The landscape for South African wealth management and corporate expansion has fundamentally evolved. Despite positive domestic updates in 2026 including South Africa’s landmark recovery and its removal from the FATF grey list, many high-net-worth individuals (HNWIs) and corporate leaders are moving fast to globally diversify their capital.

Rather than fleeing risk, South African capital in 2026 is focused on a proactive search for strategic growth, hard-currency stability, and seamless cross-border regulatory integration.

If you are looking to position your portfolio or business for the decade ahead, here is the offshore jurisdictions South Africans are moving their capital to right now.

International Financial Centres (IFCs): Mauritius and Isle of Man

When it comes to corporate structuring, tax efficiency, and succession planning, two jurisdictions continue to dominate offshore investments in South African strategies:

Mauritius

Long favoured for its proximity to South African investors, Mauritius remains the main jurisdiction for South Africans looking to scale tech startups or restructure corporate assets. Its 15% capped corporate tax rate, absence of capital gains tax, and strategic alignment with the African Continental Free Trade Area (AfCFTA) make it an unbeatable platform for operational holding companies.

Isle of Man

For long-term wealth preservation, family offices are turning heavily to Isle of Man trusts and foundations. Over 35 major South African entities already use the island as a secure European operational base for offshore investing. It provides a stable, zero corporate tax environment designed to withstand global market volatility. Our Isle of Man office is registered with Financial Services Authority (IoMFSA) making us an authorised financial services provider.

The Middle East: The UAE and Dubai’s Corporate Boom

The United Arab Emirates (UAE) has witnessed an massive influx of South African entrepreneurs. In just the first quarter of 2026, 45 new South African companies joined the Dubai Chamber of Commerce, bringing total South African corporate membership there to 873.

Driven by bilateral trade links exceeding R129 billion, South Africans are utilising Dubai not only for commercial engineering, construction, and ICT ventures but also as a primary real estate safe haven. The flight to premium, institutional-grade luxury developments in the UAE has become part of many international investors offshore property strategies this year.

The UAE has no personal income tax and a 0-9% corporate tax rate, making it appealing to both individuals and South African companies looking to invest offshore.

Long Term Offshore Investing is the New Shift in Wealth Planning

According to recent internal data compiled by Sovereign Trust South Africa, the psychological driver behind moving money has completely shifted. Nearly 48% of cross-border inquiries in 2026 focus specifically on trusts, pensions, foundations, and robust succession planning. Another 40% relate directly to offshore company formation and international market expansion.

South Africans are no longer simply looking to move liquid currency into foreign currency and foreign bank accounts. Instead, they are setting up sophisticated, multi-generational legal structures to consolidate global assets, limit offshore exposure, all under a single, tax-efficient umbrella. There is much more focus of the strategy for South African’s financial futures.

The Synthetic Financial Centre (SFC)

Interestingly, the movement of capital in late 2026 isn’t entirely unidirectional. The South African Reserve Bank (SARB) recently published its draft framework for a Synthetic Financial Centre (SFC). This landmark regulatory reform is designed to allow local asset managers to oversee qualifying foreign portfolios right from South Africa without being restricted by their own domestic offshore limits.

While investors remain bound by individual prudential allowances, this shift could repatriate the management of up to R10 trillion in offshore assets back onto South African soil, blending international asset exposure with local execution.

Invest Offshore with Sovereign Group

In 2026, successful capital migration is not about leaving South Africa behind but it is about building a secure, cross-border bridge. To successfully navigate double taxation, Controlled Foreign Company (CFC) rules, and complex international compliance, you need specialised expertise.

Whether you are looking to expand your company into Dubai, establish a trust in the Isle of Man, or optimise your offshore retirement fund, Sovereign Group provides the global infrastructure to protect and grow your wealth with our network of over 20 global offices.

Would you like to explore how Sovereign Group can assist with a specific jurisdiction, or do you need a deep dive into the tax compliance rules (like CFC or POEM) for South Africans setting up corporate structures offshore?

The post Where South Africans Are Moving Investments and Businesses in 2026  appeared first on The Sovereign Group.

Business owners relocating to the UAE sometimes assume that their tax residence will follow once the UAE company is established and their residence visa is in place. In fact, the timing can be different, particularly during the first year of a move.

This can become important where an existing overseas company remains active, or when the owner needs to establish UAE tax residence in another jurisdiction.

How does the UAE company fit with the existing business?

Many owners relocating an established business to the UAE do not immediately close or transfer their overseas company. It may continue trading while the UAE operation is established. In some cases, there is a good commercial reason for both companies to remain active.

The role of the UAE company needs to be clear when the structure is chosen. Some businesses intend to move most of their activity here over time, while others will continue operating across the UAE and their existing jurisdiction. That affects what the UAE company will be licensed to do and whether a mainland or free zone structure fits the business.

For internationally focused businesses, a free zone may be the natural choice, particularly where the 0% Corporate Tax rate is part of the attraction. Whether the company can benefit from that rate depends on what it will actually do, because the 0% treatment applies to Qualifying Income of a Qualifying Free Zone Person rather than to free zone companies generally.

Residence and UAE tax residency status do not always start together

A UAE residence visa allows an owner to live and work in the country, but its issue date does not automatically become the start date for UAE tax residence.

