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Botswana

Why Botswana?

An attractive location for conducting business is the landlocked nation of Botswana, which is part of Southern Africa. Botswana is a desirable location for conducting business because of its stable political climate and expanding economy. Botswana placed 87th out of 190 nations in the World Bank’s Ease of Doing Business report for 2022, indicating a generally favorable business environment.

With a projected GDP per capita of 6621.00 USD in 2023, the nation has one of the highest levels in sub-Saharan Africa. Natural resources are abundant in Botswana as well, particularly diamonds, which generate more than two-thirds of the nation’s export revenue.

Advantages

Due to its proximity to other African nations, Botswana shares many of their political, institutional, and cultural norms. It is one of the top 5 African nations that is thriving and dominating this industry so well now that it has grown to be the biggest draw for investors regarding the banking system.

Competitive Tax System :

With a corporate tax rate of 22% and a number of tax breaks for investors, Botswana has a competitive tax system. This makes it a desirable location for companies looking to lower their tax obligations

Efficient Bureaucracy :

The bureaucracy in Botswana is open and effective, with streamlined processes for licensing, business registration, and other regulatory requirements. Businesses can start up and run more quickly and easily as a result.

Political stability :

The stable democracy in Botswana has a long tradition of peaceful power transitions. The environment created by this stability is favorable for business operations.

Skilled Workforce :

With an overall literacy rate of over 88%, Botswana has a highly educated and skilled labor force. This facilitates the hiring of and training of qualified personnel for businesses.

Strategic Location :

With easy access to nearby markets like South Africa, Namibia, and Zambia, Botswana is situated in the middle of southern Africa. Because of this, it makes for a great location for companies looking to grow in the area.

Simple Tax Regime

The tax structure in Botswana is intended to encourage economic expansion and draw in foreign capital.

Types of taxes in Botswana

1.Corporate Tax :

This is a tax on the profits earned by companies operating in Botswana. Botswana’s current corporate tax rate is 22%.

Tax Rate For Foreign Companies : Source-based taxation is used in Botswana. The tax rate for non-resident businesses on their income earned in Botswana is 30%.

2.Personal Income Tax :

This tax is imposed on the earnings of individuals in Botswana. According to the level of income, the progressive personal income tax rates in Botswana range from 5% to 25%.

Tax Slab Rates :

0 – 48000 BWP – 0%

48,000 – 84,000 BWP – 5%

84,000 – 1,20,000 BWP – 12.5%

1,20,000 – 1,56,000 – 18.75%

1,56,000 BWP & above – 25%

Botswana Companies

Cooperative Companies :

Businesses that are owned and run by a group of people with similar interests are known as cooperative companies. People who want to pool their resources and work together to accomplish a specific goal, such as generating income, opening up job opportunities, or offering goods and services to their community, typically form these organizations.

Sole proprietorship :

A sole proprietorship is a type of company in that is owned and operated by a single individual. The owner is fully responsible for all aspects of the business, including any debts or legal liabilities that may arise.

Partnership

A partnership is a type of company in that is owned and operated by two or more individuals who share the profits and losses of the business. It is regulated by the Partnership Act of 1890.

Private Company:

A type of business entity that is owned by private individuals or other private companies is a private company. It is the most typical type of business entity in Botswana and is governed by the Companies Act of 2017.

An attractive location for conducting business is the landlocked nation of Botswana, which is part of Southern Africa. Botswana is a desirable location for conducting business because of its stable political climate and expanding economy. Botswana placed 87th out of 190 nations in the World Bank’s Ease of Doing Business report for 2022, indicating a generally favorable business environment.

Author: Chandrawat & Partners

Topic: Doing Business in Botswana

Download our comprehensive guide on – Doing Business in Botswana

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Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.