What is Tarms and how to register it?

Tax Issues

What is Tarms and how to register it?

Imagine paying your taxes through a convenient and secure online platform. That’s exactly what ZIMRA’s new system, TaRMS (Tax and Revenue Management System), offers. It’s a game-changer designed to make tax payments hassle-free for everyone.

JAN 7, 2024

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What is Tarms all about?

The Zimbabwe Revenue Authority (Zimra) recently launched a new online tax system called TaRMS on January 1, 2024. The old tax systems were shut down from in November 2023. All new Tax Clearance certificates were to be applied for through the new system. The term TaRMS means Tax and Revenue Management System. This means it’s time to say goodbye to Business Partner Numbers and say Hello to Tax Payer Identification Number (TIN).

How to create an account on TARMS?

Creating an account on TaRMS is easy. Simply click https://mytaxselfservice.zimra.co.zw/auth/login and follow the onscreen instructions.

Tarms Portal

Once you have successfully registered on TaRMS, you can apply for your TIN certificate which looks like the one below.

How much is TIN registration on Tarms?

TIN registration is USD $40 if done via this website. Turn around time for TIN registration is 3days.

Requirements for TIN registration:

 1.Certified copies of company papers.

2.Certified copies of directors’ IDs.

3.Proof of residence for every director (attach affidavit if proof is not in director’s name).

4.Directors’ email addresses and phone numbers.

5.Current personal bank statement of one of the directors.

Some key takeaways about the TaRMS system.

This new system replaces the previous SAP TRM system and aims to simplify tax-related procedures for the convenience of taxpayers like yourself. With the implementation of TaRMS, ZIMRA has introduced several improvements and benefits:

 

Taxpayer Registration:

• Duplicate Business Partner Numbers and Tax Types registrations have been eliminated.

• The system now offers online validation of Company Registration Numbers (CRN), ID numbers, and bank account numbers through integration with the Registrar of Companies, Civil Registry, and Banks.

• Public officers/representatives, directors, and shareholders can now be registered in the system.

• Automatic registration of Taxpayer Identification Numbers (TIN) and Tax Types for most entities, with only a few cases requiring ZIMRA’s approval.

• Reduction of manual registration forms, allowing taxpayers to save partially completed registration applications or tax returns in draft form for later completion.

• Ability to update master data through the Self Service Portal (SSP) without the need for human intervention.

Tax Return Management:

• Introduction of a single TIN for both USD and ZWL, enabling taxpayers to submit one return per tax period and post liabilities in both currencies for convenience.

• Full automation of most returns and claim forms, except for Capital Gains Tax and VAT for Development Partners and Entities/Individuals with Diplomatic Immunity.

Payments Management:

• Elimination of unallocated payments in ZIMRA bank accounts and the creation of suspense accounts.

• Prevention of overpayments and duplicate payments by taxpayers, as payments are now based on the submitted return.

• Reduction of tax payment mis-postings, saving time and effort in correcting such issues.

• Ability to make a single payment to settle multiple tax obligations, providing cost-effectiveness and convenience.

• Elimination of exchange rate variations, as tax liabilities and payments are now recorded in both ZWL and USD.

• Automatic account maintenance for the taxpayer’s ledger.

Refunds Management:

• Automatic identification of refunds for processing.

• Automatic determination of any outstanding liabilities (returns and payments).

Debt Management:

• Automatic detection of unpaid liabilities.

• Aging of liabilities based on set parameters.

• Automatic account maintenance, with tax liabilities settled directly from the single account.

• Daily calculation of interest, penalties, and their display in the taxpayer’s ledger.

• Automatic reversal of interest charges and penalties for adjusted or amended tax types liabilities.

• Reminders for payments and returns sent according to escalation procedures (excluding taxpayers who are up to date with their obligations).

• Online application for installment plans, with automatic approval based on specific criteria.

• Automatic cancellation of installment plans in case of non-payment.

How to start an ECD or Creche in Zimbabwe

How to start an ECD or Creche in Zimbabwe

Here is step by step guide in starting an ECD /Creche day – care center in Zimbabwe. 

