Terms are listed alphabetically. Definitions are general guidance, not legal advice — the precise meaning of a term always depends on the statute it comes from and the facts of your matter. For the bigger picture, start with the Doing Business in South Africa hub, or jump to the FAQ and the source library. All rand amounts and thresholds below were last reviewed on 16 July 2026.
A
AD (Authorised Dealer)
A South African commercial bank licensed, through the South African Reserve Bank, to deal in foreign exchange. All cross-border payments must route through an Authorised Dealer, and the SARB delegates most day-to-day exchange-control approvals to them — your company's own bank is the front door of the system. See exchange control.
AFS (annual financial statements)
The yearly accounts every company must prepare under the Companies Act 71 of 2008. Whether they must be audited or only independently reviewed depends mainly on the company's public-interest (PI) score and its MOI. See subsidiary vs branch for how the audit trigger compares across structures.
AGOA
The African Growth and Opportunity Act — a United States statute giving qualifying African countries duty-free access to the US market for many products. AGOA lapsed on 30 September 2025 and was renewed retroactively through 31 December 2026, with South Africa still a beneficiary as at 16 July 2026 — a position that has shifted repeatedly, so check the current status before relying on it. See importing & exporting.
AIT PIN / TCS
SARS replaced tax clearance certificates with the electronic Tax Compliance Status (TCS) system: a "Good Standing" PIN lets counterparties and tender boards see your live compliance status. The AIT ("Approval International Transfer") PIN is the TCS type an Authorised Dealer must obtain (since 22 October 2025, Exchange Control Circular 15/2025) before remitting dividends and similar income to a non-resident beneficiary registered with SARS — for a beneficiary not on the SARS register, the bank needs a SARS "Manual Letter of Compliance — International Transfer" instead. See exchange control.
Annual return
A yearly CIPC filing — not a tax return — confirming that the company (or external company) is still trading and its details are current, due within 30 business days after each anniversary of incorporation or registration. Miss two successive annual returns and CIPC may begin deregistration; since 1 July 2024 CIPC also blocks a company's return until its beneficial-ownership declaration is on record. See external company registration.
ATV (Added Tax Value)
The base on which import VAT is calculated: the customs value, plus a 10% uplift of that value, plus any non-rebated customs and excise duties — taxed at 15%. The uplift falls away for goods originating in Botswana, Lesotho, Namibia or eSwatini (the Southern African Customs Union). See VAT and importing & exporting.
B
B-BBEE
Broad-Based Black Economic Empowerment — the scorecard system under the Broad-Based Black Economic Empowerment Act 53 of 2003 measuring a business's contribution to the economic participation of black South Africans (ownership, management, skills development, supplier development and more). It bites commercially — through customers' procurement scorecards, licences and public tenders — rather than through fines. See B-BBEE for foreign-owned companies.
BCEA
The Basic Conditions of Employment Act 75 of 1997 — minimum employment standards: working hours, overtime, leave, notice and severance. Employees earning above the earnings threshold of R269 600.90 per year (from 1 May 2026) fall outside several working-time protections. See employment law essentials.
Beneficial owner (UBO)
The natural person who ultimately owns or effectively controls an entity — internationally the "ultimate beneficial owner". Companies must file beneficial-ownership declarations with CIPC (ownership or control of 5% or more; a new company files within 10 business days of incorporation), and banks must identify beneficial owners of the whole offshore chain for FICA — FIC guidance recommends the same 5% level. See company registration for foreigners and bank accounts.
BizPortal
CIPC's one-stop online platform (bizportal.gov.za) that bundles company registration with a bank account referral, a B-BBEE affidavit, and UIF and Compensation Fund registration. Useful, but it does not cover everything — the public officer, PAYE and VAT are separate steps. See registrations after incorporation.
C
CCMA
The Commission for Conciliation, Mediation and Arbitration — the statutory labour-dispute body. Most unfair-dismissal disputes are referred there first, for conciliation and then arbitration, and it is free for employees to use. See employment law essentials.
CIPC
The Companies and Intellectual Property Commission — South Africa's companies registry. It incorporates companies, registers external companies, keeps the beneficial-ownership register, processes annual returns, and registers trade marks, patents and designs. See company registration for foreigners and protecting intellectual property.
COIDA
The Compensation for Occupational Injuries and Diseases Act 130 of 1993 — no-fault compensation for workplace injuries and diseases, funded by employer assessments. Registration is compulsory from the first employee (an estimated-earnings return is due within 7 days of commencing business), and it is the source of the letter of good standing customers ask for. See registrations after incorporation.
CoR forms
The Companies Act filing forms: CoR 9.1 reserves a name (valid 6 months), CoR 14.1 is the Notice of Incorporation, CoR 15.1A is the standard short-form MOI, CoR 20.1 registers an external company (branch), and CoR 39 notifies director changes (due within 10 business days). See company registration and external company registration.
