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Starting a Business in Lesotho
Quick Links
About
Companies
Not all businesses are companies. Many are run by sole traders or partnerships.
Companies are registered by the office of the Registrar Companies (Registrar) at
OBFC. The companies are incorporated under Companies Act No 18 of 2011 and
Companies Regulations 2012. The Registrar will provide the company with Standard
Model Articles and Particulars of the Company, but a company can develop its own
articles.
A company is a legal person, separate from those who own or manage it. The
possible benefits of operating as a company include:
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the people who invest in the company (the members, normally shareholders) will
not be personally liable for the company’s debts over and beyond what they have
invested or agreed to invest but, if the business is profitable, they may be
entitled to a dividend;
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the day-to-day management can be the responsibility of directors who need not
be the same people as provide the investment;
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the company can continue indefinitely - it can survive the death of the
founders of the business or be sold to new owners by simply transferring shares.
In return for these benefits, information about a company’s activities must be
provided to the Registrar. This includes any change in the directors or
registered office and an annual report.
Business Licensing
Licences are issued through the ONE STOP BUSINESS
FACILITATION CENTRE in Maseru as well as the local offices of Ministry of Trade
and Industry, Cooperative & Marketing. You may contact these for clarification
of the above rules. A full list of these offices is shown below:
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Mafeteng |
Tel: 22700373 |
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Quthing |
Tel: 22750269 |
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Qacha’s Nek |
Tel: 22950252 |
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Mokhotlong |
Tel: 22920284 |
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Botha Bothe |
Tel: 22460277 |
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Leribe |
Tel: 22400266 |
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Berea |
Tel: 22500516 |
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Thaba-Tseka |
Tel: 22900217 & 22900991 |
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Mohale’s Hoek |
Tel: 22785399 |
For those businesses in Maseru District, Licenses are
issued by following the steps detailed below:
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1) |
First, find out if need a license. If you do,
after interview collect the brochure which sets out the rates and
rules, other documents you need and the license application form.
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2) |
Complete the form and attach the other documents you need to have |
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3) |
Submit your application and documents to the OSS Licensing Desk.
Officer will enter in your information and inform you of when you
should return. |
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4) |
Return to the OBFC on the nominated day |
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5) |
Go to the Accounts Counter to pay your License Fee |
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6) |
Officer enters in the receipt details and generates your License.
The License will indicate your unique License Number, validity
period as well a change of information form on the back. |
PROCEDURE:
Below is a detailed account of documents one has to submit to the secretariat for processing of applications for both trading and manufacturing licenses:
Requirements for Trading Licenses;
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1. Certificate of incorporation, Particulars of the company and Articles of incorporation- certified copies |
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2. Lease - Certified copy |
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3. Sub-Lease agreement |
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4. Health certificate of the premises to be used, this document is obtained from Maseru City Council (MCC) or Public health offices situated in rural areas – original |
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5. License fees (different per business type) |
In respect of applications for trading licenses, these can be lodged at any time with the secretariat for onward consideration by the local licensing boards. It takes five (5) days within which the boards sit to approve or reject applications. Approved applications require clients to pay fee(s). The fee structure for trading licenses is diverse in terms of different amounts attached to each business category/business type. The difference also depends on whether the business entity is a sole proprietor/individual or company. Trading licenses are generated electronically for approved applications and upon payment of respective fees.
Manufacturing License (Small Scale Industry)
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1) |
Lesotho Citizen
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2) |
Certificate of incorporation, Particulars of the company and Articles of incorporation- certified copies |
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3) |
Passport copies or any form of identity document recognized and approved by government of Lesotho- certified copies |
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4) |
No fees required |
Small Scale manufacturing licenses are processed and issued immediately upon lodging of applications. These business activities can operate at residential and commercial premises.
Exporting
Regardless of the value of the goods, whenever there is an
export whether to Intra/Extra SACU,Individuals exporting goods valued above M5,
000.00 are required to complete the SAD500 document has to be filled at least
five copies and the first two copies are submitted to Lesotho Customs at the
border ,and the last two copies should be submitted to South African Revenue
Services at the border, and the other copy is submitted with the goods at the
destination place.
