Business accounts: South Africa

Updated 6 October 2026

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South Africa has the continent's largest and most developed financial system, with world-class banks and its own currency, the rand. For foreign businesses the key feature is exchange control: money flows between South Africa and other countries are controlled by the South African Reserve Bank through authorised dealer banks, so a non-resident's account is opened with a special status. Below: the types of accounts, company taxation and what the bank checks.

Who needs a South African account

• South African companies, including subsidiaries of foreign groups.
• Foreign companies operating in South Africa through a branch or permanent establishment.
• Individuals moving to the country or earning income there.

Company taxes in South Africa

Corporate income tax is 27% for years of assessment from 1 April 2026 to 31 March 2027. A company incorporated under South African law or effectively managed there is resident and taxed on worldwide income. A foreign company with a branch or permanent establishment in South Africa pays tax on South African-source income. South African-source interest paid to non-residents bears a final 15% tax.

What the bank checks

• company registration with the Companies and Intellectual Property Commission, or branch registration;
• beneficial owners and directors;
• activity, counterparties and expected turnover;
• the source of funds and compliance with exchange control rules.

Documents

• the company or branch registration certificate and constitutional documents;
• passports and proof of address of directors and beneficial owners;
• the company's tax number;
• a business description, contracts and proof of source of funds.

Personal account

Banks open resident or non-resident accounts for individuals depending on status. People relocating usually first need a residence permit, a tax number and a verified address.

The rand and payments

Domestic payments are made in rand, and the bank processes payments abroad and receipts from abroad under exchange control rules. For importers, exporters and companies with foreign owners this means extra documents for each large payment, so contracts and invoices are kept in order from the start.

A non-resident account

For a non-resident the bank opens an account with special status: funds come in from abroad and can be taken back out under exchange control rules. Such an account suits investments in South Africa, paying for property and expenses during stays. The bank checks the source of money and the purpose as strictly as for residents.

Why applications are refused

• the foreign company has no activity in South Africa;
• payments do not comply with exchange control rules;
• an opaque ownership structure or unclear source of funds;
• links to sanctioned countries.

How the account opening works

1. Structure. We decide whether a South African company is needed or a branch is enough.
2. Registration. We register the company or branch and obtain a tax number.
3. Bank. We choose the bank and prepare documents with exchange control in mind.
4. Opening. We support the checks and the account opening.

VAT and protection of company funds

From 1 April 2026 a company must register for VAT if its taxable supplies in any 12 consecutive months exceed R2.3 million, about $138,350 at the 5 October 2026 rate, rounded up; previously the threshold was R1 million. The VAT rate is 15%. Voluntary registration is possible from turnover of R120,000.

Since 2024 South Africa has had a state deposit insurance corporation at the Reserve Bank: it protects up to R100,000, about $6,020, per depositor per bank. Cover extends not only to individuals but also to companies other than financial ones. For large balances this is not much, so we spread company funds across banks or place them with the risk in mind.

What we do

We choose the structure and bank, prepare documents, and handle the account opening and registration with the South African Revenue Service. A manager will calculate the cost in the chat.

What we do

• Corporate account - opening assistance

See also

Company formation · Personal account · Investment property · All country programs

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