Companies expanding to Eswatini can enjoy new business relationships, employment contracts with talented candidates, and the opportunity to take business across borders. However, an expansion also comes with challenges, especially learning how to set up an Eswatini subsidiary. Once you choose a location and an entity, it can take weeks or months to expand and delay crucial tasks such as hiring employees, creating compensation and benefits plans, and setting up payroll.
G-P offers an alternative. With us, you can expand quickly and begin hiring in a fraction of the time. You don’t have to worry about compliance when working with us — we’ll handle the entire employee lifecycle, so you can simply focus on running your company.
How to set up an Eswatini subsidiary
If you decide to take the traditional expansion route, the Eswatini subsidiary setup process depends on a variety of factors. First, you need to choose a physical office space and research the surrounding location. Certain cities and regions can operate like states, with separate Eswatini subsidiary laws that can make it either easy or difficult to incorporate in a particular location.
Next, you have to choose an entity that aligns with your business goals. In Eswatini, companies can incorporate as a limited liability company (LLC), public limited company, branch, or representative office. Many choose to set up their Eswatini subsidiary as an LLC because it allows them to do more work in the country with fewer restrictions.
The steps to set up your Eswatini subsidiary as an LLC include:
- Verifying, registering, and notarizing your company name.
- Registering in the economy’s largest business city.
- Registering for social security.
- Creating a company seal.
- Obtaining documents for company registration and operation or a national identification card.
- Opening an in-country bank account to pay employees.
Eswatini subsidiary laws
Eswatini’s subsidiary laws also depend on the type of entity you choose. LLCs need 1 director and 1 shareholder — who can be nonresident international employees — to stay compliant. You also need USD 1 of share capital to start the incorporation process. Eswatini subsidiary laws require LLCs to appoint an auditor within 30 days of getting approval to start business operations.
When you discuss how to set up your Eswatini subsidiary, you must comply with other key laws related to your business. For example, LLCs need to hire at least 10 and up to 50 employees 1 month after starting operations. All employees must be domestic nationals, so you’ll have to follow Eswatini employment laws to stay compliant. You also need a company deed at least 10 pages long that outlines how you’ll run your company.
Benefits of setting up an Eswatini subsidiary
Although it can become time-consuming, establishing an Eswatini subsidiary is the traditional way to incorporate in the country. Once you set up your Eswatini subsidiary, you can operate legally and start hiring employees and building relationships. LLCs also provide benefits for both subsidiaries and parent companies. Your parent company will have limited liability from the subsidiary, avoiding any costly litigation. Plus, your subsidiary will have the autonomy to choose the way it operates.
However, G-P provides these benefits and more. Instead of taking the time to establish your own subsidiary, we can help you start working in a few days instead of a few months. As the Employer of Record (EOR), G-P also mitigates compliance risks every step of the way.
Other important considerations
Since incorporating can take a significant amount of time, we recommend preparing everything you’ll need before you start the process. Start by setting aside time to travel back and forth to Eswatini to complete the subsidiary setup process. If you don’t have the time in your own schedule, work with another company executive to handle the process.
You should also talk to your accounting department about all the costs involved. Make sure you have the necessary funds so that you’re not surprised by any additional fees.
Enter new markets with G-P — no new entities required.
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Get in touch today to learn more about how we can streamline the global growth process.