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Lesotho

Legal form:

LLC, PLC, LLP

Delivery:

3 weeks

Price: $

$1,000

Payment methods:

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Requirements:

Document checklist:

Local legal address (Handled by B2B Hub) 

1.Passport
2.Proof of Residence 

Registrar

Organization name

Abbreviation

Country

Lesotho

Email

Phone

Listing
Open website
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About

Lesotho

Capital
Official languages
Population 
Currency

ISO 4217

Maseru

Sesotho and English

2,214,000 (as of 2019)

Loti

LSL

FAQ

Frequently Asked Questions (FAQ) for company formation in Lesotho:


1. What is the minimum number of directors required to form a company in Lesotho?

- A minimum of one director is required to form a company in Lesotho.


2. What is the minimum share capital required to form a company in Lesotho?

- There is no minimum share capital requirement to form a company in Lesotho.


3. Can a foreigner own a company in Lesotho?

- Yes, foreigners can own a company in Lesotho.


4. What is the process for company formation in Lesotho?

- The process for company formation in Lesotho involves the following steps:

  a. Reserve a company name

  b. Draft the Memorandum and Articles of Association

  c. Register the company with the Registrar of Companies and Intellectual Property

  d. Obtain a business license

  e. Register for taxes with the Lesotho Revenue Authority


5. What are the tax requirements for a company in Lesotho?

- Companies in Lesotho are subject to corporate income tax at a rate of 25%. There are also other taxes such as Value Added Tax (VAT) and Pay As You Earn (PAYE) that companies may be required to register for and pay.


6. How long does it take to form a company in Lesotho?

- The time it takes to form a company in Lesotho varies depending on the complexity of the company structure, but generally it takes between 2 to 4 weeks.


7. Is it necessary to have a local address to form a company in Lesotho?

- Yes, a registered office address in Lesotho is required to form a company.


8. What are the post-incorporation requirements for a company in Lesotho?

- After incorporation, a company in Lesotho must file annual returns with the Registrar of Companies and Intellectual Property, maintain proper accounting records, and hold annual general meetings.


9. What are the advantages of forming a company in Lesotho?

- Lesotho offers a favorable tax regime with a corporate income tax rate of 25%. The country also has a relatively stable political environment, and the cost of doing business in Lesotho is lower compared to other countries in the region.

Economy

"Lesotho is a small, landlocked country in Southern Africa with a population of approximately 2.2 million people. The economy of Lesotho is largely dependent on the agricultural sector, which accounts for around 30% of the country’s GDP. The manufacturing sector is also an important contributor to the economy, accounting for around 20% of GDP. The services sector is the largest contributor to the economy, accounting for around 50% of GDP.

Lesotho has a relatively low unemployment rate of around 17.5%, which is lower than the regional average of around 20%. The country’s GDP per capita is estimated to be around $2,000, which is lower than the regional average of around $3,000. The country’s inflation rate is estimated to be around 4.5%, which is lower than the regional average of around 6%.

Lesotho has a relatively low level of public debt, estimated to be around 40% of GDP. The country’s budget deficit is estimated to be around 4.5% of GDP, which is lower than the regional average of around 6%.

Overall, Lesotho has a relatively stable economy, with a low unemployment rate, low inflation rate, and low public debt. The country’s economy is largely dependent on the agricultural and manufacturing sectors, which account for around 50% of GDP. The services sector is the largest contributor to the economy, accounting for around 50% of GDP."

Taxation

Lesotho is a country located in southern Africa with a tax system that is administered by the Lesotho Revenue Authority (LRA). Here is an overview of the taxation system in Lesotho:


Corporate Taxation:

- Companies in Lesotho are subject to a corporate income tax rate of 25% on their net profits.

- Companies are required to file their tax returns by the end of the fourth month following the end of the accounting year, and tax payments are due at the same time.

- Small businesses with an annual turnover of less than M1 million may be eligible for a reduced tax rate of 10%.


Personal Taxation:

- Individuals in Lesotho are subject to a progressive personal income tax rate that ranges from 0% to 30%, depending on their income level.

- The tax year in Lesotho is the calendar year, and individuals are required to file their tax returns by the end of April each year for the previous tax year.

- Personal income tax payments are due by the end of April each year.


Value Added Tax (VAT):

- Lesotho imposes a VAT on goods and services at a standard rate of 14%.

- VAT returns and payments are due by the end of the month following the end of the tax period.


Tax Payment Process:

- Companies and individuals in Lesotho can make their tax payments at the LRA or through the LRA's online payment system.

- Taxpayers are required to file their tax returns and make their tax payments by the deadlines mentioned above.

- The LRA may conduct audits to ensure compliance with the tax laws.


In summary, companies in Lesotho are subject to a corporate income tax rate of 25%, while individuals are subject to a progressive personal income tax rate that ranges from 0% to 30%, depending on their income level. Both companies and individuals are required to file their tax returns and make their tax payments by specific deadlines. VAT is also imposed on goods and services at a standard rate of 14%. Tax payments can be made at the LRA or through the LRA's online payment system, and taxpayers may be subject to audits to ensure compliance with the tax laws. Small businesses may be eligible for a reduced tax rate.

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