Under the UAE’s domestic rules, spending at least 183 days in the country during a relevant 12-month period is one route to tax residence. Other routes are available where the relevant conditions are met, so an owner does not necessarily have to wait until day 183.

We often see owners obtain UAE residence while they are still spending considerable time with an overseas business. During the first few months, regular travel can make the tax residence position less immediate than the immigration paperwork might suggest.

Knowing which residence test is likely to apply before the move makes it easier to plan the timing and keep an accurate record of time spent in the UAE.

What happens to the overseas company?

Existing contracts may remain with the overseas company after the owner relocates, or it may continue serving a part of the business that is not being transferred to the UAE. The owner’s move can still change the way that company is managed.

Decisions that were previously taken in its home jurisdiction may gradually start being made from the UAE, without any formal change to the company’s place of incorporation.

Under UAE Corporate Tax rules, a foreign-incorporated company can be treated as a UAE resident person if it is effectively managed and controlled from the UAE. Where its main strategic and commercial decisions are made is relevant to that assessment.

Its home jurisdiction may apply its own corporate residence rules as well. If the overseas company is going to remain active, how it will be managed after the move is therefore part of the relocation planning.

The country being left still counts

Becoming UAE tax resident does not determine when tax residence ends in the country the owner is leaving. This can easily become relevant where the owner continues to have ties there for some time after the move.

Each jurisdiction applies its own residence rules. Where both countries regard an individual as resident, the relevant double taxation agreement may contain rules for determining residence for treaty purposes.

The timing can become particularly important when a significant transaction is planned around the relocation. An owner intending to receive a substantial dividend after moving to the UAE, for example, needs to understand where they will be tax resident when it is paid. The same consideration can arise around the sale of a business.

When tax residence needs to be proved

For many owners, the distinction becomes most obvious when evidence of UAE tax residence is requested. This might happen when dealing with a tax authority in another country or when relying on one of the over 140 UAE double tax agreements.

The UAE Federal Tax Authority can issue a UAE Tax Residency Certificate (TRC) once the applicable requirements have been met. The evidence needed will depend on the basis for residence. Someone relying on physical presence, for example, will need records showing the time spent in the UAE.

For a natural person the required documents for the TRC include Passport copy, valid visa copy issued for at least 183 days, Emirate ID copy, 6 months of personal bank statements (stamped by the bank), proof of income, report from General Directorate of Residency and Foreign Affairs (GDRFA) and copy of tenancy contract/ title deed.

Companies can also apply for a Tax Residency Certificate. A newly incorporated UAE company generally needs to have existed for at least 12 months before it can apply, so a business expecting to rely on a UAE double tax agreement should allow for that period.

For companies to obtain the TRC they must have incorporated and been active for at least 12 months. The company must provide valid trade license, lease/tenancy agreement in the UAE, Certificate of Incorporation, Certified MOA, UAE Corporate Tax registration number, Emirates ID and passport with proof for the company authorised signatory, financial statements. Offshore companies are not eligible for TRC.

Owners who travel frequently are well advised to keep accurate records as the move takes place. Reconstructing travel and residence information several months later can be considerably harder.

Planning the move together

A business relocation can quite reasonably happen in stages. An existing company may continue trading while the UAE operation gets underway, and the owner may spend time between jurisdictions during the transition.

The UAE structure should reflect what the business will actually do here, while the timing of the owner’s move needs to take account of the tax residence position they intend to establish. If an overseas company remains active, where it will be managed needs to be considered as part of the same process.

Planning these points together allows the business to move at a commercially sensible pace without leaving the tax position to be worked out afterwards.

For support obtaining UAE – Abu Dhabi or Dubai tax residency certificates, please contact us.

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Seven seemingly unrelated companies were wound up in the public interest by the High Court in Manchester on 22 September, following a joint investigation by Insolvency Service investigators and Companies House that found evidence of connections between them.

The companies – three of which were based in London and the other four in Lancashire, Manchester and Reading – were said to be involved in various trades including the wholesale of fruits, vegetables, oil and gas, and another involved in property.

Although they appeared unrelated on the Companies House public registry, the investigation found them to be linked by similar incorporation histories, company name changes and comparable business descriptions. The investigation also found:

• Accounts filed at Companies House that appeared to contain false or misleading auditor information.
• Named audit firms denied carrying out audits for the companies.
• Several companies did not have a genuine presence at their registered office addresses.
• Investigators were unable to confirm legitimate trading activity or identify who was actually controlling some of the companies.
• The companies failed to co-operate with the investigation, preventing investigators from verifying their activities.

“This case demonstrates the practical impact of the reforms introduced by the Economic Crime & Corporate Transparency Act 2023,” said Josephine Rocca, Director of Sovereign Corporate & Trustee Services Limited.

“Companies House can now analyse information across multiple entities, identify patterns that may not be obvious from looking at a single company and share that evidence with other enforcement bodies. It also shows that any false or misleading information filed on the registry can lead to a wider investigation where the concerns are serious, repeated or cannot be satisfactorily explained.”

Matt Pennell, Head of Intelligence at Companies House, said: “The company register is a vital source of information, and those who use it must be able to trust the records it contains. False or misleading filings can undermine that trust and cause real harm.”

