Companies expanding to Eswatini can enjoy new business relationships, employment contracts with talented candidates, and the opportunity to push their business across the country. However, an expansion also comes with challenges, especially learning how to set up an Eswatini subsidiary. Once you choose a location and an entity, it can take weeks or months to expand and push back crucial tasks such as hiring employees, sourcing compensation and benefits, and setting up your payroll.
Globalization Partners works to make a difference through Eswatini subsidiary outsourcing. As a global PEO, we can use our existing Eswatini subsidiary to help you expand quickly and meet the country’s subsidiary laws. You don’t have to worry about compliance or not meeting your timeline when you work with us — you can simply focus on running your company.
How to Set Up an Eswatini Subsidiary
Your Eswatini subsidiary setup process depends on a variety of factors. First, you need to choose a physical office space and research the surrounding location. Certain cities and regions can operate like states, with separate Eswatini subsidiary laws that can make it either easy or difficult to incorporate in a particular location.
Next, you have to choose an entity that aligns with your business goals. Eswatini lets employees incorporate as a limited liability company (LLC), public limited company, branch, or representative office. Many employees choose to set up their Eswatini subsidiary as an LLC because it allows them to do more work in the country with fewer restrictions.
The steps to set up your Eswatini subsidiary as an LLC include:
- Verifying, registering, and notarizing your company name
- Registering in the economy’s largest business city
- Registering for social security
- Creating a company seal
- Obtaining documents for company registration and operation or a national identification card
- Opening an in-country bank account to pay employees
Eswatini Subsidiary Laws
Eswatini’s subsidiary laws also depend on the type of entity you choose. LLCs need one director and one shareholder — who can be non-resident foreign nationals — to stay compliant. You also need $1 of share capital for the start of the incorporation process. Eswatini subsidiary laws require LLCs to appoint an auditor within 30 days of getting approval to start business operations.
When you discuss how to set up your Eswatini subsidiary, you must comply with other key laws related to your business. For example, LLCs need to hire at least 10 and up to 50 employees one month after starting operations. All employees must be domestic nationals, so you’ll have to follow Eswatini employment compliance laws to stay compliant. You also need a company deed at least 10 pages long that outlines how you’ll run your company.
Benefits of Setting Up a Eswatini Subsidiary
Although it can become time-consuming, establishing an Eswatini subsidiary is the traditional way to incorporate in the country. Once you set up your Eswatini subsidiary, you can operate legally and start hiring employees and building relationships. LLCs also provide benefits for both subsidiaries and parent companies. Your parent company will have limited liability from the subsidiary, avoiding any costly litigation. Plus, your subsidiary will have the autonomy to choose the way it operates.
Globalization Partners provides these benefits and more through Swaziland subsidiary outsourcing. Instead of taking the time to establish your own subsidiary, you can use our existing Eswatini subsidiary to start working in a few days instead of weeks or months. As the Employer of Record, Globalization Partners can also take the stress of complying with eSwatini subsidiary laws off your shoulders.
Other Important Considerations
Since incorporating can take a significant amount of time, we recommend preparing everything you’ll need before you start the process. Start by setting aside time to travel back and forth to Eswatini and complete the Eswatini subsidiary setup process. If you don’t have the time in your own schedule, work with another company executive to handle the process.
You should also talk to your accounting department about all the costs involved. Make sure you have the necessary funds set aside so that you’re not surprised by any additional fees.
Let Globalization Partners Help With Your Expansion
When you’re planning an expansion to Eswatini, Globalization Partners can help make it easier. Contact us today to learn more about Eswatini subsidiary outsourcing.