Zambia is an attractive jurisdiction for registering a company, particularly for entrepreneurs and investors seeking opportunities in Southern Africa. It boasts a stable political environment, a growing economy driven by mining, agriculture, and energy, and a welcoming attitude toward foreign investment. The country's strategic location, bordered by eight other nations, provides access to regional markets through trade agreements such as the Common Market for Eastern and Southern Africa (COMESA) and the Southern African Development Community (SADC).
Registering a company in Zambia is governed by the Companies Act of 2017, which simplifies the process and allows both locals and foreigners to establish various types of companies, including private, public, and branch entities. The Patents and Companies Registration Agency (PACRA) oversees company registrations and ensures compliance with corporate laws.
Foreign investors benefit from incentives such as tax holidays, customs duty exemptions, and access to government-supported industrial parks. The Zambia Development Agency (ZDA) plays a key role in facilitating investment, offering guidance and incentives to businesses that align with national economic goals.
Legal Opinion about Zambia as a Jurisdiction for Company Formation
Ganna Voievodina
Manimama
|
CEO
“In general, Zambia is an ideal jurisdiction for entrepreneurs seeking to tap into Africa's emerging markets. Its business support policies, growing consumer base and strategic location make it an attractive choice for company incorporation and expansion. Manimama is ready to help you with business registration in Zambia”.
Our Packages
Our comprehensive packages simplify the process of setting up the perfect legal entity for your business whether you are a small start-up, a non-profit company, or an international company. Let us guide you through every step, ensuring your business begins on a solid foundation.
Company Formation
- Company formation
- Registered address for the 1st year
- Annual accounting requirement bookkeeping
Annual Services
- Company renewal and registered address
- Annual Government Tax
- Mandatory Financial Beneficiary Report
Other Services
- Set of corporate documents (certified/apostille)
- Nominal service for 1 year
- Offshore banking
Key Numbers about Incorporations
minimum 2director for a company |
up to 4 weekstimeline for a company registration |
K 15,000minimum share capital |
30%corporate income tax (CIT) rate |
up to 37%personal income tax (PIT) rate |
16%value added tax (VAT) rate |
Set up Your Company in Zambia in Several Steps
- Step 1. Initial setup
- Initiating a preliminary project assessment
- Preparation and filing of the package of documents
- Step 2. Company registration
- Choosing and reserving a unique company name in the PACRA
- Facilitating the notarial process for the company's official registration
- Incorporating the company's data into the PACRA (it can be done either in person or online)
- Obtaining the Certificate of incorporation from the PACRA
- Registration for tax and social security purposes
- Obtaining any required business licenses and permits
Requirements for Company Formation in Zambia
Before deciding to set up a new company in Zambia, read the information below to understand the characteristics of a Private Company limited by shares (Ltd):
Shareholders: a minimum of 1 shareholder who can be an individual or a corporate entity. But the number of shareholders must not exceed 50. There are no residency requirements for shareholders.
Director: the company must appoint at least 2 directors or more directors. The number of directors, including the executive director, who should be resident in Zambia, shall not be less than half the number of directors appointed. They do not, however, need to be Zambian citizens.
Company secretary: a company must have a secretary; the secretary may be a corporate body; 2 or more persons may act jointly as the secretary of a company; the secretary of a company shall be (a) resident in Zambia, if an individual OR (b) incorporated in Zambia, if a corporate body.
Minimum share capital: nominal capital required is K 15,000 (~ $552).
Legal address: the company is required to have a registered office in Zambia for official correspondence.
Liability: the shareholders are not responsible for the company’s debts.
Accounting: the company is required to file annual returns, maintain proper accounting records.
Taxes in Zambia
Corporate income tax (CIT)- The standard CIT is 30%.
- But companies operating in certain sectors have a different CIT:
- income from farming and agro-processing is taxed at 10%;
- income from other non-traditional exports is taxed at 15%;
- telecommunications companies are taxed at 35%.
