Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Namibia
You might want to invest in Namibia because you’ve heard good points about the country. For one thing, the democratic environment is quite stable, especially because rule of law applies most of the time. You may also apply for reasonably priced construction permits. In addition, the government allows investors in manufacturing to get allowances. Another pro in favour of Namibia is its effective and fairly consistent adherence to and enforcement of commercial regulations.
Investors interested in doing business in Namibia need to deal with some drawbacks. One of these is the willingness of the state to take over ownership of mining assets of the country. (Mining assets include oil, copper, zinc, diamonds, and uranium). Investors know that this industry is one of the most profitable in Namibia so this rule can affect investor enthusiasm.
Another negative is the business setup process which tends to be expensive, burdensome and time-consuming. Furthermore, investors may perceive the domestic market as limiting and the population density to be small. The domestic workforce is not that big, nor is it highly skilled. You may also question the competitiveness of Namibia because of the large costs of import and export activities.
Choose LLC for Namibia Company Structure
Most companies set up in Namibia follow the LLC company structure. To register a company in Namibia, you must set aside at least 14 weeks for gathering the necessary documents then filing. The good news though is that you need not invest any minimum capitalization, meaning there is zero minimum share capital. You may rely on any legal currency for the incorporation of your LLC. You may use E-signatures as well.
For incorporation, you should disclose at least one shareholder which makes the company a sole proprietorship. You might also use a Corporate Shareholder (meaning a legal setup company) as one or more of your shareholders. You can name foreign investors as shareholders of your LLC too. However, you can only name one director. You may name corporate directors to your company but you must disclose all your directors publicly.
Limitations of Law in Namibia Incorporation
Laws in Namibia generally follow civil law and common law. You should conduct a shareholders’ meeting every year, as a legal requirement. However, you do not legally have to name a company secretary for your LLC. Your LLC also has to designate a registered office plus pay for that office every year. (This will allow an agent to receive service of process for the company).
In addition, you must file accounts and notify legal authorities of such accounts. You may have to submit your accounts for auditing regularly as well.
All potential foreign investments should pass the scrutiny of the Namibia Investment Centre first. These investments are disclosed to the Ministry of Industrialisation, Trade and SME Development which rules with finality on the application. To pass, your LLC must reveal an intent to provide significant economic benefit to Namibia. Investors also need to be credible, for the LLC incorporation to be considered acceptable.
If you intend to put up an LLC in Namibia, we can help you with that. Simply contact us so that we can apprise you of the process of incorporation for that country. This may help you to anticipate how business works in Namibia for the benefit of your company and its investors.