If you like taking care of the young ones, you can make extra dollars by making use of your empty space at home by starting an ECD /Creche day – care center in Zimbabwe. A you expand, you can consider rented premises. When parents choose a daycare for their children, they look for a place that will enrich and keep their children safe during the day. While your daycare may have those qualities, without the right advertising and marketing, it will go overlooked.

ECD or Creche Students

ECD or Creche Students

You might try a few new strategies to catch the attention of parents and attract new clients to your daycare.

Register your ECD.

Check the registration requirements here…
It is mandatory to register an ECD .There are some requirements needed to register an ECD .These include but not limited to
1.Permission from Local authority to establish an ECD centre
2.Health certificate
3.Memorandum of understanding
4.Proposed names of the ECD centre
5.Physical address of the ECD centre
6.Area to be served by the ECD centre
7.Number of pupils to be enrolled on opening of age and ranges note : one teacher to 20 pupils
8. Name and qualification of teachers to employed
9.Medical certificates plus x-ray is a mandatory since you will be dealing with kids and health status of staff needs to be known
10.Floor plan and house plan
11.Title deeds or lease of agreement
12.Indoor play space area 1:2,25 square meters per child .Age appropriate furniture
13. Outdoor play space 1:5,5 square meters per child
14. Toilets closets 1:2
15.Wash basins

From the data we have gathered, the average startup cost for a daycare centre in Zimbabwe is $1000 to $2500.This can vary widely depending on whether you are opening a home-based daycare center or leasing a separate facility for your care centre .If don’t have $10000+in  bank  account  ,they don’t worry.

Ten tips to start an ECD or Creche in Zimbabwe and be successful :

1.Keep your environment safe and clean-Keep all doors secure .Ideally , have a code available only to parents and staff .Change it regularly.Ensure windows are securely fastened.All stairwells should be gated .Staff and children should wash hands throughout the day..This is especially true before meal times and after diapering /restroom use.Disinfect toys daily.Schedule a time so this task  is not forgotten  .Have a clear routines incase of emergency.
2.Make consistent policies- Clearly outline your policies to protect your business and address parent concerns.Maintaining a regularly updated  parent handbook can make your childcare center stand out  from others.Before enrolling , have parents review and agree to the policies listed in your handbook.Your can also add  your own unique policies .Consider addressing policies about ;hours of operation daily schedule
-displine
-food and nutrition
-sick-child
-feeding
-curriculum {[ more on this later}
-safety/cleanilises
-sleeping
-pick -up{who can pick-up the child ? how do you verify identity
-parent communication
-fees and payment
-immunisation
-program closing
-emergencies
3 Invest in training of your staff – babies and toddlers needs consistent , predictable care.For this reason , parents prefer childcare centers with low turnover.Invest training and resources in your staff.Treat them as respected ,appreciated professionals by ;recognizing and rewarding success and hard work
-providing support amd extra help when its neede
-holding a staff appreciation day/ week
-including staff in your vision goals ,  policies
-building relationship goals
4 Develop a curriculum – parents want to know that their children aren’t watching tv or sitting around all day.Young children need active play , stimulation , and learning .Think about programming and your daily schedule .
5. Communicate – to maintain and continue boosting enrollment , communication is key.Parents want to know what their child is up to throughout the day.Some daycare centers even have apps that allow them to share  information about meals, naps , and activities in real time.
Ten tips to manage a creche
1. Have clear policies and follow them-running successful daycares starts with having a clear set of policies .These policies need to apply to both children and parents .
2. Don’t take your friends and family kids- family and friends may expect special treatment regarding your policies .Avid this situation entirely and keep your business professional
3.Always ask for parental feedback-the most successful day care have  myriad of reviews  available on google
4.Have a social media presence – when you are  trying to look up local business information , what is one of the most common places you stop? Get assistance with professional social media management from City Cloud. Check their services here
5.Add value with unique services- look around at your fellow daycare providers to see what they offer .Various daycare centers may have their unique  take on the field.
6. Having a properly trained staff who believes in your vision-child care  businesses may be encouraged to save money by hiring staff that lack experience. However you run the gp of having an educational gap and safety exposures in this case.
7. Don’t forget to take a vacation-business owners who handle their own time typically forget that managing daycares can be an exhausting experience.
8.Simply the business side of things-many times  the business side of daycare can prevent owners from properly focusing.
9.Try to be flexible (within reason)-your parents will appreciate flexibility in their day cares , as some situations may prevent them from arriving on time.
10.Change upfront-while we hate to see it , there is always a chance for flaky parents  who won’t pay you.If they can get a month of free day care out of you straightforward for them to vanish

