Registration of a company in Zimbabwe is of interest not only to exotic lovers but also to entrepreneurs seeking to develop promising markets and expand their scope of activity. The country has a powerful mining industry, rich mines develop gold and diamonds, and the level of socio-economic stability is impressively high for an African state.
Zimbabwe business benefits:
- five-year tax holidays;
- duty-free import of raw materials and capital equipment for use in certain areas;
- exemption from tax on capital gains arising from the sale of property, part of which is an investment in EPZs (Export Processing Zones).
The country also has other business benefits:
- opening a company in Zimbabwe is inexpensive and takes a minimum of time (up to a week);
- you do not need to personally come to the country, you can act through representatives;
- there are no requirements for the maximum number of participants, the minimum allowable amount of capital, or its mandatory payment;
- founders, participants, and directors of organizations can be any person, regardless of citizenship, residency, or place of residence;
- information about the beneficiaries is not disclosed, there is no public access to the registers;
- there is no need to audit the annual accounts, which must be submitted to the tax authorities.
The main type of company that can be founded is a closed organization with the limited liability of participants. Firms or individuals over the age of 18 can be shareholders. The minimum number of participants is one person.
The procedure for setting up firms
The thing a potential owner of a proud Zimbabwean firm needs to do is to officially register its name. It is checked, and reserved for 30 days, after which it can be extended for the same period. The service is paid, it costs about five US dollars. You also need to pay stamp duty – it depends on the size of the capital, so entrepreneurs, as a rule, tend to make it small.
Company registration in Zimbabwe is a procedure that requires:
- submit a memorandum, charter, and data on the appointed management and secretaries to the Register of Companies – second originals or notarized copies will do;
- pay a registration fee – of $ 5 for every 100;
- record with the tax authorities, where the company will give PAYE, income transfers, and VAT – by giving the charter, memorandum, and identity cards of the responsible employees, the owner will receive a number and his fiscal schedule;
- register with the Tax Department in charge of VAT issues – this is mandatory for companies with a turnover of $ 60,000 or more (the rest can be registered voluntarily);
- apply for registration with the Social Insurance and Pension Services and the Human Resources Development Fund (deductions from salaries will go to employee training);
- place in print information about the filing of applications for registration of trade and business licenses;
- apply for licenses to a special Office in the capital of the country, attaching proof of the release of notices in print.
Business forms in Zimbabwe
If you are going to create a startup in Africa, namely, to open a company in Zimbabwe, then first of all you will need to choose a form of economic activity permitted by local authorities:
- Limited Liability Company (Private LC);
- Joint Stock Company (Public LC);
- Representative Office (RO).
- Most foreign entrepreneurs who are going to register a company in Zimbabwe opt for the following OPF: Closed Limited Liability Company (Private LC). This form of business is the simplest and most understandable to manage and is also not subject to special restrictions on the part of the authorities.