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AI use among internet users in Saudi Arabia has more than doubled in a year, reaching 45.2%, while billions of dollars continue to go into the infrastructure supporting the technology across the GCC.

Until recently, much of the Gulf AI story centred on investment, national AI strategies and what governments planned to build. In 2026, those plans are becoming easier to see in the commercial market, as infrastructure comes into use and companies find more ways to apply AI and scale AI within their own businesses.

The region is maturing as AI leaders. GITEX Global, Dubai AI Festival, Blockchain Life & AI Future Week, Web Summit Qatar, Global A Show in Riyadh are among the many industry events drawing industry investors to the GCC. There are also many active initiatives encouraging and engaging entrepreneurs to become part of the change and bring strategic value. The Dubai Chamber recently launched an AI initiative, calling on UAE residents and entrepreneurs to build AI agents that are designed to solve problems. They have launched a prize and the winners will receive a USD150,000 grant to develop, grow and scale their AI-agent and AI driven solution.

Saudi Arabia’s AI data centre capacity has grown several times over since 2021, reaching more than 467MW by the first quarter of 2026. Further development is coming through HUMAIN, the AI company owned by the Public Investment Fund, as the Kingdom builds more of the digital infrastructure needed to support AI locally.

Large AI projects and initiative are also taking shape elsewhere in the Gulf, with the UAE’s Stargate project expected to begin coming online in Abu Dhabi during 2026 and Qatar putting substantial capital behind AI infrastructure through a USD20 billion partnership between Qai and Brookfield. Building this level of infrastructure within the region points to the Gulf becoming a larger market for developing and delivering technology services, rather than primarily a customer for technology developed elsewhere.

Global AI opportunities

The rapid increase in AI adoption and AI usage in Saudi Arabia is beginning to have a parallel in business, with more than a third of GCC business leaders surveyed by PwC already integrating AI into their products and services.

But only 16% of GCC CEOs said their most-used AI tools could access all the company information they required. That gap says quite a lot about where businesses are with AI systems. Adoption is moving quickly, while the data and systems needed to get more from the technology are often catching up.

For technology companies, some of the opportunity sits in that gap. Helping an established business organise its data or connect AI with the systems it already uses can be just as commercially relevant as supplying the technology itself.

Growing demand for AI-related skills in the UAE is already reflecting some of that activity, with technical expertise increasingly finding its way into established businesses as they introduce AI into work they already do.

For overseas technology companies, this broadens the potential customer base beyond the large infrastructure projects attracting most of the attention. An established business trying to make better use of AI can become a customer too, bringing opportunities closer to the day-to-day needs of companies across the Middle East.

A technology company generating most of its work from Saudi customers may find a local presence increasingly useful as those relationships develop, while one serving clients across several Gulf countries has more reason to consider a regional base.

The UAE’s established international technology community and growing computing capacity can suit that wider regional role. Qatar offers another route into the market as sovereign capital supports AI infrastructure locally and overseas, with its relevance depending on the customers and projects a company expects to develop there.

Saudi Arabia presents a different commercial proposition where the domestic market itself is the main attraction. With AI capabilities changing, use of AI increasing quickly and substantial investment continuing in the sector, technology companies targeting Saudi customers may have stronger reasons to build their operation closer to them.

As investment turns into wider business use, the opportunities developing around AI will increasingly be found in the companies adopting the technology as well as the major projects behind it. For international technology businesses, where those customers and projects develop will help determine where a presence in the GCC makes commercial sense.

How Sovereign can help artificial intelligence companies across the GCC region

Sovereign supports international businesses establishing and expanding across GCC markets, including technology companies entering the region.

For businesses responding to opportunities in the Gulf’s growing technology market, Sovereign can support the establishment and ongoing administration of local or regional operations, based on where the company expects to do business and how it plans to serve its customers.

The post AI Adoption and the AI Business Opportunities in the GCC countries appeared first on The Sovereign Group.

Over the past two decades, Qatar has expanded the ways in which international businesses can establish in the country, developing specialist jurisdictions for different types of activity as part of the wider Qatar National Vision. That has given investors more choice, but it has also created separate registration and licensing processes depending on where a business establishes.

On 14 September 2026, Qatar launched Companies House to bring more of that administration together. The new body takes responsibility for company registration and licensing across four of the country’s main business jurisdictions, as part of a wider effort to unify company registration and make establishing and operating a business more straightforward.

Bringing four jurisdictions together with Companies House Qatar

Companies House is responsible for registering and licensing businesses operating through the Qatar Financial Centre, Qatar Free Zones Authority, Qatar Science & Technology Park and Media City Qatar.

It will also maintain the public registers for all four jurisdictions, with its remit extending into tax and immigration services as well as checks relating to labour standards and data protection.

Until now, businesses establishing through these jurisdictions have dealt with their respective authorities and processes. Bringing key functions together should create greater consistency in how companies move through registration and the administration that follows.

For international investors unfamiliar with Qatar, the different establishment routes can take time to understand. A business may know what it wants to do in the country without immediately knowing which jurisdiction best fits those activities. Bringing the main registration functions together should make that initial route easier to follow.

Companies House follows a series of changes aimed at making the interaction between businesses and government more efficient. Qatar already operates its Single Window for companies established through the Ministry of Commerce and Industry, while the Unified Economic Register brings together economic and beneficial ownership information held by different authorities.

