Foreign-owned companies, in which foreigners hold more than 30% of the equity capital in the case of companies and 50% in the case of partnerships, are subject to a discriminatory minimum capital requirement of M2,000,000 (~USD138,000) to be granted a business permit and be allowed to engage in a business activity in Lesotho. Foreign-owned companies are subject to a minimum capital requirement of US$250,000 to be granted a business permit and be allowed to engage in industrial business activities in Lesotho.
"Interpretation
2. In this Act, unless the context otherwise requires-
"business activity" means an activity carried on for the purpose of generating revenue and includes a profession but does not include the hawking and selling of agricultural produce grown or reared by a local farmer mainly for subsistence purposes;
"business permit" means a document issued under section 4 authorising a foreign business to engage in a business in Lesotho;
"foreign business" means - (a) an individual who is not a citizen of Lesotho; (b) a partnership in which the majority of the partners are not citizens of Lesotho; (c) a company in which thirty percent or more of the shareholders are not citizens of Lesotho.[...]
"medium enterprise" means an enterprise which employs between 21 and 50 employees including the owner, with an annual turnover of less than M5,000,000.
[...]
Part II - Licensing of Business
4.(1) No person shall engage in a business activity set out in Schedule 1 without a licence and, in the case of a foreign business, a business permit issued in accordance with this Act.[...]
(4) The Licensing Officer shall not issue a business permit unless the foreign business submits a business plan with the following details- (a) capital resources of not less than M2,000,000; (b) employment generation of not less than 6 employees who are resiednts or citizens of Lesotho; (c) strategic nature of the business to the Lesotho economy; transfer of technology and business expertise; and (e) advancement of business undertaking owned by citizens.
[...]
Schedule 1: BUSINESS ACTIVITIES FOR WHICH A LICENCE IS REQUIRED
1. Supply of Liquefied Petroleum Gas and Petroleum Products: a. Distribution and supply of liquefied petroleum gas and petroleum products; b. Retail sale of automotive fuel, liquefied petroleum gas and petroleum products in specialised stores; c. Retail sale of lubrificants
d. Retail sale of household fuel, bottled gas and coal; e. Establishment for bulk processing, storage and handling of petroleum, petroleum products, liquefied gas, coal and petrol chemical products;[...]
5. Wholesale and retail of health-related articles and products [...]
6. Food and beverage services activities: 6.1 Fast food activities, without full restaurant services; 6.2 wholesale and retail sale of meat, including poultry, and meat products; 6.3 Wholesale and retail sale of dairy products, eggs, edible oils and fats; 6.4 Wholesale and retail sale of alcohol and alcoholic beverages not consumed on the spot; 6.5 Wholesale and retail sale of food and non alcoholic beverages;[...]
10. Animal production: 10.1 Raising of cattle and buffaloes; 10.2 Raising of horses and other equines; 10.3 Raising of camels and camelids; 10.4 Raising of sheeps and goats; 10.5 Raising of swines/pigs; 10.6 Raising of poultry; 10.7 Raising of other animals; 10.8 Mixed farming; 10.9 Sale of livestock and livestock products.
11. Fishing and aquaculture: 11.1 fishing; 11.2 marine fishing; 11.3 freshwater fishing; 11.4 aquaculture; 11.5 marine aquaculture; 11.6 freshwater aquaculture.
12. Medical goods and chemicals (animals and crops): 12.1 Wholesale and retail sale of pesticides; 12.2 specialised store for wholesale and retail sale of animal drugs, plant chemicals and flora and fauna medicinal products [...]" (Business Licensing and Registration Act No 3 of 2019)
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"Foreign Direct Investment (FDI) entry threshold
19. Entry threshold for foreign investment in industrial activities shall be US$250,000 in line with Lesotho Schedule of Commitments under the World Trade Organisation General Agreement on Trade in Services.[...]" (Industrial Licensing Regulations 2014)
Business Licensing and Registration Act No 3 of 2019
Industrial Licensing Regulations 2014
[<a href="https://lesotho.eregulations.org/media/Business%20Licensing%20and%20Registration%20Act%20-%20copie.pdf">Act</a>],[<a href="http://www.obfc.org.ls/legislation/Industrial%20Licensing%20Regulations,%20%202014%20and%20Liquor%20Licensing%20(Appointment%20of%20Members%20of%20the%20Board)%20Notice,%20%202014.pdf">Reg</a>]