upon approval, the company is issued a reference number.
Lastly, the company has to register with the commissioner in accordance to the Compensation for Occupational Injuries and Diseases Act which takes around ten days to finish and must be done simultaneous with step four.
Once the registration form is submitted, the company may now start business. To start a business, one must simply follow these procedures to avoid any inconvenience which lack of proper documents and other necessary papers cause. Africa is the place to reconsider when it comes to business opportunities.