South Africans love South Africa!
That is an undeniable truth. The country has its problems - but it is our home. And for many of us, leaving the country is just not an option. Our families are here. Our friends are here. Our businesses are here. Our lives and hearts are here.
The spate of unrest and subsequent looting that was triggered by the incarceration of Jacob Zuma has however demonstrated that our country is becoming increasingly vulnerable. And while we live here, and continue to want to live here despite the challenges, there is no reason for us to be completely exposed to this vulnerability.
It is entirely possible for a family or a business to remain in South Africa while benefiting from international income streams through a company or trust that is situated in another country. In the case of Mauritius, it is possible for an individual or a family to obtain their residency through a company there as well. While we all hope we never have to use it, it does provide us with peace of mind to know that we have a plan B in the unlikely event that we will need it.
It is somewhat of a misconception that setting up offshore is for the very wealthy or large corporations. A small business can also take advantage of the laws and regulations in a suitable jurisdiction
For many of us, the idea of creating a presence outside of South Africa is an exotic concept or it seems like a risky venture. The reality is that it is a fairly straightforward process. And there are many laws and agreements with other countries which, in fact, encourage South Africans to do business outside of South Africa’s borders. And doing business and investing outside of South Africa opens up a whole new world of opportunity - quite literally. To illustrate, the GDP of South Africa in 2020 was $ 306 billion. The world’s GDP was $ 84.54 trillion. That means that we limit ourselves to participating in only 0.36% of the world’s activity by not being part of the global economy.
Knowing how to structure your assets offshore could be the most important aspect of going offshore
The key to unlocking this world of potential is to structure your affairs in South Africa and abroad correctly. Choosing the right partner to guide you every step of the way is therefore very important.
We can highly recommend a company based in Mauritius called Heimdall. They are unique in that they specialise in both the South African tax and exchange control issues, and trust and company set-up and operations in Mauritius. We have found that their depth of experience and professionalism enable our clients to easily create international family and business holdings.