South Africa

Ease of Doing Business in

South Africa

This page summarizes Doing Business 2015 data for South Africa. The first section presents the Ease of Doing Business rank (out of 189 economies) and the distance to frontier (DTF)** measure, overall and by topic. The second section summarizes the key indicators for each topic benchmarked against regional averages.

Economy Overview

 
Region Sub-Saharan Africa
Income Category Upper middle income
Population 52,981,991
GNI Per Capita (US$) 7,190
City covered Johannesburg
Doing Business 2015 Rank Doing Business 2014 Rank*** Change in Rank
43 37 down -6

Doing Business 2015 DTF** (% points) Doing Business 2014 DTF** (% points) Change in DTF** (% points)
71.08 71.60 down -0.52
Positive=Doing Business reform making it easier to do business. Negative=Change making it more difficult to do business.

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2015 Rank 61 DB 2014 Rank*** 55 Change in Rank down-6
DB 2015 DTF** (% points) 89.43 DB 2014 DTF** (% points) 89.43 Change in DTF** (% points) 0.00

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator South Africa Sub-Saharan Africa OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
5.0 7.8 4.8

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
19.0 27.3 9.2

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
0.3 56.2 3.4

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

View methodology
Paid-in min. capital (% of income per capita)
0.0 95.6 8.8
No. Procedure Time to Complete Associated Costs
1 Register at the Companies and Intellectual Property Commission (CIPC) 6 days on average ZAR 175
2 Open a bank account 1 day on average no charge
3 Register for income tax, VAT, and employee withholding tax (PAYE and SITE) at the South African Revenue Service (SARS) 12 days no charge
* 4 Register for unemployment insurance at the Department of Labor 4 days (simultaneous procedure) no charge
* 5 Register with the Commissioner in deference to the Compensation for Occupational Injuries and Diseases Act 10 days on average (simultaneous procedure) no charge
* Takes place simultaneously with another procedure.

**The distance to frontier score shows how far on average an economy is at a point in time from the best performance achieved by any economy on each Doing Business indicator since 2005 or the third year in which data for the indicator were collected. The measure is normalized to range between 0 and 100, with 100 representing the frontier. Read more...

***Last year's rankings are adjusted. They are based on 10 topics and reflect data corrections.

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