# Buying a small business in Port Elizabeth



## millspeed88 (Jan 4, 2012)

Hi all.

My girlfriend has a daughter living in PE and we have been out there a few times. We have purchased a house out in PE and we have both decided that if it was possible, we would move over to PE and buy a business to allow us residency. I have read on the SA Home Affairs site that regardless of the cost of the business (100,000 rand) we would have to put in an amount that was over the cost of the business to qualify.
My question is, does anybody know what that amount is?
We have all the figures relating to permanent citizenship (ie £3,000,000 rand cash, 20,000 rand per person for life income etc) but we have seen that if you start or take over a business that employees 5 local/perm residents, you can do it. Having just seen the Home Aff site, it looks like that's not possible.
I wondered if any of you guru's out there may be able to help.
Many thanks
Steve


----------



## xabiaxica (Jun 23, 2009)

millspeed88 said:


> Hi all.
> 
> My girlfriend has a daughter living in PE and we have been out there a few times. We have purchased a house out in PE and we have both decided that if it was possible, we would move over to PE and buy a business to allow us residency. I have read on the SA Home Affairs site that regardless of the cost of the business (100,000 rand) we would have to put in an amount that was over the cost of the business to qualify.
> My question is, does anybody know what that amount is?
> ...


hi & :welcome:

I've moved your question to our South Africa forum - hopefully someone here can answer your questions


----------



## millspeed88 (Jan 4, 2012)

xabiachica said:


> hi & :welcome:
> 
> I've moved your question to our South Africa forum - hopefully someone here can answer your questions


Many thanks, I wondered where it should go.


----------



## Johanna (Apr 13, 2009)

millspeed88 said:


> We have all the figures relating to permanent citizenship (ie £3,000,000 rand cash, 20,000 rand per person for life income etc) but we have seen that if you start or take over a business that employees 5 local/perm residents, you can do it. Having just seen the Home Aff site, it looks like that's not possible.
> I wondered if any of you guru's out there may be able to help.
> Many thanks
> Steve


Did you mistype the amount? £3 million is a lot of money...you did add rand afterwards, not sure about the amount.

Did you do a google search regarding all the information you need?
Unfortunately the person that used to work for gate way immigration does not post on these forums anymore, he changed jobs.



http://www.dha.gov.za/Permanent Residence Permits.html


----------



## Stevan (Jun 30, 2009)

hi

Firstly the employment of five south africans is mandatory there will be no dispensation on that. it does not have to be imediate though they will give you time to get things up and running. 

You must invest R2.5 million in the business. here is where you will find the leeway. they will consider less of an investment in certain sectores noteably tourism, there is a list published by home affairs state which sectores they will allow. in reality the agent we used told us that if a business is viable and will create the minimum ammount of jobs they will consideer a reduced investment in any sector. the proviso being that outside of the listed sectors it must be a new buisness not just buying an existing one.

If the investment amount is below the 2.5 they may limit your visa to only a year and then you would need to re apply, amd you cannot go for pr for, i think 5 years.

if you invest the full 2.5 i think you can submit pr straight away.


----------



## millspeed88 (Jan 4, 2012)

Stevan said:


> hi
> 
> Firstly the employment of five south africans is mandatory there will be no dispensation on that. it does not have to be imediate though they will give you time to get things up and running.
> 
> ...


Wow Stevan, thanks
Thats really helpful. I think my partner is going to call home affairs today to clarify. It would seem that what you say is what we thought, but it would be nice to have an idea of the figures involved.
Funnily enough, we are thinking of taking over a clothes store in a mall which is also the local tourism office. It is also on a site that is being developed to house a 5 star hotel. the hotel have already been in talks with the current owner, and they have said that the tourism section of the business can have an open plan area in the hotel lobby. So it looks like they really want the tourism aspect.
Once again Stevan, thanks a lot
Regards
Steve


----------



## SamCov (Jan 12, 2012)

Hi Steve. How did you transfer money back to SA? Who do you use? I believe money transfer firms get best rates, but is it worth sacrificing the safey that banks offer?


----------



## Johanna (Apr 13, 2009)

SamCov said:


> Hi Steve. How did you transfer money back to SA? Who do you use? I believe money transfer firms get best rates, but is it worth sacrificing the safey that banks offer?


I know you asked Stevan, but I can share our experience with you. We have a HSBC account in the UK, transferred the bulk of the money to an offshore account ( Jersey).. kept an eye on the exchange rate , phoned HSBC and they transferred the money to our bank account in SA for a few of £50.00


----------



## SamCov (Jan 12, 2012)

Johanna said:


> I know you asked Stevan, but I can share our experience with you. We have a HSBC account in the UK, transferred the bulk of the money to an offshore account ( Jersey).. kept an eye on the exchange rate , phoned HSBC and they transferred the money to our bank account in SA for a few of £50.00


Never considered using an offshore account - something to look into, thanks for that. Also looks as though timing is the ultimate cost - it looks like the Rand is making a comeback, it will probably be worth me making a move sooner than later...


----------



## Johanna (Apr 13, 2009)

SamCov said:


> Never considered using an offshore account - something to look into, thanks for that. Also looks as though timing is the ultimate cost - it looks like the Rand is making a comeback, it will probably be worth me making a move sooner than later...


Don't think rand is making a comeback, we waited from February until July, got R11.60 per pound, the rate for buying back today was R11.90 - R12.06

Although it had gone higher a few months ago.

We sold our pounds in 2010.


----------



## Stevan (Jun 30, 2009)

Hi

I used a money transfer company. and in my old age i cant remember there name. i will find it and post for you. i actualy registered with four companies, we were only making a once off transfer. when we were ready to transfer i phoned them all and got there rates. i told them what the others were offering and each one didi a little better, only by a cent or two but hey better in you pocket and mounts up if it is a large transaction. i found there rates better than the bank, but a lot will depend on the ammount you wish to transfer, best advice is shop arround a bit. from agreeing the sale and transfering to there account it took 2 days to arrive in my south african account. i recieve a smal income in the uk still. that is paid into an ordinary uk account and i draw from atm here. i have found the rate i get is very good doing it this way on small ammounts. you could always try a future rate transaction if you are not in a hurry for the money. you pick the rate you want and they transfer when it reaches it.


----------

