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Ease of Doing Business in

Botswana

Botswana Download Profile (1720.2KB, pdf)
Region Sub-Saharan Africa
Income Category Upper middle income
Population 2,262,485
GNI Per Capita (US$) 6,510
City covered Gaborone

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 71 70 down
1
65.55 65.39 down
0.16
Starting a Business 153 143 down
10
76.21 76.21
-
Dealing with Construction Permits 50 53 up
3
74.81 73.70 up
1.11
Getting Electricity 125 124 down
1
59.25 59.34 down
0.09
Registering Property 70 69 down
1
67.27 67.25 up
0.02
Getting Credit 75 70 down
5
55.00 55.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 55 52 down
3
80.58 80.58
-
Trading across Borders 51 51
-
85.93 85.93
-
Enforcing Contracts 132 130 down
2
50.95 50.95
-
Resolving Insolvency 64 64
-
50.53 49.97 up
0.56

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

70

DB 2016 Rank:

69

Change in Rank:

down1

DB 2017 DTF (% points):

67.27

DB 2016 DTF (% points):

67.25

Change in DTF (% points):

up0.02

STANDARD PROPERTY TRANSFER
Property value BWP 3,177,649
City Gaborone
Indicator Botswana Sub-Saharan Africa OECD high income
Procedures (number) info_outline 4 6.2 4.7
Time (days) info_outline 12 59.7 22.4
Cost (% of property value) info_outline 5.1 8.0 4.2
Quality of the land administration index (0-30) info_outline 10 8.4 22.7
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Notify BURS (Botswana unified revenue services) of VAT payment

    Agency: Botswana Unified Revenue Service (BURS)

    As a result of a stronger enforcement of the Value Added Tax Law, additional requirements for all transferor companies to obtain VAT clearance before they can transfer property have been introduced. This requirement was introduced through a Registrar's Circular No 3 of February 20 2009. If the selling company is not charging VAT in the transaction, a Clearance Letter issued by BURS is required (if the company is not registered for VAT, or claims the property will be used for renting which is VAT exempt). If the company is VAT registered and is charging VAT, then the conveyancer is required to give an undertaking to BURS that the VAT is accounted for and will be paid to the Seller on transfer. BURS will then issue a letter to Deeds Registry, on confirmation of the VAT details, confirming that the transaction is subject to VAT and advising that the transfer may proceed.

    5 days no cost
    * 2

    Obtain a rates clearance certificate at the Gaborone City council

    Agency: City Council

    The seller obtains a rates clearance certificate at the Gaborone City Council, showing that there are no outstanding property taxes to be paid.

    3 days 3 BWP
    3

    The conveyancer prepares the deed of transfer

    Agency: Conveyancer

    The Conveyancer must prepare the Deed of transfer. According to the Deeds Registry Act it is mandatory for conveyancers to prepare the deed of transfer; the parties cannot do it themselves.
    The original deed will be in possession of the seller.
    For every transaction there is a disbursement of 550 BWP to the attorney (12% VAT is paid on professional fees).
    The tariffs were gazetted in August 2004.

    1 day Conveyancing fees according to the following schedule:

    Property value (in BWP) / Conveyance fees (in BWP)
    150,000 to 200,000 /3,800
    200,000 to 300.000 / 4,300
    300,000 to 400.000 / 4,800
    400,000 to 500,000 / 5,300
    500,000 to 600,000 / 5,650
    600,000 to 700,000 / 6,000
    700,000 to 800,000 / 6,350
    800,000 to 900,000 / 6,700
    900,000 to 1,000,000 / 7,050

    Beyond 1,000,000, fees rise to P250/P100,000

    There is an added disbursements fee of P550
    4

    The deed of transfer is lodged at the Deeds Registry

    Agency: Deeds Registry of the Ministry of Lands

    The deed is lodged at the Deeds Registry of the Ministry of Lands situated at the Attorney General’s Chambers (AG). The Deeds Registry has employed more staff and changed its organization system. There are now internal time limits. If the usual person is absent, then someone else will complete the step, in order to keep the process flowing. After lodgment, the documents are sent to the Coordinator of Deeds for distribution. They are distributed to the first examiner who examines and passes them to the second examiner. If all is in order (no mistakes or missing documents), the deed of transfer is endorsed by the Registrar of Deeds (or his delegate) and done in 4 to 5 business days. Once endorsed, one copy is given to the parties' lawyer, the other is kept at the Registry for public reference.