What’s stopping you from fulfilling your dreams and aspirations? Imagine being your own boss, being able to play an integral role in the development of your beloved country, empowering families and communities through your hard work. The decision is up to you. You have the power to make it happen. Contact us today and we’ll help you register your ECD or Creche business today!

Company Registration in Zimbabwe

What is Company Registration in Zimbabwe?

Company registration in Zimbabwe is the process of incorporating (registering) a business in Zimbabwe either as a Private Limited Company (PLC), Private Business Corporation (PLC) or any other business entity as stated in the Companies and Other Business Entities Act (Chapter 24:31). When a company is incorporated, the business becomes a separate legal entity; separate from its owners. The business becomes an individual ‘person’ in the eyes of the law. Essentially, this means that the company is completely separate from its owners in terms of finances, liabilities, contractual agreements, and ownership of property and assets.

Benefits of registering your own company

  1. Limited liability
  2. Legitimacy and brand awareness
  3. Easier to raise capital
  4. Supplier arrangements
  5. Low Tax Liability
  6. Business continuity

Our Company Registration in Zimbabwe service

Types of companies

They are quite a number of companies but the two most popular companies you can register in Zimbabwe are a Private Limited Company and a Private Business Corporation.

Private Limited Company (PLC)

A Private Limited Company is the most common company structure in Zimbabwe.Private limited company is a type of organisation you can set up to run your business.Company ownership is split into shares owned by shareholders.A company must pay corporation tax out of any profits and can then distribute the remaining profits among shareholders.
Private Limited Company requires at least 2 directors and a maximum of 50 directors and also limits the number of shareholders to 50.

Private Business Corporation

A Private Business Corporation is an alternative company structure to a private   limited company that is registered with the Companies registrar of companies in Zimbabwe- through the process of incorporation.

Requirements for company registration in Zimbabwe

There are 4 requirements when registering a company in Zimbabwe:
  1. Company name – should not be similar to an  already registered company, or which is so similar to any such name as to be likely to deceive, is likely to mislead the public, is blasphemous or indecent or likely to cause offence to any person or class of persons, suggests patronage of the Government or some other authority or organisation unless the consent thereof has been obtained, is undesirable for any other reason.
  2. Director’s information – Name(s) and surname as shown on government issued identity documents, national identity number/passport number, official address and former names. This information is shown on the CR 6.
  3. Shareholders information – name(s) and surname as shown on government issued identity documents and official address. This information is shown on the Memorandum and Articles of Association.
  4. Company objectives: These are the commercial activities the company is going to run the business. A company can have as many company objectives as they require. Sample objective can be farming, mining et..c.

Procedure for company registration in Zimbabwe

There are five important steps to the initial company registration procedure in Zimbabwe which include:

1.Name Search and reservation

With us,  you have to give us 5 proposed name and the one which is approved will be the name of the company. This can be done within 24 working hours with the approved name being reserved for up to 3 weeks from the application date. You can however further reserve the company name if it has expired.
2.Appointment of company directors
This is done through the CR 6 form  and is usually prepared by your consultant. A director should be above the legal age of 16 years, and at least one being ordinarily a resident of Zimbabwe. The individual must also not have been previously disqualified from acting as a director or bankrupt.
3.Appointment of company secretary(s)
This is also done through the CR 6 form .A company secretary should be above the legal age of 16 years, and ordinarily a resident of Zimbabwe. The individual must also not have been previously disqualified from acting as a company secretary.
4.Registering of company addresses
This is done through the CR 6 . The addresses should be a physical address which should be a Zimbabwean address, postal address and email address.
5.Company incorporation
The official company registration documents are submitted at the Companies Registry for incorporation. This is done only through a registered consultant, registered with the Deeds, Companies and Intellectual Property by (DCIP). After successful submission of the registration documents at the Companies Registry, the company is incorporated.

