Starting a business in Lesotho: foreigner's guide (2026)

The OBFC consolidates company registration, business licensing, and tax registration under one roof, with full online registration available at lesotho.eregulations.org; the complete process can be finalised in under two weeks for straightforward cases.

Company formation is governed by the Companies Act No. 18 of 2011 (Act 18/2011), which abolished the pre-registration premises inspection and eliminated the mandatory legal representative requirement; business licensing is governed by the Business Licensing and Registration Act 2019 and its 2020 Regulations.

No general foreign ownership cap applies in most sectors; foreigners may hold 100% equity. However, a schedule of small-scale activities — including barbers, butcheries, hair and beauty salons, mini-supermarkets, domestic fuel dealers, greengrocers, and brokers — is reserved exclusively for Lesotho citizens, barring foreign ownership or board participation.

Foreign-owned businesses (≥30% non-citizen shareholding) must prove capital investment of at least M2 million (Lesotho Maloti) — approximately USD 110,000–123,000 — when applying for or renewing a trader's licence under the Business Licensing and Registration Act 2019; no general minimum paid-up capital is required purely for company incorporation under the Companies Act.

Core steps are: (1) reserve company name at OBFC; (2) submit incorporation documents (memorandum/articles, Form COREG 39) online or in person; (3) pay registration fee; (4) obtain trader's/business licence; (5) register with the Lesotho Revenue Authority. The World Bank's final Doing Business report (2020 edition) recorded approximately 7 procedures and 7 days for Lesotho, improved from a prior 28-day baseline.

A foreign company commencing business in Lesotho must register as an external company with the OBFC within 10 days of beginning operations and must nominate a resident local agent upon whom legal notices and court processes can be served, as required by the Companies Act 2011.