Further digital business services announced by the Ministry shortly after the launch of Companies House continue in the same direction. Rather than dealing with information and services at different stages of establishing and operating a business, the intention is increasingly to connect them around the investor.

Registration, licensing procedures, tax and immigration are closely connected once a business begins operating, so bringing more of those functions together should make the administrative side of entering Qatar easier to follow.

Companies House is still new, and further detail will be needed on how the arrangements work in practice. Its launch nevertheless creates a central body through which several important parts of company establishment can be coordinated.

Companies House brings parts of the establishment process together, but QFC, QFZ, QSTP and Media City Qatar remain distinct. Businesses will still need to consider which jurisdiction is appropriate for their activities, operating plans and regulatory requirements.

The change should therefore make the administrative route into Qatar more consistent without removing the underlying choice an investor needs to make. For international companies unfamiliar with the market, separating those two questions may itself make the establishment process easier to understand.

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For many successful entrepreneurs in Zimbabwe and Nigeria, building a business has been a lifetime achievement. Over decades, family enterprises have grown into substantial operations with interests in property, agriculture, manufacturing and international trade.

While considerable attention is given to expanding these businesses, the question of what happens when ownership passes to the next generation is often overlooked.

Without proper succession planning, wealth accumulated over many years can become a source of uncertainty. Inheritance disputes, fragmented ownership and conflicting interests among family members can threaten the stability of even well-established businesses.

For high-net-worth families, the challenge is not deciding who will inherit their assets, but how to preserve family wealth and maintain business continuity.

In many family businesses, the founder maintains substantial control over ownership, management and financial decisions. While this may work effectively during their lifetime, complications can arise when shares and responsibilities pass to multiple heirs.

Some family members may wish to continue operating the business, while others may prefer to sell their interests or receive regular income. These competing priorities can create disagreements and place pressure on the company’s long-term strategy.

The situation becomes more complicated where families own assets across several countries or where beneficiaries live abroad. Without a clear estate planning and succession strategy, transferring wealth between generations can become a lengthy and potentially disruptive process.

Discretional Trusts for Estate Planning

A discretionary trust offers one possible approach to comprehensive estate planning and addresses these mentioned challenges. Under this arrangement, the founder, known as the settlor, transfers assets to trustees, who hold and administer them for the benefit of the designated beneficiaries. Rather than distributing assets directly among individual heirs, the trustees can exercise discretion over how and when benefits are distributed (i.e. For example, only after the minor children turn 18 years old), subject to the trust deed and their fiduciary duties. This can be particularly valuable for families wishing to preserve the ownership of a business while providing financial support to different generations.

Consider a Nigerian entrepreneur who owns a successful manufacturing business and has three children, only one of whom is actively involved in its management. Leaving the company’s shares directly to all three could create difficulties if they disagree about the business’s future.

One possible solution could involve establishing a discretionary trust under which the trustees hold shares in the family business, either directly or through an appropriate holding company.

The child involved in the business could continue managing its operations, while the other family members could benefit from distributions determined by the trustees. This would allow ownership and day-to-day management to be addressed separately, without necessarily dividing the underlying business among the heirs.

Such arrangements require careful consideration of the relevant inheritance, corporate, income tax, tax implications and regulatory requirements, particularly when transferring assets across jurisdictions. Careful financial planning therefore becomes a central point of the conversation.

Mauritius

Mauritius has developed an established international financial services sector, supported by a legal and regulatory framework for trust and fiduciary services. The Mauritius Trusts Act 2001 provides the legal framework for establishing and administering trusts, including discretionary arrangements used for succession and family’s financial planning.

• Mauritius trusts are required to have at least one qualified trustee, providing a framework for professional administration and oversight.
• For families in Zimbabwe and Nigeria with international investments or beneficiaries residing in different countries, Mauritius may offer a practical jurisdiction for coordinating the administration of family wealth and business succession.
• A properly established trust can provide continuity in the estate administration, considering asset protection beyond the founder’s lifetime, while allowing trustees to consider the changing circumstances and needs of beneficiaries.

Effective succession planning extends beyond the transfer of assets. The estate planning process involves having a proper plan including establishing clear governance arrangements, selecting appropriate trustees and determining how family interests should be managed over time.

For business owners in Zimbabwe and Nigeria, addressing these questions early can help reduce uncertainty and establish a clearer framework for future generations.

Sovereign Group assists international families with estate planning in South Africa, Mauritius and clients across the African continent. We support with trust establishment, professional trustee services, corporate structuring and ongoing administration. Our Mauritius team works alongside families and their legal and financial advisers to develop arrangements that reflect their succession objectives and long-term wealth planning needs.

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The first few months after establishing a foreign company in Saudi Arabia involve a particularly concentrated period of compliance. Requirements are spread across different government systems and some only become relevant as the business starts operating, which makes it easy for individual steps to be dealt with later than intended.

The first 90 days after company incorporation are an important period for getting those arrangements in place before they begin to affect the company’s day-to-day operations.

Complete the tax registration 

Following commercial registration with the Ministry of Commerce, ZATCA generates a Tax Identification Number for the new entity. Foreign establishments then need to complete their corporate income tax registration with ZATCA, so the tax account should be checked rather than assuming the initial registration has dealt with everything. Companies should complete corporate tax registration within 60 days of registering with MOC to adhere to tax deadlines.

