Namibia is fast becoming a strategic destination for entrepreneurs and investors looking to establish businesses in southern Africa. With its political stability, investor-friendly policies, solid infrastructure, and access to the Southern African Development Community (SADC) market, Namibia offers promising opportunities across sectors such as mining, tourism, renewable energy, agriculture, and logistics.
If you’re considering doing business in Namibia, understanding the legal, regulatory, and procedural requirements is key to a successful launch. This article provides a detailed step-by-step guide on how to set up a business in Namibia—whether you’re a local entrepreneur or a foreign investor.
Why Set Up a Business in Namibia?
Namibia offers numerous advantages for entrepreneurs:
- Strategic location: Access to both African and international markets through the Port of Walvis Bay.
- Political and economic stability
- Transparent regulatory framework
- Government incentives for investors, especially in manufacturing, energy, and value-added sectors.
- Access to regional markets through SADC and SACU.
Namibia ranks relatively high on the World Bank’s ease of doing business indicators in sub-Saharan Africa, particularly in starting a business and registering property.
Step-by-Step Guide to Starting a Business in Namibia
Step 1: Decide on a Business Structure
Namibia offers several legal business entities. The most common forms are:
- Sole Proprietorship: Suitable for small-scale businesses and local entrepreneurs.
- Private Company (Pty) Ltd: The most common structure for both locals and foreigners. It offers limited liability protection.
- Public Company (Ltd): For businesses that intend to offer shares to the public.
- Close Corporation (CC): Previously common, but phased out for new registrations since 2011. Existing CCs are still valid.
- Branch of a Foreign Company: For international businesses entering Namibia.
Most investors prefer the Private Company (Pty) Ltd format for flexibility and ease of operation.
Step 2: Reserve a Company Name
You must submit a name reservation request to the Business and Intellectual Property Authority (BIPA). This can be done online or in person.
Steps:
- Choose up to 6 proposed names in order of preference.
- Submit your application to BIPA.
- Pay the name reservation fee (approx. NAD 50).
- Await name approval (typically 3–5 working days).
Link: https://www.bipa.na — BIPA’s official website for business name reservation and registration.
Step 3: Register Your Company with BIPA
Once your company name is approved, the next step is registration.
Documents required:
- Memorandum and Articles of Association
- Company registration form (CM5, CM22, CM29 depending on structure)
- Copies of shareholders’/directors’ IDs or passports
- Proof of business address
- Name reservation certificate
Processing Time: Usually within 7–10 business days
Cost: Varies based on company structure, typically between NAD 300–NAD 1,000
After successful registration, BIPA will issue you:
- A Certificate of Incorporation
- A Certificate to Commence Business
Step 4: Tax Registration
All registered businesses must obtain a Tax Identification Number (TIN) from the Namibia Revenue Agency (NamRA). If your annual turnover exceeds NAD 500,000, you must also register for Value Added Tax (VAT).
Documents required:
- Company registration documents
- Founders’/directors’ ID copies
- Bank confirmation letter
- Lease agreement or proof of address
Link: https://www.namra.org.na — Namibia Revenue Agency (NamRA) for tax and VAT registration.
Step 5: Open a Business Bank Account
With your Certificate of Incorporation and TIN, you can open a business bank account at any major commercial bank in Namibia. Requirements typically include:
- Company registration documents
- Tax Identification Number
- Proof of business address
- Resolution to open the account (for companies with more than one director)
Namibian banks like Bank Windhoek, First National Bank (FNB), and Standard Bank offer tailored SME accounts.
Step 6: Apply for Sector-Specific Licenses (If Required)
Depending on your line of business, you may need sector-specific licenses:
- Tourism: Namibia Tourism Board license
- Food & Hospitality: Health and safety license, liquor license
- Retail: Trading license from the local municipality
- Import/Export: Customs code registration and import/export permits
These licenses may be issued at national or local levels. Contact your local municipal authority for a comprehensive list of requirements.
Step 7: Register with the Social Security Commission
All businesses in Namibia must register with the Social Security Commission (SSC) within 30 days of hiring employees.
Requirements:
- SSC registration form
- Company documents
- Employee list with ID numbers and salaries
Employers and employees each contribute 0.9% of gross salary, with a cap.
Step 8: Register for Employee Compensation
This is mandatory under the Employee’s Compensation Act. It protects workers injured on duty and must be paid annually.
Employers must register with the Ministry of Labour, Industrial Relations and Employment Creation.
Step 9: Business Insurance and Compliance
Though not compulsory, it’s advisable to obtain business insurance, including:
- Fire and theft
- Public liability
- Workers’ compensation
- Business interruption
Compliance with Namibia’s Labour Act and environmental regulations is essential, especially for manufacturing or extractive industries.
Incentives for Investors and SMEs
Namibia’s government provides several incentives to promote investment and SME development:
Investment Incentives
- Tax holidays of up to 5 years for manufacturing firms
- Accelerated depreciation on buildings and machinery
- Exemptions from import duties on capital equipment
These are offered under the Namibia Investment Promotion and Development Board (NIPDB).
SME Support
- Funding programs from Development Bank of Namibia (DBN)
- Mentorship and training through the Namibia SME Portal
- Preferential government procurement policies
Foreign Investment and Work Permits
Foreign investors are encouraged to invest in Namibia and can fully own businesses in most sectors. However, they must:
- Comply with investment laws through the NIPDB
- Apply for a work visa or investor’s permit through the Ministry of Home Affairs
- Demonstrate that the business will create local employment and skills transfer
Note: Some sectors like land ownership or certain mining operations may require Namibian partnerships or approval.
Cost Overview for Setting Up a Business in Namibia
| Activity | Estimated Cost (NAD) |
| Name Reservation | 50 |
| Company Registration | 300 – 1,000 |
| Tax Registration | Free |
| SSC Registration | Free |
| Business Bank Account | Varies |
| Municipal Trading License | 200 – 2,000 |
| Legal/Consulting Services (optional) | 3,000 – 10,000 |
Common Challenges
While Namibia offers many opportunities, some challenges exist:
- Bureaucracy: Though improving, delays in government approvals can occur.
- Skills shortages: In technical sectors, local skills may be limited.
- Access to finance: SMEs sometimes struggle to secure funding.
- High utility costs: Electricity and water can be expensive for manufacturers.
However, with proper planning and support, these challenges can be managed.
Conclusion
Setting up a business in Namibia is a rewarding opportunity, especially for those prepared to navigate the legal and regulatory landscape. With a stable political climate, investor-friendly policies, and growing sectors like energy, logistics, and digital services, Namibia is positioning itself as a regional hub for entrepreneurship.
Foreign investors should work closely with local consultants or legal advisors to streamline the process, especially when dealing with licenses and immigration.
With the right guidance, your business in Namibia can be up and running within a few weeks—ready to tap into one of Africa’s most promising economies.