CTR (cash threshold report)
An automatic report a bank files with the Financial Intelligence Centre for cash transactions above R49 999.99 — that is, R50 000 and more. It is a routine filing, not an accusation, and the account holder files nothing. See opening a business bank account.
D
Designated employer (EE)
An employer covered by the affirmative-action chapter of the Employment Equity Act 55 of 1998 — since the turnover test fell away on 1 January 2025, simply an employer with 50 or more employees. Designated employers must adopt an employment-equity plan and report annually, and a section 53 compliance certificate is expected to be required for state business. See employment law essentials.
Dividends tax
A 20% tax withheld when a South African company pays a dividend, reducible under many double-tax treaties. Branch profit remittances are not dividends, so no dividends tax applies to them. See corporate tax.
DTA (double taxation agreement)
A treaty between South Africa and another country allocating taxing rights so the same income is not taxed twice. DTAs typically reduce the withholding taxes on dividends, interest and royalties, and set the permanent establishment threshold below which business profits stay taxable only in the home state. See corporate tax.
E
EEIP
An Equity Equivalent Investment Programme — the dtic-approved route by which a multinational that cannot sell local equity earns B-BBEE ownership points instead, measured as 25% of the value of the South African operations, or 4% of total revenue from the SA operations annually. See B-BBEE for foreign-owned companies.
eFiling
SARS's online platform for tax registrations, returns and payments. Almost everything at SARS runs through it — and almost nothing works until the company's registered representative has been activated on it. See registrations after incorporation.
EME
An Exempted Micro Enterprise — a business with annual total revenue at or below R10 million. It is deemed a B-BBEE Level 4 contributor on a simple sworn affidavit, with automatic enhancement to Level 1 if 100% black-owned or Level 2 if at least 51% black-owned. See B-BBEE.
EMP201 / EMP501
The employer payroll-tax returns: the EMP201 is the monthly declaration and payment of PAYE, UIF and SDL (due by the 7th of the following month); the EMP501 is the twice-yearly reconciliation of those declarations against employees' IRP5 tax certificates. See registrations after incorporation.
ETI (employment tax incentive)
A subsidy under the Employment Tax Incentive Act 26 of 2013 that reduces the PAYE an employer pays over to SARS for qualifying young, lower-paid employees. See incentives & Special Economic Zones.
Exchange control (FinSurv)
The system of controls on money flowing into and out of South Africa, under the Currency and Exchanges Act 9 of 1933 and the Exchange Control Regulations, 1961. It is administered by FinSurv — the SARB's Financial Surveillance Department — mostly through Authorised Dealer banks. See exchange control.
External company (branch)
The Companies Act term for a foreign company registered in South Africa without incorporating a local entity. A foreign company "conducting business" here must register within 20 business days (Form CoR 20.1); the branch is not a separate legal person, so the foreign parent carries its liabilities. See registering an external company and subsidiary vs branch.
F
FICA
The Financial Intelligence Centre Act 38 of 2001 — South Africa's anti-money-laundering law. It obliges banks and other accountable institutions to identify and verify clients and their beneficial owners and to report certain transactions, which is why account opening for a foreign-owned company is document-heavy. See opening a business bank account and our FICA guide.
Foreign politically exposed person (foreign PEP)
FICA's term (section 21F, Schedule 3B — formerly the "foreign prominent public official", or FPPO) for someone who holds or has held a prominent public function in a foreign country. Banks must apply enhanced due diligence to them — senior-management approval, source-of-wealth and source-of-funds checks and closer monitoring — as a mandatory rule, not a risk-based choice. See bank accounts.
Fronting
Misrepresenting black ownership or participation to inflate a B-BBEE status — for example, listing black "shareholders" who get no economic benefit. It is a criminal offence under the B-BBEE Act, carrying a fine of up to 10% of annual turnover for a company (individuals: up to 10 years imprisonment). See B-BBEE.
G
GloBE / global minimum tax
The OECD's Global Anti-Base Erosion (Pillar Two) rules, enacted in South Africa by the Global Minimum Tax Act 46 of 2024: multinational groups with consolidated revenue of €750 million or more must pay an effective rate of at least 15%, for fiscal years starting on or after 1 January 2024 — which can claw back incentive-driven low rates. See corporate tax.
H
Headquarter company
An elective regime under section 9I of the Income Tax Act 58 of 1962 for South African companies used as a platform to hold African operations: its distributions escape dividends tax and certain withholding and transfer-pricing rules are relaxed, subject to strict shareholding, asset and income tests. See incentives & Special Economic Zones.
I
ICT visa (intra-company transfer)
The work visa for seconding an existing employee of the foreign group to its South African branch, subsidiary or affiliate — valid for up to 4 years and not renewable, but with no points test and no local-recruitment proof. See work visas & immigration.
