Starting a business in Lesotho: the compliance basics
To start a business in Lesotho: register the company with Registrar of Companies (OBFC), register for tax with Revenue Services Lesotho (RSL) (corporate income tax 25% (10% for manufacturing & farming); VAT 15% once over LSL 2,000,000), comply with the Labour Code (1992), with the Labour Act, 2024 reforms if you hire, and meet Data Protection Act for personal data.
First compliance steps
- 1 Register the company with Registrar of Companies (OBFC).
- 2 Register for tax with Revenue Services Lesotho (RSL).
- 3 Register as an employer (statutory workplace protections (national social security is being reformed)) and use written contracts if you hire.
- 4 Register for VAT once turnover passes LSL 2,000,000.
- 5 Put a basic Data Protection Act framework in place.
Frequently asked questions
What do I need to start a business in Lesotho?
Register with Registrar of Companies (OBFC), register for tax with Revenue Services Lesotho (RSL), and meet labour (Labour Code (1992), with the Labour Act, 2024 reforms) and data-protection rules. Confirm specifics with Revenue Services Lesotho (RSL).
More on Lesotho
- Register a company — Lesotho
- Company tax — Lesotho
- VAT / sales tax — Lesotho
- Hiring staff — Lesotho
- Data protection — Lesotho
- Tax clearance — Lesotho
- Empowerment / B-BBEE — Lesotho
- Licences & permits — Lesotho
- Payroll & employee tax — Lesotho
- Importing & customs — Lesotho
- Annual returns — Lesotho
- Full Lesotho compliance guide
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Reviewed June 2026 from official sources. General information only — confirm with Revenue Services Lesotho (RSL) or a registered professional.