Exchange Control
South Africa has exchange control restrictions which apply to resident and non resident persons. A person in this context is a natural person, a company, a trust or a partnership.
Exchange control regulations regulate the in- and outflow of capital in South Africa. All foreign exchange transactions are subject to comply with the exchange control regulations, no matter if money is supposed to be send into South Africa or out of South Africa.
Exchange Control is administered by the Reserve Bank through agents of the Reserve Bank. Agents are sitting in all major South African banks with a foreign exchange license.
There is no limitation on bringing money into South Africa, but there are limitations when it comes to sending capital abroad. What kind of regulations are applicable depends on your individual status for exchange control purpose.
There are different rules for legal and for natural persons. A legal person, like a company, is a resident for exchange control purposes if it has its normal place of registration in SA.
Natural persons are divided into different groups according to their residential status in South Africa. Each person is categorised as being either a non-resident, a resident, a temporary resident or an immigrant for exchange control purposes.
Every individual should make sure to know its status for exchange control purposes before money gets transferred into South Africa, to ensure that they have the full picture of all regulations applicable to them to be able to retransfer assets abroad again should it be necessary.
To find out how Intergate Corporate can assist your organization please contact us for a free initial consultation or request a call back.
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