Information officer
The person responsible for POPIA and PAIA compliance in an organisation — by default its head (for a company, typically the CEO or equivalent), with deputies allowed. The information officer must be registered with the Information Regulator and keeps the PAIA manual current. See POPIA & data protection.
IRP6 / ITR14
The company tax returns: every company (branches included) is a provisional taxpayer and files two IRP6 provisional estimates a year (with an optional third top-up), and the ITR14 annual income tax return within 12 months of its financial year-end, all via eFiling. See corporate tax.
ITAC
The International Trade Administration Commission — the regulator under the International Trade Administration Act 71 of 2002 that administers import and export control (permits for listed goods), tariff investigations and trade remedies. See importing & exporting.
L
Letter of good standing
The Compensation Fund certificate confirming an employer is registered under COIDA, has filed its return of earnings and paid its assessment. It is only issued while those are current, and construction sites, mines and many commercial customers refuse to contract without it. See registrations after incorporation.
LRA
The Labour Relations Act 66 of 1995 — the statute governing dismissals, trade unions, strikes and collective bargaining. Its unfair dismissal protection applies from day one of employment, enforced through the CCMA and Labour Court. See employment law essentials.
M
MOI (Memorandum of Incorporation)
A company's constitution — the single founding document under the Companies Act that sets out shares, board powers and shareholder rights. You can adopt the standard short form (CoR 15.1A) or a bespoke MOI tailored to the group's shareholder arrangements. See company registration for foreigners.
N
National minimum wage
The wage floor under the National Minimum Wage Act 9 of 2018, adjusted annually: R30.23 per ordinary hour from 1 March 2026. See employment law essentials.
Non-resident endorsement
The "Non-Resident" endorsement an Authorised Dealer or transfer secretary must place on share certificates in which a non-resident holds any interest — part of the securities-control machinery under regulation 14 of the Exchange Control Regulations, applied through the AD Manual. It marks the asset as non-resident-owned, which is what makes the later sale proceeds and dividends freely transferable out of South Africa. See exchange control.
P
PAIA
The Promotion of Access to Information Act 2 of 2000 — the access-to-information law. Every private body, including a foreign-owned company, must keep a PAIA manual describing the records it holds and how to request them. See POPIA & data protection and the wider compliance hub.
PAYE
Pay-As-You-Earn — employees' income tax that the employer must withhold from remuneration and pay over to SARS monthly. An employer must register within 21 business days of becoming one. See registrations after incorporation.
Permanent establishment (PE)
The tax-treaty concept of a fixed place of business (or dependent agent) through which a foreign enterprise operates in South Africa. Once a PE exists, South Africa may tax the profits attributable to it — and an informal "rep office" or long project can create one inadvertently. See corporate tax.
PI score (public-interest score)
A size measure in the Companies Regulations, built up from employees, turnover, third-party debt and shareholders. It decides whether the annual financial statements must be audited: always at 350 points or more, and from 100 points where the statements are internally compiled. See subsidiary vs branch.
Points-based system
The scoring system for General Work and Critical Skills Work Visas introduced in October 2024: applicants need at least 100 points across criteria such as qualifications, salary, experience and a listed occupation. Both visas can run up to 5 years. See work visas & immigration.
POPIA
The Protection of Personal Information Act 4 of 2013 — South Africa's data-protection law, broadly the local counterpart to the GDPR. It requires lawful processing, an information officer and compliance with cross-border transfer rules (section 72); administrative fines run up to R10 million. See POPIA & data protection and our POPIA guide.
Private company ((Pty) Ltd)
The standard South African corporate vehicle — the equivalent of a limited company or GmbH. Its shares cannot be offered to the public, it needs at least one director, and no director needs to be a South African resident. See company registration for foreigners and resident director requirements.
Public officer / registered representative
The South African-resident individual who represents the company to SARS under section 246 of the Tax Administration Act 28 of 2011 — required from formation since 24 December 2024. SARS calls the person, once activated on eFiling, the "registered representative"; until that activation, VAT and payroll registrations, refunds and compliance PINs are all blocked. See resident directors & the public officer.
Q
QSE
A Qualifying Small Enterprise — annual total revenue in the R10–50 million band, measured on a simplified B-BBEE scorecard. The affidavit-only shortcut applies only to majority black-owned QSEs; a foreign-owned QSE needs a verification certificate. See B-BBEE.
R
RLA
SARS's Registration, Licensing and Accreditation system on eFiling, through which importers and exporters obtain customs client codes. A non-resident principal can register, but only after nominating a South African registered agent who accepts liability for its customs obligations — in practice often its clearing agent, distributor or local subsidiary. See importing & exporting.
S
SARB
The South African Reserve Bank — the central bank. For market entrants its most visible role is exchange control, which its Financial Surveillance Department administers through the Authorised Dealer banks it licenses. See exchange control.
