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Doing Business in Namibia

In Namibia business usually takes on one of the following forms:

  • Individual trader
  • Partnership
  • Close Corporation
  • Proprietary Company
  • Public Company

To a significantly lesser extent, foreign companies register external branches in Namibia or Trusts are used for purposes of conducting business. Section 1 of the Income Tax Act specifically includes Trusts in the definition of a "person". Thus, Trusts are taxed according to the same tax rate and principles that apply to individuals. Any person (individual) who earns a salary above N$100,000.00 per year, should register as a taxpayer. The salient features of the 5 types listed above are as follows:

  Individual Partnership Close Corporation Proprietary Company Public Company
Ownership Self Partners Members Shareholders Shareholders
Management Self Partners Members Directors Directors
Liability Self Partners jointly & severally Close Corporation Company Company
Max no. of owners 1 20 10 50 Unlimited
Tax Rate 2025/2026 Max 37% on income above N$ 1,550,000 p.a. Max 37% on income above N$ 1,550,000 p.a. 30% 30% 30%
Average days required to get into business 7 7 28 28 28
Foreign Shareholding possible  n/a n/a Yes, natural persons only Yes Yes
Listing on Stock Exchange n/a n/a No No Yes

Restricting factors to consider before opening a business:

  • Unskilled unemployed workforce
  • Government efficiency and timelines
  • Timeframe to register CC / Company / Trust
  • VAT refunds
  • Tax administration / Certificates of good standing
  • Government grants work-permits for foreign persons only in exceptional circumstances
  • High tax rates

Reassuring factors:

  • Good infrastructure roads / rail / air / harbour
  • Political stability
  • Low serious crime rate
  • Geological stability
  • Limited amount of corruption

Registrations required for general businesses:

  • Income Tax
  • Provisional Tax
  • Value-Added Tax
  • Value-Added Tax on Imports
  • Pay-as-you-earn (PAYE)
  • Social Security
  • Workmen’s Compensation
  • Municipal registration
  • Employment Equity registration
  • Vocational Education Levy (VET) for Employers with an annual payroll above N$1, million
  • Specific licenses

Most registrations can be submitted online, but it is recommended that stamped proof of submission is kept for any manual registrations.