Will Ross describes the scene as the South Sudanese flag is raised in Juba
Tens of thousands of South Sudanese have watched the raising of the new country's flag at an independence ceremony in the capital, Juba.
Salva Kiir signed the constitution and took his oath of office in front of the jubilant crowds, becoming the president of the world's newest nation.Sudan's President Omar al-Bashir and UN chief Ban Ki-moon are among dignitaries watching the historic events.
Sudan earlier became the first state to officially recognise its new neighbour.
The world's newest nation was born at midnight local South Sudanese time (2100 GMT), the climax of a process made possible by the 2005 peace deal that ended a long civil war.
The south's independence follows decades of conflict with the north in which some 1.5 million people died.
South Sudan became the 193rd country recognised by the UN and the 54th UN member state in Africa.
Tears
At the scene
The wild crowds surged forward, dancing for hours in the baking sun. Several people fainted in the heat but the mood was ecstatic. When the giant flag of South Sudan rose on the 30m flagpole, men cried, women ululated and thousands waved flags in a blur of colour.
A host of world leaders spoke on the podium, but the real party was at the back of the site where thousands danced to traditional drum beats.
Overnight there had also been dancing and drumming in streets during the final countdown to independence. Those who could not fit inside the cars that zoomed around town hung out the windows, or sat on the roof. One car had the sign plastered on the back window: "Just divorced."
Celebrations in Juba began at midnight (2100 GMT). A countdown clock in the city centre reached zero and the new national anthem was played on television.
Saturday's independence ceremony is being held at the mausoleum of the late rebel leader John Garang, who died just months after signing the peace deal that ended Africa's longest-running conflict.The BBC's Will Ross in Juba says people have flocked to the event on a baking hot day - some of them climbing trees to get a view.
There is a heartfelt display of excitement mixed with relief that after many years of feeling oppressed the tie with the north has finally been cut, he says.
The Speaker of the South Sudan Legislative Assembly, James Wani Igga, read out the Proclamation of the Independence.
Crowds then cheered as Sudan's national flag was lowered and the new flag of South Sudan was raised as trumpets played the new national anthem.
Afterwards the master of ceremonies told the crowd that President Kiir has decided not to hand over the flag of the Republic of Sudan.
"It shall be kept be kept in the archives of South Sudan in recognition of the common history that we have lived together," he told the crowd.
Our reporter says people in the crowds have been saying it is a moment to celebrate but they are also talking about the many lost relatives who died during the war.
'Southern brothers' Mr Bashir, who agreed the 2005 peace deal with the Sudan People's Liberation Army (SPLA), also spoke at the ceremony.
"We congratulate our brothers in the south for the establishment of their new state," Reuters news agency quotes him as saying.
South Sudan
Facts and figures:- Population: 7.5-9.7 million
- Size: 619,745 sq km (239,285 sq miles), larger than Spain and Portugal combined
- Major languages: English, Arabic (both official), Juba Arabic, Dinka
- Religion: Traditional and a Christian minority
- Main export: Oil
- One of world's least developed countries: Worst maternal mortality rate; most children below 13 not in school; 84% of women are illiterate
- Relations with Sudan: Dividing debts and oil; border disputes; citizenship
- Security: At least seven active rebel groups
"The will of the people of the south has to be respected."
Other dignitaries attending the celebrations include former US Secretary of State Colin Powell and the US permanent representative to the UN, Susan Rice.Meanwhile, in Khartoum, for most people it has been a low-key day, though scores of men gathered near the Blue Nile holding giant Sudanese flags and shouting: "Allahu Akbar [God is great], the BBC James Copnall reports from the northern capital.
"I'm very happy today. We feel this is our independence day too, our real independence day," one man said.
But not everyone in the north feels that way, our reporter says.
Famous actor Ali Mahdi told the BBC he was sad, although he respected the choice of South Sudanese.
He felt is could also be the opportunity for Sudan to become a more democratic country.
Under the Comprehensive Peace Agreement, a referendum was held on independence, which was approved by more than 99% of voters.
The new country is rich in oil, but one of the least developed countries in the world, where one in seven children dies before the age of five.
Unresolved disputes between the north and south, particularly over the new border, have also raised the possibility of renewed conflict.
Fears of fresh violence resurfaced after recent fighting in two border areas, Abyei and South Kordofan, where some 170,000 people have been forced from their homes.
But separate deals - and the withdrawal of rival forces from the border - have calmed tensions.
The UN Security Council has passed a resolution approving a 7,000-strong peacekeeping force for South Sudan - but this is basically a rebranding of the force that was already in Sudan, mostly in the south.
Our correspondent says keeping both the north and the south stable long after the celebratory parties have ended will be a challenge.
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All you need to know about South Sudan's independence
Analysts say the priority for Khartoum will be to negotiate a favourable deal on oil revenue, as most oilfields lie in the south. At present, the revenues are being shared equally.
Khartoum has some leverage, as most of the oil pipelines flow north to Port Sudan on the Red Sea.
Citizenship is also a key sticking point. A new law passed by the National Assembly in Khartoum has withdrawn Sudanese citizenship from all southerners.
The UN refugee agency has urged both governments to prevent statelessness.
Sudan: A country divided
Show regions
The great divide across Sudan is visible even from space, as this Nasa satellite image shows. The northern states are a blanket of desert, broken only by the fertile Nile corridor. South Sudan is covered by green swathes of grassland, swamps and tropical forest.
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