Starting a business, or company, in Swaziland takes approximately 61 days as compared to about 46 days for the Sub-Saharan Africa region. This piece outlines the general technical procedures for starting a company in Swaziland, according to the Doingbusiness.org database by the World Bank. It includes details and requirements to be in good standing with all relevant agencies beyond the company registrar like social security agencies.
The steps involved in registering a company(Private Limited Liability Company) in Swaziland are:
- Reserve name at the Company Registrar.
- Pay fee for reserving a name.
- Obtain tax clearance for company directors.
- Pay registration fee at revenue office.
- Have articles of association and memorandum prepared by a lawyer.
- Register with the Company Registrar.
- Request trading license from the Ministry of Enterprise and Employment.
- Pay trading license fee.
- Obtain bank statement.
- Obtain company tax identification.
- Get certificate of inspection by health department or city council.
- Register workers with Provident Fund.
- Get worker’s compensation insurance for workers.
|No.||Procedure||Time to Complete in days||Associated Costs|
|1||Reserve a unique company name at the Companies Registry
Agency: Companies RegistryThe founder submits a letter to the Registrar of Companies proposing 3 company names. The fee is paid at the Revenue Office.
|2||Pay the name reservation and registration fees
Agency: Swaziland Revenue Authority (SRA)The official fees are now paid at the Swaziland Revenue Authority (SRA).
|1||included in procedure 5|
|3||Obtain tax clearance for company directors
Agency: Swaziland Revenue Authority (SRA)To register a new company, each founder must obtain an income tax clearance statement.
|4||Preparation of the memorandum and articles of association by a lawyer
Agency: LawyerAlthough entrepreneurs can use the standard forms available for the memorandum and articles of associations, most of them choose to hire lawyers to facilitate the process. The lawyer’s fee varies between SZL 1,500 and SZL 3,000.
|2||SZL 1,500 – SZL 3,000|
|5||Register with the Company Registrar
Agency: Companies RegistryThe investor must submit the following documents to the Registrar of Companies:
• Tax clearance – original (1 copy)
• Memorandum Articles of Association – 3 copies (1 original, 1 to be filed, and 1 copy for the applicant)
• Government revenue receipts for the payment of the reservation of the company name and the registration fees
• Copy of the applicant’s ID card
• Notarized Receipt of the successful reservation of the company name
|6||Obtain a bank statement
Agency: BankThe entrepreneurs must then obtain a bank statement from a bank.
|7||Obtain a company Tax Identification Number (TIN)
Agency: Tax AuthorityCompany founders must inform the tax authority about the new company establishment.
|1 (simultaneous with previous procedure)||no charge|
|8||Receive inspection by the Health Department or City Council
Agency: Health Department or City CouncilDepending on which agency has jurisdiction, the city council or health department issues a Health Clearance Certificate upon inspecting the business location. The certificate is a supporting document in the company’s application of a Trading License.
|1 (simultaneous with previous procedure)||included in license cost|
|9||Request and Obtain a trading license
Agency: Ministry of Commerce, Industry and TradeAll companies require a trading license, except for professional companies that have a different licensing system. To obtain a trading license, the company requests a hearing before the Ministry of Enterprise and Employment. The Ministry publishes a notice in a daily newspaper (The Observer) at least 3 business days before the hearing, allowing individuals and companies to object to the company’s formation.
Companies must submit the certificate of incorporation upon requesting a hearing. The following documents must be submitted before the hearing and can be obtained while waiting for the hearing:
A company might need more than one trading license if it does more than one activity. For instance, if the company produces and sells its goods to the public. Each activity has a different license fee.
|12||SZL 50 to SZL 10,000 (most likely a general services or manufacturing company would pay a license of SZL 3,000 to SZL 5,000, therefore SZL 4,000 is a reasonable estimate for this fee)|
|10||Pay the trading license fee
Agency: Trade Licensing OfficeThe trading license fee is paid at the Trade Licensing Office.
|1 (simultaneous with procedure 9)||included in previous procedure|
|11||Register workers with the Provident Fund
Agency: Provident FundUpon recruitment of new staff, the employer must register the employees with the Swaziland National Provident Fund, which provides pension and occupational injury and illness benefits.
|1 (simultaneous with procedure 9)||no charge|
|12||Enroll workers in the worker’s compensation insurance
Agency: Royal Swazi Insurance CorporationAll employers must register their employees for worker’s compensation insurance at the Royal Swazi Insurance Corporation. The rates vary by industry.
|1 (simultaneous with procedure 9)||no charge|