Botswana company registration

DOING BUSINESS IN BOTSWANA IN 2022

pay fee by instalmentsbusiness setup without travelGuaranteed solutions

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.

Compare different Botswana entities LLC IFSC company Fast setup solutions Public limited company Representative office Branch office
Best use of company? All purposes Offshore financial
services
Client to fast close local deal To secure public funding Marketing/ research Specific projects
How soon to invoice Clients? 10 weeks 4 months 3 weeks 14 weeks 4 months 4 months
How soon can you hire staff? 10 weeks 4 months 3 weeks 14 weeks 4 months 4 months
How soon can you sign a lease agreement? 2 weeks 2 weeks 3 weeks 2 weeks 2 weeks 2 weeks
How long to supply corporate bank a/c? 14 weeks 18 weeks 3 weeks 18 weeks 21 weeks 21 weeks
How long to supply co. reg / tax numbers? 10 weeks 4 months 3 weeks 14 weeks 4 months 4 months
Corporate tax rate on annual net profits? 22% 15% 22% 22% 0% 30%
Limited liability entity? Yes Yes Yes Yes No No
Minimum paid up share capital? US$1 US$1 US$1 US$1 None None
Government grants available? Yes No Yes Yes No Yes
Govt approval required for foreign owners? No Yes No No No No
Can bid for Government contracts? Yes No Yes Yes No Yes
Corporate bank account location? SCB Botswana Barclays FNB Botswana Stanbic Bank SCB Botswana Barclays
Can secure trade finance? Yes Yes Yes Yes No Yes
VAT payable on sales to local customers? 12% 0% 12% 12% 0% 12%
Average total business set up costs? US$23,455 US$11,405 US$29,405 US$13,505 US$9,850 US$15,600
Average total engagement period? 4 months 5 months 5 months 5 months 6 months 6 months

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Accounting and tax considerations LLC IFSC company Fast setup solutions Public limited company Representative office Branch office
Statutory corporate tax payable? 22% 15% 22% 22% 0% 30%
Legally tax exempt if properly structured? No No No No Yes No
Must file an annual company tax return? Yes Yes Yes Yes Yes Yes
Must file annual financial statements? Yes Yes Yes Yes Yes Yes
Must appoint an auditor? Yes Yes Yes Yes No No
Access to double taxation treaties? Yes Yes Yes Yes No Yes
WH tax on payments to foreign s/holders? 8% 0% 8% 8% None 0%
Company Registration LLC IFSC company Fast setup solutions Public limited company Representative office Branch office
Minimum number of directors/managers? 1 1 1 2 1 1
Min. number of shareholders/partners? 1 1 1 7 Parent company Parent company
Maximum shareholding for foreigners? 100% 100% 100% 100% 100% 100%
Minimum statutory paid up share capital? US$1 US$1 US$1 US$1 None None
Shelf companies available? Yes No Yes No No No
Time to incorporate a new entity? 10 weeks 16 weeks 3 weeks 14 weeks 16 weeks 16 weeks
Can easily convert to a PLC? Yes No Yes Yes No No
Public register of s/holders and directors? Yes Yes Yes Yes Yes Yes
Can have preference shareholders? Yes Yes Yes Yes No No
This entity will likely be regulated by? MTI IFSC MTI MTI MTI MTI
Business Considerations LLC IFSC company Fast setup solutions Public limited company Representative office Branch office
Good entity for trademark registration? Yes No Yes Yes No Yes
Can secure an import and export license? Yes No Yes Yes No Yes

Res. director/partner/manager required? Yes
Sponsorship by a local citizen required? No
Our Client must travel to Botswana? No
Temp. physical office solutions available? Yes
You need a local resident as bank signatory? No
Can be wholly foreign owned? Yes
Security deposit kept with government? No
Monthly VAT reporting to the Government? Yes
Must sign an office lease agreement? Yes
S/holder/director docs attested/translated? Yes
Foreign non resident director needs 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 is included in my cust. sales invoice? Click here
Botswana 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$25
Minimum statutory monthly salary? Depends on the business
Average US$ salary for local skilled staff? 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

Botswana business setup summary

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  • 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.
    7. Botswana has been ranked positively in the 63rd position (out of 137 countries) in the Global Competitiveness Index 2017-2018 edition. The country’s excellent macroeconomic environment along with an efficient labour market largely enhances the nation’s competitiveness and its global presence.

    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. The relative slow internet bandwidth and power situation present additional challenges to doing business in Botswana;
    5. 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;
    6. Botswana has a small population of 2.3 million people and an adult literacy rate of 90%. Therefore, it is a challenging task for companies to acquire an adequate supply of low-skilled labour in Botswana.
  • 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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For additional information on our company registration services in Botswana, please contact our in-house country expert, Mr. Seth Ochieng, directly:
Director of Client Engagements - Seth
  • Mr. Seth Ochieng
  • Director of Client Engagements
  • Contact me!