VAT follows a different timetable because registration depends on the circumstances of the business. Where registration is required, it needs to be considered alongside when the company expects to start making taxable supplies. Mandatory VAT registration is required once the business taxable turnover exceeds SAR 375,000 while voluntary registration is available to businesses between the SAR 187,500 to SAR 375,00 threshold.

This is often where the commercial timetable starts to meet the compliance calendar. A new Saudi operation may be preparing its first customer contracts and invoices while its finance processes are still being established. If VAT applies, the accounting system needs to be ready to deal with it from the start.

National address

National address is required to be registered with Saudi Post (SPL). The national address must be tied to the company’s Commercial Registration and mandatory for key portals registration and bank opening documentation.

Corporate bank account

Although there is no specific legal requirement that newly incorporated companies must open a corporate bank account within a set number of days, in practice, this should be treated as an immediate post-incorporation task as the company cannot effectively operate without one. The corporate bank account is needed to inject share capital, receive customer payments, pay staff salaries and pay ZATCA and government portal fees. The company General Manager should have already obtained their Iqama card and must be physically present in the country to open the corporate bank account.

Prepare human resources for the first hires

Recruitment can begin quickly once a foreign company is established, particularly where staff are being transferred into Saudi Arabia or the business needs a local team before it can start operating fully.

It is important to note that after the companies General Manager, the first hire should be a Saudi National employee.

As people join, employment contracts are documented through Qiwa and the applicable GOSI requirements come into play. These systems are connected to the company’s wider employment position, so the employee records created during the first hires need to be accurate from the beginning.

There is an additional point for companies recruiting in 2026. Since 15 April, electronically documented employment contracts on Qiwa have been used in calculating Saudisation percentages under the Nitaqat programme.

That gives contract documentation a direct connection to the company’s Saudisation position. Nitaqat status can in turn affect access to employment services, including the ability to obtain work visas, which is particularly relevant for foreign companies planning to bring employees into the Kingdom.

The hiring plan therefore needs to take account of the company’s Saudisation position as the team develops. Waiting until an expatriate employee needs a visa can leave much less room to deal with an issue in the workforce structure.

Additionally, employers are required to obtain medical insurance for all company employees by a locally approved provider as Iqamas and residencies can’t be issued without it.

Get payroll compliance right from the beginning 

The first employees also bring payroll and social insurance requirements into the company’s normal monthly administration.

General Organization for Social Insurance (GOSI) records need to reflect the employees working for the company, and payroll needs to be operated in accordance with the requirements applying to the workforce. Wage Protection System (WPS) requirements may also apply as the company begins paying salaries.

Responsibility also needs to be clear internally. Whether payroll is handled by the Saudi company, a local provider or as part of a wider group process, the Saudi records still need to correspond with what is happening locally.

Make sure the ownership record is current 

Foreign companies should also check the beneficial ownership information held for the new Saudi entity. Saudi Arabia’s Beneficial Ownership Rules, introduced at the end of 2025, require companies to identify their ultimate beneficial owners and maintain a dedicated record of that information.

This can require some work for international groups. The immediate shareholder of the Saudi company may itself be another company, with further entities sitting between it and the individuals who ultimately own or control the structure.

The rules generally look first at direct or indirect ownership of at least 25%. Where this does not identify the beneficial owner, other forms of control are considered.

The information used during establishment should therefore be supported by the wider ownership and corporate records and kept current if the group structure changes.

Be ready before the first invoice 

A company preparing to bill its first Saudi customer should already know how the transaction will be treated for VAT and how the invoice will be generated.

This can require changes to systems already used elsewhere in an international group. An accounting platform that works for the parent company does not automatically produce invoices that meet Saudi requirements, although in many cases the existing system can be configured appropriately.

Where the entity falls within the Saudi e-invoicing requirements, invoices need to be generated through a compliant electronic solution. Companies notified that they fall within a Phase Two wave will also need to integrate their solution with ZATCA’s Fatoora platform by the applicable deadline.

Sorting this out before invoicing begins avoids having the finance team redesign the process once transactions are already being recorded.

What should be in place after 90 days? 

There is no single Saudi rule requiring every foreign company to complete the same set of actions within 90 days. The timing will depend on when the company starts trading, whether it has employees and which requirements apply to its business activities.

Some businesses will also have sector-specific licences or regulatory requirements that sit outside the general post-setup process.

Using the first 90 days to get these requirements working alongside the business can prevent routine post incorporation compliance issues from becoming obstacles as the Saudi operation develops.

Sovereign PPG supports clients with company formation, company registration and operational readiness in Saudi Arabia. We provide a full suite of services including hiring employees and ongoing compliance requirements around accounting, bookkeeping and government portals maintenance.

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The Department of the Registrar of Companies and Intellectual Property (DRCIP) issued a reminder on 16 September to all Cyprus registered entities to confirm the details of their Beneficial Owners (BOs) or Senior Management Officials (SMOs) in the Beneficial Owners Register (BOR) or, if applicable apply due diligence, between 1 October and 31 December 2026.

This annual requirement applies to all companies incorporated or registered under the Cyprus Companies Law, Cap. 113, as well as all European Public Limited Companies (SEs) and Cyprus partnerships, regardless of whether there have been any changes to the information on the BOR.

