Registering a company in Botswana is now fast. Through CIPA’s online system a proprietary company can be incorporated in a matter of days, and many founders do it before they have thought the business through. Speed is useful, but the paperwork is not the hard part. These five decisions are, and they are much harder to fix later.
1. Put the ownership split in writing
If you are starting with partners, agree the shareholding percentages and what each person is contributing — money, equipment, time, customers — and write it down before any of it changes hands. A verbal understanding between friends or family is the single most common reason a young company stalls a year in, usually when the business starts to make money. A one-page shareholders’ agreement covering ownership, decision-making and what happens if someone leaves is enough to start.
2. Be able to describe the business in one sentence
Write one sentence that names the customer and the problem you solve for them: who pays, and what they are paying to fix. If you cannot write that sentence clearly, the business model still needs work, and incorporating does not move it forward. Funders such as CEDA, LEA and the Youth Development Fund all ask for this in some form, so it is worth getting right early.
3. Separate the money from day one
Open a business bank account as soon as the company is registered and decide who records every transaction — including mobile money and cash. Mixing personal and business money is the hardest thing to unwind at tax time and the fastest way to lose track of whether the business is actually profitable. A simple spreadsheet updated weekly is fine to begin with; the discipline matters more than the tool.
4. Check which licences and registrations actually apply
A CIPA certificate is not a licence to trade. Depending on your sector you may need a trading licence from your city, town or district council, and sector-specific permits from a regulator — food handling, transport, health, education and financial services all have their own requirements. You will also need to register with BURS for a tax identification number, and for VAT once your turnover is expected to pass the registration threshold. Budget time for these, not just the incorporation.
5. Write down what the first 90 days must produce
List the three things that have to be true within three months for the business to be real: a paying customer, a working product or service, a supplier lined up. Register the company once you know what you are registering it to do. The certificate is a starting line, not an achievement.
IED works with founders on exactly these decisions through its Business Planning and Venture Creation programmes. If you are close to registering, it is worth speaking to an adviser first.