    Transfer duty in the amount of 5% is payable to the Revenue officer (BURS - Botswana Unified Revenue Service) of the Deeds Registry located at the AGs revenue office immediately prior to registration. For citizens, the duty is paid only on the amount above BWP 200,000. Non-citizens pay the whole amount. Where a transaction is between VAT registered companies and the seller raises a VAT invoice, transfer duty is not required for registration, on presentation of the receipted invoice. In this transaction, VAT is treated in the normal way, which is as an input/ output setoff item. The rate of VAT has increased to 12% as of January 2010.

    The Deeds Registry has changed its lodgment times for lodging transactions. It is now from 7:30 a. m. to 11:00 a. m.

    6 days Either the transfer duty of 5% (of the value or purchase price above BWP 200,000) or the VAT of 12% is paid.

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer Score
    Quality of the land administration index (0-30) 10.0
    Reliability of infrastructure index (0-8) 1.0
    What is the institution in charge of immovable property registration? Deeds Registry
    In what format are the majority of title or deed records kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions and the like)? No 0.0
    In what format are the majority of maps of land plots kept in the largest business city—in a paper format or in a computerized format (scanned or fully digital)? Paper 0.0
    Is there an electronic database for recording boundaries, checking plans and providing cadastral information (geographic information system)? No 0.0
    Is the information recorded by the immovable property registration agency and the cadastral or mapping agency kept in a single database, in different but linked databases or in separate databases? Separate databases 0.0
    Do the immovable property registration agency and cadastral or mapping agency use the same identification number for properties? Yes 1.0
    Transparency of information index (0–6) 2.0
    Who is able to obtain information on land ownership at the agency in charge of immovable property registration in the largest business city? Freely accessible by anyone 1.0
    Is the list of documents that are required to complete any type of property transaction made publicly available–and if so, how? Yes, in person 0.0
    Link for online access:
    Is the applicable fee schedule for any property transaction at the agency in charge of immovable property registration in the largest business city made publicly available–and if so, how? Yes, in person 0.0
    Link for online access:
    Does the agency in charge of immovable property registration commit to delivering a legally binding document that proves property ownership within a specific time frame–and if so, how does it communicate the service standard? No 0.0
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the agency in charge of immovable property registration? No 0.0
    Are there publicly available official statistics tracking the number of transactions at the immovable property registration agency? No 0.0
    Number of property transfers in the largest business city in 2015:
    Who is able to consult maps of land plots in the largest business city? Anyone who pays the official fee 0.5
    Is the applicable fee schedule for accessing maps of land plots made publicly available—and if so, how? Yes, in person 0.0
    Link for online access:
    Does the cadastral or mapping agency commit to delivering an updated map within a specific time frame—and if so, how does it communicate the service standard? Yes, on public boards 0.5
    Link for online access:
    Is there a specific and separate mechanism for filing complaints about a problem that occurred at the cadastral or mapping agency? No 0.0
    Geographic coverage index (0–8) 4.0
    Are all privately held land plots in the economy formally registered at the immovable property registry? No 0.0
    Are all privately held land plots in the largest business city formally registered at the immovable property registry? Yes 2.0
    Are all privately held land plots in the economy mapped? No 0.0
    Are all privately held land plots in the largest business city mapped? Yes 2.0
    Land dispute resolution index (0–8) 3.0
    Does the law require that all property sale transactions be registered at the immovable property registry to make them opposable to third parties? No 0.0
    Is the system of immovable property registration subject to a state or private guarantee? No 0.0
    Is there a specific compensation mechanism to cover for losses incurred by parties who engaged in good faith in a property transaction based on erroneous information certified by the immovable property registry? No 0.0
    Does the legal system require a control of legality of the documents necessary for a property transaction (e.g., checking the compliance of contracts with requirements of the law)? Yes 0.5
    If yes, who is responsible for checking the legality of the documents? Registrar; Notary; Lawyer.
    Does the legal system require verification of the identity of the parties to a property transaction? Yes 0.5
    If yes, who is responsible for verifying the identity of the parties? Registrar; Interested Parties.
    Is there a national database to verify the accuracy of identity documents? No 0.0
    For a standard land dispute between two local businesses over tenure rights of a property worth 50 times gross national income (GNI) per capita and located in the largest business city, what court would be in charge of the case in the first instance? The High Court of Botswana
    How long does it take on average to obtain a decision from the first-instance court for such a case (without appeal)? Between 1 and 2 years 2.0
    Are there any statistics on the number of land disputes in the first instance? No 0.0
    Number of land disputes in the largest business city in 2015:
    Equal access to property rights index (-2–0) 0.0
    Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0
    Do married men and married women have equal ownership rights to property? Yes 0.0