Foreigners can register and own companies in Botswana, including companies that are wholly foreign-owned. Company registration is handled by the Companies and Intellectual Property Authority (CIPA), which runs the Online Business Registration System (OBRS) for incorporating and managing companies.
Registering a company does not automatically give a foreigner permission to work in Botswana. Foreign investors also need to meet the requirements relating to directors, immigration, tax registration and business licensing. The requirements can also vary depending on the type of business being established.
Can a foreigner own a company in Botswana?
Yes. Foreigners can own shares in a Botswana company, including 100% of the shares, where the business activity is open to foreign ownership.
Certain business activities are reserved for citizens of Botswana or companies wholly owned by citizens of Botswana. The current government list includes:
- Agent’s Licence
- Auctioneer’s Licence
- Car Wash Licence
- Cell Phone Shop Licence
- Cleaning Services Licence
- Curio Shop Licence
- Dry-clean Depot Licence
- Florist Licence
- Fresh Produce Licence
- Funeral Parlour Licence
- General Clothing Licence
- General Dealer’s Licence
- General Hire Service Licence
- Hair or Beauty Parlour Licence
- Imported Pre-owned Motor Dealer’s Licence
- Internet Café or Copy Shop Licence
- Laundromat Licence
- Petrol Filling Station Licence
- Takeaway Licence
The government currently lists 19 reserved trade licence categories. The list can be reviewed or changed, so foreign investors should confirm the current position with the Department of Trade and Consumer Affairs before registering a company for a restricted activity.
Does a foreigner need a local partner?
No. A foreigner does not need a Botswana citizen as a business partner simply because they are a foreign investor.
A foreign investor can own the company outright, without giving shares to a Botswana citizen, provided the business activity is open to foreign ownership. The ownership of the company is separate from the requirement for the company to have directors who meet Botswana’s residency requirements.
Resident director requirement
Under the Companies Act, as amended by the Companies (Amendment) Act, 2025, companies must meet minimum director requirements, including residency requirements for the directors making up the statutory minimum.
- Private companies, excluding close companies, need at least one director ordinarily resident in Botswana.
- Public companies need at least two directors, both ordinarily resident in Botswana.
- Companies limited by guarantee need at least one director ordinarily resident in Botswana.
- External companies need at least one authorised agent ordinarily resident in Botswana to accept service on behalf of the company.
For most foreign investors establishing a private company, this means at least one director must be ordinarily resident in Botswana. A foreigner living outside Botswana cannot register a private company with themselves as the sole director if they do not meet this requirement.
A foreign-owned company can have a foreign shareholder or director alongside a director who is ordinarily resident in Botswana. The resident director can be a Botswana citizen or a foreign national who meets the applicable residence requirements. Additional directors can also be appointed beyond the statutory minimum.
The resident director is a genuine director of the company and has the legal duties and responsibilities that apply to directors under the Companies Act.
Can a foreigner be a director?
Yes. Foreigners can be appointed as directors of companies registered in Botswana.
The company must still meet the minimum resident director requirement. A board can therefore include foreign directors alongside directors who are ordinarily resident in Botswana.
Being appointed as a director or owning shares in a company does not automatically give a foreigner permission to live and work in Botswana. A foreign national who intends to manage or physically work in the business in Botswana must separately meet the applicable immigration and work permit requirements.
Which company structure should you choose?
The most common structure for a new business is a private company limited by shares.
Other structures include:
- Public company
- External company, for a foreign company operating a branch in Botswana
- Company limited by guarantee, typically used for non-profit organisations and other qualifying entities
- Other structures provided for under the Companies Act
If you already operate a company in another country, you can choose between establishing a new Botswana company or registering the existing foreign company as an external company. An external company remains connected to the foreign parent company, while a newly incorporated Botswana company is a separate legal entity.
How to register a company in Botswana
1. Choose a company name
The first step is to choose a name for the company and submit it to CIPA for approval. CIPA operates the Online Business Registration System, known as OBRS, which is used for company registration and other company services.
2. Choose the company structure
Decide whether you are registering a private company, public company, external company or another structure permitted under Botswana company law. For most new small and medium-sized businesses, a private company limited by shares is the usual choice.
3. Identify the shareholders and directors
The shareholders and directors must be identified before completing the incorporation application. Foreign shareholders and directors will generally need to provide identification documents such as valid passports.
Information about the company’s beneficial owners is also required. Where another company will own shares in the Botswana company, additional corporate documents may be required.
A private company must also have at least one director ordinarily resident in Botswana.
4. Provide a registered office
The company must have a registered office in Botswana. This is the company’s official address for records and communications.
A P.O. Box on its own does not meet the requirement for a registered office. The company must have an appropriate physical address in Botswana.
5. Complete the CIPA application
Once the company name has been approved, complete the incorporation application through OBRS. The application requires information about the company, shareholders, directors, registered office and beneficial ownership.
