How to hire employees in South Africa
It has been shown that having employees in different parts of the world can and does benefit companies. The problem lies in the selection and hiring process. But we have a solution for that.
International companies may view South Africa’s high unemployment rate as a positive opportunity to employ qualified workers who may be struggling to find work.
To hire employees in South Africa, your company first needs to establish a legal entity in the country. You can choose to form a branch, a private or public company, a close corporation, a partnership, or a joint venture. Many international companies choose to form a private company in South Africa, which can operate more independently than a foreign branch. Starting a business in South Africa takes at least 40 days and involves several steps. To establish your South African subsidiary, you must:
- Apply for a company name, or accept your business number as your name.
- File a notice of incorporation.
- Submit your memorandum of incorporation.
- Open a South African bank account.
- Register with the tax authorities.
- File for UIF with the Department of Labor.
- Register for COIDA.
- Apply with the District Council.
- You may also need to procure special business licenses or permits depending on your industry and business operations in the country. You should also factor in time for setting up your business location, whether that means renting out office space or building a manufacturing plant.
The simpler solution if you don’t need a physical business presence in the country and you want to start hiring new employees in South Africa right away is to partner with an Employer of Record (EOR).
Hiring remote employees in South Africa is possible!
Roots EOR bears the responsibility of legal compliance like managing payroll and leave. This means your company gets all the benefits of employing South African employees without having to deal with the complexities of international hiring.
Want to know more about us? Contact us.
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