… A breach of companies’ law threatens digital dawn
At 20 Motšoene Road in the Industrial Area of Maseru, Builder’s City hardware is busy with the daily clatter of tools, the hum of forklifts, and the sharp scent of fresh timber.
“We do not know that company,” one employee said. “Please ask my colleague standing there, she might know.”
When asked, the other employee responded: “Starlink, which is being talked about on Facebook! I do not know where their offices are.”
This is the location listed as the registered office of StarLink Lesotho — the company that the Lesotho Communications Authority (LCA) announced on Monday had been granted a 10-year licence to operate in the country.
But a visit by the Newsday team on Tuesday, a day after the announcement, revealed no trace of StarLink Lesotho’s presence at the registered address, raising serious legal and regulatory concerns under the Companies Act of 2011.
Part X – Administration of Companies, of the Act outlines key requirements for companies regarding their registered office, address for service, and maintenance of company records.
Section 82 requires that every company must maintain a registered office in Lesotho, as recorded in the register of companies. The board can change the registered office at any time by filing a notice with the Registrar.
But, a change must be publicised in three consecutive newspaper editions widely circulating in Lesotho and via electronic media, including a national radio station, for three consecutive days during prime time.
Section 83 mandates that companies must have a physical address in Lesotho for document delivery during business hours (9:00 a.m. to 5:00 p.m. on working days), which can be the registered office or another designated place.
It should not a post office box or private bag, according to the act.
Section 84 states that companies must keep specific documents at their registered office or another place in Lesotho, including articles of incorporation, shareholder and director meeting minutes, share and director registers, certificates, director details, shareholder communications, accounting records, accounts, and property inventory (most for the last 10 years).
This section further provides that accounting records must be kept in Lesotho, either in written or accessible electronic form.
StarLink Lesotho was incorporated on April 17, 2024, and its documentation – submitted to the One-Stop Business Facilitation Centre (OBFC) – lists 20 Motšoene Road as the registered office, service address, and principal place of business.
But no office exists there.
The OBFC, under the Ministry of Trade, Industry, and Business Development, relies on accurate registration details to maintain a transparent and trustworthy registry.
This situation raises more than logistical concerns – it raises the possibility of regulatory non-compliance, or worse, fraudulent registration.
Globally, providing a false registered address is viewed as a serious violation. In the United Kingdom (UK), for example, Companies House regularly strikes off businesses for misleading registrations.
Even if the use of the Builder’s City address was an error, the failure to maintain a valid registered office is a breach of Lesotho’s Companies Act. If done deliberately to give the appearance of legal compliance, it could amount to fraudulent conduct.
When Newsday brought these concerns to LCA, its Public Affairs Manager, Mothepane Kotele, responded: “Please note that licence applications processed by the Authority, whether for Broadcasting, Postal, Telecommunications, Internet or other related services are only considered once the company is fully registered with the Ministry of Trade.”
Kotele added: “It is our expectation that these companies adhere to the requisite requirements set out in the Lesotho Companies Act.”
She also mentioned that: “Regarding the application process with the Authority, we require proof of office in the form of a sublease agreement after the application has been approved. This procedure ensures that prospective licensees are not incurring office leasing costs before receiving a decision on their application.”
In accordance with this policy, Kotele said LCA expects Starlink to provide a sublease agreement confirming its physical address in Lesotho before it can commence with its operations in the country.
“LCA remains committed to a fair and transparent licensing process that protects applicants and ensures full compliance with national regulations,” she said.
While the LCA insists its ‘policy’ protects businesses from unnecessary leasing costs, it directly contradicts the Companies Act. The Act does not grant companies the luxury of waiting to see if they will be licensed by LCA before maintaining a valid office.
The moment a company is registered, it must have a physical, functioning address in Lesotho, not a placeholder.
The Ministry of Trade said last night: “It is mandatory for the company to have a registered office and a physical address for service in Lesotho as provided for in section 82 and 83.
“The company in question submitted 20 Motšoene Road, Industrial Area, as its registered and physical address. The ministry does not do verification of addresses at incorporation.
