The Republic of Namibia is located in southwestern Africa, on the Atlantic coast. The state borders 4 countries, these are Botswana, Zambia, Angola, and South Africa. The total area of Namibia is 783,000 km2. The capital – the city of Windhoek.
Namibia is known as one of the most picturesque countries in Africa. The richness of flora and fauna is a rare combination of geological formations and natural landscapes. Green foothills and desert sands are all hallmarks of a rich country.
- Namibia is administratively divided into 13 regions. The population is about 2 million.
- The monetary unit is the Namibian dollar.
- The official language is English.
Namibia is one of the wealthiest countries in Africa that’s why registering a company in Namibia is profitable and promising.
Forms of doing business in Namibia
Business registration in Namibia can be carried out in the following forms:
- limited liability companies (public or private);
- unlimited companies;
The most common form of business in Namibia is a private limited company. To open such a company (with less than 50 employees), you must:
- Select a name for the company and approve it in the Registrar of Companies. If the name is found to be suitable, it will be placed on reserve for up to 60 days. 7-30 business days will be required for title verification as well as reservation.
- Pay the registration fees, which will be followed by the acquisition of the revenue stamps from the Internal Revenue Service.
- Register a company with the participation of a lawyer and obtain a certificate that will make it possible to conduct business.
- The shareholder of the company in Namibia, the local accountant or the lawyer of the company, submits the Articles of Association and Memorandum.
To establish a company with share capital, the following documents must be submitted:
- The original of the Memorandum with two notarized copies;
- The official act of registration;
- Form CM5 (contains information about the approved company name);
- Form CM22 (confirms the point of registration of the company’s office);
- Form CM29 indicating the names of directors, auditors, and employees;
- Form CM46 (certificate of the beginning of commercial activity);
- Proof of payment of the registration fee;
- Application confirming the availability of sufficient capital to conduct the planned business (submitted to the registrar).
Potential additional licenses that will require to be obtained to conduct the full-fledged activities of the company in Namibia:
– for the transportation of goods/people;
– for the development, and extraction of minerals;
– for the import/export of goods;
– for the sale of alcohol to shops or retail chains.
Depending on the industry, the procedure for obtaining a license may have specific nuances.
Taxes in Namibia
The company in Namibia does not pay inheritance and gift tax.
Capital gains are not taxed.
The income tax for a company in Namibia (excluding mining enterprises) is 32%.
The maximum tax rate for individuals is 36%.
Individuals with earnings of up to N $ 20,000 are exempt from income tax.
Mining companies in Namibia pay tax at a minimum rate of 25%.
- Diamond mining companies pay a 55% tax.
- Oil and gas companies pay tax at a rate of 32%.
- There are special tax schemes for all types of companies, so the amount of tax may fluctuate.
- Tax on import and production of goods – 5-15%.
VAT levied on services and goods can be calculated at zero or 15% rate (depending on the type of product).
Opening a company in Namibia implies registration:
- Closed Joint Stock Corporation.
- LLC-type company.
- LLP company.
- It is believed that the most frustrating form of business registration in Africa is the registration of a limited liability company in Namibia. Therefore, to get additional profit from your business, you can register an LLC company in Namibia.