Botswana company registration

DOING BUSINESS IN BOTSWANA

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Botswana. Our services include i) Botswana company incorporation ii) government license registration iii) corporate bank account opening in Botswana iv) employee recruitment v) visa strategies and vi) office rental solutions in Botswana.

SummaryLLCIFSC companyFast business setup solutionPublic limited companyRepresentative officeBranch office
Best use of company?All purposesOffshore financial
services
Close a customer deal nowTo secure public fundingMarketing & researchSpecific projects
How soon can you invoice Clients/sign sales contracts?10 weeks4 months3 weeks14 weeks4 months4 months
How soon can you hire staff?10 weeks4 months3 weeks14 weeks4 months4 months
How soon can you sign a lease agreement?2 weeks2 weeks3 weeks2 weeks2 weeks2 weeks
How long to supply corporate bank account numbers?14 weeks18 weeks3 weeks18 weeks21 weeks21 weeks
How long to supply company registration numbers?10 weeks4 months3 weeks14 weeks4 months4 months
Corporate tax rate on annual net profits?22%15%22%22%0%30%
Limited liability entity?YesYesYesYesNoNo
Minimum paid up share capital?US$1US$1US$1US$1NoneNone
Government grants available?YesNoYesYesNoYes
Government approval required for foreign owners?NoYesNoNoNoNo
Can bid for Government contracts?YesNoYesYesNoYes
Corporate bank account location?SCB BotswanaBarclaysFNB BotswanaStanbic BankSCB BotswanaBarclays
Can secure trade finance?YesYesYesYesNoYes
VAT payable on sales to local customers?12%0%12%12%0%12%
Average total business set up engagement costs?US$12,405US$11,405US$21,340US$13,505US$9,850US$14,600
Average total engagement period?4 months5 months5 months5 months6 months6 months

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Accounting and tax considerationsLLCIFSC companyFast business setup solutionPublic limited companyRepresentative officeBranch office
Statutory corporate tax payable?22%15%22%22%0%30%
Legally tax exempt if properly structured?NoNoNoNoYesNo
Must file an annual company tax return?YesYesYesYesYesYes
Must file annual financial statements?YesYesYesYesYesYes
Must appoint an auditor?YesYesYesYesNoNo
Access to double taxation treaties?YesYesYesYesNoYes
Withholding tax on payments to foreign shareholders?8%0%8%8%None0%
Company RegistrationLLCIFSC companyFast business setup solutionPublic limited companyRepresentative officeBranch office
Minimum number of directors/managers?111211
Minimum number of shareholders/partners?1117Parent companyParent company
Maximum shareholding for foreigners?100%100%100%100%100%100%
Minimum statutory paid up share capital?US$1US$1US$1US$1NoneNone
Shelf companies available?YesNoYesNoNoNo
Time to incorporate a new entity?10 weeks16 weeks3 weeks14 weeks16 weeks16 weeks
Can easily convert to a PLC?YesNoYesYesNoNo
Public registrar including directors and shareholders?YesYesYesYesYesYes
Can have preference shareholders?YesYesYesYesNoNo
This entity will likely be regulated by?MTIIFSCMTIMTIMTIMTI
Business ConsiderationsLLCIFSC companyFast business setup solutionPublic limited companyRepresentative officeBranch office
Good entity for trademark registration?YesNoYesYesNoYes
Can secure an import and export license?YesNoYesYesNoYes

Resident director/manager/ legal representative required?Yes
Sponsorship by a local citizen required?No
Our Client needs to travel to Botswana for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
Security deposit to be kept with Government?No
Monthly VAT reporting to the Government?Yes
Must sign an office lease agreement before incorporation?Yes
Shareholders & directors documents to be attested/translated?Yes
Foreign non resident director needs a work permit?No
Maximum number of staff allowed?None
Expatriate to local staff ratio?None
Can secure residence visa for business owner?Yes
Group HQ tax incentives available?Yes
Other useful information
What will be included in my customer sales invoice?Click here
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?5.3%
Average monthly office rental? (US$ per sq m)US$25
Minimum statutory monthly salary? Depends on the business
Average monthly US$ salary for local skilled employees?US$1,550
US$ deposit interest rate? (1 year average)2%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Satisfactory
Crowd funding available in this country?Yes

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and Disadvantages

    Advantages of Botswana company registration

      business registration in Botswana

    1. A Botswana Limited Liability Company (LLC) requires only one shareholder and one director, with no restrictions on foreign ownership. There is also no minimum paid-up capital to register a company in Botswana;
    2. Botswana has been a member of the World Trade Organization since 1995 and thus, enjoys all the benefits that membership provides;
    3. The economy of Botswana is benefited by the world’s largest diamond market, producing over 30 million carats annually. Diamond exports have ensured an adequate flow of foreign exchange which has contributed to the strengthening of Botswana’s economy;
    4. Botswana is positively ranked as the least corrupt country in Africa and ranks as the 28th least corrupt country in the world, according to the 2015 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
    5. Botswana was positively ranked as the 30th freest economy in the Heritage Foundation’s 2016 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. Outstanding trade and fiscal freedom were listed as the main reasons behind the high rank;
    6. It is easy to open global corporate bank accounts to support business setup in Botswana. Healy Consultants works with internationally recognized banks to provide Botswana corporate bank account services.

    Disadvantages of Botswana company registration

    1. Botswana company incorporation is complex and time consuming. According to the World Bank it takes 48 days on average to set up a business here, compared to an average of 27 days in Sub Saharan African countries and 9 in OECD countries;
    2. A Botswana LLC is liable for a corporate tax rate of 22%, and may be liable for VAT at the rate of 10% as well;
    3. Many business sectors in Botswana remain closed to foreign investment and in most cases, land cannot be sold to foreign investors;
    4. Botswana is negatively ranked as the 74th most competitive economy in the world in the Global Competitiveness Report 2014-2015;
    5. The relative slow internet bandwidth and power situation present additional challenges to doing business in Botswana;
    6. Botswana ranks as 72 out of 189 economies in ease of doing business according to the World Bank with the main business obstacles being trading across borders, dealing with construction permits and getting electricity.
  • Best uses for a Botswana company

    Botswana is an ideal location to set up a manufacturing company as the government offers incentives such as i) low tax rates of 15% on taxable income ii) tax holidays for up to 10 years iii) free repatriation of profits and dividends and iv) double tax treaties with 12 countries that minimize withholding tax and allow investors to avoid double taxation.

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Company registration

  • Time to incorporate: Eight weeks
  • Cost to set up: US$12,405
  • Minimum capital: US$1
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: Yes
  • Resident director: Yes

Key facts

  • Corporate tax rate: 22%
  • Corporate tax base: Worldwide
  • Shelf companies: Unavailable
  • Main company type: Limited company

Download the full Botswana country report here

Frequently asked questions

Contact us

For additional information on our company registration services in Botswana, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Olivia Stanciu, directly:
client relationship officer - Olivia