I wish to bring the above subject matter to your attention. After the retreat to Grand Rapids last weekend, thanks to you, my team and I brainstormed through an idea to promote ABC Consulting service beyond the borders. Our country of choice is South Africa. The reason we chose this country is because it is the largest economy in Africa and the business spring board to the rest of the African continent. This is an un-tapped market with a huge potential. The GDP is well over $171 billion.
The USA has made the largest investment of all foreign investments hence reference will be easily accessible. ABC should take advantage of the FIFA world cup that will be held in the country in the year 2010 as it is expected to gross well over $350 million. Setting up base now would not only find us trading on familiar ground but we will have a competitive edge as our kind of services are much sought after in light of the projected economic developments. On arrival in Johannesburg, we shall be met by the prospective company’s officials at the airport.
After checking in at the hotel, they have planned a brief city tour in order to acclimatize and familiarize ourselves with the new surroundings. The following day will find us with an afternoon engagement whereby we shall present our proposal. We are looking at 20 year plus for longevity and value for money. Later that evening we shall host a formal dinner at our hotel. We believe beyond reasonable doubt that we will have clinched the deal by then. Jack grew up in South Africa and he still maintains contacts. He gave as a detailed run down of the cultural and business perspective of the country.
Culture: Language will not be a barrier as English is widely spoken there. The dress style is mainly western and therefore the team should not have a problem with that. For a good first time impression, a firm handshake is in order for all gender. Titles must be observed. e. g. Mr. King, unless otherwise requested by the concerned party. The team members will observe cell phone etiquette as they would here. From what Jack has told us, we are aware that the locals there, may not look at us directly into the eye and that that is not a sign of arrogance. Commerce:
The commercial aspect is very positive and we need to strike the hammer while the iron is hot. Reliable statistics show that “with the passage of the African Growth and Opportunity Act (AGOA), and the current negotiations for a United States-South African Customs Union Free Trade Agreement, there will be increased opportunities for American businesses looking to enter or expand their presence”. Company Registration: After a thorough in depth study of the country’s company registration requirements, setting up a company there will not pose as a problem to us.
The following illustrates a summary of the guidelines. 1. Reserve a company name with the Registrar of Companies and pay fees. Time to complete: 3 days 2. Lodges formation documentation with CIPRO in Pretoria, Gauteng Province, South Africa for registration Time to complete: 5-7 days 3. Open a bank account Time to complete: 1 day 4. Register with the office of the local receiver of revenue (SARS) for income tax, VAT, and employee withholding tax (PAYE and SITE). Time to complete: 12 days 5. Register with the Department of Labor for Unemployment Insurance.
Time to complete: 4 days, simultaneous with Procedure 4 6. Register with the commissioner according to the Compensation for Occupational Injuries and Diseases Act. Time to complete: Around 10 days, simultaneous with Procedure 4 Apart from a thorough knowledge of the above, my team will carry some small gift items for our prospective associates. This is a kind gesture that will not be misinterpreted as it is a normal and expected business etiquette. We are looking at office gifts like desk calendars, pen holders etc. We shall also carry flowers for the ladies.
Action Plan: With your kind approval, we will proceed with the company registration. Our company lawyer will liaise with his counterpart on the same, a contact that Jack provided. We shall present a detailed budget of the necessary expenditure in the boardroom tomorrow. We shall also present a detailed insight on investments in the country following our meeting with the commercial attache. I believe my team is well prepared for the above task and as our desire has always been, to promote this company to the next level. Bob Davis Head of International Sales and Marketing.