A company incorporated under the Companies Act is the most commonly used business entity in Botswana.The Companies Act provides for, among other things, the incorporation, registration, organisation and management of companies. Also establishes a Companies and Intellectual Property Authority to administer the requirements of the Companies Act with respect to companies.Simply, a company is a business entity formed by an individual or group of individuals who work jointly to achieve a common goal or objective. Choosing the right type of company is of utmost importance when beginning a venture.Characteristics of a company include; unique name, having separate legal personality, to sue and be sued, enter into contract and own property.

There are three main types of companies, close company, company limited by shares and company limited by guarantee. They all have their advantages and disadvantages, with certain business structures being suited to certain ventures.

Any person may, either alone or together with another person, apply for the registration of a company under the Companies Act.1 The Companies Act is the central piece of legislation governing the formation, structure, governance and overall regulation of private limited liability companies.

An external company is defined in the Companies Act1 as a body corporate which is incorporated outside Botswana and requires to be registered in terms of the Companies Act.

This section talks about directors and shareholders.Starting with any limitations on the number of shareholders/directors.Meaning of a shareholder, what is a share, meaning of a director and the duties associated with holding such a position.The requirements for a board and lastly what qualifications are required to become a director on the board.