n Business Tax and Company Law Quarterly - Registration of foreign companies as external companies in South Africa : some practical considerations and challenges

Volume 4, Issue 1
  • ISSN : 2219-1585


The Companies Act 71 of 2008 introduced a new dispensation to regulate the requirement for foreign companies to register as external companies with the Companies and Intellectual Property Commission ('CIPC'). However, as with all new legislation, in the absence of case law, challenges may arise as to the interpretation of these new provisions. The author discusses some practical considerations and challenges that may arise in relation to the practical application of sections 23(2)(), 23(2A) and 23(6) of the Companies Act, namely:

  1. At what point does a foreign company engaging in one or more of the activities listed in section 23(2A) need to register as an external company?
  2. Interpreting section 23(6) in the context of section 23(2)() for purposes of determining when CIPC is entitled to issue a compliance notice to a foreign company to register as an external company.

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