Botswana Info
Joined: 23 Feb 2007
Posts: 15
Home Country: botswana
|
 Posted: Mon Feb 26, 2007 5:34 am Post subject: DOING BUSINESS IN BOTSWANA / BOTSWANA BUSINESS GUIDE |
 |
|
DOING BUSINESS IN BOTSWANA
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Private Corporation
Minimum Capital Requirement: 0
City: Gaborone
Registration Requirements:
Procedure 1. Select company name, write to Registrar of Companies for availability and reservation
Time to complete: 11 days
Cost to complete: P 12
Comment: It could take 1-2 weeks
Procedure 2. Sign the solemn declaration of compliance of statutory requirements for incorporation before a commissioner for oaths
Time to complete: 1 day
Cost to complete: P 75
Procedure 3. Register the company with the Registrar of Companies, Ministry of Commerce and Industry
Time to complete: 49 days
Cost to complete: P 200 (Registration of Memorandum and Articles of Association) + P 40 (Certificate of Name) + P 8per P 1,000 of authorised share capital above P 3,000
Comment: The registration fee is: P 240 for the first 3,000 shares and P 8 for every 1000 shares over and above the 3,000 share level. The new Companies Law to come into effect soon will reduce the time to about 2 weeks for a private company.
Procedure 4. Register for tax with the Commissioner of Taxes. Obtain the approval from the Commissioner of Taxes for the appointment of a public officer who is in charge of tax return
Time to complete: 2 days
Cost to complete: no charge by self, P 1,500 by agent
Comment: Fill in an application form for registration as a tax payer. Included in the form is also the application for registration of employee withholding tax (PAYE). Companies Memorandum and Articles of Association and the Certificate of Incorporation have to be filed.
Procedure 5. Register for VAT with Director of Customs & Excise
Time to complete: 14 days
Cost to complete: no charge by self, P 1,500 by agent
Procedure 6. Return the complete statutory to the Registrar of Companies about re-allotment, directors, auditors, company secretary and registered office
Time to complete: 1 day
Cost to complete: P 224 by self, P 1,800 as initial deposit and further charge of P 600 per year where registration is done by agent
Comment: Forms to file: Form 4 (allotment of shares), Form 2 (list of directors), Form 5 (location of office). The registration is usually done over the counter.
Procedure 7. Collect application forms for industrial or trading license
Time to complete: 1 day
Cost to complete: no charge
Comment: If the company is engaged in manufacturing it will need to apply for an industrial license, and if engaged in the retail industry it will need a trading license.
One has to visit the Licensing Department to collect the applicable application forms and the list of requirements depending on whether it is an industrial license or Trading License. Including in the list of requirement is the health inspector's report which should be done before submission of the application as it goes with the application.
Procedure 8. Obtain an approval of the working condition after an inspection of company premises
Time to complete: 2 days, included in the following procedure
Cost to complete: As part of the application procedure the firm's premises will be inspected by the health and environmental authorities to ensure compliance with minimum standards. The cost would be no charge as this Procedure is done by the municipal authorities as part of the application Procedure for a trading license or an industrial license.
Procedure 9*. Advertise the intention of applying for a license in the official gazette
Time to complete: 3 weeks, included in the following procedure
Cost to complete: P 40
Comment: Prior to the application being submitted one must also advertise in the government gazette its intention of applying for a license. This advertisement must appear in two consecutive issues of the government gazette (usually takes two weeks for this).
Procedure 10*. Obtain an industrial license from the Industrial Affairs Department, Ministry of Commerce and Industry; or obtain a trading license from Local Authority
Time to complete: 4 weeks
Cost to complete: P 100 for industrial license if applied by self; P 1,500 by agent; P 60 for trade license if applied by self, P 2,000 by an agent
Comment: A meeting is held by the Trade Licensing Authorities, on every Tuesday of the second week of every month.
Procedure 11. Register employees for the work injury insurance
Time to complete: 1 day
Cost to complete: no charge
Comment: Companies are required to undertake insurance in respect of injuries that may occur in the work place. Companies have the option of paying a deposit to the Commissioner under the Workmen's Compensation Act as security to be used to pay compensation to any worker injured at the work place. Most companies opt to purchase own insurance.
Note: Procedures sometimes take place simultaneously. Instances of this are marked with an asterisk (*).
TAX INFORMATION
Extensive changes were introduced to Botswana's taxation system in 1995/7 to enhance the incentives for domestic and foreign investment, improving competitiveness and increasing the disposable income of individual taxpayers. The top personal tax rate was brought into line with the corporate rate of 25%. In the budget of 2001 the rate for top marginal tax was increased to P 100,000, with no tax to pay up to P 25,000.
The corporate tax rate in 2002 was 25%, consisting of 15% company tax and 10% surcharge. For manufacturing companies, approved as such by the Minister of Finance, a reduced rate of 15% (5% company tax and 10% surcharge) applies. A withholding tax of 15% is assessed on the payment of all dividends and on the payment of interest on offshore loans. Taxes on such capital income may be reduced or eliminated in double taxation treaties. In 2002 Botswana had tax treaties with South Africa, the United Kingdom, Sweden and Mauritius. The capital gains rate is the same as the corporate tax rate and is assessed on 100% of the gains from real estate transactions and on 50% of the gains from transactions in moveable property, including the sale of shares in a company. However, capital gains from the sale of shares of a company listed on the Botswana Stock Exchange are tax-exempt.
From 1999 a new non-negotiable mining tax formula was introduced in order to provide international investors with greater certainty. A variable rate income tax was introduced with parameters set at internationally competitive levels, between a minimum of 25% and a maximum of 55%.
VAT
Value Added Tax was introduced to replace sales tax from July 2002. It was set at a uniform rate of 10% applied to all goods and services. Its aim is to broaden the government's revenue base. Traders with an annual turnover exceeding P 250,000 are required to register for VAT. VAT applies to almost all goods and services supplied. The list of exempt and zero rated supplies is very limited. All queries should go to:
Department of Customs and Excise
PB 0041, Gaborone
Tel: 322 855 or 364 2100
Toll free: 0800 600 702
E-mail: vat@gov.bw |
|
Register
Log in
FAQ
Search
Memberlist