- The rates are the following:
- from K 0 to K 5,100 (~ $186) - 0%;
- from K 5,101 (~ $186) to K 7,100 (~ $260) - 20%;
- from K 7,101 (~ $260) to K 9,200 (~ $337) - 30%;
- from K 9,201 (~ $337) and above - 37%.
- The standard rate is 16%.
- VAT is not levied on all sales of goods or supply of services.
- The Value Added Tax Act of Zambia provides supplies of goods and services as either taxable or exempt.
- From July 1, 2024, all VAT-registered taxpayers must issue electronic invoices through the Smart Invoice software solution implemented by the Zambia Revenue Authority.
- Companies are required to register as VAT payers in Zambia if their annual turnover exceeds K 800,000 (~ $ 29,311) per year.
Double taxation avoidance agreements in Zambia: Botswana, Canada, China, Denmark, Finland, France, Germany, India, Ireland, Italy, Japan, Kenya, Mauritius, Morocco, Netherlands, Norway, Seychelles, South Africa, Sweden, Switzerland, Tanzania, Uganda and the UAE.
Start Your Company Formation Process with Manimama
There are numerous reasons why Manimama is the leading company formation agent in Zambia:
Expertise in Regulations of Zambia
- 1. Manimama has an in-depth understanding of Zambia's legal and regulatory framework.
- 2. Our team ensures all legal requirements are meticulously met for a seamless company formation process.
Local and International Experience
- 1. With extensive experience in both local and international markets, Manimama can cater to a diverse range of business needs.
- 2. Our expertise spans various industries, providing customized solutions for each client.
Efficient and Timely Service
- 1. We pride ourselves on our swift turnaround times, ensuring your company is registered promptly.
- 2. Our efficient processes minimize delays and get your business up and running quickly.
Client-Centric Approach
- 1. Manimama prioritizes customer satisfaction by offering personalized support and guidance.
- 2. Our dedicated team is always available to address any concerns and provide expert advice.
Robust Network of Local Partners
- 1. We have established strong relationships with local authorities, banks, and service providers.
- 2. This network ensures that your business receives the best possible support and resources.
Ongoing Compliance Support
- 1. We provide continuous support to ensure your business remains compliant with laws of Zambia.
- 2. Our team keeps you updated on any regulatory changes that may impact your company.
Frequently Asked Questions
-
What is the regulatory body for company registration in Zambia?The Patents and Companies Registration Agency (PACRA) is responsible for company registration and related services.
-
Do I need a Zambian partner to start a business in Zambia?No, foreign investors can fully own and operate a business in Zambia without requiring a local partner.
-
Do I need a physical office to register a company in Zambia?Yes, a physical address is required during registration, as it will be the official address for the company.
-
Do I need to register with the Zambia Revenue Authority (ZRA)?Yes, all companies must register with the ZRA to obtain a Taxpayer Identification Number (TPIN) and fulfill tax obligations.
-
Can I register a company online in Zambia?Yes, PACRA offers online services for name reservation and company registration.
-
Are there annual compliance requirements for companies in Zambia?Yes, companies must file annual returns with PACRA, maintain proper records, and comply with tax obligations.
-
What taxes must companies pay in Zambia?Businesses must register for:
- Corporate income tax (10-30%)
- VAT (16%)
- Withholding tax (varies by category)
Semen Kaploushenko
“Thanks to Manimama OU's efforts, I was able to resolve my problem in no time”.
Vadym Grusha
“The team of lawyers demonstrated a high level of professionalism and in-depth knowledge in their field”.
Yuriy Soshenko
"The result exceeded my expectations and I am sincerely appreciative of the help I received”.
Manimama as the Best Solution for Your Company Formation in Zambia
By choosing our company formation service in Zambia, you are partnering with a law firm that values integrity, expertise, and client satisfaction. Let us help you set up your company in Zambia and pave the way for your business success.
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