Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.
Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Swaziland. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.
| No. | Procedure | Time to Complete | Associated Costs |
|---|---|---|---|
| 1 | Reserve name at the company registry | 1 day | SZL 20 |
| 2 | Pay fee for reserving a name and registration fee | 1 day | included in previous procedure |
| 3 | Obtain tax clearance for company directors | 1 day | no charge |
| 4 | Preparation of articles of association and memorandum by a lawyer | 2 days | SZL 2000 |
| 5 | Registration with the Company Registrar | 21 days | SZL 360 |
| 6 | Request trading license | 30 days | SZL 50 to E10,000 (most likely a general services or manufacturing company would pay a license of E3,000 to E5,000, therefore E4,000 is a reasonable estimate for this fee) |
| * 7 | Pay trading license fee | 1 day (simultaneous with procedure 6) | included in previous procedure |
| * 8 | Obtain bank statement | 1 day (simultaneous with procedure 6) | no charge |
| * 9 | Obtain company tax identification | 1 day (simultaneous with procedure 6) | no charge |
| * 10 | Certificate of inspection by health department or city council | 1 day (simultaneous with procedure 6) | included in license cost |
| * 11 | Register workers with Provident Fund | 1 day (simultaneous with procedure 6) | no charge |
| * 12 | Enroll workers in worker's compensation insurance | 1 day (simultaneous with procedure 6) | no charge |