Company Formation in Botswana

Botswana is a good destination to set-up your company to cater to the fast growing African market with a large population. YourGlobalPro can assist in Botswana for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

The Republic of Botswana is a landlocked country located in Southern Africa – sharing border with South Africa to the south and southeast, Namibia to the west and north, and Zimbabwe to the northeast. It is one of the most sparsely populated nations in the world maintaining a strong tradition of stable representative democracy, with a consistent record of uninterrupted democratic elections. The below content will explain you in detail about the requirements for the process of company formation in Botswana, know more about the process of trademark registration in Botswana and understand the Botswana Legal and Compliance requirements.


Doing Business Introduction

The Country is having one of the fastest growth rates in per capita income in the world – as it has transformed itself from one of the poorest countries in the world to a middle-income country. It is generally open to foreign participation in its economy, but government reserves some sectors for citizens. As per Doing business report of The World Bank –Botswana ranks 71 for 2017 survey.

YourGlobalPro professionals can assist with any type of company formation in Botswana, trademark registration in Botswana and other recurring services for your business in Botswana.

Incorporation - Types of Business Entities

Before starting the business, the first decisions to make is to determine what form of business entity to establish. There are several types of entities that can be incorporated in Botswana are as mentioned below:

  • Private or Public limited liability company
  • External company (branch of foreign company)
  • Company limited by guarantee
  • Partnership
  • Common law trust
  • Sole proprietorship
  • Societies, being associations of persons
  • International Insurance Company

Time Frame for Incorporation of Company in Botswana varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimates the time required for the process of Company formation in Botswana to be completed is 36-40 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Botswana:

  • Stable democracy and political system
  • Stable security situation and considered secure and safe countries in Africa
  • Talented and skilled individuals in key economic sectors
  • Literacy rate is 84.5% for citizens aged 15 and above
  • Among the world’s least corrupt countries
  • Top-level credit ratings for both economic outlook and political stability worldwide
  • Do not have foreign exchange controls or restrictions on capital outflows from financial institutions
  • A low, stable and predictable level of inflation
  • Low levels of taxation in Botswana as an incentive to investment
  • Due to streamlined regulation practices – Institutional support guarantees investors protection and incentive
  • Legal code for over 40 years to guarantee investor protection
  • Competitive and accessible investor market
  • Competitive contract enforcement performance
  • Considerable investment in infrastructure and regional trade policies has improved Botswana’s competitive trading position

Tax Registration and Filing

All companies operating in Botswana are subject to tax on earnings in Botswana.

Corporate Income Tax Rate 22%
Capital Gains Tax Rate 22%
Branch Profits Tax Rate 22%
Branch Remittance Tax 0%
Value-Added Tax 12%
Dividends 5%
Interest 15%
Royalties 15%
Management and Technical Fees 15%
Tax Year Ends on 30 June
Foreign-Exchange No controls are imposed
Advance Tax Paid in four equal quarterly instalments
Annual Tax Returns To be filed within four months from the end of the Accounting Period.

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Botswana has double taxation treaties with countries as mentioned below: Barbados, Mozambique, Sweden, France, Namibia, UK, India, Seychelles, Zimbabwe, Mauritius, South Africa, Lesotho, Swaziland.

Trademark registration

For Trademark registration in Botswana, an application needs to be made to the Ministry of Trade and Industry (MTI) of Botswana. It takes approximately 16-20 months’ timeframe to complete the process of trademark registration in Botswana. The Trademark Registration in Botswana is valid ten years from the date of filing trademark and is renewable for ten years’ period by paying the renewal fee by the expiration date for an unlimited number of times. Also, renewal of the trademark can be requested during the grace period of six months after expiration, upon payment of a late renewal fee.

YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Botswana for your business. For assistance or advice in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Botswana:

  • The Close corporations having 1 member should have an accounting officer and registered office
  • The Proprietary Limited Companies and Public Limited Companies should have a Secretary who is resident in Botswana and registered office.
  • There is no need for a company to have a constitution or Articles or Memorandum of Association.
  • Shares will have no par value or face value
  • A subsidiary company cannot hold more than 10% of shares in holding company.
  • A company cannot give loans to directors. But salary advance or travel advance is okay.
  • A company can enter into a contract before it is born or registered
  • Records can be kept in writing or in electronic form but when kept electronically, back up is necessary and control is necessary so that falsification is avoided.

