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flag South Africa South Africa: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Private Limited Company
Number of partners: Minimum number is 1; while as there is no limit on the maximum number of members/shareholders
Capital (max/min): No legal limit
Shareholders and liability: Liability limited to the amount contributed.
Public Limited Company .
Number of partners: Minimum number is 1; while as there is no limit on the maximum number of members/shareholders
Capital (max/min): No legal limit
Shareholders and liability: The liability of a member is limited to the face value of the shares he owns
Close Corporation
Number of partners: 1 partner
Capital (max/min): No minimum capital.
Shareholders and liability: Liability of the active partners is unlimited. 
Partnership
Number of partners: Minimum 2; Maximum 20 partners.
Capital (max/min): No minimum capital.
Shareholders and liability: Liability of the active partners is unlimited. Liability of the sleeping partner is limited to the amount contributed.
The Competent Organization
Companies and Intellectual Property Registration Office
Search a Company or a Financial Report
CIPC, Companies and Intellectual Property Commission
 
Setting Up a Company South Africa Sub-Saharan Africa
Procedures (number) 5.0 8.0
Time (days) 19.0 34.0

Source: Doing Business.

 
Business Setup Procedures
Doing Business, to know about procedures to start a Business in South Africa.
The Register of Commerce
Companies and International Property Commission (CIPC)

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The Active Population in Figures

201120122013
Labor force 17,660,00017,890,00018,540,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -55.00%52.30%
Men activity rate 63.40%60.40%60.80%
Women activity rate 47.00%43.80%44.00%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2008
Manufacturing 14.3%
Households with Employed Persons 9.0%
Construction 8.3%
Transport and Storage 5.6%
Mining and Quarrying 2.4%
Electricity, Gas and Water Supply 0.7%

Source: International Labor Organization (ILO)

 
For Further Statistics
Statistics South Africa
For Further Information About the Labor Market
South Africa Labor Law Profile

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Working Conditions

Legal Weekly Duration
45 hours in a week or 9 hours in a day. For employees who work a 6-day week, it is 8 hours per day.
Retirement Age
The retirement age is 65 for men and 60 for women.
Working Contracts
Employment is mainly regulated by the law of contract and by Labor Relations Act (LRA),1995. The contract should clearly mention: maximum hours of work, overtime rates, minimum periods of annual leave, notice of termination, organizational rights in respect of trade unions, strike law, rights and responsibilities of employers and workers in the event of retrenchments, insolvency and transfers of businesses, protection from unfair dismissal and the prohibition of unfair discrimination.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
ZAR 2,159 per month (source: ILO, 2011).
Average Wage
Average monthly gross earnings in South Africa is ZAR 8,500 (USD 1,100).
Social contributions
Social Security Contributions Paid By Employers: 1%
Social Security Contributions Paid By Employees: 1 %.

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Social Partners

Social Dialogue and Involvement of Social Partners
For effective bargaining, South Africa has Bargaining Council system. Bargaining takes place between the employers and trade unions under the auspices of the Bargaining Council. The collective agreements concluded in the Bargaining Council bind only the parties to the Bargaining Council.

The Congress of South African Trade Unions (COSATU) is the largest and most effective trade union in South Africa. It is affiliated with the African National Congress (ANC) and the South African Communist Party. COSATU represents 21 national industrial affiliates.

Unions
COSATU (Congress of South African Trade Unions)
FEDUSA (Federation of Unions of South Africa)
Unionization Rate
30% (approximately)
Labor Regulation Bodies
Department of Labor, Government of South Africa

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Last Updates: February 2015