Introduction
Starting a business in Botswana requires proper registration and obtaining a trade license to operate legally. Botswana offers a streamlined and investor-friendly environment, making it an attractive destination for entrepreneurs. This guide walks you through the essential steps to register your business with the Companies and Intellectual Property Authority (CIPA) and secure a trade license from the relevant authorities.
Step 1: Choose Your Business Structure
Before registration, decide on the business structure that suits your needs. Common options in Botswana include:
- Sole Proprietorship
- Partnership
- Private Limited Company (Pty Ltd)
- Public Limited Company (PLC)
- Non-Profit Organization (NPO)
Each structure has different legal and tax implications, so choose carefully based on your business goals.
Step 2: Reserve Your Company Name
Visit the Companies and Intellectual Property Authority (CIPA) website to propose multiple prospective company names. You can search the Ministry of Trade and Industry database online to check name availability. CIPA typically responds within three to five working days. Once approved, your company name is reserved for thirty days.
Step 3: Prepare and Submit Registration Documents
Gather the necessary documents, including:
- Completed company registration forms (such as Form 1 and Form RBN1A)
- Declaration of compliance signed before a Commissioner of Oaths
- Identification documents (Omang for citizens, passports for non-citizens) of directors and shareholders
- Memorandum and Articles of Association
- Proof of registered office address
- Details of directors, shareholders, and company secretary
- Payment of registration fees (usually between P15 and P20 for name reservation, and around P360 for full registration)
Submit these documents online via CIPA’s Online Business Registration System (OBRS) or physically at their offices.
Step 4: Obtain a Trade License
To legally sell goods or provide services, you must obtain a trade license from the local District Council or City Council where your business operates. Requirements include:
- Proof of business premises (title deed or lease agreement)
- Certified copies of identification documents for owners, shareholders, or directors
- Completed trade license application form
- Payment of applicable fees
Licenses vary depending on business type, such as retail shops, service providers, or specialized trades. The Ministry of Investment, Trade and Industry has decentralized license issuance to District Councils for faster processing.
Step 5: Open a Corporate Bank Account
After company registration, open a corporate bank account in Botswana to manage business finances. Banks will require your certificate of incorporation and other company documents.
Step 6: Register for Taxes
Register your business with the Botswana Unified Revenue Service (BURS) to obtain a Tax Identification Number (TIN). If your business turnover exceeds the VAT threshold, register for Value Added Tax (VAT) with the Department of Customs and Excise. Compliance with tax regulations is mandatory to avoid penalties.
Step 7: Enroll Employees for Workplace Insurance
If you employ staff, register them with an insurance company for workplace-related injuries and social security contributions.
Tips for Smooth Registration and Licensing
- Ensure all documents are complete and accurate to avoid delays.
- Use online platforms like CIPA’s OBRS for convenience and faster processing.
- Keep copies of all submitted documents and receipts.
- Engage a legal or business consultant if you need assistance navigating the process.
- Stay informed about local regulations and licensing requirements specific to your industry.
Conclusion
Registering your business and obtaining a trade license in Botswana is a straightforward process when you follow the required steps and submit the correct documentation. Botswana’s supportive business environment and efficient regulatory framework make it easier for entrepreneurs to start and operate legally. By completing company registration, securing a trade license, and complying with tax and labor laws, you set a strong foundation for your business success in Botswana.
