Namibia, formally the Republic of Namibia, is a Southern African nation. The Atlantic Ocean forms its western boundary. It is bordered to the north by Zambia and Angola, to the east by Botswana, and to the south and east by South Africa. Although it does not border Zimbabwe, the Botswanan right bank of the Zambezi River divides the two nations by less than 200 meters (660 ft). Following the Namibian War of Independence, Namibia obtained independence from South Africa on March 21, 1990. Windhoek is the country's capital and biggest city. Namibia belongs to the UN, the Southern African Development Community (SADC), the African Union (AU), and the Commonwealth of Nations.
Namibia, the driest nation in Sub-Saharan Africa, has been inhabited by the San, Damara, and Nama people since prehistoric times. Immigrating Bantu peoples came in the 14th century as part of the Bantu expansion. Since then, Bantu tribes, the greatest of which is the Ovambo, have dominated the country's population, constituting a majority since the late nineteenth century.
The Cape of Good Hope, then a British colony, seized the port of Walvis Bay and the outlying Penguin Islands in 1878; they became part of the new Union of South Africa when it was formed in 1910. The German Empire took control of the majority of the region in 1884, establishing a colony known as German South West Africa. It improved agriculture and infrastructure. It committed genocide against the Herero and Nama people between 1904 and 1908. German authority came to an end in 1915 when South African soldiers defeated them. Following the conclusion of World War I, the League of Nations assigned control of the colony to South Africa in 1920. South Africa enforced its laws, including racial classifications and norms, as a Mandatory authority. With the National Party voted to power in 1948, South Africa implemented apartheid in what was then known as South West Africa.
Uprisings and demands for political representation by local African political activists seeking independence in the late twentieth century led in the UN acquiring direct responsibility for the region in 1966, while South Africa retained de facto sovereignty. The southwest Africa People's Organisation (SWAPO) was recognized by the UN in 1973 as the official representation of the Namibian people; the party is led by the Ovambo, who constitute a huge majority in the area. In 1985, South Africa created an interim government in Namibia as a result of the ongoing guerrilla conflict. In 1990, Namibia gained complete independence from South Africa. However, South Africa retained possession of Walvis Bay and the Penguin Islands until 1994.
Namibia is a stable multi-party parliamentary democracy with a population of 2.55 million people. Agriculture, tourism, and the mining industry – which includes mining for gem diamonds, uranium, gold, silver, and base metals – constitute the foundation of its economy, while manufacturing is a minor contributor. The Namib Desert, from which the nation derives its name, has resulted in Namibia becoming one of the world's least densely inhabited countries.
Employees are given between four and twenty-four days of vacation.
New Year’s Day
Namibian Independence Day
Good Friday
Easter Monday
Workers’ Day
Cassinga Day
Ascension Day
Africa Day
Heroes Day
Human Rights Day
International Women’s Day
Christmas
Namibian Family Day
After 36 months (sick leave cycle), employees are entitled to at least 30 days of sick leave if they work five days a week, or 36 days if they work six days a week. Employees earn one day of sick leave for every 26 days worked during their first year of employment.
After six months of work, female employees are entitled to 14 weeks of maternity leave. In most cases, four weeks of leave are taken prior to the due date and eight weeks are taken following the birth. If there is a pregnancy-related sickness or difficulty, maternity leave might be extended by a month. The employee must present the company with a medical certificate detailing the projected date of confinement prior to the absence, as well as the actual date when she returns.
Except for the basic wage, which is paid by social security, the employer is responsible for paying the employees' wages.
There is no statutory paternity leave.
Apart from maternity and paternity leave, there is no parental leave.
In Namibia, both employers and employees have the right to terminate an employment contract. Employers are banned from terminating an employee without a legal and reasonable reason and are required to follow a fair method specified by law, regardless of whether notice is given.
When an employer terminates an employee's employment contract for reasons such as disclosure of information to which the employee is legally allowed or compelled to reveal; refusal to perform anything illegal; and exercise of a right granted by law or collective bargaining agreement.
