By @mosebetsihub 12/10/2025
Starting a business in Lesotho has become more accessible than ever, thanks to government-led reforms and the streamlined company registration process facilitated by the One-Stop Business Facilitation Centre (OBFC). This guide will walk local entrepreneurs and international investors through the necessary steps on how to register a company in Lesotho. It also highlights important government initiatives designed to support youth entrepreneurship amid the urgent national focus on tackling youth unemployment.
Step 1: Reserve Your Company Name
Your first step is reserving a unique company name. This can be done online via the OBFC Company Registration Portal by submitting your proposed name and paying a small reservation fee (typically M30). Name reservations last between 30 to 60 days. It is vital to ensure your name complies with statutory naming rules and that it is not already in use by another entity.
Step 2: Understand Allowed Business Activities
According to guidelines from the Ministry of Trade, a company must select all activities it intends to carry out, except for “K activities,” which are regulated financial services. Due to Central Bank of Lesotho regulations, firms engaging in these financial services are restricted to only one licensed activity.
Step 3: Complete the Required Registration Forms and Documentation
Essential documentation includes:
- Application to Register an Internal Company
- List of Shareholders and Directors Consent Forms
- Tax registration with the Revenue Services Lesotho
Certified copies of directors’ and shareholders’ identification documents, shareholding particulars, and the certificate of incorporation must accompany your application. Detailed document requirements are outlined on the OBFC documentation page.
Step 4: Provide Local Physical Address Details
Your business must have a local physical office address with clear location pointers such as street names (e.g., Ha Matala pela Lekhotleng). Officer addresses can be local or non-local but must always include precise identification details.
Step 5: Submit Your Application and Pay Fees
Submit your complete application online or in person at OBFC. Registration fees generally total around M500 for company registration plus the M30 name reservation fee. Notably, following the government’s recent reforms to combat youth unemployment, SME registration fees have been abolished for youth-owned businesses, fostering easier entry for young entrepreneurs. We can guarantee this as we obtained our trader’s license and tax clearance for Mosebetsihub without spending a single Loti.
Step 6: Obtain Business Licenses and Finalize Tax Registration
Depending on the nature of your business, obtain trading or manufacturing licenses through OBFC. Every registered entity must also register with the Revenue Services Lesotho (RSL) for income tax and VAT.
Step 7: Review Share Allocation and Finalize Registration
Shareholder allocation details should be accurately completed and reviewed during registration. Shareholders serving as directors only need to enter their details once.
The Importance of Registering Your Business in Lesotho
Legal registration empowers you to operate officially, protects your brand, and opens doors to government incentives while ensuring compliance with tax laws. The government’s simplified process aims to promote entrepreneurship and attract investment.
A recent government initiative includes a 40% procurement quota for youth-owned businesses, creating significant market opportunities and helping to address the widespread youth unemployment crisis declared as a national disaster in 2025 by the Prime Minister. This was further discussed in the original article, Youth Unemployment Reforms, where reforms such as SME registration fee abolition and targeted procurement policies are comprehensively explained.
Youth Unemployment: A National Emergency and Business Opportunity
Youth unemployment in Lesotho remains alarmingly high, with almost 40 percent of youth jobless, affecting women disproportionately. To confront this, the government made bold reforms:
- SME registration fees abolished for Basotho youths
- 40% government procurement quota for youth-owned businesses
- Dedicated funding programs allocating hundreds of millions of Maloti to youth entrepreneurship support
These reforms aim to transform youth from job seekers into job creators, with support from initiatives like the World Bank’s Lesotho Entrepreneurship Hub. MosebetsiHub continuously updates and provides expert resources to support youth and all entrepreneurs navigate this dynamic business environment.
Special Considerations for Registration
- Financial services companies restricted to one licensed activity by the Central Bank of Lesotho
- Non-resident directors must nominate a resident Public Officer for tax representation
- Sole proprietorships follow a slightly different registration and licensing process via OBFC
Support for Entrepreneurs in Lesotho
The government, through programs such as the World Bank-backed Lesotho Entrepreneurship Hub, offers grants, mentoring, and business incubation support to startups and SMEs. MosebetsiHub’s business and career section provides valuable tools and guidance tailored specifically to the Lesotho business landscape—helping entrepreneurs turn ideas into sustainable enterprises.
Summary on How to Register a Company in Lesotho
Registering a company in Lesotho is your first crucial step toward launching a successful business in a supportive legal and economic environment. By following the step-by-step process, complying with regulatory requirements, and leveraging government incentives, especially those targeting youth entrepreneurs, you can build a thriving enterprise that contributes to Lesotho’s economic growth and job creation. For more on youth employment reforms, see the original article on youth unemployment reforms.
