Business entity types & details

Sole Proprietorship

Sole proprietorships are common in every country, whereby one person operates a business independently. All business decisions are made by the individual, hence bearing consequences (both good and bad) alone. Minimal legal requirements and documents are required to register sole proprietorships.

Partnerships

Partnerships entail the collaboration of two or more entrepreneurs or businesses to achieve one goal. Typically, the nature of the partners’ liability defines whether it is limited or general. You must prepare partnership agreements outlining the roles and equity shares of all the partners.

Companies limited by shares

Shareholders, who are distinct from the legal entity, have liability that is capped at the outstanding balance on their shares. Limited liability companies are private if shares cannot be sold to the public, whereas public limited liability companies’ shares can be sold to the general public.

Company Limited by Guarantee

The shareholders pledge to pay a small sum (usually a token sum, such as Pula 10) if the company needs to be shut down. These are frequently employed for philanthropic or nonprofit endeavors.

Branch office

As the name suggests, branch offices are extensions of larger companies operating outside Botswana. The branch office must abide by Botswana business laws.

Cost Of Registering a Business in Botswana

The price of registering a business in Botswana might differ based on several variables, such as the kind of organization you select and other licenses needed. Below is a summary of the required expenses; remember that these are approximations and could vary.

To determine the exact costs, check with the Companies and Intellectual Property Authority (CIPA) or speak with a qualified expert in Botswana. 

Name reservation costs 
Reserving a business name costs approximately BWP 20 to BWP 30 (Botswana Pula). 

Incorporation costs 
The minimum share capital of your business form determines how much you will pay to incorporate your business in Botswana.
For businesses with a share capital below BWP 1,000, the incorporation cost is approximately BWP 500.
For businesses with a share capital above BWP 1,000, the incorporation cost is approximately BWP 1,000 plus BWP 1 for each BWP 100, or a portion thereof, beyond BWP 1,000.

Licensing costs
Every business in Botswana requires particular licenses from various government agencies. The cost of obtaining the licenses varies depending on your business format, operations, and location.

Additional costs

Additional expenses include certified copying fees, social security contributions, tax registration, and legal fees. 

Business Registration Requirements

### Requirements for Registering a Business in Rwanda

1. Business name reservation
2. Identification documents (National ID or passport)
3. Company structure
4. Business address
5. Business plan
6. Shareholder and director information
7. Capital requirements
8. Tax registration (TIN)
9. Sector-specific licenses
10. Compliance with local regulations
11. Application submission
12. Payment of registration fees
13. Proof of financial capacity (for foreign investors)

Steps of Registering a Business in Kenya.

Selecting an ideal business structure
Investors can register partnerships, limited liability companies, branch offices, and sole proprietorships, among other business forms. Each format is subject to unique registration costs, operating policies, and annual filing requirements. 

Naming your business
Before selecting a business name, understand your objectives, revenue predictions, and legal policies. Choose a name that is captivating and functional yet distinct from those of existing businesses. Submit the name to the Rwanda Development Board (RDB) for reservation. 

Prepare registration and constitutive documents.
When registering your business in Rwanda, you must submit the credentials and residential addresses of all the directors and shareholders. Other constitutive documents you must submit to the RDB depend on your business format. The documents typically include an article of association, prospectus, statutory declaration of compliance, declaration of capital, and memorandum of association.

Obtain a Tax Identification Number (TIN)
For your business to operate legally in Rwanda, it has to be recognized by the Rwanda Revenue Authority (RRA). The RRA issues all registered businesses with a Tax Identification Number (TIN).

Submit all registration documents and make payments
You should submit all the registration, constitutive documents, and Tax Identification Numbers to the RDB at this stage. Make registration payments and collect the receipts as evidence. 

Wait for your documents to be approved.
The RDB will confirm that the paperwork filed complies with all applicable laws and regulations. The agency will approve the registration and issue you a business registration certificate if all requirements are satisfied.

Open a bank account 
Use the approval certificate, Tax Identification Number, and business name to open a bank account for your business. Ensure you have all the required licenses before starting your business in Rwanda. Register your business for the social security fund with the Rwanda Social Security Board (RSSB). 

Business Registration Requirements

1. 1. Business name reservation
2. Valid passport
3. Proof of residency (if applicable)
4. Company structure
5. Business address in Rwanda
6. Business plan
7. Shareholder and director information
8. Minimum capital requirement
9. Tax registration (TIN)
10. Sector-specific licenses (if needed)
11. Compliance with local regulations
12. Application submission
13. Payment of registration fees
14. Proof of financial capacity

Steps

Selecting an ideal business structure

Investors can register partnerships, limited liability companies, branch offices, and sole proprietorships, among other business forms. Each format is subject to unique registration costs, operating policies, and annual filing requirements. 

Naming your business

Before selecting a business name, understand your objectives, revenue predictions, and legal policies. Choose a name that is captivating and functional yet distinct from those of existing businesses. Submit the name to the Rwanda Development Board (RDB) for reservation. 

Prepare registration and constitutive documents.

When registering your business in Rwanda, you must submit the credentials and residential addresses of all the directors and shareholders. Other constitutive documents you must submit to the RDB depend on your business format. The documents typically include an article of association, prospectus, statutory declaration of compliance, declaration of capital, and memorandum of association.

Obtain a Tax Identification Number (TIN)

For your business to operate legally in Rwanda, it has to be recognized by the Rwanda Revenue Authority (RRA). The RRA issues all registered businesses with a Tax Identification Number (TIN).

Submit all registration documents and make payments

You should submit all the registration, constitutive documents, and Tax Identification Numbers to the RDB at this stage. Make registration payments and collect the receipts as evidence. 

Wait for your documents to be approved.

The RDB will confirm that the paperwork filed complies with all applicable laws and regulations. The agency will approve the registration and issue you a business registration certificate if all requirements are satisfied.

Open a local bank account 

Use the approval certificate, Tax Identification Number, and business name to open a bank account for your business.

Ensure you have all the required licenses before starting your business in Rwanda. Register your business for the social security fund with the Rwanda Social Security Board (RSSB).

Annual filing documents & requirements

1. Every year, company executives are required to draft and submit audited financial accounts to the company registrar.
2. Businesses must submit annual tax returns to the Botswana Unified Revenue Service (BURS).
3. Annual license renewals and information updates for your business are required.
4. Tax and payroll reports, welfare reports, and labor law conformity are mandated for employers.
5. The company's and its employees' insurance must be updated annually.

TAKEAWAYS

Select the best structure for your company after weighing aspects such as ownership, liability, tax ramifications, and regulatory needs.

Register your firm with CIPA, Botswana's primary regulatory authority for business registration.

Learn about Botswana's labor regulations regarding contractual relationships, pay, employee benefits, and working hours.

Keep abreast of legislative and regulatory changes that may affect how your firm is run.

Speak with credible accountants, business experts, or legal advisers knowledgeable about Botswana's legal system. They may offer advice on particular needs and guarantee compliance during the registration procedure and continuing business activities.

Frequently Asked Questions

Can foreigners entirely own businesses in Botswana?
Except for a few industries with special requirements, foreigners can own and run enterprises in Botswana. Moreover, local partners or stockholders are optional. Businesses in Botswana are open to foreign ownership and operation.

Are there specific minimum capital requirements?

With a few exceptions, such as the regulated banking and insurance sectors, most business types in Botswana are not subject to any particular minimum capital requirements.

Are there any incentives for investors in Botswana?

The Botswana Investment and Trade Centre (BITC) provides tax holidays, tariff exemptions, and expedited procedures in particular industries as incentives for international investors.