Thinking of an idea or project that you would want to formally register in Zambia, below is a guide on how you can go about registering your company in Zambia according to the confines of the law. Registering your business comes with many advantages that include liability protection, business continuity, separation of personal and business finances among many others.
You might also be considering investing and setting up a business in Zambia as a foreigner or diasporanians as Zambia is investor friendly and it is also a good investment destination with a stable political and macroeconomic systems.
Who can own a company in Zambia?
Anyone can own a company in Zambia. For registering a Limited Liability Company (LLC), it is required that the company has at least 2 shareholders and 2 directors of any nationality but one of the directors must be a resident in Zambia just the same as registering for a Public Limited Company (PLC). For the LLC it is not compulsory to have a Zambian shareholder and can be 100% foreign owned (The Companies Act, 2017)
How long does it take to register your company?
Company registration steps
1. Name Search
Check for the uniqueness of your proposed name for the company. The search can be done online here.
Once it’s done, the name is cleared by the Patent and Companies Registration Agency (PACRA)
2. Declaration Of Compliance – Companies Form 11
The company form 11 must be signed by the Commissioner of Oaths.
3. Register The Company
The company will have to be register with the PACRA by the investors.
The following forms have to be submitted too:
- Form 2 (Application of Incorporation)
- Form 5 ( Declaration of Consent)
- Form 11 (Declaration of compliance)
For foreign companies, Form 46 has to be submitted if the investor puts a branch of the foreign company in place. It must together be accompanied by the incorporation certificate from the home country, the MOU, articles of association, statuses, the charter, regulations, and any other documents required by PACRA.
You will then have to pay a stipulated fee.
After this your company will be registered and will be issued with an incorporation certificate or certificate of registration.
Once you are done, you then have to submit for tax registration with Zambia Revenue Authority (ZRA) after which you will get your tax identification number and to register as an employer with the national pensions Scheme Authority (NAPSA).
If your value of taxable supplies are to exceed ZMK 800 000 in any twelve consecutive months or ZMK 200 000 in any consecutive months, then you will have to obtain a Value Added Tax (VAT) tax number.
To then operate your business after registration, you may then move on to open your bank accounts. Then you can also obtain relevant permits from your local authority such as business permit, fire clearance certificate, and the health clearance and food hygiene license if your business will involve handling of consumables.
All the best in your business journey, we got a couple of articles that you might find handy in your business journey. You can read more here.