Types of legal business structures in Namibia

Namibia is located in western Africa. The republic has quite extensive borders with several countries, namely: Botswana, Zambia, Angola, and South Africa. Namibia is recognized as the most beautiful country due to its natural wealth of flora and fauna, as well as a large number of natural resources. Forested foothills and large areas of deserts are remarkable features of this state.

The official currency in the country is the Namibian dollar. It should be noted that the English language is enshrined at the state level.

It is impossible not to ignore the climate of Namibia. It rarely rains on this land, and the sun shines most of the time of the year. 

The republic has concluded a large number of foreign trade agreements, in particular, it is a member of SADC, SACU, WTO, it should also be noted that it is not a member of FAFT, OECD. 

The state of Namibia in the twenty-first century is one of the most prosperous on the continent of Africa. The incorporation of a company and the opening of a business in Namibia are now very profitable and promising.

6 easy steps to buy a company

1. Select country
2. Select bank
3. Pay in any way
4. Sending documents
5. Company registration
6. Opening a bank account

Main advantages

1. Relatively low taxes;
2. Resident and non-resident legal entities are subject to income tax in Namibia only on taxable income arising from or deemed to be derived from a source in Namibia;
3. You can buy an existing LLC;
4. Special tax rates for certain types of companies: Mining companies (including mining service companies), excluding diamond and oil mining companies, pay tax at a flat rate of 37.5%. The effective tax rate for diamond mining companies is 55%. The tax rate for oil companies is 35%;
5. There is no capital gains tax arising from or believed to have arisen from a source in Namibia;
6. Several perks are available: for example, incentives for production and exports, and export processing zones. These tax breaks are usually designed to help producers or exporters to stimulate employment, increase Namibia’s foreign exchange reserves, and promote Namibia as a trading hub for the region.

Forms of company registration

• Limited liability companies (public or private);
• Partnerships;
• Branches of a foreign company.

Among all the organizational and legal forms allowed in this legal order, the most universal is a private limited liability company (LLC). To open a company of this type (with no more than 50 employees), the following steps must be taken:

• 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 in reserve for up to 60 days. It will take 7-30 business days for verification as well as reservation of the title.
• Next, you should pay the registration fees. Involvement of a lawyer and obtaining 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 shall submit the Articles of Association and Memorandum.

Features of company registration

• It usually takes about 14 weeks to prepare documents and register an LLC in Namibia;
• The minimum authorized capital can be equal to $ 1;
• There must be at least 1 shareholder;
• The company must have a director. Information about directors is publicly disclosed;
• A company cannot exist without a registered office. In addition, a company secretary is optional;
• The shareholder and directors can be non-residents.
• A private company must appoint an auditor.

Features of taxation

Namibia levies corporate income tax on a territorial basis. Income accrued or deemed to have been accrued in Namibia is taxed at the standard corporate income tax rate of 32%. 

CIT rates may vary depending on economic activity: 18% for registered producers, 55% for diamond mining, 37.5% for other mining revenues, and 35% for oil revenues. For this indicator, Namibia is ranked 156th in comparison with world corporate tax rates.

• The VAT rate in Namibia is 15.00%, which puts Namibia 79th in the world in terms of the value-added tax rate;
• The tax rate on dividends is 20%;
• The royalty tax rate is 10%;
• There is no known wealth tax in Namibia. There are no known inheritance taxes.