The required supporting documents must also be submitted through the registration system. CIPA may request additional information or documents before approving the application.
6. Pay the registration fees
Pay the applicable CIPA fees through the registration system. The fees depend on the service and company structure, so applicants should check CIPA’s current fee schedule before submitting the application.
Once the application has been approved and the registration requirements have been met, CIPA issues the company’s incorporation documents.
Documents required
The documents required depend on the company structure and the people or entities involved. A foreign investor should generally have the following ready:
- Passport or other identification for foreign shareholders and directors
- Identification documents for the resident director
- Details of the company’s registered office
- Shareholder information
- Director information
- Beneficial ownership information
- Corporate documents if another company will be a shareholder
- Any additional documents requested by CIPA
Where a foreign company is establishing an external company in Botswana, additional documents relating to the foreign parent company may be required.
Work permit for foreigners
A foreigner who intends to work in Botswana needs the appropriate work authorisation. Registering or owning a company does not, by itself, give a foreign national permission to work in the country.
For an investor applying on the strength of their own business, the government’s published requirements include proof of investment, such as a certified bank statement; a lease agreement or other proof of business premises; company registration documents; a list of employees and their identification; a certified copy of a valid trade licence; a certified copy of a valid passport; a company profile; and two passport-size photographs with a white background.
The published processing time for a work permit is 14 working days. If you plan to relocate to Botswana and actively run the business yourself, the work permit application should be dealt with alongside the company registration.
Register for tax with BURS
After incorporating the company, register with the Botswana Unified Revenue Service (BURS) for the applicable tax obligations.
Company income tax registration is separate from VAT registration. A company does not automatically need to register for VAT simply because it has been incorporated. Whether VAT registration applies depends on the nature and value of the company’s taxable supplies and the applicable BURS requirements.
Company registration, trade licences and sector licences are different
Company registration, trade licensing and sector licensing are separate processes handled by different authorities.
Company registration, through CIPA, gives the business its legal corporate status. It does not by itself give the company permission to trade.
A trade licence, issued by the relevant Town or District Council under the Trade Act, gives a business permission to operate in a particular trade category. Botswana currently has 46 trade licence categories, of which 19 are reserved for citizens or citizen-owned companies.
A trade licence application requires company registration documents, meaning that company registration normally comes before the trade licence application.
A sector-specific licence is a separate approval required for certain regulated businesses. Manufacturing businesses may require an industrial licence, while tourism businesses are subject to tourism licensing requirements. Mining, financial services, transport and certain health-related businesses also have their own licensing requirements.
A company can therefore be incorporated by CIPA and hold a trade licence while still requiring another sector-specific approval before it can legally operate.
Open a business bank account
After incorporation, the company can apply for a business bank account with a commercial bank in Botswana. Banks conduct their own customer due diligence before opening accounts.
The bank may request the certificate of incorporation, company registration documents, identification documents for directors and shareholders, beneficial ownership information, proof of address, information about the company’s business activities and information about the source of funds.
Annual returns and company compliance
Registering a company creates ongoing obligations with CIPA. Companies must file annual returns and keep their company information up to date.
Under Section 217 of the Companies Act, as amended, registered companies must file their annual return in their original month of incorporation. A company incorporated in June, for example, files its annual return every year in June. The return can be filed on any day during the applicable month.
Missing the annual return deadline results in a penalty fee, while continued non-compliance can lead to the company being removed from the register.
The company must also maintain proper accounting records, meet its tax obligations with BURS and keep its business licences and permits valid. Following the 2025 amendments, companies are also subject to additional corporate compliance requirements, including requirements relating to financial statements and company constitutions.
CIPA contact details
Companies and Intellectual Property Authority (CIPA)
Location: Plot 54358, Block A, Prime Plaza, CBD, Gaborone, Botswana
Phone: +267 367 3700
Call Centre: +267 367 3797 / 3758 / 3748 / 3783
WhatsApp: +267 73 263 804
Email: info@cipa.co.bw
Website: www.cipa.co.bw
CIPA handles company name reservations, incorporation, company records and annual returns.
BURS contact details
Botswana Unified Revenue Service (BURS)
Location: Plot 53976, Kudumatse Drive, Gaborone, Botswana
Postal: Private Bag 0013, Gaborone, Botswana
Phone: +267 363 8000 / 363 9000
Call Centre: 17649
Email: contactcentre@burs.org.bw
Website: www.burs.org.bw
BURS handles taxpayer registration, income tax, VAT and other tax matters.
Department of Labour and Home Affairs
The Department of Labour and Home Affairs handles work permit applications for foreign nationals who intend to work in Botswana. Applications are generally submitted through the relevant Labour Office.
Immigration and work permit requirements can change, so applicants should confirm the current requirements and supporting documents with the department before submitting an application.
