Investing in Lesotho

Gem Diamonds (Belgium)

Nien Hsing Group (Taiwan)

Johnssons (RSA)

South African Breweries (RSA)

Manufacturing (garment, electronics), mining, services and construction.

Registering a company

A company is a legal entity or person and the liability of shareholders is limited to the number of shares they hold in a company.

  • Private Companies
  • Public
  • Non-profit making organisations

Note: One person is also allowed to make a company but will be registered as a Private Company

Registration is done at the One-Stop Business Facilitation Centre (OBFC) under the Ministry of Trade & Industry Cooperatives and Marketing.


Companies Act (2011) and Companies Regulations (2012)

  1. Reservation of Company name is done immediately at incorporation.
  2. Complete forms 1, 1A, 1B and form 8 for registration of internal company.
  3. Complete forms 3, 3A and form 8 for registration of an External Company, further attach certificate of incorporation and company, memorandum and articles of association/ company constitutional documents from the country of incorporation, if not in English the translation should be certified by the Notary Public.
  4. Attached certified copies of directors and shareholders identification documents and if a company is a shareholder certificate of incorporation for registrations.
  5. Incorporation fee for Internal Company is M530.00 and M1 030.00 for an External Company, which both include the M30.00 fee for the name reservation.

Labour Force

Lesotho has adopted the ILO definition of labour force which states that the labour force comprises of people aged 15 and above and classified as economically active population. By economically active population, we mean all people who supply for the production of goods and services during a specified period. It includes the employed and the unemployed. Lesotho’s workforce has been estimated at 859,896.

The adult literacy rate is the percentage of people aged 15 and above, who can with understanding; read and write a short, simple statement on their everyday life. Lesotho’s literacy rate is one of the highest in Sub-Saharan Africa at 87.4 percent, according to the 2011 Lesotho Demographic Survey. This is strengthened by the fact that government has also introduced free and compulsory primary education for all citizens and this will further improve on the literacy rate.

Lesotho’s labour force comprises of 46% females and 54% males. The people that constitute the labour force are aged between 15 years and above.



  • Standard 10% corporate income  tax applicable to all manufacturing entities; no withholding tax on dividends distributed by manufacturing firms to local or foreign shareholders;
  • No advanced corporation taxes are paid by companies on the distribution of manufacturing profits;
  • Training costs are allowable at 125% for tax purposes;
  • Payments made in respect of external management skills and royalties related to manufacturing operations are subject to a maximum withholding tax of 10%;
  • Easy repatriation of manufacturing profits;
  • A VAT rate of 14% (ensuring harmonization with the RSA). Furthermore, the Lesotho Revenue Authority has introduced flexible VAT payment systems, to tax compliant firms, to ease cash flows.

Health and Education

Lesotho’s total population life expectancy is estimated at 51.9 years.

Lesotho has a fairly robust health system and health sector development is a priority at the highest levels of government. Lesotho spends $54 per capita on health, which is higher than the $34 per capita required to provide a minimum package of health interventions. Although the HIV pandemic is a structural challenge for Lesotho, requiring long-term, predictable, and sustainable funding, Lesotho has a number of opportunities within its grasp to address this challenge. The continued international goodwill, evidenced by increasing donor contributions for health to Lesotho, strengthens Lesotho’s health system.

There are 372 health facilities in Lesotho comprising of tertiary health care institutions (3), secondary care hospitals (18), primary care centres (305) and pharmacies (46).

There are a total of 2048 educational institutions registered with the Ministry of Education and Training in Lesotho. These institutions are classified as follows: Early Childhood Care and Development (219), Primary (1468), Secondary (326), vocational (23) and tertiary (12). These include multiracial schools and one international school suitable for expatriates. Tertiary institutions produce an annual graduate average of 5100 graduates.

LNDC Investment Services

Promotion of FDI into Lesotho

Development of the local private sector

Policy advocacy for improved investment climate

Facilitation for provision of industry support infrastructure

  • Comprehensive information on investment opportunities in Lesotho
  • Serviced industrial and commercial sites at competitive rentals.
  • Provision of industrial and commercial buildings at competitive rentals;
  • Financial assistance to investors on a selective basis;
  • Investment facilitation services;
  • Assistance to procure all permits and licenses;
  • Assistance in company registration;
  • Appraisal of investment projects;

The LNDC offers a host of supportive services which include the following:

  • Assistance in industrial relations issues;
  • Appraisal of expansion projects;
  • Information on key changes in the investment climate e.g new incentives,

No fees are charged for LNDC services. Applicable fees are those standard charges for licenses.

Foreign Trade

Lesotho’s main trading partners are USA, EU, RSA and China


About LNDC

The Lesotho National Development Corporation (LNDC) is the main parastatal of the Government of Lesotho charged with the implementation of the country’s industrial development policies.

“The mandate of the Corporation is to initiate, promote and facilitate the development of manufacturing and processing industries, mining and commerce in a manner calculated to raise the level of income and employment in Lesotho.”  more...

Contact us

Lesotho National Development Corporation
Block A, Development House, Kingsway Street
Maseru, Lesotho, 100

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