Starting a Business in Botswana: Legal Requirements

If you want to start a business in Botswana, there are several key legal requirements you need to fulfill:

1. Reserve a unique company name

The first step is to propose 3 prospective company names to the Companies and Intellectual Property Authority (CIPA). You can search CIPA's online database at www.cipa.co.bw to check if your desired names are available. Reserving a name costs P20 and the approved name will be reserved for 30 days.

2. Register your company with CIPA

The most common types of business entities in Botswana are:

Private company (Proprietary Limited)
Public company (Limited)
Company limited by guarantee
Close company (CC)

To register, submit the following to CIPA:

Limited Liability Company Registration Form (Form 2) with consent of shareholders, directors, auditors, company secretary
Declaration of Compliance of Statutory Requirements (Form 3) signed by a legal practitioner, accountant or company secretary
Copies of IDs/passports of directors and shareholders

The registration fee is P360. Your company will be incorporated within 2-3 weeks.

3. Obtain necessary licenses and permits

Depending on your business activities, you may need to obtain:

Industrial license from the Industrial Affairs Department, Ministry of Trade and Industry
Trade license from the local city/town council

Licenses cost P50-P2000 depending on the type and if using an agent.

4. Open a corporate bank account

All new businesses must open a company bank account. This is required before registering for taxes.

5. Register for taxes

Apply for a Tax Identification Number (TIN) from the Botswana Unified Revenue Service (BURS). If your annual turnover exceeds P1,000,000, you must also register for VAT. Tax and VAT registration is free if done yourself or costs around P1500 through an agent.

6. Register employees for workplace injury insurance

Under the Workers' Compensation Act, businesses must provide employees with workplace injury insurance, either through the Commissioner or a private insurer.

Some key things to note:

At least one director of the company must be a resident of Botswana
A company secretary is mandatory, who must be a legal practitioner, accountant, or member of the Southern African Institute of Chartered Secretaries[2]
Businesses must have a physical office address in Botswana
The corporate tax rate is 22% for resident companies

By following these legal requirements, you can properly establish your business entity in Botswana. It's advisable to seek professional guidance to ensure full compliance with local laws and regulations.