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What must be done to maintain a South African business visa? Detailed explanation of this question

Source: Samigration, 04/03/2025




`To maintain a South African Business Visa, the visa holder must comply with several legal, financial, and operational requirements set out by the Department of Home Affairs (DHA). Below is an explanation of what must be done:1. Compliance with Initial Visa Conditions When a business visa is granted, certain conditions must be met and maintained throughout the visa`s validity period. These conditions typically include:a) Minimum Investment Requirement - The applicant must have invested at least R5 million (previously R2.5 million in some cases or less if such investment was waived ) in their business. - This amount must be from foreign direct investment (FDI) and must be invested into the South African economy. - The funds should be used for business operations, including capital expenditures, inventory, infrastructure, and expansion. - If the initial investment was approved with a waiver of the full R5 million requirement, any specific alternative conditions granted by the DHA must still be followed.b) Business Structure & Operation - The business must be registered with the Companies and Intellectual Property Commission (CIPC) as a (Pty) Ltd, Close Corporation (CC), or another recognized legal entity. - The visa holder must be actively involved in the management and daily operations of the business. - The business must be lawfully operating within its permitted industry.c) Job Creation for South African Citizens•The business must employ at least 60% South African citizens or permanent residents.•Proof of employment (such as payslips, UIF contributions, and employment contracts) must be available for verification.d) Compliance with Tax and Financial Regulations•The business must remain in good standing with the South African Revenue Service (SARS) and submit:oAnnual tax returnsoVAT (if applicable)oPAYE (Pay-As-You-Earn) for employeesoUIF (Unemployment Insurance Fund) contributions•An independent Chartered Accountant’s Report is required to verify compliance.e) Sector-Specific Approval (if applicable)•If the business operates in a regulated industry (e.g., healthcare, finance, security), sector-specific licenses or permits must be maintained.2. Renewing the Business VisaA business visa is usually granted for 3 to 5 years and must be renewed before expiration. The renewal process requires:a) Proof of Continued Investment•Bank statements, audited financial statements, and investment confirmations must be submitted to show that the required capital remains within the business.b) Updated Business Plan•The business plan should reflect the company`s financial growth, job creation, and future projections.c) Proof of Employment for South Africans•An updated staff list showing compliance with the 60% local employment rule.•Signed employment contracts and statutory ontribution records.d) Updated Chartered Accountant’s Letter•A registered accountant or auditor must confirm that the business remains financially viable and compliant with tax laws.e) Valid Business Licenses•If required for the specific industry, renewed sectoral licenses and permits should be provided.3. Prohibited Activities (That Can Lead to Cancellation)A business visa holder must NOT:1.Engage in Unauthorized Business Activities â€` The visa is tied to a specific business; changing industries without approval may result in cancellation.2.Fail to Maintain Investment â€` If the required capital is withdrawn or misused, the visa may be revoked.3.Fail to Employ South African Workers â€` The business must maintain the required ratio of local employment.4.Fail to Submit Tax and Financial Reports â€` Tax evasion, fraud, or failure to submit SARS returns can result in legal action and visa revocation.5.Violate Immigration Laws â€` Any breach of visa conditions, including working outside the authorized business, could lead to penalties or deportation.4. Reporting and Compliance Checks•The Department of Home Affairs and Department of Labour may conduct periodic checks to verify compliance.•DHA may request financial reports, employee contracts, and proof of active business operations at any time.•Failure to comply can result in visa cancellation, penalties, or deportation.ConclusionTo maintain a South African business visa, you must:✅ Keep your business legally registered and operational.✅ Maintain the R5 million investment (or approved amount if a waiver was granted).✅ Employ at least 60% South African workers.✅ Stay compliant with tax and labor laws.✅ Renew your visa before it expires with proper documentation.✅ Follow the business plan and industry regulations.Would you like help with specific aspects, such as renewal procedures or compliance audits? 😊How can we help you , please email us to info@samigration.com whatsapp message me on: +27 82 373 8415, where are you now? check our website : www.samigration.comPlease rate us by clinking on this links : Sa Migration Visashttps://g.page/SAMigration?gm`


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