South Africa remains an attractive destination for international entrepreneurs looking to purchase an existing business or set up a new venture. The South African Business Visa, governed by Section 15 of the Immigration Act No. 13 of 2002, is the applicable temporary residence visa. It also offers a path to permanent residence.
In the following, we outline the required steps for a successful business visa application.
There are four main steps:
- Finalising the business concept, confirming the availability of funds, and obtaining a Chartered Accountant certificate.
- Submit a recommendation application to the DTIC using the VRS portal.
- Applying for a waiver of the capital requirement with the Department of Home Affairs (if applicable).
- Submit the business visa application at a VFS office, South African Mission overseas, or locally if applicable.
Who Qualifies for a Business Visa?
Compared to other African countries and established international markets, South Africa requires a fairly high minimum investment of R5 million (ZAR). If the intended business falls within one of the defined national interest sectors, one can invest less than R5 million.
The second requirement is that at least 60% of the permanent staff complement must be South African citizens or permanent residence holders.
Lastly, the intended business should not be classified as undesirable. These are legally defined and currently limited to:
- Exotic entertainment
- The security industry
- The importation of second-hand motor vehicles
At the time of application, the money must not yet have been invested in South Africa. However, the funds must be available for investment in South Africa. In practice, the DTIC has created additional hurdles that are not evident from the legislation but require in-depth practical knowledge. The DTIC believes that the applicant must have the funds available, and they cannot be provided by a third party or by a company in which the applicant is the main shareholder.
Practical Guideline to the DTIC Business Visa Recommendation Application
Investors should compile a detailed business plan covering market analysis, competitive advantages, basic financial projections, and other relevant information. The business plan does not need to have the same scope as a bank would require for a loan. However, it should clearly demonstrate the business’s feasibility and growth prospects.
In the second step, a Chartered Accountant must confirm the availability of funds. Availability is defined as funds held in a bank account, free of third-party rights. A house for sale, for example, is not considered available funds. The Chartered Accountant must be registered with SAICA (South African Institute of Chartered Accountants) or SAIPA (South African Institute of Professional Accountants).
Once the Chartered Accountant certificate is issued, one can then submit the DTIC application online through their new portal, the Visa Recommendation System (VRS). This portal is a massive improvement over the old method of submission, which was via email. The VRS offers secure data exchange and upload capabilities.
Other important documents required for upload include:
- Company formation documents (CIPC registration)
- CV of the applicant
- Proof of registration with UIF and SARS
- COIDA (Compensation for Occupational Injuries and Diseases Act) registration
The DTIC suggests a processing time of 45 business days. However, in practice, we often see slightly longer processing times, which should be factored into any commercial launch or relocation planning.
Applying for a Capital Requirement Waiver with the DHA
Once the DTIC recommendation is issued and the applicant has invested less than R5 million, Step 3 becomes applicable. One would then submit a standalone waiver application at the Department of Home Affairs to waive the R5 million capital requirement.
If the DTIC has recommended the business, we have never seen a negative adjudication of such a waiver. The practical problem, however, is that this waiver application can take up to 12 months to process. This causes unacceptable delays for most investors. For this reason, it is recommended to consider businesses requiring more than R5 million in capital investment, where possible, as this eliminates the need for the waiver step.
Submission of the Business Visa (Section 15)
Once Step 2 is successful (and Step 3, if applicable), one can proceed to submit the business visa application.
If this is the applicant’s first temporary residence application, it must be submitted overseas, at the relevant South African Mission or VFS office in the applicant’s country of nationality or residence.
The following documents are typically required at the visa application stage:
- Form DHA-1738 (Application Form)
- Original passport (must expire no less than 30 days after the intended date of departure from South Africa)
- Police clearance certificates from each country where the applicant resided for a minimum of 12 months during the past 5 years
- Medical report (Form BI-811), completed by a medical practitioner and not older than 6 months at the time of submission.
- Three months’ bank statements, stamped by the bank on all pages
- Marriage, divorce, or spousal agreement certificates (where applicable)
- Yellow fever certificate (if travelling from a risk area)
South African Missions commonly retain the applicant’s physical passport throughout the processing period, which can last between 8 and 12 weeks. For internationally active businesspersons, possession of a second passport is a practical necessity. applicant’s physical passport throughout the processing period, which can last between 8 and 12 weeks. For internationally active businesspersons, possession of a second passport is a practical necessity.
What to Look Out for Once the Business Visa Is Issued
Once issued, a business visa is valid for a maximum period of three years, and renewal applications require proof that all original conditions continue to be met.
Within 12 months of visa issuance, the visa holder must submit a confirmation letter verifying that at least 60% of the permanent workforce consists of South African citizens or permanent residents.
An application for permanent residence based on one’s own business can be submitted within the first three years of the business visa, provided the business is properly set up and in full operation. A separate DTIC recommendation is required for the permanent residence application. It is worth noting that the DTIC requires a physical site inspection during permanent residence adjudication to confirm that the enterprise is operational and compliant with employment commitments, making thorough record-keeping from the outset essential.
Note: In the event of a visa refusal, applicants have only 10 working days to submit an appeal. Applicants should always confirm current requirements with official DTIC or DHA sources, as procedures and fees (currently R1,520 for DHA and R1,550 for VFS) are subject to change without notice.
Written by Andreas Krensel, Senior Director, Africa and Europe, Cape Town
