South Africa

Legal Framework

South Africa has the most developed legal and regulatory infrastructure on the African continent for technology governance. The Protection of Personal Information Act (POPIA) provides comprehensive data protection aligned with GDPR principles. The Financial Sector Conduct Authority (FSCA) and South African Reserve Bank (SARB) have established regulatory frameworks for crypto assets and fintech innovation. The Presidential Commission on the Fourth Industrial Revolution (PC4IR) made recommendations on AI governance in 2020. The Department of Communications and Digital Technologies has published a National AI Policy Framework discussion paper. While no AI-specific legislation exists yet, the regulatory trajectory is toward structured AI governance.

Key Laws & Regulations

• ◆Protection of Personal Information Act (POPIA) 2013
• ◆Companies Act 71 of 2008
• ◆Financial Advisory and Intermediary Services (FAIS) Act
• ◆FSCA Declaration on Crypto Assets
• ◆Electronic Communications and Transactions Act 2002
• ◆Cybercrimes Act 2020
• ◆Financial Intelligence Centre Act (FICA)

Business Formation

Private company (Pty Ltd), public company (Ltd), personal liability company, and external company available. Registration through the Companies and Intellectual Property Commission (CIPC). Well-established corporate governance framework (King IV Code). JSE-listed companies follow additional disclosure requirements.

Tax Implications

Corporate tax rate of 27% (reduced from 28%). Capital gains tax effective rate of 21.6% for companies. Digital services tax under consideration. VAT at 15%. South Africa has an extensive double taxation treaty network. Headquarter company regime offers benefits for holding companies.