Individuals exporting goods outside of SACU are required to
come into the OSS and proceed through the following steps:
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1) |
Register as an OBFC user thus enabling you to log onto the OBFC
public computers. Once registered you will receive a unique user ID
and password. |
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2) |
Complete the Universal Data Form using the OBFC Export Utility,
instructions on how to install and use the utility are included
(Export Utility Manual) |
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3) |
Once completed, return to the OBFC and log onto to the public
computer, to create a file an upload your export information. |
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4) |
Pressing “Generate” on the system will print out the Exchange
Control (F178) document as well as a request for an inspection. |
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5) |
Once you have got you Exchange Control document endorsed by the Bank
and the LRA Customs inspection done, return to the OBFC and complete
additional fields in the system (Public interface) |
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6) |
Once all the information is entered, press “Send” and report to the
Export Visa Desk at the OBFC. |
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7) |
The officer will check the application and if everything is in
order, you will be issued with the export visa and all export
documents on the spot. |
Manufacturing Licensing
Manufacturing licenses are issued at OBFC under Ministry
of Trade and Industry Marketing and Cooperatives to enhance institutional
capacity, and to promote industrial expantion by creating investor-friendly
policies.
Marketing Licensing
The department of marketing controls marketing of
agricultural products in Lesotho and provide tranning to small and commercial
farmers in the contry.
The services offered by this department are:
Work Permits
The requirements for work permits have not changed in the
period under review. Work permits were being issued only to those in the Textile
Manufacturing sector however after extensive consultants with the Ministry of
Labour and Employment work permits are currently issued to the entire
manufacturing sector at the OBFC. All other sectors are serviced from the office
of the Labour Commissioner which has now closer to the OBFC. It is currently
situated on the Floor Block D Development House.
Requirements for work permit - First application
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Covering letter from the company
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A completed first application form
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Certified passport copy that include a visa
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Certified educational certificates
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Certified copy of traders license, manufacturing or other license
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Certified copy by of a company tax clearance certificate
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Memorandum and articles of association if the applicant is a director
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An agreement between the main contractor and sub-contractor if a sub-contractor
is engaged
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Certified copies of registration from Lesotho Dental& Pharmacy Counsel and
Lesotho Nursing Counsel (doctors, pharmacists and nursers)
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Copy of an advertisement for the post
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Names and terms of reference of the local counter part
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Organizational structure and detailed training programme
Renewal of work permit
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Expiring work permit card
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Company’s letter stating why permit should be renewed and why the
counterpart cannot take over
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Completed renewal form
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Certified passport copies including residence permit
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Certified copies of trader’s, manufacturing or other
license
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Certified copies by LRA of company and individual income
tax certificate
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Certified copies of registration from Lesotho Dental&
Pharmacy Counsel and Lesotho Nursing Counsel (doctors, pharmacists and
nurses)
Fees payable
Residence Permits
Requirements for residence permits (all
copies have to be certified).
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1. Investors |
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Certified copy of work permit
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Certified copy of traders license
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Certified copy of tax clearance
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Application letter and completed application form
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Two passport size photos (identical) – for new
applicants only
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Passport copy
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Police clearance certificate from the country of origin
(less than six months old) – police clearance from Lesotho for residence
permit renewal
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Medical certificate
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2.
Employees |
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Letter from the applicant and competed application form
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Letter from employer
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Certified copy of personal tax clearance
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Certified copy of company’s tax clearance
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Certified copies of educational certificates
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Copy of contract of employment
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Two passport size photos (identical) – for new
applicants only
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Police clearance from the country of origin (less that
six months old) – police clearance from Lesotho for residence permit renewal
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Medical certificate
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3. Fees payable |
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New applicant - M3500.00
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Residence permit renewal – M2000.00
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Late residence permit renewal per week or part thereof -
M200.00
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Replacement of residence permit - M5000.00
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Applicants are required to bring the same documents for residence permits renewal.
Tax Registration
The information provided to the Registrar for the incorporation of a company
will be shared with the Lesotho Revenue Authority in order that the company can
automatically be registered as a taxpayer. Confirmation of the tax registration
will be provided with the incorporation certificate.
As and when the company takes on employees, it will still necessary for them to
be registered separately for PAYE purposes.
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Company Statistics
Total Companies in Lesotho:
32, 671
(as of Mar. 2018)
Active Companies to date:
15,949
(as of Mar. 2018)
Top 10 Industries:
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1. |
Construction |
9 946 |
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2. |
Real estate/property management |
1 634 |
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3. |
Mining |
1 267 |
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4. |
Catering |
1 191 |
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5. |
Cleaning services |
1 033 |
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6. |
Consultancy |
1 010 |
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7. |
Security services |
516 |
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8. |
Printing |
344 |
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9. |
Sewerage |
103 |
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