Company Registration in Zambia – If you are considering starting a business in Zambia, one of the first steps you need to take is company registration. Registering a company in Zambia not only makes your business legally recognized, but it also provides various benefits and opportunities for growth. This article will guide you through the process register a company in Zambia, highlighting key requirements and procedures.
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PACRA Zambia | PACRA in Zambia
The body in charge of company registration in Zambia is the Patents and Companies Registration Agency (PACRA). PACRA is a government agency responsible for:
- Company Registration: PACRA is responsible for the registration of companies and business entities operating in Zambia. This includes the registration of both local and foreign companies.
- Business Name Registration: PACRA facilitates the registration of business names for sole proprietors and partnerships, allowing individuals to operate businesses under a registered name.
- Patents and Trademarks Registration: PACRA oversees the registration
of patents and trademarks, protecting the intellectual property of
individuals and businesses in Zambia. - Official Documentation: PACRA maintains and provides official documentation related to registered companies, business names,
patents, and trademarks. This documentation serves as legal proof of
ownership and registration. - Corporate Governance: PACRA plays a role in promoting
good corporate governance by ensuring that companies adhere to legal and regulatory requirements. This includes compliance with the Companies Act and other relevant legislation. - Information Services: PACRA provides information services to the public, offering access to business registries and other relevant data. This helps individuals and businesses make informed decisions when engaging with registered entities.
- Facilitation of Business Transactions: By providing a platform for
the legal registration of businesses, PACRA contributes to the ease of
doing business in Zambia. It facilitates transparent and legitimate
business transactions within the country. - Compliance Monitoring: PACRA monitors compliance with registration and regulatory requirements, taking appropriate actions against entities that fail to meet legal obligations.
N/B – Reach out to us today to speak to a company setup expert to guide you on all the steps that you need to follow.
Before diving into the types of companies that can be registered in Zambia and benefits you get after you register a company in Zambia lets first take you through the online company registration process.
Online company registration in Zambia | Company registration process in Zambia
1. Select your company type: In Zambia, you have the option to register various types of companies, such as: Private Limited Company (Ltd), Public Limited Company (Plc), Non-profit Company (Ltd by Guarantee), Foreign Company (Branch of a foreign company)
2. Choose a Company Name: Select a unique and appropriate name for your company. Make sure it complies with the regulations provided by the Patents and Companies Registration Agency (PACRA).
3. Reservation of Name: Submit an application to PACRA to reserve your chosen company name. This step ensures that no other entity can register a company with the same name while you complete the registration process.
4. Prepare requirements for company registration in Zambia: Gather the necessary documents to register a company in Zambia, which typically include:
ü Completed Form 1 (Application for Registration)
ü Certified copies of the company’s memorandum and articles of association
ü A statement of the company’s initial shareholding and registered office address
ü Copies of the identification documents (e.g., passports, national IDs) of the company directors and shareholders
ü Power of attorney (if applicable)
5. Notarize and Authenticate Documents: Have all the required documents notarized by a commissioner of oaths or a lawyer. Additionally, if any documents are prepared outside Zambia, they may need to be authenticated by a notary public or equivalent authority.
6. Submit the Application: Once you have all the necessary documents, submit the completed application to PACRA along with the required filing fees. You can do this either in person or online, depending on your preference.
7. Obtain the Certificate of Incorporation: After PACRA reviews and approves your application, you will receive a Certificate of Incorporation. This document serves as proof that your company has been legally registered in Zambia.
8. Register for Taxes: Register your company for tax purposes with the Zambia Revenue Authority (ZRA) to obtain a Taxpayer Identification Number (TIN) and fulfill your tax obligations.
9. Register for Social Security: If you plan to hire employees, you must register with the National Pensions Scheme Authority (NAPSA) for social security contributions.
10. Open a Business Bank Account: Visit a local bank to open a business bank account in the name of your company. You will need to provide the Certificate of Incorporation, company documents, and other identification as required by the bank.
NOTE: You can Contact us to help you in registering a company in Zambia at the comfort of your home country. You don’t need to travel all the way to ensure a successful Company Setup in Zambia.
Contact us today for expert advice on the whole process
Types of Companies in Zambia
1. Public Limited Company – Compared to private companies, public corporations are subject to additional rules and transparency requirements and are able to market their shares to the general public. Before issuing shares, public companies need to register a prospectus with the Patents and businesses Registration Agency (PACRA) and have a minimum of seven members and two directors.
2. Private Company Limited by Shares – The fact that this form of business has limited obligation to its shareholders makes it the most popular. After they have invested their money, the shareholders are not responsible for the company’s debts.
