Business in Botswana

The Companies and Intellectual Property Authority (CIPA) operates the Online Business Registration System (OBRS). Anyone who operates in Botswana as an individual, firm or corporation under a business name must register that name. Depending on the project, the appropriate form may be a business name, private company, public company, close company, company limited by guarantee, external company or cooperative. SMME refers to small, micro and medium-sized enterprises. The published CIPA fee table states that a name reservation is valid for 30 days; an online name reservation costs P20 plus P60 CIPA; a private, public or close company costs P360 plus P900; and a business name costs P150 plus P300. The fees should be checked again before applying. Selling goods or services requires a trade licence or business registration certificate, depending on the activity. The Ministry of Trade and Entrepreneurship (MTE) issues these permits through District, Town and City Councils. A new application costs P200, is non-refundable and typically requires proof of CIPA registration, a lease or proof of ownership, zoning documents, an environmental and health report, and a national identity document (Omang) or passport. The service target for processing is five working days. A licence or registration generally remains valid as long as the requirements continue to be met; the annual fee is 25 percent of the licence or registration fee. Certain activities are reserved for citizens or companies wholly owned by citizens, so the specific activity must be checked before starting. A manufacturing business needs an industrial licence before operations begin. For turnover above P5,000,000, the Department of Industrial Affairs is responsible; for lower turnover, the local council is responsible. The application may require, among other things, incorporation and shareholding documents, information about the business premises, and environmental, health and planning approvals; the licence fee is P500 and the annual fee is 25 percent of that amount. Citizen reservations also apply to selected small manufacturing activities, and medium-sized or large projects may, where applicable, have joint-venture requirements. The Botswana Unified Revenue Service (BURS) requires taxable income earners to register for income tax. Sole proprietorships use, among other forms, Form RBN A, and a Tax Identification Number is required for value-added tax (VAT) registration. Published BURS information currently states that registration should be compulsory above P1,000,000 in taxable turnover and voluntary between P500,000 and P1,000,000; following the VAT reform adopted on 15 April 2026, the threshold and the start of application should be confirmed again before filing. Companies generally file their income tax return four months after the end of the financial year. VAT returns and payments follow the tax period; published guidance often states the 25th day. A Tax Clearance Certificate is valid for 12 months and is required for government tenders; BURS gives a processing time of four working days for a timely application. The Local Enterprise Authority (LEA) supports businesses through Business Advisory, Entrepreneurship and Enterprise Development Training, business-plan assistance, incubation and market access. It has 13 branches, two satellite offices and five incubators; the Glen Valley Horticulture Incubator programme lasts nine months, while other incubators last approximately two years. Advice or incubation does not automatically result in financing. The Citizen Entrepreneurial Development Agency (CEDA) offers citizen-owned businesses support for start-up and expansion, technical assistance, loans, credit guarantees, and equity or structured finance. Depending on the product, requirements concern citizen ownership and management, age, own contribution, security and viability. The Youth Development Fund is aimed at Botswana citizens aged 18 to 35 and, according to published information, combines a 50 percent grant with a 50 percent loan. The annual call usually takes place in May or June, and the stated processing time is 45 working days; however, the programme, amounts and criteria are under review. For market access, a business can apply for an EDD certificate through MTE eServices. The application requires, among other things, CIPA registration or incorporation, a valid licence or registration certificate, Tax Clearance and, where applicable, proof of VAT registration, as well as a business affidavit. The application fee is P100 and the certificate fee is P500. The certificate may provide a preference in government procurement but does not guarantee an award. A company files its annual return with CIPA in the original registration month; the fee is P500. For the first ten days after the due month has ended, CIPA states a late fee of P500; on the eleventh day, the company may be removed from the register, and restoration costs P2,500. Companies must also declare and keep current their beneficial owners as natural persons. Ceasing operations does not automatically release a company from filing obligations. A business name is renewed every three years, licences are paid annually, and tax returns, business records and sector-specific permits must be maintained according to the activity. Foreign founders may use a business visa for exploration, discussions and negotiations. Operating or investing additionally requires a work or investor process; this requires, among other things, proof of investment, business premises, company registration and a valid trade licence. Processing takes approximately seven to 14 working days for the business visa and approximately 14 working days for the work or investor route. A visa does not replace an operating permit. BITC and BOSSC coordinate approved domestic and foreign investor processes. After ceasing operations, the business applies for deregistration with BURS; tax obligations continue until approval. Removal by CIPA for inactivity or non-compliance is not an orderly closure. A formal closure may involve voluntary or involuntary liquidation with a qualified liquidator and the handling of creditor claims. Insolvency or judicial management falls under the jurisdiction of the High Court. Before closing, tax, licensing, creditor and CEDA obligations should be clarified.