“However, section 87(5)(d) empowers the Registrar of Companies to remove a company from the company register if the company has been absent at its registered address of service for six consecutive months.”
The cited section reads: “The Registrar may remove a company from the company register in accordance with prescribed guidelines and procedures if; (a) the company fails to commence business within 12 months of the time stated in its certificate of incorporation; (b)the company fails to submit an annual report in accordance with Part XIII; (c)the company has ceased to carry on business for a period of 12 consecutive months; or (d) the company has been absent at its registered address of service for 6 consecutive months.”
A company that has been removed from the register of companies under subsection 5 may, within 14 days apply, to the Registrar for reinstatement failing which the Registrar may apply for dissolution of the company.
In a statement issued on Monday, LCA announced it was “pleased to inform all stakeholders and members of the public” that its Board of Directors had resolved to grant a licence to Starlink Lesotho to operate a satellite network and provide satellite internet services in the country.
LCA described the move as a “landmark decision” and a “significant step forward” in Lesotho’s digital transformation, reaffirming its commitment to a “competitive, transparent, and forward-looking communications sector that fuels economic growth and fosters innovation.”
According to the statement, Starlink submitted its application in April 2024, prompting LCA to undertake a comprehensive review of its licensing and classification framework to accommodate low-earth orbit satellite technology.
“All stakeholders who submitted comments were invited for in-person engagements,” the Authority said, “in keeping with the belief that dialogue enriches understanding and ensures that public input is meaningfully considered.”
The revised regulatory framework was gazetted on 31 January 2025, after which Starlink’s application underwent formal processing.
A second round of public consultations concluded on 20 March, and LCA states that all submissions were shared with Starlink, which provided responses. A final report was then presented to the Board for deliberation.
LCA’s statement also noted that: “The approval of the operating licence clears the path for the Authority to finalise the terms and conditions under which Starlink Lesotho will provide satellite internet services to individuals and businesses across Lesotho.”
The licence will be valid for a period of 10 years.
“The licensing of Starlink Lesotho marks the dawn of a new era for connectivity in Lesotho,” the statement concluded, thanking stakeholders for their contributions to the “inclusive and historic process.”
Newsday revealed last month that Vodacom Lesotho (VCL) — the country’s leading mobile network operator — had urged the LCA to mandate local shareholding for Starlink, despite there being no such requirement in the Lesotho Communications Act of 2012.
In its written submission to LCA on 20 March, VCL Managing Director Mohale Ralebitso argued that requiring local ownership would promote economic empowerment, create jobs, and drive infrastructure development in the communications sector.
“Local involvement may foster partnerships with domestic businesses, thereby creating investment opportunities and ensuring broader economic inclusion,” Ralebitso said.
He added that local shareholding would help boost government revenues through taxes and dividends.
“As is standard practice with terrestrial providers, which are required to have local shareholding, Starlink should also adhere to this principle to ensure that a portion of its revenues remains within the country.”
VCL is itself partly locally owned. It began operations in 1996 with the government of Lesotho as an initial shareholder through its stake in Lesotho Telecommunications Corporation.
Following a privatisation process in 1999, the government sold its shares to the Sekha-Metsi Consortium, a group of local businesspeople and public figures, which now holds 20 percent of the company.
The remaining 80 percent is held by Vodacom Group, majority-owned by Vodafone.
In addition to calling for local shareholding, VCL urged the LCA to ensure Starlink complies with the same regulatory obligations as other licensees, including licence commitments.
“If Starlink intends to provide services directly to end-users without partnering with a local licensee, it must obtain a unified licence and meet all obligations applicable to unified licensees,” Ralebitso said.
He added that licensing should not be mandatory in cases where satellite providers partner with local licensees to deliver connectivity, but stressed the importance of regulatory parity to maintain a level playing field.
Seabata Mahao is a general news reporter with special focus on Business and Sports.
Started working at Newsday in 2021.
has an Associate Degree in Journalism and Media.
