Botswana

Starting a Business in

Botswana

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Botswana. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 185 economies. The most recent round of data collection was completed in June 2012.

Compare Botswana to 184 other economies.

YearNew business densityNumber of new limited liability companies
2011 9.4412,217

  • Standardized Company

  • Legal Form: Private Corporation
  • Paid in Minimum Capital Requirement: None
  • City: Gaborone

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No. Procedure Time to Complete Associated Costs
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

The company representative must submit the following forms to the Registrar of Companies: Form 2a, 2b, 2c, 2d and Form 3, Form 4 (allotment of shares) and Form 5 (location of office). The registration is usually done over the counter.
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

Before submitting the application, the new company must advertise, in two consecutive issues of the Official Gazette, its intent to apply for a license.
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 of the application Procedure for a trading license or an industrial license.
* 7 Obtain an industrial license from the Industrial Affairs Department, Ministry of Commerce and Industry; or obtain a trading license from the local authority

The trade licensing authorities convene a meeting on the second Tuesday of every month.
3 weeks ( simultaneous with procedure 5 ) 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

The company needs to obtain a CIT number, which can be obtain within 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) (2 days).
7 days no charge by self, BWP 1,500 by agent
9 Register for VAT with Director of Customs & Excise


7 days no charge by self, BWP 1,500 by agent
10 Register employees for the work injury insurance

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.
1 day no charge
* Takes place simultaneously with another procedure.
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