The Republic of Zambia is a presidential democracy located in southern Africa. The capital is Lusaka, the country is divided into ten provinces and has more than 100 districts. The official language of Zambia is English and the currency is Kwacha (ZMW).
The largest sector of the Zambian economy is the mining industry, mainly copper mining.
Zambia is a member of several international organizations, including the United Nations (UN), the African Union, the South African Development Community (SADC), the Common Market for Eastern and Southern Africa (COMESA), and the Commonwealth of Nations.
Documents required to open a business in Zambia
- Copy of registration certificate issued by PACRA
- Share capital certificate
- The official list of shareholders and directors
- Funding confirmation (audited financial statements, bank certificate of deposit, or latest bank statement)
- Detailed business plan
- TPIN and certificate of tax absence
- Confirmation of availability of a place/land for work (lease agreements, title deeds, or letter of offer)
It is quite easy for foreign citizens to register a company in Zambia for international trade because:
- only two persons of any nationality are required, who can be both shareholders and directors;
- the government does not set a minimum paid-up share capital to register a limited liability company (LLC) in Zambia;
- there are several tax holidays and tax cuts in place, including exemptions from import duties for most locally produced products in Zambia.
- due to its underdeveloped economy, Zambia also enjoys preferential treatment from the European Union, the United States of America, Japan, and other advanced economies.
Zambia is a landlocked country in southern Africa. The capital is Lusaka. The currency is the Zambian Kwacha (ZMK). The country is a member of the World Trade Organization and enjoys all the benefits that membership provides. English is one of the official languages, but it is spoken by about 1.7% of Aboriginal people.
Taxation in Zambia
If you decide to register a company in Zambia, you can take advantage of the following benefits:
- reduction of corporate income tax by 10% for companies engaged in agriculture and agro-processing;
- up to 5 years of tax breaks for businesses operating in priority sectors, including tourism and manufacturing;
- exemption from income tax for the payment of dividends paid by mining companies and a 5-year exemption for dividends paid by farming companies;
- companies that meet the selected requirements of the Zambia Development Agency do not pay taxes for the first 5 years, and for the next five years, tax rates are reduced;
- a 10-year extension of tax loss carry-over for companies in the mining and energy industries.
- the maximum corporate and personal tax rate in Zambia reaches 35%, which is higher than in most African countries. In addition, Zambia has introduced an income tax for the payment of dividends to non-resident companies and individuals.
Conditions to open a company in Zambia
- Time for incorporation: 3-4 weeks
- Minimum capital: 1000 $
- Having a physical office
- Shareholders: 2
- Directors: 2
Areas in which it is profitable to register an enterprise in Zambia
- Agricultural sector. 85% of the employed are employed in agriculture. The cultivation of coffee, corn, sunflower, sorghum, peanuts, rice, tobacco, vegetables, cotton, sugar cane, and tapioca, as well as the breeding of cattle, goats, pigs, and poultry brings in 19% of GDP.
- Export. Non-residents exporting Zambian products will be reimbursed for Zambian VAT imposed on such exports.
- Tourism. Most of the country’s territory is rugged terrain with a variety of wildlife, many parks, and safari zones. On the border of Zambia with Zimbabwe is the famous Victoria Falls, called by the natives Mosi-o-Tunya or “Thunder Smoke”.
- Mining. Zambia has the eighth-largest copper reserves in the world. This industry makes a significant contribution to the development of the economy, which, according to the forecasts of the International Monetary Fund, 2020 will grow at an annual rate of 6.5% -7%. Also in Zambia, there is cobalt, zinc, lead, coal, emeralds, gold, silver, and uranium.
- Energy.
