Understand the Jurisdictions of the Company Registration Process in Zambia
With abundant natural resources, Zambia’s land has a high potential for agricultural production. The country is also rich in quality precious and semi-precious minerals. As a result of these abundances, many foreign investors are turning their business expansion to Zambia.
Zambia has made several institutional reforms to attract foreign investments to the country. If you are interested, you too can register a company in Zambia. For new entrepreneurs or seasoned business owners, it is best to engage with the local company incorporation service provider so that your business registration can happen smoothly.
This article explains the process of Zambia company registration. Let’s get started.
Seek & Reserve Company Name
You begin by registering a unique company name at the Patents and Companies Registration Agency online portal. Remember to do a name search and ensure the name you choose is available.
The online name search will cost you about ZMK 83, and the name reservation may cost you ZMK166. A commissioner of oath will sign a declaration of compliance, Form 11.
Preparing the Documents
At this stage, you must fill out an application form, company Form 2. A declaration of consent follows it to act as a Director or Secretary, which is company Form 5. By now, you would already have the declaration of compliance Form 11, signed by the commissioner of oath.
Submit for Registration
You would only pay the application fee after the registration process is complete. Upon completing the company registration, the foreign business owner will receive a certificate of incorporation to affirm that the company is a legit business in Zambia.
Get a Tax ID Number
You can use the certificate of incorporation to register with the Zambia Revenue Authority. This is a mandatory step to acquire the tax identification number (TIN).
As a legit business owner in Zambia, you are eligible for Social Security. It is a requirement by the Zambia government that all companies register with the National Pension Scheme Authority (NPSA) for themselves and the employees they hire. You would need the certificate of incorporation to file a registration with the NPSA.
Business Levy Clearance
To commence business operations, you, the business owner, will need to pay a business levy. The Lusaka City Council is responsible for receiving payments of business levies from business owners.
Value-Added Tax Registration
If your company manufactures goods, it is likely to be subjected to value-added tax in Zambia. A manufacturing company owner must get a VAT number when the value of taxable supplies exceeds 800,000 in twelve consecutive months. You would need to register for VAT at the Zambia Revenue Authority.
Get an Investment Registration Certificate
As a foreign investor in Zambia, the Investment Registration Certificate is optional. However, it dictates that you have to invest at least $250,000. You can apply for this certificate to the Development Agency of Zambia. The respective officers will inspect your premises to ensure the business activities are similar to the official documentation.
Opening a Bank Account
You can only open a bank account after successfully obtaining a foreign taxpayer registration identification. You may enquire with your local company incorporation service provider on how to go about this if you require a bank account as soon as possible.
If you require assistance or consultation, please feel free to get in touch and we will promptly reply to you within 24 hours.