Foreign company registration Botswana
The process of private limited company (LLC), joint venture, and branch office as foreign company registration Botswana are discussed. Contact us for more detail and setting up business. Database searching and finding out a suitable name for company is an important and initial step for company registration in Botswana. Ministry of Trade and Industry maintain the database and after finding out a suitable name, the entrepreneurs and investors should submit the form of name reservation and will receive a notification from Companies and Intellectual Property Authority within 3 days on average. When the register approves the name of the company, the reservation period will be started counting from that day to next 30 days. The cost could be BWP 20 to complete the name reservation process.
Private company, public company, close company and limited guarantee company are the different types of companies available in Botswana. Profit making is the main and core intention in the private company formation. Minimum 25 shareholders are allowed in this formation system. Provide an offer to the public for subscribing its share is totally illegal in Botswana. On the other hand, Public company appreciates unlimited number of shareholders. This kind of company is listed under Botswana Stock Exchange where the shares are available for sailing to public.
One or more individuals but not maximum five can from and apply for the membership of close company. According to Company Act Botswana (Section 249), it is not allowed to hold a member’s interest for the corporate body or trustee in a direct process or indirect process. Amount of money, description and legal statements of the property value, the full description including name, address, job experiences of the account officer should be provided in the time of close company registration.
The members of close company should have agreement for major business transaction with 75% interest. Otherwise, it will totally be impossible to from a close company in the banking and insurance purpose. New members of the close company can receive the interest from old members. If any member of close company becomes insolvent or mentally disordered suddenly, it is recommended to manage his/her membership by the trustee or administrator as a legal representative.
According to the section 255(1), the amount of money of the members of close company will be increased by the existing members or can be reduced to any member according to section 258 and 259. After the date of registration, money or property confer to the owners of the close company. If any member wants to sell his/her interest to the close company, agreement of all members will be needed in that time. Secretarial activities are little amount in close company such as registrar of companies will get to know all kinds of changes including new member, outgoing member, changing age of interests of members (in percentage), financial year from the accounting officer within 30 days.
Private Limited Company Registration Botswana
Limited Guarantee Company is an entity which doesn’t share its profit among its members. This is totally a donor based company. In the applying process of Limited Guarantee Company, it is essential to describe how the donors will donate in the company as well as the whole projects. The new company act in Botswana has been initiated to cope with the modern world and incorporate with the corporate world perfectly. Solvency test is performed before taking some corporate decisions in Botswana such as a company finances a person to buy shares or reduce shares. Through this test, it becomes proved that the company is able to pay its debts.
Entrepreneurs have an option to set up a public limited company in Botswana where Limited Liability Company is mostly preferable for the foreigners. Besides, they have option to establish a branch office or representative office in Botswana. Those foreign entrepreneurs, who want to register their company in Botswana, must appoint one director of Botswana citizen and one shareholder can be the citizen of Botswana or outsiders.
During registration of Limited Liability Company, financial statement submission is a must within five months of the year with appointing a qualified secretary for company who will run the business properly. In the public limited company, it is recommended to appoint minimum 2 directors and seven shareholders in the time of incorporation and they could be the citizen of Botswana or outsiders but one of them should be the citizen of Botswana. If the investors want to incorporate their company as offshore company (IFSC), they should follow some procedures.
To complete the registration of the company, director’s personal details including their residential address, postal address will be needed. An authorized letter should be submitted to the authority if the applicant applies through representative. Those investors, who want to apply for limited liability Company, should submit the form 2 and form 3. Besides, form 2 A and 3 should be submitted for the applicants of close company. For Limited Guarantee Company, Form 2 B and Form 3 should be submitted to the authority.