SARS
The South African Revenue Service — the tax authority. It administers income tax, VAT, employees' taxes (PAYE, UIF, SDL) and customs and excise, almost entirely through its eFiling platform. See corporate tax.
SDL (skills development levy)
A levy of 1% of payroll funding national skills training, under the Skills Development Levies Act 9 of 1999. Employers below R500 000 annual payroll are exempt. See registrations after incorporation.
Section 11(2) authorisation
Permission under section 11(2) of the Immigration Act 13 of 2002 to conduct work on a visitor's visa — the short-term route (up to 90 days) used for installation engineers and short consultancies. It cannot outlast the visitor's visa it is attached to. See work visas & immigration.
SEZ (Special Economic Zone)
A designated investment area under the Special Economic Zones Act 16 of 2014. Qualifying companies in approved zones pay corporate tax at 15% instead of 27%, alongside customs and employment incentives. See incentives & Special Economic Zones.
T
Transfer pricing
The requirement (section 31 of the Income Tax Act) that cross-border transactions between connected parties — management fees, royalties, intercompany loans — be priced at arm's length, with formal master-file and local-file documentation once aggregate cross-border connected-party transactions exceed R100 million a year. See transfer pricing & intercompany arrangements.
Trusted Employer Scheme
A Department of Home Affairs accreditation (operating since March 2024) for qualifying corporate employers, giving streamlined, priority work-visa processing for their foreign hires and secondments. See work visas & immigration.
U
UIF
The Unemployment Insurance Fund — contributions of 1% employer + 1% employee of remuneration, capped at R17 712 per month, under the Unemployment Insurance Contributions Act 4 of 2002. Collected via the payroll alongside PAYE, with a separate registration at the Department of Employment and Labour. See registrations after incorporation.
V
VAT vendor
A person registered (or required to register) for value-added tax under the Value-Added Tax Act 89 of 1991. Registration is compulsory once taxable supplies exceed R2.3 million in any 12-month period (from 1 April 2026, up from R1 million) — apply within 21 business days — and voluntary from R120 000. See VAT for foreign companies.
W
Withholding tax
Tax deducted at source on payments from South Africa to non-residents: dividends at 20%, interest at 15% and royalties at 15% — each reducible under an applicable double-tax treaty. See corporate tax.
Y
YES (Youth Employment Service)
A B-BBEE initiative under which a measured entity moves up one or two scorecard levels by creating 12-month quality work experiences for black youth — one of the few levers open to a wholly foreign-owned company that cannot restructure its ownership. See B-BBEE for foreign-owned companies.
Frequently asked questions
"Being FICA'd" is the customer due diligence the Financial Intelligence Centre Act 38 of 2001 requires before a bank may open or keep an account: verifying the company, its directors and the natural persons who ultimately own or control it — for a foreign-owned company, all the way up the offshore chain (FIC guidance recommends identifying everyone at 5% or more). Expect certified or apostilled documents for offshore parties, and a typical account-opening timeline of 3–6 weeks (8+ weeks for complex multi-jurisdiction structures). See opening a business bank account.
A (Pty) Ltd is a South African private company — a separate legal person whose debts are its own. An external company is the foreign company itself registered at CIPC as a branch: not a separate legal person, so the foreign parent carries its South African liabilities directly. Both pay corporate tax at 27%, but a subsidiary's dividends attract 20% dividends tax while branch profit remittances attract none. See subsidiary vs branch.
No — a private company needs at least one director, and no director has to live in South Africa. The local person a foreign-owned company cannot avoid is the public officer: a South African-resident individual who represents the company to SARS, required from formation since 24 December 2024. Until the public officer is activated on eFiling, VAT and payroll registrations, refunds and compliance PINs are blocked. See resident directors & the public officer.
Registration is compulsory once taxable supplies exceed R2.3 million in any 12-month period — raised from R1 million with effect from 1 April 2026 — and an application must go in within 21 business days of crossing it. The voluntary-registration minimum is R120 000. The standard VAT rate is 15%. See VAT for foreign companies.
There is no general statutory duty on a private company to achieve a B-BBEE level, and there is no fine for scoring poorly — the pressure runs through customers' procurement scorecards and public tenders, though in licensed sectors empowerment or ownership requirements can be hard legal conditions. A business with annual total revenue of R10 million or less is an Exempted Micro Enterprise, deemed Level 4 on a simple sworn affidavit, so an early-stage foreign entrant usually needs nothing more. See B-BBEE for foreign-owned companies.
Where to next
Browse the full Doing Business in South Africa hub, check the FAQ, or verify any authority in the source library. For the deal-making side of market entry, see contracts & dispute resolution, competition & merger control and commercial property & leases. If you need advice on your own market entry, you can book a consultation with an attorney.