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 Namibia. 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 | Obtain the approval for a company name from the Registrar of Companies. | 18 days | included in the cost of registration |
| 2 | Pay the registration fees and buy revenue stamps at the Receiver of Revenue | 1 day | ND 270 |
| 3 | Hire an attorney to register the company with the Registrar of Companies; obtain the certificate to commence business. | 14 days | about ND 5,750+ ND 556 notary fees |
| 4 | Deposit the initial capital in a bank account. | 1 day | no charge |
| 5 | Apply for a town planning certificate. | 1 day | no charge |
| 6 | Apply for a trading license from the local municipality. | 1 day | ND 47.00 to ND 350 depending on the type of business |
| 7 | Register for VAT with the Receiver of Revenue at the Ministry of Finance. | 9 days | no charge |
| * 8 | Register for PAYE with the Receiver of Revenue. | 4 days (simultaneous with previous procedure) | no charge |
| 9 | Register workers with the Social Security Commission. | 21 days | ND 10 per employee |
| * 10 | Register workers with the Workmen’s Compensation Commission | 20 days (simultaneous with procedure 9) | no charge |