Any Cyprus registered entity that fails to complete the confirmation of information on the BOR system within the annual confirmation period will be subject to a fine of €100 for the first day of non-compliance, and an additional fine of €50 for each subsequent day of continued violation, up to a maximum total fine of €5,000. The penalties apply regardless of any potential criminal liability or prosecution.

In cases where the initial registration of a Cyprus registered entity, or any change or other action on the BOR system, falls within the confirmation period, the relevant action should be performed first and then the confirmation of the BOs, SMOs or where applicable due diligence must be completed by 31 December of each calendar year.

Where a partnership’s deadline for initial submission, which is 90 days from the date of incorporation or registration, falls within the confirmation period, its BOR information must also be confirmed by 31 December of each calendar year.

Confirmation of BOR information is only required to be performed once during the confirmation period in each calendar year. If a change or any other action occurs after confirmation, no additional confirmation is required in that calendar year.

In June, the Department of Registrar of Companies & Intellectual Property signed an administrative cooperation agreement with the European Anti-Fraud Office (OLAF). Cyprus was the sixth of the 27 EU member states to sign an agreement.

The agreement gives OLAF “secure and effective access” to information held on the Department’s registers, including the Register of Business Entities and the Central Register of Beneficial Owners of companies and other legal entities.

Registrar of Companies and Intellectual Property Irene Mylona Chrysostomou said access to timely and reliable data is essential for investigating complex cases involving fraud, corruption, money laundering and misuse of EU funds.

The agreement, she said, will strengthen OLAF’s work and the capabilities of national authorities operating under the Anti-Fraud Coordination Service (AFCOS). It will also serve to reinforce Cyprus’ domestic system for preventing and combating fraud and underlines its commitment to transparency, accountability and good governance.

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Sovereign Group has completed the sale of Sovereign Insurance Services (SIS), its Gibraltar-based insurance brokerage, to Seventeen Group.

The transaction supports Sovereign’s continued strategic focus on its core international service lines and does not change its long-standing commitment to Gibraltar, where it was founded and where its global headquarters remain.

A new chapter for Sovereign Insurance Services

Sovereign Insurance Services has been part of Sovereign’s Gibraltar operations for a number of years, providing tailored insurance solutions to a wide range of private and corporate clients. The business has built a strong local reputation for its client service, technical expertise and long-standing relationships.

Following completion, SIS will continue its operations under Seventeen Group, bringing together an established Gibraltar team with the wider capabilities and specialist insurance expertise of the Seventeen Group.

Gerry Kelly, Chief Executive Officer of Sovereign Group, commented:

“Today marks an important milestone for both organisations. Sovereign Insurance Services has been a valued part of the Group, and we are pleased to see the business become part of Seventeen Group, a respected business with an excellent reputation and a strong commitment to client service.

“As Sovereign Group continues to evolve, we remain focused on the services that are at the heart of our business: wealth management, pensions, trusts, corporate services and tax advisory. This transaction allows us to concentrate our investment and expertise in these areas while ensuring that our insurance clients continue to receive outstanding support.

“Gibraltar remains central to Sovereign’s identity. It is where our business was founded, where our global headquarters remain today, and where we continue to invest in our people, our clients and our long-term future.”

Oliver Thorne, Chief Executive Officer of Seventeen Group, said:

“Our acquisitions of Senate and Sovereign Insurance Services demonstrate our confidence in Gibraltar and our ambition to build a significant insurance broking business here.

“Gibraltar has a strong insurance heritage, an established regulatory framework and a unique relationship with the UK market. Combined with the greater certainty provided by the Treaty, we believe there is a compelling opportunity to invest in and grow from Gibraltar.
“Our priority now is to bring the businesses together carefully, combining their local knowledge and client relationships with the resources, specialist capabilities and market access of James Hallam and the wider Seventeen Group.”

A continued commitment to Gibraltar

Sovereign Group remains firmly committed to Gibraltar, where it was founded in 1987 and where its global headquarters continue to be based. Today, the Group operates more than 20 offices worldwide and supports individuals, families and businesses with international wealth management, pensions, trusts, corporate services and tax advisory solutions.

Sovereign’s presence in Gibraltar remains a key part of its global network, with more than 100 colleagues based locally providing expertise across a broad range of international services.

A clear focus on core international services

This transaction reflects Sovereign’s continued focus on strengthening and investing in its core service lines, where it sees the greatest opportunity to support clients with increasingly complex cross-border needs.

Across these areas, Sovereign continues to expand its international footprint and enhance the depth of expertise available to clients globally.

Looking ahead

As Sovereign Group continues to evolve, its focus remains clear: delivering expert advice, long-term value and coordinated international solutions to clients around the world.

Sovereign Group thanks the SIS team and clients for their contribution to the business over many years and wishes them every success as they begin this next chapter with Seventeen Group.

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For many South Africans, offshore investments, companies and trust structures form an important part of their long-term financial planning. These structures are often established to facilitate international investment, protect family wealth, provide succession planning solutions, global diversification of assets, or support international business activities. While considerable time and effort are usually invested in designing and establishing an offshore structure, many individuals overlook an equally important aspect, which is ensuring the structure remains appropriate and effective over time.