3. Unlimited Liability Company – The members of this kind of business are not subject to any restrictions on their responsibility. Even though they have to use their personal assets, the members are nonetheless accountable for the company’s debts jointly and severally
4. Company Limited by Guarantee – This kind of business has members who serve as guarantors rather than having share capital. In the event that the company must liquidate, the guarantors commit to paying a predetermined sum of money. Usually, this kind of business is utilized for nonprofit or charity purposes.
5. Foreign Company – A firm that is registered or incorporated outside of Zambia but maintains a place of business or engages in business in Zambia is considered a foreign corporation in Zambia. After setting up a location of business or starting operations in Zambia, a foreign company has 28 days to register with the Patents and Companies Registration Agency (PACRA). Additionally, a foreign business must designate at least one Zambian resident as a local director.
According to the Companies Act of 2017, foreign investors are permitted to establish a company with a sole director and can register a locally owned company without needing any Zambian shareholders. It is common for investors to register their local businesses as limited liability companies, providing them with certain legal protections.
In Zambia, investors usually register their local businesses as limited liability companies. This could be regarded as a private or public company.
Why choose us as your company registration agents in Zambia:
Here are some of the reasons why you should choose us to help you in registering a company in Zambia:
Expertise:
We have a team of experienced professionals who specialize in company registration. Our knowledge of local laws, regulations, and procedures ensures a smooth and efficient registration process.
Simplified Process:
We understand that navigating the company registration process can be complex and time-consuming. As your agents, we simplify the process for you by handling all the necessary paperwork, documentation, and interactions with relevant authorities.
Time-saving:
By entrusting us with your company registration, you save valuable time that can be utilized for other critical business activities. We handle the administrative tasks, allowing you to focus on your core business operations.
Compliance Assurance:
Compliance with legal requirements is crucial for any business. As your registration agents, we ensure that all necessary legal obligations are met during the registration process, minimizing the risk of non-compliance.
Confidentiality:
We prioritize the confidentiality of your business information. Our agents adhere to strict privacy protocols, ensuring that your sensitive data remains secure throughout the registration process.
Ongoing Support:
Our services extend beyond registration. We offer ongoing support and advice on various business matters, including licensing, tax registration, and compliance with local regulations. Our goal is to assist you throughout your business journey in Zambia.
Cost-effectiveness:
Engaging us as your registration agents can be cost-effective compared to hiring an in-house team or dealing with the process yourself. We offer competitive pricing structures tailored to meet your specific needs.
Benefits of Company Registration in Zambia
Registering your company in Zambia offers several benefits, including:
Legal Recognition:
Registration provides your business with legal recognition and establishes its separate legal identity.
Limited Liability:
Companies offer limited liability protection to shareholders, safeguarding personal assets.
Business Opportunities:
Registered companies can participate in government tenders and access funding opportunities.
Enhanced Credibility:
Registered companies often gain more trust and credibility among customers, suppliers, and investors.
Brand Protection:
Registration helps protect your business name, logo, and intellectual property rights from infringement.
Business Expansion:
Registered companies have the flexibility to expand their operations, enter into contracts, and pursue growth opportunities.
Frequently Asked Questions about Company Registration in Zambia
A minimum of one shareholder is required to register a company in Zambia. The shareholder can be an individual or a corporate entity.
Yes, foreigners and non-residents can register a company in Zambia. There are no specific restrictions on foreign ownership, and Zambia encourages foreign investment.
There is no specific minimum share capital requirement for registering a company in Zambia. The shareholders can decide on the amount of share capital based on their business needs.
Company Setup in Zambia takes approximately 5-10 working days, depending on the availability of the required documents for registering a company in Zambia. It is important to note that this timeline can vary
Yes, you are required to provide a physical office address in Zambia as part of the company registration process. This address will be used for official correspondence. We are happy to offer you our address for the purpose of company registration. This can be changed later once you get your own office.
After company registration in Zambia, there are ongoing compliance requirements, such as filing annual returns, maintaining proper accounting records, conducting annual general meetings, and complying with tax obligations. Reach out to us for guidance on all the compliance procedures you need to undertake.
Conclusion
Company registration in Zambia is a crucial step for entrepreneurs aiming to establish a legal entity and unlock various opportunities. By following the outlined registration process and fulfilling compliance requirements, you can ensure the legal recognition, limited liability protection, and credibility necessary for your business’s success. We are happy to hold your hand so that you can embark on your entrepreneurial journey in Zambia with confidence. Contact us today for a hassle-free process.