Accounting Services

In Botswana, non-exempt companies and public companies should comply with IFRS and company law schedules and other laws relating to accounts while Exempt private company will comply with generally accepted accounting principles.

YourGlobalPro professionals can assist you with the entire bookkeeping and accounting services for your Botswana Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Botswana, all companies incorporated are required to prepare annual financial statements. The Botswana Companies Act prescribes the basic contents and form of financial statements, and it requires that the financial statements of the companies, except private limited companies meeting certain thresholds, be audited annually.

Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide you auditing services as required by your business.


The Bank of Botswana is the central bank in Botswana regulating the Banks in the Country. The Country’s competitive banking system is one of Africa’s most advanced. The accounts can be opened and maintained in multi-currency and is available for all major currencies with the Banks.

The documentation requirement differs from Bank to Bank and need to be complied for the Bank account opening. The major banks in Botswana are ABN AMRO, ABN AMRO Outside Banking Unit, BancABC, Bank of Baroda, Bank Gaborone, Barclays Bank, Capital Bank, First National Bank, Stanbic Bank, Standard Chartered Bank, Bank of India. All banks are stable, reliable and offer the same level of services.

YourGlobalPro professionals can facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Botswana.

Legal and Compliance

In Botswana, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Botswana legal and compliance requirement to be followed by incorporated entities:

  • The new Companies Act imposes stricter obligations on corporate governance.
  • Open Bank account in the Country for the business.
  • The business entities are required to take tax registration after the incorporation with Botswana Unified Revenue Services (BURS), a semi- autonomous body to obtain a Tax Identification Number (TIN) – for Company Tax, Pay As You Earn (PAYE), Capital Transfer Tax, Value Added Tax (VAT), Withholding taxes (in relation to dividends, management fees, etc.).
  • Board has to approve the financial accounts within 5 months a public company and 7 months for a private company. And two directors should sign the accounts – if sole director then one director should sign the accounts.
  • For a closed company Accounting Officer should within 30 days notify the Registrar of Companies, of all changes in Constitution of the company.
  • Company Secretary should submit statutory forms to the Registrar; take responsibility with directors for account of a Private or public Company.
  • In case of Dormant Companies – a Special resolution to be filed with the Registrar that here are no significant accounting transactions. But when significant accounting transactions happen, then notify the Registrar again.

YourGlobalPro professionals can assist you in Botswana Legal and compliance requirements.

HR and Employment Law and Immigration / VISA

In Botswana, the applicable labor regulations would apply to the entrepreneurs wishing to hire workers. Below are some of the important points in relation to HR & employment law in Botswana:

  • Employment Act regulates terms of employment and minimum conditions of service for employees, and applies to citizens, expatriates, private and parastatal sectors and the employment of Non-Citizens Act regulates the employment of non-citizens in Botswana
  • Working hour are – nine-hour five-day week or an eight-hour six-day week is normally observed
  • A break of at least 30 minutes must be given after five consecutive hours of work.
  • 24-hour rest day, normally including Sunday, must be given every seven consecutive days.
  • Any time worked in excess of the ordinary daily hours of work is treated as overtime, and must be paid at 1.5 x the employees’ basic rate and twice the basic rate on weekends and public holidays
  • Annual leave is a minimum 15 working days of paid leave per year.
  • Minimum of 14 working days’ sick leave per year after one year of continuous employment.
  • Maternity leave totaling 12 weeks; six weeks before and six weeks after confinement
  • The Employer needs to apply for a work permit for the employee, irrespective of the duration of their stay in the country.
  • Visas are required by all foreign nationals except those of Commonwealth countries, Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Rep. of Ireland, Italy, Liechtenstein, Luxembourg, Namibia, Netherlands, Norway, Pakistan, Western Samoa, San Marino, South Africa, Sweden, Switzerland, Uruguay and USA.

Country Statistics

Capital Gaborone
Largest city Gaborone
Total Area 581,730 Sq. Km.
Population 2,155,784
Density 3.7 / Sq. Km.
Currency Pula (BWP)
Government Parliamentary Republic
Official language English
Religion Christianity
Government Offices Hours Mon to Fri - 7:30 - 12:45 and 13:45 - 16:30
Business offices Hours Mon to Saturday - 8:00 - 13:00 and 14:00 - 17:00
Banks and exchange Houses Hours From 9am to 2:30 pm Monday, Tuesday, Thursday and Friday and on Wednesdays from 8:15 am to noon

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