Botswana, located in Southern Africa, is a landlocked country known for its stable political environment and fast-growing economy. The country’s strategic location and extensive trade agreements make it an attractive jurisdiction for business registration. The capital city, Gaborone, is the central hub for economic and business activities in the country.

Botswana’s government actively promotes foreign investment by offering incentives such as a competitive tax regime, a straightforward company formation process, and access to regional markets in the Southern African Development Community (SADC). Its robust legal framework and business-friendly environment create optimal conditions for establishing and growing a company.

Legal opinion on Botswana as a Jurisdiction for Company Formation

Ganna Voievodina

Manimama

CEO

“Botswana stands out as an ideal destination for company registration, offering economic stability, a favorable tax regime, and a highly transparent legal framework. Its strategic location within SADC provides access to a vast regional market. At Manimama, we are ready to assist you in navigating Botswana's business landscape and ensuring a seamless company formation process.”

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Our Packages

Our comprehensive packages simplify the process of creating the perfect legal entity for your business, whether you are a small startup, non-profit or multinational. We will guide you through every step of the way, ensuring that your business starts on a solid foundation.

Company Formation

Company formation
Registered address for the 1st year
Annual accounting requirement bookkeeping

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Annual Services

Company renewal and registered address
Annual Government Tax
Mandatory Financial Beneficiary Report

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Other Services

Set of corporate documents (certified/apostille)
Nominal service for 1 year
Offshore banking

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Key Numbers about Incorporations

аt least 1

director in the company (can be non-resident)

12 weeks

average term of company formation

22%

corporate income tax (CIT) rate

0-25%

personal income tax (PIT) rate

0-14%

value-added tax (VAT) rate

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Set up Your Company in Botswana in Several Steps

Step 1. Initial setup

Initiating a preliminary project assessment
Preparation and filing of the package of documents

Step 2. Company registration

Choosing a suitable corporate entity
Reserve a company name through the Companies and Intellectual Property Authority (CIPA)
Preparation and submission of incorporation documents
Obtain an industrial license or trade license (if applicable)
Opening a bank account
Obtain a tax identification number (TIN) from the Tax authority

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Requirements for Company Formation in Botswana

Before deciding to set up a new company in Botswana, read the information below to understand the characteristics of an Limited Liability Company (LLC):

The most common type of company is a Limited Liability Company (LLC).

Number of directors: a Botswana LLC must appoint 1 director who must be a resident of Botswana

Number of shareholders: 1 shareholder of any nationality

Share capital: minimum paid-up capital is not required.

Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.

Accounting: companies must register with the Botswana Unified Revenue Service (BURS) for a Taxpayer Identification Number (TIN) upon incorporation.

Taxes in Botswana

Corporate income tax (CIT)

The standard corporate tax rate in Botswana is 22% for resident companies. Non-resident companies are taxed at the same rate on their Botswana-sourced income.

A reduced rate of 15% applies to companies operating in specific manufacturing industries, IFSC companies and those providing certain financial services approved by the Minister of Finance.

Capital gains from the sale of business assets are generally taxable, subject to exemptions or deductions based on specific cases.

Personal income tax (PIT)

Botswana uses a progressive tax system for personal income. The rates range as follows:

0% for annual taxable income up to BWP 48,000.
5% to 25% for income exceeding this threshold, with the top marginal rate of 25% applying to annual income above BWP 156,000.

Taxable income includes salaries, benefits, and allowances, with some deductions allowed, such as contributions to retirement funds.

Value-added tax (VAT)

The standard VAT rate is 14%. This applies to most goods and services provided within Botswana.

Exemptions include specific services like healthcare, education, and public transport, and some zero-rated items include exports and basic foodstuffs

Withholding taxes

Dividends: 10% (residents and non-residents),
Interest: 10% (residents)/15% (non-residents),
Royalties: 0% (residents)/15% (non-residents)

Double taxation avoidance agreements in Botswana: ‍Botswana has established a network of Double Taxation Avoidance Agreements (DTAAs) to prevent the issue of double taxation, which arises when two countries tax the same income. Botswana has signed DTAAs with several countries, including: South Africa, Mauritius, Zambia, Namibia, Seychelles, Swaziland (now Eswatini), Zimbabwe, India, United Kingdom, France, Finland.

Start Your Company Formation Process with Manimama

There are numerous reasons why Manimama is the leading company formation agent in Botswana:

Expertise in Botswana Regulations

1. Manimama has an in-depth understanding of the legal and regulatory framework of Botswana.
2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.

Local and International Experience

1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
2. Our expertise spans various industries, providing customized solutions for each client.

Efficient and Timely Service

1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
2. Our efficient processes minimize delays and get your business up and running quickly.

Client-Centric Approach

1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
2. Our dedicated team is always available to address any concerns and provide expert advice.

Robust Network of Local Partners

1. We have established strong relationships with local authorities, banks, and service providers.
2. This network ensures that your business receives the best possible support and resources.

Ongoing Compliance Support

1. We provide continuous support to ensure your business remains compliant with Botswana laws.
2. Our team keeps you updated on any regulatory changes that may impact your company.

Frequently Asked Questions

What is the most common type of company to establish in Botswana?

The most popular type is a Limited Liability Company (LLC), which offers limited liability protection to shareholders.
How many directors and shareholders are required to form a company?

A minimum of one director and one shareholder is required, and they can be the same person.
Is there a minimum share capital requirement?

No minimum share capital is legally required for most companies.
Do directors or shareholders need to reside in Botswana?

No residency requirement exists for shareholders, but director must be a resident of Botswana
Is a physical office required in Botswana?

Yes, companies must have a registered physical address in Botswana, which serves as their legal point of contact.
Does Botswana have double taxation agreements (DTAs)?

Yes, Botswana has DTAs with several countries, including South Africa, the UK, and Mauritius, to avoid double taxation on income.

Semen Kaploushenko

KUNA, CBDO

“Thanks to the Manimama team, my legal issues were resolved at the highest level”.

Vadym Grusha

Trustee Wallet, CEO

“My cooperation with Manimama OU was extremely positive”.

Yuriy Soshenko

WhiteBit, CLO

"The whole process was stress-free thanks to their professional work and individual approach”.

Manimama as the Best Solution for Your Company Formation in Botswana

Choosing the right partner for company registration is crucial for a smooth and successful business launch. At Manimama, our legal experts specialize in navigating complex legal landscapes, providing holistic solutions tailored to your needs.

Comprehensive Legal Expertise
Since our inception, Manimama has been at the forefront of tackling intricate legal challenges with innovative and thorough solutions. Our team of dedicated lawyers evolves alongside our firm, reflecting our people-centric philosophy and commitment to excellence.

Results-Driven Approach
Manimama is a results-oriented law firm that offers an extensive array of legal services to both individuals and corporate entities. We pride ourselves on maintaining the highest standards of integrity and a "client-first" approach, leveraging our extensive skills and knowledge to achieve the best outcomes for our clients.

Global Presence and Local Expertise
Our journey began with the establishment of Manimama OU's first European office in Estonia, a country renowned for its progressive regulation of virtual currencies, international investments, fintech, and gambling sectors. Estonia’s favorable tax system and digital-friendly investment climate provided a robust foundation for our expansion.

Community Commitment
At Manimama, we believe in giving back to society and making a positive impact. Our commitment to social responsibility is integral to our operations, ensuring that we contribute to making the world a better place while helping our clients achieve their business goals.

By choosing our company formation service in Botswana, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Botswana and pave the way for your business success.