Botswana, officially referred to as the Republic of Botswana, is a South African country which happens to be Africa’s longest continuous multi-party democracy. It is bordered by South Africa on the south and south-east, Zimbabwe on the north-east, and Namibia on the west and north. Botswana is majorly occupied by the Kalahari Desert.

Botswana is known for 2 things: diamonds and wildlife (elephants in particular). The country is one of the leading diamond producers in the world, with its Orapa mine being the biggest diamond mine in the world in terms of value and quantity produced annually. The primary industries in Botswana are mining, tourism and animal husbandry.

Company Incorporation in Botswana

A company may be incorporated in Botswana as one of the following entity types.

  • Sole Proprietorship: A sole proprietorship is a company by a single person, known as the sole proprietor. He/she reaps the entirety of the profits and also bears unlimited liability for the business, implying that he/she is personally liable for any debts or obligations of the company.
  • Partnership: A partnership is similar to a sole proprietorship in all respects, except that it is owned by 2 or more people.
  • Private Limited Company: A private limited company in Botswana can be formed by 2 to 50 members. A Botswana private limited company is required to appoint at least 1 director (who must be a local resident) and 1 shareholder (who can be of any nationality). It must have a registered office in Botswana.
  • Public Limited Company: A public limited company in Botswana can be formed by more than 50 members. It must appoint at least 2 directors (1 of whom is required to be a resident of Botswana) and 7 shareholders.
  • Branch Office: An overseas firm may set up a 100% foreign-owned company in Botswana in the form of a branch office. It may be used to carry out business activities within Botswana, and calls for only 1 director and 1 shareholder for its incorporation.
  • Representative Office: A representative office is set up to purely for market research or promotion purposes. It is not allowed to carry out commercial or business-related activities.

Benefits of Company Incorporation in Botswana

Setting up a company in Botswana has the following benefits:

  • Botswana allows free outflow of capital and profits, and does not exercise foreign exchange controls or restrictions – fostering investment activity.
  • Botswana, being Africa’s longest standing democracy, has a stable political environment.
  • The literacy rate in Botswana is high, with the official language being English.
  • In terms of banking and finance, Botswana is one of the most developed countries in the continent.

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