Starting a Business in Botswana

This table summarizes the procedures and costs associated with setting up a business in Botswana.

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Standardized company

Legal Form: Private Corporation
City: Gaborone

Registration Requirements Summary:


  Procedure Time to complete: Cost to complete:
1 Select and reserve company name 3 days BWP 20
2 Sign the declaration of compliance of statutory requirements for incorporation before a commissioner for oaths 1 day BWP 75
3 Return the complete statutory return to the Registrar of Companies about re-allotment, directors, auditors, company secretary, and registered officers 1 day BWP 300 by self, and a fee of BWP 2000 where registration is done by agent
4 Register the company with the Registrar of Companies at the Ministry of Commerce and Industry 2-3 weeks BWP 360 (Registration of constitution)
5 Advertise the intention of applying for a license in the official gazette 3 weeks BWP 80
*6 Obtain an approval of the working condition after an inspection of company premises 2 days,( simultaneous with procedure 6) As part of the application procedure the firm’s premises will be inspected by the health and environmental authorities to ensure compliance with minimum standards. The cost would be no charge as this Procedure is done by the municipal authorities as part
*7 Obtain an industrial license from the Industrial Affairs Department, Ministry of Commerce and Industry; or obtain a trading license from the local authority 3 weeks ( simultaneous with procedure 7 ) BWP 100 for industrial license if applied by self; BWP 1,500 by agent; BWP 60 for trade license if applied by self, BWP 2,000 by an agent
8 Register for Corporate Income Tax number with the Botswana United Revenue Services and obtain the approval from the Commissioner of Taxes for the appointment of a public officer who is in charge of tax return 7 days no charge by self, BWP1,500 by agent
9 Register for VAT with Director of Customs & Excise 7 days no charge by self, BWP1,500 by agent
10 Register employees for the work injury insurance 1 day no charge
* Takes place simultaneously with another procedure.

Registration Requirements Details

Procedure 1.
Select and reserve company name
Time to complete:
3 days
Cost to complete:
BWP 20
Name of Agency:
Comment:
Procedure 2.
Sign the declaration of compliance of statutory requirements for incorporation before a commissioner for oaths
Time to complete:
1 day
Cost to complete:
BWP 75
Name of Agency:
Comment:
Procedure 3.
Return the complete statutory return to the Registrar of Companies about re-allotment, directors, auditors, company secretary, and registered officers
Time to complete:
1 day
Cost to complete:
BWP 300 by self, and a fee of BWP 2000 where registration is done by agent
Name of Agency:
Comment:
The company representative must submit the following forms to the Registrar of Companies: Form 4 (allotment of shares), Form 2 (list of directors), and Form 5 (location of office). The registration is usually done over the counter.
Procedure 4.
Register the company with the Registrar of Companies at the Ministry of Commerce and Industry
Time to complete:
2-3 weeks
Cost to complete:
BWP 360 (Registration of constitution)
Name of Agency:
Comment:
Procedure 5.
Advertise the intention of applying for a license in the official gazette
Time to complete:
3 weeks
Cost to complete:
BWP 80
Name of Agency:
Comment:
Before submitting the application, the new company must advertise, in two consecutive issues of the Official Gazette, its intent to apply for a license.
Procedure 6.
Obtain an approval of the working condition after an inspection of company premises
Time to complete:
2 days,( simultaneous with procedure 6)
Cost to complete:
As part of the application procedure the firm’s premises will be inspected by the health and environmental authorities to ensure compliance with minimum standards. The cost would be no charge as this Procedure is done by the municipal authorities as part
Name of Agency:
Comment:
Procedure 7.
Obtain an industrial license from the Industrial Affairs Department, Ministry of Commerce and Industry; or obtain a trading license from the local authority
Time to complete:
3 weeks ( simultaneous with procedure 7 )
Cost to complete:
BWP 100 for industrial license if applied by self; BWP 1,500 by agent; BWP 60 for trade license if applied by self, BWP 2,000 by an agent
Name of Agency:
Comment:
The trade licensing authorities convene a meeting on the second Tuesday of every month.
Procedure 8.
Register for Corporate Income Tax number with the Botswana United Revenue Services and obtain the approval from the Commissioner of Taxes for the appointment of a public officer who is in charge of tax return
Time to complete:
7 days
Cost to complete:
no charge by self, BWP1,500 by agent
Name of Agency:
Comment:
The company needs to obtain a CIT number ( takes 5 days) then the company representative complete and file a taxpayer registration form, which includes the application for registration of employee withholding tax (pay–as-you-earn tax, or PAYE) ( takes 2 days).
Procedure 9.
Register for VAT with Director of Customs & Excise
Time to complete:
7 days
Cost to complete:
no charge by self, BWP1,500 by agent
Name of Agency:
Comment:
Procedure 10.
Register employees for the work injury insurance
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Companies must be insured for workplace injuries. Under the Workers' Compensation Act, they have the option of paying a deposit to the Commissioner as security for any associated claims. Most companies opt to purchase their own insurance.