A reasonable justification for dismissing an employee is determined by the type and gravity of the offense. Just cause may include, but is not limited to, employee misconduct, employee incapacity, whether physical or mental, employee incompatibility, unsuitability during the probationary term, and the business's operating requirements.
Whether the employee or the employer terminates the employment relationship, the notice period varies according to the length of time worked.
Employers are liable for compensating employees for work performed prior to the termination notice, annual leave entitlements, paid time off for Sunday or public holiday work (if applicable), severance pay (if applicable), and transportation allowance (if applicable) (if applicable).
Employees terminated for just cause are generally entitled to the following notice periods: one day for less than four weeks' service; one week for more than four weeks' service but less than one year's service; and one month for more than one year's service.
If both the employer and employee agree, a longer period of notice may be granted, provided that the notice period applies equally to the employer and employee. Notification is prohibited during any leave granted to an employee. Employers may provide pay in lieu of notice in an amount equal to what the employee would have earned during the notice period. Additionally, the employer has the right to waive notice given by an employee in exchange for payment of the employee's remuneration.
The first three months of employment will be considered probationary, during which time the employee's suitability for the position will be assessed and feedback will be provided.
After 12 months of uninterrupted service, severance pay is equal to at least one week's pay for each year of continuous service with the employer.
The standard workweek is 45 hours and nine hours per day for employees who work five days or fewer per week; eight hours per day for employees who work more than five days per week.
Overtime is limited to three hours per day or ten hours per week and is compensated at a rate of at least one and a half times (150 percent ) the employee's hourly wage, or double (200 percent ) on Sundays and public holidays. For work performed between 8 p.m. and 7 a.m., an additional 6% is added to the employee's hourly wage, excluding overtime.
Domestic workers in Namibia are entitled to a set minimum pay of N $9.03 per hour under Namibian compensation legislation. Guaranteed and performance-based incentives are popular in Namibia, although they are not compulsory.
Namibia's healthcare system is a mix of state and private providers. According to the Africa Health Observatory, the public system serves 85 percent of the population, while private healthcare serves 15 percent of the middle and higher classes. For out-of-pocket costs, private insurance is available.
Medical assistance, subsidized housing, food allowance, vehicle allowance, entertainment allowance, telephone allowance, fitness allowance, sabbatical, and extra maternity leave are all common employment perks in Namibia.
Namibia has a source-based tax system, which implies that money earned in Namibia or considered to be earned in Namibia is taxed in Namibia unless a particular exemption is provided.
Foreign businesses' earnings from sources inside or considered to be within Namibia will be taxed in Namibia. In such situations, the foreign entity must decide whether or not it is required to establish a local company or branch. If a foreign firm establishes a location of business in Namibia, it must register a local company (local subsidiary) or an external company (branch).
If Namibia has engaged into a DTA with the nation where the foreign business is based, such entity will only be taxable in Namibia if it has established a permanent establishment (PE) there. If there is a PE, only the amount of income related to the PE will be taxed in Namibia.
Non-residents without a place of business in Namibia, on the other hand, may be liable to withholding taxes (WHTs).
Domestic companies and close corporations are imposed a corporate income tax rate of 32 percent.
Branches of foreign companies are imposed a corporate income tax rate of 32 percent.
Registered manufacturers are imposed a corporate income tax rate of 18 percent.
Diamond mining companies and companies that render services to such companies in connection with diamond mining are imposed a corporate tax rate of 55 percent.
Mining companies (other than diamond mining companies) and companies that render services to such companies in connection with mining are imposed to a corporate income tax rate of 37.5 percent.
Long-term insurers are imposed a corporate income tax rate of 12.8 percent.
The petroleum income tax rate is set at 35 percent.
Namibia has a source-based tax system, which implies that money earned in Namibia or considered to be earned in Namibia is taxed in Namibia unless a particular exemption is provided.
Workers who earn up to NAD 50,000 are tax-exempt.
Workers who earn between NAD 50,000 and NAD 100,000 are taxed 18 percent.
Workers who earn between NAD 100,000 and NAD 300,000 are taxed 25 percent.
