Steps to follow when starting a business in Zambia
Zambia has recently emerged as an attractive destination for business and investment in Africa. With sufficient natural resources, a growing economy, and supportive government policies, Zambia offers a myriad of opportunities for investors.
If you are a foreign investor seeking to explore the numerous investment opportunities in Africa, Zambia is the best place and here are the steps to follow when putting up your business.
Choose a unique business name.
Before registration, it is important to ensure that your chosen company name is unique and has not been registered before. The investor can easily check online for name availability using the services provided by the Patent and Companies Registration Agency (PACRA), which is governed by the Patents and Companies Registration Agency Act (2010) and the Registration of Business Names (2011).
Conduct a name search and reservation.
After choosing and confirming your business name, you will need to conduct a name search and reservation through PACRA. This process involves submitting an application and paying a fee of ZMK 83 for the name search and ZMK 166 for name reservation, as sourced from the World Bank’s Doing Business 2018 report.
The declaration of compliance, known as Companies Form 11, is a vital document that must be signed by a commissioner. This form attests to the fact that the company has met all legal requirements for registration, including adherence to company regulations and compliance with applicable laws.
Once the necessary documents have been prepared and signed, you will proceed to register your business with PACRA. This involves submitting the required forms, including the declaration of compliance, along with the prescribed fees and any additional documentation as stipulated by PACRA.
Depending on the nature of your business, you may need to obtain specific licenses and permits to operate legally and uninterrupted. Research and identify the licenses and permits applicable to your industry and ensure that you comply with the requirements set by relevant regulatory bodies.
Register for Tax Obligations:
Registering for tax obligations is a significant step in starting a business in Zambia. Ensure that you register with the Zambia Revenue Authority (ZRA) and comply with all tax regulations, including obtaining a tax identification number (TPIN) and understanding your tax obligations.
Open a corporate business bank account: To manage your business finances effectively, it is advisable to open a separate bank account for your business. This will help maintain accurate financial records and facilitate transactions with suppliers, customers, and employees.
Starting a business in Zambia involves following a well-structured and legally compliant process. By following these steps, you can set a strong foundation for your new venture.
If you are interested in exploring the endless business opportunities in Zambia, Afrilink is here to assist you in selecting the one that aligns with your interests. We will also guide you through the successful Company Registration in Zambia and provide additional services to ensure the success of your business in the country. Get in touch today at +254707280366 or send us an email at clientservice@afrilinkconsultants.com
