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    Zambia: Doing Business in Zambia

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    Kajal N Jignesh Patel
    The document provides information about doing business in Zambia. It summarizes the process for starting a standardized company limited by shares in Zambia. The process involves 6 procedures: 1) Checking company name uniqueness, 2) Opening a bank account, 3) Registering the company with the Companies Registry, 4) Registering with the tax authority to obtain a corporate tax number, 5) Filing for VAT registration to obtain a VAT number, and 6) Registering with the pension scheme authority. The document also outlines common business organization forms in Zambia and notes some key cities that contribute to Zambia's economy.

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    Download as DOC, PDF, TXT or read online from Scribd

    Zambia: Doing Business in Zambia

    Uploaded by

    Kajal N Jignesh Patel
    208 views4 pages
    The document provides information about doing business in Zambia. It summarizes the process for starting a standardized company limited by shares in Zambia. The process involves 6 procedures: 1) Checking company name uniqueness, 2) Opening a bank account, 3) Registering the company with the Companies Registry, 4) Registering with the tax authority to obtain a corporate tax number, 5) Filing for VAT registration to obtain a VAT number, and 6) Registering with the pension scheme authority. The document also outlines common business organization forms in Zambia and notes some key cities that contribute to Zambia's economy.

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    Zambia

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    The document provides information about doing business in Zambia. It summarizes the process for starting a standardized company limited by shares in Zambia. The process involves 6 procedures: 1) Checking company name uniqueness, 2) Opening a bank account, 3) Registering the company with the Companies Registry, 4) Registering with the tax authority to obtain a corporate tax number, 5) Filing for VAT registration to obtain a VAT number, and 6) Registering with the pension scheme authority. The document also outlines common business organization forms in Zambia and notes some key cities that contribute to Zambia's economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    208 views4 pages

    Zambia: Doing Business in Zambia

    Uploaded by

    Kajal N Jignesh Patel
    The document provides information about doing business in Zambia. It summarizes the process for starting a standardized company limited by shares in Zambia. The process involves 6 procedures: 1) Checking company name uniqueness, 2) Opening a bank account, 3) Registering the company with the Companies Registry, 4) Registering with the tax authority to obtain a corporate tax number, 5) Filing for VAT registration to obtain a VAT number, and 6) Registering with the pension scheme authority. The document also outlines common business organization forms in Zambia and notes some key cities that contribute to Zambia's economy.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 4

    ZAMBIA

    full name: Republic of Zambia


    Population: 13.2 million (UN, 2010)
    Capital: Lusaka
    Area: 752,614 sq km (290,586 sq miles)
    Currency Rate - 1.00 INR = 105.746 ZMK

    DOING BUSINESS IN ZAMBIA


    STARTING A BUSINESS

    STANDARDIZED COMPANY
    Legal Form: Private Company Limited by shares
    Minimum Capital Requirement: 5,000,000
    City: Lusaka

    Registration Requirements:

    Procedure 1. Check name for uniqueness at the Registrar of Companies

    Time to complete: 2 days

    Cost to complete: ZMK 5000

    Procedure 2. Open a bank account and deposit at least K50,000 of operative capital.

    Time to complete: 1 day

    Cost to complete: no charge

    Procedure 3. Register the company by filing the application for incorporate and
    articles of association

    Time to complete: 9 days

    Cost to complete: see comments

    Comment: All fees are payable to the Companies Registry. The registrar is located at the
    Ministry of Commerce, Trade and Industry. Founders obtain a Certificate of Incorporation and
    a Certificate of Commencement of Business.

    The fees are calculated as follows:

    Registration Fee - 2.5% of nominal capital of company


    Certificate of Incorporation - K30,000
    Certificate of Share Capital - K30,000
    Certificate of Minimum Capital K30,000
    Companies Form 5 - Directors/Secretary Consent to Act - K10,000
    Companies Form 11 - Declaration of Compliance Form - K10,000
    Sealing Fee - K10,000

    The procedure takes from 7 to 10 days.

    Procedure 4. Register with the local Zambia Revenue Authority (ZRA) office, direct
    tax division to obtain a corporate tax number

    Time to complete: 1 day

    Cost to complete: no charge

    Comment: File certificate of incorporation. Can also sign you for PAYE. The office of the
    Commissioner General - VAT and direct tax division are location in the same building.

    Procedure 5. File VAT registration form with the Commissioner General of VAT
    department to obtain a VAT tax number

    Time to complete: 21 days

    Cost to complete: no charge

    Comment: File certificate of incorporation, VAT form 1, investor's license issued by the Zambia
    Investment Center, business plan (information about stock, machinery, suppliers, etc.) or
    "similar document". Firms that earn less than the mandated threshold requirements can
    register for VAT on a voluntary basis. The office of the Commissioner General - VAT and direct
    tax division are location in the same building.

    Procedure 6. Register with National Pension Scheme Authority for Social Security

    Time to complete: 1 day

    Cost to complete: no charge

    FORMS OF BUSINESS ORGANISATION

    A business may be conducted by individuals, partnerships, trusts, Zambian companies or


    branches of foreign companies.

    Public & Private Ltd Company

    A Zambian company may be public (name ends in Public Limited) or Private Ltd. Both private
    and public companies are governed by the Companies Act. There is minimum equity capital
    requirements for companies of K500 000.

    The private company is the most common vehicle for operating a business in Zambia. It may
    have a minimum of two members and two directors.

    Subsidiary & Branch of Foreign Company

    A subsidiary of a foreign company is regarded as a Zambian company. The legal liability of the
    parent company is limited to the amount of capital committed (together with any guarantees
    provided).

    A branch of a foreign company is regarded as a foreign company if it establishes a place of


    business or owns immovable property in Zambia and must register as such.

    The legal requirements of a branch are not limited to the extent of its Zambian assets.
    Both a Zambian company and a branch operation are subject to the provisions of the
    Companies Act.

    A branch is obliged to lodge a certified copy of its Articles of Association (or other instrument
    defining its constitution) with the Registrar of Companies, as well as a sworn translation into
    English where appropriate.

    Two primary requirements for a branch are:

    · an annual audit, and


    · financial statements must be lodged with the Registrar of Companies (financial statements
    must be lodged for a company as a whole. Exemptions, renewable every two years may be
    obtained in certain circumstances).

    Locally registered private companies are also required to be audited but are not required to
    lodge their annual financial statements with the Registrar of Companies.

    For more law about the Zambia ,go to the


    http://www.lexadin.nl/wlg/legis/nofr/oeur/lxwezam.htm#Company Law

    Point to be noted
    - Harsh economical circumstances for manufacturing of pharma
    product
    - Finished pharmaceutical product can be imported is duty free
    - Importing pharma product is cheaper then manufactured locally

    Geographical analysis

    - There are mainly 10 cities in Zambia which contribute to zambia


    economic.
    1 Lusaka, Lusaka
    2 Kitwe, Copperbelt
    3 Ndola, Copperbelt
    4 Kabwe, Central
    5 Chingola, Copperbelt
    6 Mufulira, Copperbelt
    7 Luanshya, Copperbelt
    8 Livingstone, Southern
    9 Kasama, Northern
    10 Chipata, Eastern

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