Registering a Business in Botswana
Registering a Business Botswana is a fairly simple and fast process. There are many benefits to why you would choose Botswana as a corporate base in Africa.
Botswana is one of the fastest-growing economies in Africa, with a stable political environment and a business-friendly climate.
The infrastructure in Botswana is good, with stable electricity with no load shedding, clean drinkable water and good roads. Internet connectivity is excellent, albeit, with higher than average internet costs.
Botswana is the second-least corrupt country in Africa, after Seychelles, with transparent processes and a functional legal system for enforcing contracts, getting permits and protecting investors.
Botswana is a landlocked country, however, we like to think of it as land-linked. It is at the centre of the SADC countries, with road access to South Africa, Namibia, Zimbabwe and Zambia, with easy links t the D.R.C.
Common sea ports used are Durban in South Africa, Mozambique, and Namibia. It is a short 1-hour flight from the busiest airport in Africa, O.R Tambo in Johannesburg.
Botswana is a good base to starting a business in Africa. In this article, we will discuss a few essential factors to consider when starting a business in Botswana.
Steps to Registering a Business in Botswana
The first step to starting a business in Botswana is registering the business. The Companies and Intellectual Property Authority (CIPA) is responsible for registering businesses in Botswana.
A company secretary is needed to register the business with CIPA, as well as for registrations with BURS (Botswana Unified Revenue Services). Company Secretaries could be lawyers, accountants, or business consultants. Do Business Botswana partners has an in-house company secretary, and also works with legal firms where necessary.
There are some constraints for non-citizens when registering a business in Botswana. Businesses can be 100% foreign owned in terms of shareholding, however, a local director must be appointed.
Opening a bank account also requires a company secretary, but it is a fairly simple process. All directors of the company must be present in the country in order to open a bank account. A local address is also required. Do Business Botswana can provide local addresses for clients.
If all documentation is in order, registering a business in Botswana takes less than 24 hours.
Entrepreneurs in Botswana are subject to various taxes, including income tax, value-added tax (VAT), and withholding tax. It is essential to understand the tax laws and regulations before starting a business in Botswana. The Botswana Unified Revenue Service (BURS) is responsible for collecting taxes in Botswana. It is advisable to consult with a tax professional to ensure compliance with the tax laws and regulations.
Do Business Botswana connects their clients to reputable Accountants and Tax Firms in Botswana to assist with compliance.
Trade Licenses are needed for businesses in Botswana, and these are service based. These are usually obtained from the local cities that businesses operate in.
Some business require permits as well, such as in the mining, animal and environmental sectors.
There are some businesses reserved for citizens only.
There are also several regulators in Botswana for businesses in the financial, banking and telecoms sectors.
Starting a business in Botswana is fairly simple, and there are a lot more benefits that are mentioned in other articles.
Registering a business is the first step, followed by compliance with the tax laws and regulations.