How to Register a Sole Proprietorship (Business Name) in Botswana

Working as an independent contractor in Botswana offers you agility, direct control over your income, and a simpler administrative burden than forming a company. The process is moderately bureaucratic: you’ll need to reserve a business name, submit registration documents, and comply with tax and licensing duties. The main hurdles are ensuring you meet regulatory and tax requirements and maintain good accounting practices. The benefit is that you can operate with fewer formalities and lower costs, making the sole proprietorship structure a popular choice for freelancers and small entrepreneurs.

Disclaimer: This article is for informational purposes only and is not a substitute for legal or tax advice. Always consult official sources or a local professional before proceeding.

What is a sole proprietorship in Botswana?

In Botswana, the equivalent of a sole proprietorship is registering a business name under your personal ownership (often called “trading under a business name”).

Other terms used include:

• Sole trader
• Self-employed business
• Independent contractor

These all refer to the same business model: one person operates the business without forming a distinct company entity and bears personal liability.

How does a sole proprietorship (business name) work in Botswana?

Business name vs. other structures in Botswana

There are alternatives to operating under a sole proprietorship. The main one is to form a private limited company (Pty Ltd) or a partnership. Below is a comparison to help you understand which structure may suit your needs best:

Step-by-step guide: How to register a sole proprietorship in Botswana

Step 1: Check your eligibility

To register a sole proprietorship in Botswana, citizens and legal residents aged 18 or older can apply freely using a valid Omang (Botswana national identity card) or residence permit. Foreign nationals without residency can also register, but only if they meet specific conditions—such as obtaining an investment permit, work and residence authorization, or partnering with a local citizen where sector rules require it. Certain restricted industries may not allow full foreign ownership without prior approval from the relevant ministry.

Step 2: Choose your business name

You may trade under your own name or choose a distinctive trade name. You can use the CIPA name search tool to find out existing and reserved names. The reservation lasts for 30 days, and once approved, you’ll receive a name reservation confirmation from CIPA, which allows you to proceed with your business registration.

Step 3: Gather required documents

You will need to provide:

• A completed Business Name Registration Form (Form 1) — available through the CIPA online portal
• A valid ID: Omang (national identity card) for citizens or passport/residence permit for non-citizens
• Proof of address
• Name reservation confirmation from CIPA
• Proof of payment for the registration fee
• Additional permits or licenses if your business activity is regulated (for example, a trade license or health permit)

Step 4: Register with CIPA

You submit your application either online via the CIPA portal or in person at a CIPA office. If all is in order, you will receive a Certificate of Business Name Registration. The combined name reservation and registration process usually takes around 6 to 8 days.

Step 5: Pay registration fees and contributions

You pay a one-time business name registration fee of approximately BWP 360, plus BWP 20 – BWP 60 for a name reservation. These are the standard costs for registering your business name with CIPA. Additional fees may apply if your business requires inspections (for health, safety, environment) or licensing from local municipal authorities.

Step 6: Post-registration obligations and licensing

Once your business name is registered, you may need to obtain a trade license from your local municipal or district council, and some sectors may require additional approvals, such as health, industrial, or environmental permits. You must keep your registration details current with CIPA whenever your address, ownership, or business activity changes, and renew your registration as prescribed by the Registrar. Sole proprietors are required to maintain accurate financial records and issue tax-compliant invoices that include their business name, registration number, and VAT details if applicable. You must also file tax returns with Botswana Unified Revenue Service (BURS), and it’s advisable to open a separate business bank account to simplify accounting and compliance.

Financial and tax obligations for sole proprietors in Botswana

You are responsible for:

• Income tax on business profits: Your business profit is taxed as your personal income via the BURS. Botswana uses a progressive personal income tax structure, with rates from 0 % up to 25 %.
• VAT: VAT is overseen by BURS with a standard rate of 14 % on taxable supplies. You must register if your taxable turnover in a 12-month period exceeds BWP 500,000. Once registered, your VAT returns are typically due 25 days after the end of each tax period.
• Social security contributions: Botswana does not have a mandatory social security system for self-employed or sole proprietors. However, if you hire employees, you must comply with PAYE obligations and any applicable training levy contributions collected through BURS for the Human Resource Development Council (HRDC).
• Record-keeping: You must keep all invoices, receipts, ledgers, and supporting documents for at least five years for tax compliance and possible BURS audits.
• Invoicing: Every invoice must include your business name, registration number, date, client and supplier details, description of goods or services, total amount, and VAT (if registered). Invoices should be sequentially numbered and properly stored for your records.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a business name in Botswana?
No capital is required. There is no legal minimum to register a business name.

Do business names need to register for VAT?
Only if their taxable turnover in a 12-month period exceeds BWP 500,000. Below that threshold, registration is voluntary.

How much are the standard registration or license fees?
Business name registration costs about BWP 360, plus BWP 20 – BWP 60 for a name reservation. Additional inspection or licensing fees will depend on your municipality and industry.

Can a business name hire employees?
Yes. If you hire employees, you must register for PAYE, withhold tax from salaries, and comply with employment legislation.

How long does it take to register a business name in Botswana?
Name reservation plus registration typically takes about 6 to 8 days.

Can foreign nationals register a business name in Botswana?
Yes. Foreigners may register and own businesses, though some sectors may require special permits or local partners.

Do sole proprietors need a separate business bank account?
It’s not legally mandatory, but it's highly recommended to keep business finances separate, improve bookkeeping, and present professionalism.

What happens if I stop operating?
You should deregister your business name with CIPA, settle any outstanding tax obligations with BURS, and file final tax returns. The process for cancellation or removal is handled via CIPA’s deregistration procedures.

Are there any incentives or reduced rates for new business names?
As of 2025, there is no widely published preferential scheme specifically for new business names. Check with CIPA or BURS for any sector-specific incentives or reliefs.

Can I use Deel as a business name to get paid by international clients?
Yes. Deel supports freelancers and sole proprietors (business names) to receive payments globally, in multiple currencies, with transparent fees and exchange rates.

Does Deel generate compliant invoices for business names?
Yes. Deel’s platform can create invoices that fulfill legal and tax requirements in many countries, including Botswana.

Can Deel help me with taxes as a sole proprietor in Botswana?
Deel provides downloadable transaction summaries and financial records that you can use when preparing tax filings. While it’s not a substitute for an accountant, it greatly simplifies record management.

Does Deel offer contracts for freelancers and business names?
Yes. Deel includes contract templates tailored to local laws, so you can engage clients safely and compliantly.

Can I access benefits through Deel as a business name?
Yes. Deel offers optional perks — such as health insurance, retirement plans, and other benefits — giving freelancers access to protections often reserved for employees.