An offshore structure should never be viewed as something to set up and forget about. Circumstances change, legislation evolves, and family and business objectives often shift significantly over the years. A structure that was perfectly suited to an individual’s needs when it was established may no longer deliver the same benefits or remain fully compliant in today’s regulatory environment. As a result, regular reviews have become an essential component of responsible offshore investing and wealth planning.

A well-conducted health check assesses whether the structure remains aligned with the personal circumstances, family dynamics, business interests, tax position, and long-term objectives. It also evaluates whether the structure is being properly administered, governed, and maintained in accordance with both local and international requirements.

With increased global transparency, information-sharing agreements between jurisdictions, beneficial ownership reporting obligations, and changing tax frameworks, ongoing reviews are no longer a best-practice exercise. They are increasingly becoming a necessity.

For South Africans with offshore structures, exchange control considerations should form part of any regular review. While many individuals focus on tax and investment performance, the movement of funds abroad between South Africa and offshore jurisdictions remains an important compliance consideration.

Failing to consider exchange control requirements can result in reporting discrepancies, delays in transactions, increased scrutiny from financial institutions, and potential regulatory complications.

A review should consider the source of funds used to establish or fund the structure, how funds have moved between South Africa and offshore jurisdictions, whether distributions have been appropriately reported, and whether future transactions remain aligned with current regulatory requirements.

Being mindful of exchange control helps ensure that offshore structures operate efficiently, that banking and investment arrangements remain sustainable, and that future wealth, succession, and investment portfolio planning can be implemented.

Regular reviews ensure that structures remain fit for purpose and continue to support the objectives for which they were originally established.

Certain events often indicate an immediate review such a change in tax residency, significant growth or changes in investment holdings or new business activities that differ from the original purpose.

The key question for offshore structures is no longer whether their structure was established correctly, but whether it continues to serve its intended purpose today. For offshore investment, South Africa typically favour offshore structures such as Mauritius, Guernsey, Isle of Man, Switzerland, UAE or even UK and Singapore, a review not only provides peace of mind but also helps identify risks, inefficiencies, and opportunities before they become costly, ensuring that offshore structures continue to protect and preserve wealth for future generations.

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For years, the shipping industry was warned that a shortage of qualified officers was on the way. That shortage has now arrived. According to the BIMCO and ICS Seafarer Workforce Report 2026, the global shipping industry will need an additional 113,735 officers by 2030 to operate the world merchant fleet, and is already facing a shortage of 39,100 STCW-certified officers in 2026. To bridge the gap, the industry will need to recruit an additional 22,747 officers and 8,475 ratings every year through 2030.

The cruise sector faces similar pressure. Global cruise passenger volume reached a record 37.2 million in 2025, and CLIA now projects 42 million passengers by 2028. In 2026, there will be 325 CLIA-member ocean-going ships, representing around 690,000 lower berths globally, and every one of those ships needs a skilled crew delivering high standards of service.

The yachting sector is smaller but equally competitive. Some 612 yachts are under construction across 142 shipyards in 29 countries, and the average length of yachts under construction has reached a historic high of 48.5 metres. Larger, more complex yachts require larger and more specialised crews, and owners expect excellence.

In every part of the industry, experienced officers, engineers and specialist crew can choose where they work. A new generation of seafarers is more mobile and more demanding, and is willing to move employer to find the right package. Salary alone is no longer enough to secure loyalty.

The retirement gap at sea

Many seafarers spend their working lives outside their home country’s pension system. They are often exempt from national onshore labour laws. The Maritime Labour Convention (MLC), which came into force in 2013, sets minimum standards for fair employment, decent working conditions and social protection, but it does not guarantee a retirement income. As a result, many long-serving crew members reach the end of their careers with little private provision.

Seafaring does offer a real opportunity to save. Living costs on board are low, and in the cruise and yachting sectors crew can also receive good bonuses and tips. With the right structure in place, time at sea can become time spent building long-term financial security.

Why maritime benefits are difficult to deliver

Employers in the merchant and cruise sectors manage workforces with diverse skills, responsibilities, salaries and nationalities, including many relatively low-paid roles. Crew are spread across fleets and vessels worldwide and typically work in rotations. Crewing companies and employers of record may also place seafarers with many different clients. Finding a provider willing and able to administer benefits across such a population, efficiently, has traditionally been a challenge.

How an international retirement and savings plan works

The Sovereign International Retirement and Savings Scheme is designed for internationally mobile workforces, including those working offshore or in countries without a recognised pensions framework. Plans are established in Guernsey, a well-regulated jurisdiction on the OECD white list. Benefits are paid gross of tax, there are no minimum or maximum limits on contributions, and payments can be made to non-residents without withholding tax, so members are generally taxed only in their country of residence when they receive their benefits.

This is a simple and effective way to break down barriers and gives seafarers the chance to invest in their future and save, via payroll, with global fund houses in stable hard currency. As a trust-based arrangement, the plan’s assets are legally separate from those of the employer, which gives members an added layer of security.

Maritime employers can structure a plan to include:

• A core employer contribution for all crew, which can vary by rank, contract or vessel and can be linked to time on board.
• Matched employee/employer contributions up to a set percentage.
• An enhanced contribution for officers, engineers and specialist ranks, helping to reward and retain the most sought-after talent.
• A vesting schedule, so crew earn the right to employer contributions after a specified length of service.
• A completion bonus, encouraging crew to complete their contracts.
• A voluntary savings element, allowing crew to save directly from payroll, with no minimum contribution, for life events such as a house or land purchase, a wedding, children’s education or retirement.

