Archives March 2024

LP Gas has played a critical role in today’s modern age. From cooking to refrigeration and from heating to cooling, LP gas has become an important part of today’s households. Here is a step by step guide on how to legally Register your LP Gas business.

Brief history about Liquified Petroleum Gas

LP gas, also known as liquefied petroleum gas or LPG, has a fascinating history that dates back to the early 20th century. The origins of LP gas can be traced back to the discovery and extraction of natural gas and petroleum. In the early 20th century, natural gas and petroleum were primarily used for lighting and heating purposes. However, the challenge emerged when it came to safely transporting and storing these gases.In 1910, Dr. Walter Snelling, an American chemist, made a significant breakthrough in the field of gas technology. He discovered that by compressing and cooling natural gas, it could be converted into a liquid state, occupying less space and making it easier to transport and store. Dr. Snelling coined the term “liquefied petroleum gas” or LPG.

Demand of LP Gas in Zimbabwe

The consumption of LP Gas in Zimbabwe had a steady rise from around 2013 when the country started facing electricity woes. In the same year, only 5million kgs of LP gas were consumed. According to the Herald Zimbabwe, the number shot to 65million in 2023 which is an impressive and sharp increase in demand. Without any inch of doubt, the LP gas business is very lucrative in Zimbabwe and one must venture into it.

Now that we’re over with the history of LP gas and how it has grown so much in popularity, let’s talk about how you can tap into this goldmine and formalise your gas retailing business in Zimbabwe.

Step 1: Registering Your LP Gas Business

To legally register your LP Gas business, the first step is to register your company. This ensures that you comply with all necessary regulations and requirements.

Here are the requirements to register your LP Gas business as a company in Zimbabwe:

1. Five proposed names of your company in order of priority.
2. The objective of your company [which is gas retailing in this case].
3. Directors’ , shareholders and secretary’s details [ID card, physical address, and email address].
4. Business Contact Details [business email and physical addresses]. If the business doesn’t have emails or physical addresses yet, you can make use of the emails and physical address for one of the directors. Contact City Cloud so that you get customised business email addresses like: sales@mycompany.co.zw for just $3 per month.

 

Once your LP Gas is fully registered, you’ll receive the following documents:

1. A certificate of incorporation.
2. A copy of the Articles of Association.
3. A copy of the Memorandum of Association.
4. A copy of the CR 6 which is the list of directors and secretaries [formerly CR16]
5. A copy of the CR 5 which shows the business’s contacts that is business email and physical address.

Please feel free to get in touch with us for company registration. Call or WhatsApp us: +263716196475

Obtain a Tax Clearance Certificate

The next step after registering your gas retailing business is to obtain a Tax Clearance Certificate for the business. This helps ensure that you are tax compliant with  Zimbabwean tax laws. We advise you to engage tax experts to help you with tax registrations and tax remittances. Engage us to help you get tax compliant always.

Step 2: Identifying a Suitable Location for Your LP Gas Business

Once you have completed the registration process, it’s time to identify a suitable open space or area where you can construct or erect your cage for the LP Gas business. This location is crucial for your operations and must meet the necessary safety standards.

Step 3: Engaging with Local Authorities for Approval and Permits

Visiting your local authorities, such as the City Council, Municipality, or Rural Local Board, is the next step. You will need to present your company registration and tax clearance documents and inform them of your intentions to start an LP Gas retail business. Additionally, you should provide details about the open space you have identified as your preferred site.

Step 4: Application and Inspection Process

The council will review your application and advise if the preferred site is reserved for future use. If not, you will be required to pay an application fee and submit your cage plan and an application letter for the site. Following this, you will need to pay a booking fee to the Fire Brigade for a pre-inspection to ensure the suitability of the area for gas retailing. Engage Leoned Construction on: +263 77 426 9458 for the building of your gas housing and get the gas tanks from T&C Gas.

Step 5: Obtaining Approvals and Compliance

If the Fire Brigade approves the site, you will receive an approval letter, which you will then present to the local authority. They will issue an offer letter for the site, and you will need to make the required payments. After this, you must approach the Environmental Management Agency (EMA) for another pre-inspection to assess any potential environmental and community damage caused by your operations.

Step 6: Construction and Compliance with Safety Standards

Once EMA approves your site, you can proceed with the construction or erection of your blast cage. It is essential to adhere to the prescribed measurements and requirements provided by the Standards Association of Zimbabwe (SAZ) or the Zimbabwe Energy Regulatory Authority (ZERA). The cage should include hazchem signage, fire extinguisher, and pumping equipment installation.

Step 7: Final Approval and Operating Licenses

Upon completing the construction of your cage, you will need to seek final approval from ZERA. They will evaluate your compliance, and you must score a compliant percentage of 75% or higher. It is crucial to obtain operating licenses from all relevant authorities, including the Council, Fire Brigade, EMA, and ZERA, before commencing your LP Gas business operations.

 

Where to get customers to supply gas?

1. Tenders – the governement, government agencies, Non-Governmental organisations and corporates are one of the key consumers of liquidified petroleum gas. Check and respond to their tenders that are published in the government gazette and other online publications.
2. Local Businesses: Approach restaurants, hotels, cafes, and other food establishments as they often require gas for cooking. Additionally, consider supplying gas to industrial companies, manufacturing plants, and commercial complexes that use gas for their operations.
3. Residential Areas: Target residential areas with households that use gas for cooking or heating purposes. You can distribute flyers, advertise in local newspapers, or utilize online platforms to reach potential customers in these areas.
4. Construction Sites: Contact construction companies and contractors who may require gas for temporary heating, welding, or other construction-related activities.
5. Schools and Institutions: Schools, colleges, and universities often have gas requirements for their laboratories, kitchens, or other facilities. Approach these educational institutions and offer your gas supply services.

 

Additionally, here are some points to consider for your LP Gas business:

1. Sourcing LP gas supply: You must identify reputable LP gas suppliers in your area to ensure a consistent and reliable source of supply for your business.
2. Pricing your LP Gas: It is important that you do a thorough research about the market and determine competitive pricing for your LP Gas products. Consider factors such as production costs, transportation, and market demand while setting your prices.
3. Digital Marketing for your LP gas business: Utilise digital marketing strategies to promote your LP Gas business. Establish a professional website, create social media profiles, and engage with potential customers through targeted advertisements and informative content.Hire a digital marketing agency like City Cloud.
4. Online ordering and delivery: Provide the convenience of online ordering and delivery services to attract customers. Develop a user-friendly website or mobile app where customers can place orders and have LP Gas delivered to their doorstep. This will allow you to standout from competitors.
5. Customer loyalty programs: Implement customer loyalty programs to incentivize repeat business. Offer discounts, rewards, or referral programs to encourage customers to choose your LP Gas business over competitors.

By following these steps and considering additional strategies for sourcing, pricing, and marketing your LP Gas business, you can establish a legally registered and successful venture in the industry.