Botswana SubsidiaryReading Time: 3 minutes
Choosing to expand your company to Botswana is certainly something to celebrate. You’ll get to build new business relationships, establish an international presence, and recruit talented new employees who will help your company grow. However, amid all the excitement, you still have to focus on the more challenging aspects of an expansion, such as setting up a Botswana subsidiary, running payroll, hiring employees, and discussing compensation and benefits.
Globalization Partners will strive to make your expansion easier through Botswana subsidiary outsourcing. We’ll help you become more productive faster by avoiding the lengthy Botswana subsidiary setup process. With us, you can use our existing subsidiary to start working in a few days, and you won’t have to worry about compliance.
How to Set up a Botswana Subsidiary
If you decide to go the traditional route and set up a Botswana subsidiary, you’ll need to work with your team to answer a few questions about the process ahead of time. First, try to determine where in Botswana you’d like to incorporate. Different states or regions often operate under different Botswana subsidiary laws that can impact how easy or difficult it is to incorporate.
You also have several different subsidiary entity options to choose from, including a limited liability company (LLC), public limited company (PLC), offshore company (IFSC company), branch, and representative office. Each structure has its own pros and cons, so we recommend researching which option is best for your business needs. However, many companies choose to incorporate as an LLC since doing so offers benefits to both subsidiaries and parent companies.
The steps to set up a Botswana subsidiary as an LLC include the following:
- Reserving a company name
- Registering with the Registrar of Companies and Intellectual Property (ROCIP)
- Obtaining an industrial license
- Enrolling with and getting a Tax Identification Number (TIN) from the Botswana Revenue Service
Botswana Subsidiary Laws
One of the biggest challenges of incorporating is learning the Botswana subsidiary laws that apply to your area and entity. LLCs need at least one director who is a resident of Botswana and one shareholder of any nationality. Unlike other countries, Botswana does not require any paid-up minimum share capital.
You’ll also need a registered office in the country you work out of. LLCs are required to submit audited financial statements within five months of the end of the year and should hire a qualified company secretary to handle this task.
It’s important to note that the Business Names Act is included in Botswana’s subsidiary laws. All companies looking to incorporate must register their name, title, description, or style under which any business is carried on and visibly place this name at the entrance of the physical building. The Registrar of Business Names keeps a register with all registered business names to ensure that each one is unique.
Benefits of the Botswana Subsidiary Setup
Successfully completing the Botswana subsidiary setup process will give you the benefit of operating in the country legally. Incorporating as an LLC benefits the parent company and the subsidiary, as the parent company has limited liability from the subsidiary in the case of a lawsuit, and the subsidiary can operate how it wants.
However, the process to set up a Botswana subsidiary is longer than in other countries. It takes about 10 weeks to incorporate, and that’s before you’re allowed to hire employees, choose a payroll option, and disperse benefits. Globalization Partners can take weeks down to a few days through Botswana subsidiary outsourcing. As a global PEO, we also handle all compliance, so you can run your company without worrying about being found non-compliant.
What You Need to Establish a Subsidiary
Preparation and prior planning can help you succeed while learning how to set up a Botswana subsidiary. We recommend working with your accounting or finance department to set aside the funds you’ll need to pay for the incorporation process. You should also delegate someone to oversee the process and clear time in their schedule to travel back and forth to Botswana.
Make Your Expansion Easier With Globalization Partners
Globalization Partners can help you achieve even more benefits out of your expansion through our Botswana subsidiary outsourcing services. Contact us today to learn more.