How this could work in practice

Consider a crew management company that places officers and ratings on merchant vessels for a range of clients, with crew working rotations of several months at sea.

Using the Sovereign International Retirement and Savings Scheme they can create a branded and tailored plan that will add value to their ship owner clients to deliver on their duty of care.

The benefit could include a set percentage, such as 2% of earnings paid into each seafarer’s member account whilst actively at sea, rising to 6% for officers and specialist ranks. Or they may decide to incentavise crew to save by putting in a match contribution. If a seafarer pays between 2-5% into the plan, then the shipowner will match it.

Employer contributions would vest once the seafarer completes 5 years’ service, giving the crew a clear reason to be loyal.

Seafarers can also save voluntarily from payroll to save for medium-term life time events. They can keep track of their account value online.

When a seafarer moves to a different vessel, they stay in the same plan, so their benefits remain consolidated and consistent. The crew management company adds value to their ship owner clients and their crew. They build a more stable, experienced workforce, which will enhance their reputation and the crew feel valued because the company is investing in their future.

Simple to implement and administer

Digital tools, including Application Programming Interfaces (APIs), make it quick and easy for employers to transfer data, and members have real-time online access to their accounts. Sovereign can work with a single central payroll or accept contributions from multiple pay-points into one plan. In most cases, the employer only needs to manage joiners, leavers and monthly contributions. Fees are fully transparent and can be paid by the employer, the employee or shared.

An international retirement and savings plan is a highly effective way for maritime employers to meet the recruitment challenges and stand out, retain experienced crew and deliver on their duty of care.

For further information or to get the process started, contact Jo Smeed below.

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The critical shortage of teachers is impacting the Education 2030 Framework for Action, according to a recent report by the United Nations Educational, Scientific and Cultural Organisation (UNESCO), which predicts a deficit of 44 million primary and secondary teachers worldwide by 2030.

Couple this with the explosive growth in international schools over recent years and the scale of the challenge in recruiting teachers of sufficient calibre and in sufficient numbers to deliver excellence soon becomes apparent. According to ISC Research’s Global International Schools Snapshot 2026, there are now 15,075 international schools worldwide, educating 7.7 million students, employing 730,000 staff and generating USD69.3 billion in annual fee income. Around 40% of these schools are now part of a school group.

Policy changes are adding to this momentum. Following the introduction of VAT on private school fees in the UK in January 2025, many British independent schools are expanding their presence overseas, , creating further demand for experienced teachers.

In such a competitive market, any international schools that have succeeded in attracting the best educators will need to be sure that they can also retain them, so they can build continuity and a positive culture.

The sector is increasingly turning to employee benefits to stand out from the crowd and go that ‘extra mile’ for their staff. An international school or group of schools that has a reputation for delivering excellent benefits to its personnel will be seen as an employer of choice across the sector.

This has not always been the case. Many long-serving teachers who are now approaching the end of their careers are realising that they have not accumulated adequate private retirement provision and have also not been paying into their home county’s state pension scheme. This means they have lost valuable time to secure their financial future and will therefore have to work much longer than anticipated.

The new generations coming into the workforce are more demanding. They are coming from a less accepting and more mobile environment, so their expectations have changed. They view working overseas as an opportunity to develop professionally, experience other cultures and lifestyles – and to save for their future. There is a growing trend that they are staying overseas and building their medium to long-term careers internationally. Due to the teacher shortage, they are also in a position to choose employers that offer them both fulfilment from a career perspective and in respect of their future financial independence.

To meet these recruitment challenges, international schools and groups are increasingly looking to occupational international pension and savings solutions, which have served as a well-established tool in other sectors. These solutions offer a simple, transparent and effective method to provide a meaningful benefit to staff whether they are local or expatriate, or on short-term or long-term contracts.

Schools can structure these plans to include:

• A sign-on bonus.
• A completion of contract bonus.
• A regular employer contribution that the employee can earn the rights to if they serve a specified length of time.
• A voluntary savings element, which is popular with staff because they can save easily and penalty-free from payroll for life events such as a house purchase, wedding or children’s education.

Contributions can also increase with length of service or seniority, rewarding loyalty and helping schools hold on to their talent. For subjects that are particularly hard to recruit, such as mathematics and science, schools can offer enhanced contributions to stand out at recruitment events.

To illustrate how this could work in practice, consider an international school group with several schools across different countries, employing a mix of local and expatriate teachers on two-year contracts.

The added advantage of an international plan, for groups of schools in particular, is that their staff can move around their global footprint while remaining in the same plan. This provides consistency and consolidated benefits for the employee and helps school groups to retain staff who want a long-term career and who understand and foster the group culture.

The good news is that an international plan is simple to implement and administer and is also transparent in terms of information and fees. The latter can be paid by the school, the employee or be shared, according to choice.

Sovereign’s international pensions and savings plans are a highly effective way to address staff recruitment and retention issues within the education sector. To better understand their potential impact on your business, please take a look at our schools’ case study here.

For further information or to get the process started, contact Jo Smeed below.

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