Botswana is an independent state, located in South Africa and has no access to the sea. It borders with South Africa, Namibia, Zimbabwe and Zambia.
If you want to register a company in Botswana remotely and open an account with Botswana bank, note that:
- Official languages are Setswana and English;
- The state currency is BWP (Botswana pula);
- The country is a member of the WIPO/TRIPS, ICSID, African Union and WTO, South African Customs Union, ACT, African Development Bank, Commonwealth of Nations, Group of 77 and other international organizations;
- The main foreign policy partner of Botswana is the Member States of the South African Development Community (SADC);
- The country has signed free trade agreements.
If you are interested in starting a business in this jurisdiction, we recommend you asking for personal advice on a company registration procedure in Botswana from YB Case experts. Also, we can provide you with professional assistance in opening an account for a Botswana company.
Popular types of business activities
Those, who are planning to open a business in Botswana, we propose to consider the following options:
- Setting up a travel company in Botswana. In the state, for every 100 km² there are only 34 people. Most of the country is protected areas and national parks;
- Opening a Botswana agricultural company. Cereals are grown on soils of the north-eastern and northern parts of the country;
- Setting up a farm in Botswana, since the livestock breeding is a well-developed economic sector;
- Registering a mining company in Botswana, since the country has high quality oil and hard coal deposits;
- Opening a Botswana saltworks. Botswana has one of the largest salt marshes in the world with an area of 40 km² (Makgadikgadi).
Advantages of the jurisdiction
If you want to set up a company in Botswana and open a corporate account with an African bank, then take into account the following:
- There is the largest diamonds market located in Botswana;
- Botswana is one of the least corrupt countries in Africa;
- The country ranked 87th in ease of doing business and 59th in taxation according to the Doing Business 2020 rankings;
- The government has a positive attitude to the foreign investment.
For more information, you can request for individual advice on a business organization process in Botswana and the account opening from YB Case experts.
If you are intended to open a company in Botswana, you should know that:
- The corporate tax rate for resident companies is 22%;
- Registering a production company in Botswana can be a good solution, because the government offers such benefits as low tax rates of 15% of taxable income for manufacturing companies, IFSC and Botswana Innovation Hub;
- There is no additional taxes for certain types of activities, but branches are taxed at a rate of 30%. Tax incentives are available for a group of companies, for example, tax holidays (up to 10 years).
If you decide to set up a Botswana company, note that the country has DTA agreements with 12 countries that minimize withholding tax and, as a result, allow investors to avoid double taxation.
In order to start a business in Botswana, you need to fulfill the following conditions:
- Mandatory appointments: at least 2 shareholders, 2 resident directors, 1 secretary. Documents of shareholders and directors must be certified/translated;
- A physical office is required (temporary physical office solutions available). The average monthly rental office is 25 USD per m²;
- A non-resident founder can own all the shares of the company and set up a company in Botswana remotely;
- As the owner of the business you can apply for a residence permit in Botswana. A non-resident foreign director does not need a work permit;
- Monthly VAT reporting to the government is required;
- Incorporation terms are 2 months;
- A minimum share capital is 1 USD.
Most entrepreneurs choose to register a LLC in Botswana or a PLC.
How to open a Botswana company
In order to register a company in Botswana, you will need to open a bank account in Botswana. It is worth noting that multi-currency bank accounts and corporate visa debit cards are available in Botswana.
The quality of the electronic banking platform is satisfactory: the country has poor Internet coverage. Nevertheless, you can open a corporate account in Botswana remotely with the following banks:
- SKB Botswana;
- NWF Botswana.
If you have questions, please ask for qualified advice on a company registration process in Botswana by contacting YB Case experts.
Also, we can provide you with qualified support services in the account opening with Botswana banks and a registration of a physical office in this jurisdiction.