Zambia Info
Joined: 20 Apr 2007
Posts: 15
Home Country: zambia
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 Posted: Thu May 03, 2007 9:50 am Post subject: DOING BUSINESS IN ZAMBIA / ZAMBIA BUSINESS GUIDE |
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DOING BUSINESS IN ZAMBIA
STARTING A BUSINESS
STANDARDIZED COMPANY
Legal Form: Private Company Limited by shares
Minimum Capital Requirement: 5,000,000
City: Lusaka
Registration Requirements:
Procedure 1. Check name for uniqueness at the Registrar of Companies
Time to complete: 2 days
Cost to complete: ZMK 5000
Procedure 2. Open a bank account and deposit at least K50,000 of operative capital.
Time to complete: 1 day
Cost to complete: no charge
Procedure 3. Register the company by filing the application for incorporate and articles of association
Time to complete: 9 days
Cost to complete: see comments
Comment: All fees are payable to the Companies Registry. The registrar is located at the Ministry of Commerce, Trade and Industry. Founders obtain a Certificate of Incorporation and a Certificate of Commencement of Business.
The fees are calculated as follows:
Registration Fee - 2.5% of nominal capital of company
Certificate of Incorporation - K30,000
Certificate of Share Capital - K30,000
Certificate of Minimum Capital K30,000
Companies Form 5 - Directors/Secretary Consent to Act - K10,000
Companies Form 11 - Declaration of Compliance Form - K10,000
Sealing Fee - K10,000
The procedure takes from 7 to 10 days.
Procedure 4. Register with the local Zambia Revenue Authority (ZRA) office, direct tax division to obtain a corporate tax number
Time to complete: 1 day
Cost to complete: no charge
Comment: File certificate of incorporation. Can also sign you for PAYE. The office of the Commissioner General - VAT and direct tax division are location in the same building.
Procedure 5. File VAT registration form with the Commissioner General of VAT department to obtain a VAT tax number
Time to complete: 21 days
Cost to complete: no charge
Comment: File certificate of incorporation, VAT form 1, investor's license issued by the Zambia Investment Center, business plan (information about stock, machinery, suppliers, etc.) or "similar document". Firms that earn less than the mandated threshold requirements can register for VAT on a voluntary basis. The office of the Commissioner General - VAT and direct tax division are location in the same building.
Procedure 6. Register with National Pension Scheme Authority for Social Security
Time to complete: 1 day
Cost to complete: no charge
FORMS OF BUSINESS ORGANISATION
A business may be conducted by individuals, partnerships, trusts, Zambian companies or branches of foreign companies.
Public & Private Ltd Company
A Zambian company may be public (name ends in Public Limited) or Private Ltd. Both private and public companies are governed by the Companies Act. There is minimum equity capital requirements for companies of K500 000.
The private company is the most common vehicle for operating a business in Zambia. It may have a minimum of two members and two directors.
Subsidiary & Branch of Foreign Company
A subsidiary of a foreign company is regarded as a Zambian company. The legal liability of the parent company is limited to the amount of capital committed (together with any guarantees provided).
A branch of a foreign company is regarded as a foreign company if it establishes a place of business or owns immovable property in Zambia and must register as such.
The legal requirements of a branch are not limited to the extent of its Zambian assets.
Both a Zambian company and a branch operation are subject to the provisions of the Companies Act.
A branch is obliged to lodge a certified copy of its Articles of Association (or other instrument defining its constitution) with the Registrar of Companies, as well as a sworn translation into English where appropriate.
Two primary requirements for a branch are:
· an annual audit, and
· financial statements must be lodged with the Registrar of Companies (financial statements must be lodged for a company as a whole. Exemptions, renewable every two years may be obtained in certain circumstances).
Locally registered private companies are also required to be audited but are not required to lodge their annual financial statements with the Registrar of Companies. |
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