"Issuing confirmation certificates for business visa applications "

Background

The Immigration Act, No 13 of 2002 provides for the regulation of admission of people and their departure from the Republic. The Regulations provides more information on the processes to be followed when applying for a visa / permit.

The Immigration Amendment Act No 3 of 2011 and No 3 of 2007 have both become effective on 26 May 2014.

The Minister of Home Affairs has in terms of Section 7 of the Immigration Act No 13 of 2002 made available the Immigration Regulations. These Regulations became effective on 26 May 2014.

The opportunities that require the issuing of a certificate

The Act and the Regulations determine the criteria for a Business Visa application.

Regulation 14.(1) states that an application for a business visa by a foreigner who intends to establish a business or invest in a business that is not yet established in the Republic, shall be accompanied by, amongst other things:

• a certificate or a factual finding report issued by a business accountant registered with the Chartered Institute for Business Accountants to the effect that:
  • at least an amount in cash to be invested in the Republic as determined from time to time by the Minister, after consultation with the Minister of Trade and Industry, by notice in the Gazette, is available; or
  • at least an amount in cash and a capital contribution as determined from time to time by the Minister, after consultation with the Minister of Trade and Industry, by notice in the Gazette, is available.



Regulation 24(4) states that if residence is sought on other grounds, an application for a permanent residence permit contemplated in section 27(c) of the Act shall be accompanied by

• a certificate or a factual finding report issued by business accountant registered with the Chartered Institute for Business Accountants to the effect that:
  • at least an amount in cash as determined from time to time by the Minister, after consultation with the Minister of Trade and Industry, by notice in the Gazette, is available; or
  • at least an amount in cash and capital contribution as determined by the Minister, after consultation with the Minister of Trade and Industry, by notice in the Gazette, is available.



However penalties may be issued by the Department of Home Affairs should a business accountant issue a certificate incorrectly (Section 7(1)(g) read with section 50(2); Regulation 39(2)), to the amount of R7000.00 for negligently producing an incorrect certification.

What CIBA needs to do

CIBA is a legislative controlling body for accountants, accounting officers and independent reviewers. As a controlling body we are required to monitor and sanction compliance to standards of member conduct. We perform this function by ensuring compliance by our members to the IAASB’s engagement standards.

What you need to do

• The firm should study any relevant laws, regulations, founding documents or contract terms to determine the qualifications of the persons required to perform the engagement, prior to performing the engagement.
• Issue certificates in line with the CIBA Guide for Immigration Engagements.
• Collaborate with a CIBA Strategic Alliance Partner to perform additional services to the business persons seeking to immigrate to South Africa.

Additional resources

CIBA has provided a number of guides, videos and PowerPoint slides that will assist accountants with understanding their responsibilities in terms the various types of engagements:

• View the Practice Support Library for more
• www.accountingweekly.com
• wwww.saiba.academy
• Log into your member profile to access these and other resources