Starting or expanding a business in Botswana? One of the key steps to operating legally and confidently is having a valid trading license. Whether you’re running a hardware store in Molepolole or launching a beauty salon in Francistown, this guide shows you exactly how to get your trading license without delays or surprises.
What is a Trading License?
A trading license is a formal permit issued by a local council in Botswana allowing an individual or company to legally conduct business activities. Whether you’re selling goods, providing services, or operating a mobile business, a license proves your operation meets national and local regulatory standards.
It is not the same as a company registration certificate. A trading license applies to the physical operation of the business and must match the business location and activities. Without this document, your business can be shut down, fined, or denied access to funding opportunities.
Who Needs a Trading License in Botswana?
If you are engaged in any form of commercial activity—retail, wholesale, hospitality, manufacturing, services, logistics—you are required to have a valid trading license.
- Shop and small supermarket owners
- Restaurant and food stall operators
- Barbershops, salons, and beauty spas
- Construction and landscaping businesses
- Car mechanics, spare part dealers
- Professional service providers like printers or IT support
Even informal sector participants must apply. The Commercial Affairs C0FC page provides more details for informal traders.
Requirements and Documents Needed
Before submitting your trade license application in Botswana, prepare the following required documents to avoid delays:
- Certified copy of business registration certificate (from CIPA)
- Certified ID or Omang (for individuals or directors)
- Proof of business address (like a lease agreement or title deed)
- Valid Tax Clearance Certificate – see how to get it here
- Health inspection reports (for food-related businesses)
- Fire safety certificate (depending on the business type)
Each council may have slight variations. Always ask for a checklist from your district or town council to ensure you’re compliant.
Steps to Apply for a Trading License
The application process involves submitting to the relevant council or commercial office, undergoing inspections, and paying a fee based on your operations.
Step 1 – Prepare business registration & premises info
Register your business at CIPA. If you haven’t yet, follow our Business Registration Guide. Then, ensure your business premises meet local zoning laws. Councils won’t approve licenses for businesses in residential areas unless rezoned.
Step 2 – Submit application to local council
Go to your District or Town Council and request the trade license application forms. Complete the form, attach the required documents, and submit. In Gaborone and Francistown, you may also apply online via the Tokafatso ya Botshelo jwa me portal.
Step 3 – Pay fees and obtain the license
Once the inspections are passed and your application approved, you’ll be advised on the fee based on your business type. Pay at the council cashier. Once payment is confirmed, your trading license will be issued—typically within 5 to 14 working days.
Renewal and Validity of Trading Licenses
A trading license in Botswana is typically valid for one (1) year and must be renewed annually. You can renew by visiting your local council with your old license, ID, and valid Tax Clearance Certificate.
- Late renewal penalties: Some councils charge a fine of 10–25% for expired licenses
- Renewal period: Usually opens in January and closes by March or April
Set reminders or leverage platforms like Lephutshi to manage compliance alerts.
Tips for a Smooth License Application
Many first-time entrepreneurs face delays because of minor oversights. Use these practical tips to fast-track your application.
Ensure business location meets council zoning rules
Your business premises must be in an approved business zone. If you’re renting, ask your landlord for a zoning certificate. Councils often reject applications in residential-only areas.
Prepare for inspection visits
Be ready for the council inspector’s visit. Clean, safe premises with proper signage, storage, and sanitation accelerate approvals—especially for food and service businesses.
Common mistakes to avoid in trade license applications
- Submitting outdated or missing documents
- Applying without a Tax Clearance Certificate
- Listing the wrong business activity or address
- Failing health or fire inspections
To avoid these pitfalls, refer to our step-by-step business guide.
Frequently Asked Questions
How much does a trading license cost in Botswana?
Fees vary by council and business activity. For example, a small general dealer shop may pay around P500–P1000 annually, while larger businesses like hotels or bars can pay P5,000 or more. Exact fees are provided after inspection and approval by local councils.
How long is a trade license valid?
Trading licenses are valid for one year from the date of issue. You must renew before the expiry to avoid penalties or operating illegally.
What causes delays in approvals?
Common causes include failed health/fire inspections, incomplete documents, or operating in non-zoned areas. It’s also common for processing to take longer during end-of-year backlogs.
Conclusion
Obtaining a trading license in Botswana is a mandatory step for any legal business. From preparing your documents to passing inspections and paying the required fees, each stage must be completed correctly to prevent delays or rejections. Renewal is annual, and maintaining compliance helps avoid costly penalties.
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Recommended Reading
- Tokafatso ya Botshelo jwa me – Apply for Trade Licenses Online
- Informal Sector Information from the Ministry of Investment, Trade and Industry
- Government Guide: Sale of Goods and Services Licence
- Ministry of Minerals and Energy – Licensing Requirements
- Apply for a Waste Carrier License
FAQ
- How do I get a trading license in Botswana?
Register your business at CIPA, prepare the required documents, and apply at your local council. Your premises will be inspected before approval, and then you’ll pay the license fee. - How much does a trading license cost in Botswana?
Fees depend on the type and size of business. Small businesses may pay around P500–P1000, while larger companies may pay upwards of P5,000 per year. - Who needs a trading license?
Anyone operating a commercial business—formal or informal—such as shops, salons, restaurants, or service providers in Botswana requires a valid trading license. - How long is a trade license valid?
Trading licenses are valid for 12 months and must be renewed each year at your local council.
