Botswana is one of Africa’s most stable countries and also the continent’s longest continuous multi-party democracy. Botswana is considered as one among the countries that are corruption-free. All these factors make Botswana one of the best places for starting a business in Africa. The Botswana government has been promoting start-ups, new business ventures, and inviting investors from around the world to boost their economy.
How to Register Business in Botswana?
Company formation in Botswana involves 2 procedures to be followed: one is reserving your business name, and the second is company registration.
1. Reserving a Company Name
Before setting up your company in Botswana, you need to reserve your business name, for which you would require the following documents:
- Your national ID (for local citizens) or passport (for foreign citizens)
- Form 1 for the company name
- Form RBN 1A for business name
- Payment of reservation fee of P20.00 [P = Pula]
Name reservation might take up to 5 days, and the reserved name is valid for a period of 30 days. The Registrar of Companies will accept a valid name and if you have crossed the limit of 30 days, you will have to go through the business name reservation process again.
2. Company Registration
In Botswana, all the companies need to be registered with the Registrar of Companies and Intellectual Property (ROCIP), which is the initial step for business setup in Botswana. The requirements for company registration are:
- A filled application form of the company which needs to be registered along with that name reservation certificate of the company. The application form number might differ depending upon the type of company like:
- For a company limited by shares – Form 2 & Form 3
- For a closed company – Form 2A & Form 3
- For a company limited by guarantee – Form 2B & Form 3
*Note: Form 3 is a declaration form which needs to be filled by a certified company secretary recognized by the Companies Act.
- The applicant needs to provide their address proof along with photocopies of one’s ID proof or passport (for foreign citizens)
- Certified copies of the identity documents of the proposed directors, shareholders and a certified and practicing company secretary of the company
- An original bound set of all the documents also needs to be submitted
- Registration fee of P360.00 should be paid on submission and acceptance of the documents
3. Obtaining an Industrial License
The next step in your business in Botswana would be getting a license from the Industrial Affairs Department, Ministry of Trade and Industry. Companies in Botswana can also opt for a trade license from the Gaborone City Council. Acquiring a license would take you 3 weeks but this is done in parallel with the inspection of company premises by the relevant authorities, which takes 6-7 days.
4. Enrolment for Taxation
Every business in Botswana needs to be enrolled for taxation process and acquire a Tax Identification Number (TIN) from the Botswana Revenue Service. Then, the company needs to register for Value Added Tax (VAT) with the Department of Customs and Excise. The entire registration can take up to 7 days.
Why Set Up Your Business in Botswana?
Botswana serves a great deal for business-driven people and provides all the necessary help to the business sector of its country. Botswana serves as the best place for business due to the following reasons:
- The government of Botswana offers 5-10 years of negotiable tax holiday package
- Foreign companies in Botswana have the privilege of full repatriation of profits and dividends
- International researchers have consistently ranked Botswana one of the world’s most corruptions-free countries
- Botswana’s top-level credit rating solidifies its economic outlook and fortifies its political reputation in the world
- One of the economic policies of Botswana is to attain a stable, low, and predictable level of inflation rate
- Rapid growth in the IT sector of the country is being seen the recent years
- Protection of investors and providing them a safe and accessible investing market has been a major motive of the Botswana government
Botswana’s is a rapidly evolving economy that attracts investors and entrepreneurs every year. Its business environment and corporate policies have made it a preferred destination for company setup. If you are planning to register a company in Botswana, do contact us – Business Setup Worldwide would be glad in helping you start your venture.