Namibia

The state of Namibia is located in western Africa, with borders stretching to the shores of the Atlantic Ocean. The Republic has quite extensive borders with several countries, namely: Botswana, Zambia, Angola and South Africa.
Namibia is recognised as one of the world's most beautiful countries due to its natural wealth of flora and fauna, an extraordinary combination of great natural values and resources. The forested foothills and large areas of desert are notable features of this state.

Namibia's official currency is the Namibian dollar. English is the state language.
Namibia's climate cannot be ignored: it's very hot, even sweltering. It rains very rarely and the sun shines most of the year.
The Republic has concluded a large number of foreign trade agreements, in particular it is a party to SADC, SACU, WTO, and 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 affluent on the continent of Africa. Incorporating a company and starting a business in Namibia is now very profitable and promising.

6 simple steps to purchase a company

  1. choosing a country

  2. choosing a bank

  3. payment (by any method)

  4. sending documents

  5. company registration

  6. bank account opening

Main advantages

Out of the the advantages that are open to founders when registering a company in Namibia, it is worth noting in particular:

  1. Relatively low taxes.
  2. Resident and non-resident entities are subject to income tax in Namibia only on taxable income arising from or deemed to have been derived from a source in Namibia.
  3. It is possible to buy an existing LLC.
  4. Special tax rates for certain types of companies: Mining companies (including mining service companies), with the exception of diamond and oil producers, pay a flat tax 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 tax on capital gains originating or presumed to have originated from a source in Namibia.
  6. A number of incentives are available, such as production and export incentives and export processing zones. These tax incentives are usually intended to help producers or exporters to boost employment, increase Namibia's foreign exchange reserves and promote Namibia as a trading hub for the region

Type of legal entity:

According to current Namibian legislation, the incorporation of such companies is available to foreign persons:

  1. Limited liability companies (public or private);
  2. partnerships;
  3. foreign subsidiary

Out of all the legal forms permitted in this legal order, a private limited liability company (LLC) is the most universal. In order to open this type of company (with no more than 50 employees), the following steps must be taken:

  1. Choose a name for the company and have it approved in the Company Register. If the name is deemed suitable, it will be placed on reserve for up to 60 days. Between 7-30 working days will be needed to verify and reserve the name.
  2. Next, the registration fees must be paid. The involvement of a lawyer and obtaining a certificate that will make it possible to carry out a business.
  3. The shareholder of a company in Namibia, the local accountant or the company's lawyer file the submits the Articles of Association and Memorandum Of Association.

Legal Entity Features:

The specific details of the incorporation procedure are as follows:

  1. It usually takes about 14 weeks to prepare documents and register an LLC in Namibia.
  2. The minimum share capital may be equal to $1.
  3. There must be at least 1 shareholder.
  4. The company must have a director. Information regarding the directors is disclosed publicly.
  5. A company cannot exist without a registered office. In addition, a company secretary is not required.
  6. The shareholder and director may be non-residents.
  7. A private company must appoint an auditor.

Taxation Features:

The state of Namibia has the following taxation features:

  1. Namibia charges corporate income tax on a territorial basis. Income accrued or deemed to be accrued in Namibia is taxed at the standard corporate income tax rate of 32%. CIT rates may vary depending on the economic activity: 18% for registered producers, 55% for diamond mining, 37.5% for other mining income and 35% for oil income. Namibia ranks 156th in this indicator in comparison with global corporate tax rates.
  2. Namibia's VAT rate is 15.00%, which puts Namibia 79th place in the world in terms of VAT.
  3. The tax rate on dividends is 20%.
  4. The royalty tax rate is 10%.
  5. There is no known wealth tax in Namibia. There are no known inheritance taxes.

The above does not constitute tax or legal advice for your specific situation.

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