Workers who earn between NAD 300,000 and NAD 500,000 are taxed 28 percent.
Workers who earn between NAD 500,000 and NAD 800,000 are taxed 30 percent.
Workers who earn between NAD 800,000 and NAD 1,500,000 are taxed 32 percent.
Workers who earn over NAD 1,500,000 are taxed 37 percent.
VAT is a transaction tax, and the consequences vary depending on the transaction. Some transactions are taxed at a rate of 15% or 0%, while others are VAT-free. Certain restrictions apply to the ability to claim input tax deductions.
VAT is charged on all taxable supplies made by a registered person. A taxable supply is one that is made in the course or advancement of a taxable activity. A taxable activity is defined as any continuous or regular activity in Namibia that includes the provision of goods or services for consideration.
The Namibia visa policy refers to the rules and requirements for visitors who need a visa to enter the nation. A visa is a movement granted by a government to foreigners that allows them to enter, remain in, or depart the country.
The Namibian government allows people of certain nations to visit and experience Namibia for tourism or formal business reasons. Citizens of other nations may travel and remain in Namibia for three months without a visa for tourism, official and business meetings, or visiting friends and relatives. However, the Namibia visa policy states unequivocally that the individual must carry an ordinary service passport in order to take use of this provision in Namibia.
The tourist visa for Namibia is valid for up to three months. The Namibia tourist visa application procedure takes three days at the Namibian consulate.
For longer visits in Namibia, including living or working in Namibia, foreign citizens need apply at the Namibian government office for appropriate visas and supplementary permission.
According to Namibia visa regulations, visitors from the other countries must apply for a consular visa at a Namibian government office. According to Namibian visa regulations, almost all visitors must apply for a visa before entering the nation. In the sections below, you will find detailed rules regarding Namibia visa policy in terms of tourist travel and temporary stays in the nation.
In Namibia, employment contracts are assumed to be indefinite unless the employer has a compelling cause to recruit an employee for a certain period of time. Written agreements must include the workplace information, remuneration, employer and employee identity, the type of the employment, working hours, the start date of the work, the termination date if for a defined period, and the employee's native language.
A fixed-term contract's duration is not governed by statute. Rather, the length is defined by an agreement reached between the employee and the employer, or by a collective bargaining agreement. Similarly, there is no legislative provision governing the length and duration of the probation period. A probation term may be agreed upon by employers and workers via an individual or group agreement.
Namibian Dollar
Your Namibia subsidiary formation procedure may vary significantly from that of another firm. This is due to the fact that the procedure varies based on your location and the kind of company in Namibia. For example, establishing in one city or area may feature advantageous Namibia subsidiary laws, whilst incorporating in another may require more difficult restrictions. If you are unfamiliar with all of Namibia's locations and rules, we suggest dealing with an expert who can assist you in remaining compliant.
Your entity is another crucial element to consider while incorporating. Namibia recognizes three kinds of entities: a limited liability company (LLC), a public limited company, and a branch office. The structure you choose should be determined by your company's operations and objectives. Having said that, most businesses choose to grow as an LLC due to the favorable rules for foreigners and the capacity to manage a broad variety of operations.
The following actions are required to establish a subsidiary as an LLC:
1. Creating a memorandum and articles of association and getting them certified by a notary public
2. Registering documents with the Registrar of Companies and Close Corporations
3. Completing all documents in black ink
4. Submitting more than one unique name in order of preference
5. Opening a local bank account and depositing initial registered share capital
6. Drafting an association clause showing that you want to form a company and stating how many shares you agree to have
7. Appointing an auditor to work for the company
LLCs have their own Namibia subsidiary laws that are distinct from those of other companies. You'll just need one dollar in share capital, but you'll also require at least one director and shareholder. These people might be of any nationality and reside anywhere on the planet. You will, however, need to lease office space and enter the location in your incorporation forms.
All LLCs must have their financial accounts audited annually, therefore you'll need to hire an auditor to work for your firm. Residents are not required to submit such papers to the authorities, but as a foreign firm, you may.
