Can A Foreign Company Buy A Property In South Africa?
When buying property in South Africa, foreign companies need to consider specific legal requirements.
Foreign Companies Registered in South Africa
A foreign company registered as an "External Company" with the Companies and Intellectual Property Commission (CIPC) can buy property in South Africa.
Foreign Companies Not Registered in South Africa
Even if a foreign company isn't registered as an External Company, it can still buy property. However, the conveyancer must provide proof to the Registrar of Deeds that the company doesn't need to register, as per the Companies Act.
Section 23(2)(f) the Companies Act stipulates:
“For the purposes of subsection 1, a foreign company is not to be regarded as “conducting business, or non-profit activities, as the case may be, within the Republic”, unless that foreign company is engaged in, or has engaged in, one or more of the following activities within the Republic …(f) acquiring any interest in any property.”
Important Note
While a foreign company can buy property without being registered with the CIPC, it must register as an External Company as soon as it acquires the property. This is a legal requirement to ensure compliance with South African law.
If you're a foreign company considering buying property in South Africa, it's essential to consult with a qualified legal professional to understand the specific requirements and potential challenges involved.