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Ease of Doing Business in

Lesotho

Lesotho Download Profile (1694.6KB, pdf)
Region Sub-Saharan Africa
Income Category Lower middle income
Population 2,135,022
GNI Per Capita (US$) 1,214
City covered Maseru

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 100 112 up
12
60.37 57.56 down
2.81
Starting a Business 117 110 down
7
83.00 82.85 up
0.15
Dealing with Construction Permits 171 171
-
52.39 50.23 up
2.16
Getting Electricity 150 149 down
1
51.84 51.21 up
0.63
Registering Property 108 106 down
2
58.42 58.13 up
0.29
Getting Credit 82 152 up
70
50.00 25.00 up
25.00
Protecting Minority Investors 106 101 down
5
50.00 50.00
-
Paying Taxes 91 90 down
1
72.03 72.03
-
Trading across Borders 39 39
-
91.60 91.60
-
Enforcing Contracts 94 92 down
2
57.18 57.18
-
Resolving Insolvency 121 119 down
2
37.26 37.35 down
0.09

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

DB 2017 Rank: 117

DB 2016 Rank: 110

Change in Rank: down7

DB 2017 DTF (% points): 83.00

DB 2016 DTF (% points): 82.85

Change in DTF (% points): up0.15

Standardized Company
Legal form: Private Limited Company
Paid-in minimum capital requirement: LSL 0
City: Maseru
Indicator Lesotho Sub-Saharan Africa OECD high income
Procedure – Men (number) info_outline 7.0 7.8 4.8
Time – Men (days) info_outline 29.0 27.3 8.3
Cost – Men (% of income per capita) info_outline 8.1 54.0 3.1
Procedure – Women (number) info_outline 7.0 7.9 4.8
Time – Women (days) info_outline 29.0 27.5 8.3
Cost – Women (% of income per capita) info_outline 8.1 54.1 3.1
Paid-in min. capital (% of income per capita) info_outline 0.0 33.1 9.2
  • No. Procedure Time to Complete Associated Costs
    1

    Conduct a company name search and apply for business registration

    Agency: One-stop Business Facilitation Center (OBFC)

    A certified proof of address and a certified copy of a proof of identity are required.
    Certification is done at OBFC for a cost of R2 per page. At the end of the process, the company registration clerk delivers an advice form, which states the R530 registration fee to be paid.
    7 days LSL 2 per page to certify the documents
    * 2

    Pay the registration fee at the Accounting window, Submit the receipt and Obtain company registration documents and TIN number

    Agency: One-stop Business Facilitation Center (OBFC)

    The entrepreneur receives 2 receipts: one for his/her records and another to be submitted to the Company registration window.
    1 day (simultaneous with previous procedure) LSL 500 for a domestic company + LSL 30 for search of company name
    3

    Have land lease stamped and pay the stamp duty

    Agency: Deeds Registry and the Land Administration Authority

    All sublease agreements for longer than 3 years must be registered in the Deeds Registry after obtaining Ministerial Consent to the sublease. Accordingly, if any new business enters into a sublease agreement for longer than 3 years, ministerial consent must be obtained and should be registered in the Deeds Registry within 3 months. Ministerial consent and subsequent registration can take between 3 months to 3 years. Usually, however, agreements are entered into for 3 years less 1 day, which does not require registration or any formalities except the formal stamping of the agreement according to the Stamp Duty Order.
    Fee schedule for stamp duty on agreements:
    - Up to 5 years: 0.5%.
    - 5–10 years: 0.8%.
    - 10–20 years: 1%.
    - Over 20 years: 1.4%.
    1 day no charge
    4

    Receive an inspection by the Public Health Inspector and obtain health certificate

    Agency: Public Health Inspector

    The Maseru City Council requires a health inspection by its health officers and issues a health certificate after satisfactory results. The certification process does not involve any costs, but the time can vary from 1 week to 3 weeks.
    14 days LSL 60
    5

    Apply for an operational license

    Agency: Ministry of Trade and Industry

    It is required to submit the sublease or lease, certified passport copies all of directors, and the health certificate. Cost varies depending on the activity.
    7 days no charge
    * 6

    Pay the operational license fee at the Accounting window, Submit the receipt and Obtain the operational license

    Agency: One-stop Business Facilitation Center (OBFC)

    The entrepreneur receives 2 receipts: one for his/her records and another to be submitted to the Company registration window. The cost of the business license will depend on the type of activity.
    1 day (simultaneous with previous procedure) LSL 650 for a retailer of domestic goods
    * 7

    File for workman’s compensation with an insurance company

    Agency: Insurance company

    Workman’s compensation insurance must be taken out with a private insurance company registered in Lesotho. The cost of insurance depends on the number of employees and the level of risk.
    On another note, the “pay as you earn” (PAYE) tax is payable to the Lesotho Revenue Authority, by completing a monthly form that states employee names and details.
    1 day (simultaneous with previous procedures) no charge

    * Takes place simultaneously with previous procedure.