Documents you receive after registering a company in Zimbabwe.

The company documents you will receive will differ with the type of company you choose.
For a Private Business Corporation you will receive the following documents:
  • Certificate of incorporation – a legal document issued by the Registrar of Companies showing that your company has been approved
  • CR 28
For a Private Business Corporation you will receive the following documents:
  • Certificate of incorporation
  • CR 5 (Former CR 6) – List of company addresses
  • CR 6 (Former CR 14) – List of company directors
  • Memorandum of Association –  a legal statement signed by all initial shareholders or agreeing to form the company. It also shows the businesses objectives.
  • Articles of association – written rules about running the company agreed by shareholdeor guarantors, directors and the company secretary

Company registration prices in Zimbabwe

Our company registration prices .
  • Private limited company for $150
  • Private business corporation for $120
  • PRAZ for $120
  • Change of directors from $70
  • Tax clearance for $80
  • Name search for $10

Tax clearance

The law requires that a company registers with the Zimbabwe Revenue Authority (ZIMRA) within 30 days of starting to trade. Once you register, you will be issued a tax clearance.

Trade name registration

After registering your company, you may wish not trade with your official company name for different reasons. You can use an assumed name popularly known as a trade name. However, since the introduction of the Companies and Other Business Entities Act (Chapter 24:32) all trade should also be registered.

Our bank account opening service

Key authorities and legislation to be aware of:
The main corporate legislation in Zimbabwe is contained in the Companies and Other Business Entities Act (Chapter 24:31). The company should also be aware of the following local authorities when doing business in Zimbabwe.

Set up for success

Zimbabwe might be facing economic challenges but take note that Zimbabwe is one of the easiest countries to start up a business. Better still, it helps to work with a trusted partner that has in-depth knowledge of Zimbabwe’s regulations to help smooth flow of your company registration process whilst you focus on your business.

Talk to us

Company registration in Zimbabwe  can help you navigate all corporate secretarial hurdles. Whether you are registering a company in Zimbabwe or something else, Company Registration in Zimbabwe has a team of gurus with extensive local knowledge covering business establishment, corporate secretarial, tax compliance, advisory and other regulatory requirements.
How can we help you?
To discuss how Company Registration in Zimbabwe can help you with registering your company, call, WhatsApp, text or complete our contact form  and one of our experts will contact you.
Call
Mob: +263716196475
Mob: +263777069078

How to apply and win tenders in Zimbabwe this 2024

01


INTRODUCTION

How to apply and win tenders in Zimbabwe this 2024

Here is a step to step guide on how to apply and win tenders in Zimbabwe this 2024. This is what they will not teach you in college or any school of business. To apply and win tenders, just make sure: you have a registered company, a valid Tax Clearance Certificate, PRAZ certificate, NSSA certificate, a vendor number, a detailed company profile, signed recommendation letters and follow the few other tricks that we’ll layout in this guide. Applying and winning tenders is as easy as copy and paste.

What is a tender?

In the first place, you may wanna know what a tender is? In simple terms, a tender is a formal request by a certain company to get a specific supplier to carry out a specific task or deliver certain goods , at a stated place and within a specific time frame. Please take the word specific time frame religiously! Most companies do not win tenders simply because they do not state their delivery period. Go through this document so you can learn how to apply and win tenders in Zimbabwe.

How much can I get from a tender?

By no doubt, a tender means big money! Whilst there is no specific amount of how much you can earn from winning a tender, be guided accordingly by these minimum thresholds:

(i) Goods- USD 10 000 or equivalent at bank rate.

(ii) Services – USD 5 000 or equivalent at bank rate.

(iii) Works (such as renovations, construction) USD 20 000 or equivalent at bank rate.

This is in accordance with the Procurement Regulatory Authority of Zimbabwe (PRAZ). The amount you can get if you apply and win a tender differs. Some tenders may give you upto USD 100m. At some point, you can win a tender for supplying say stationery or toiletries for the whole year. Imagine supplying toiletries to Zimbabwe Electrical Supply Authority (ZESA) or supplying stationery to NetOne. Winning a tender means big money!

Where to get tenders?

Approximately, hundreds and hundreds of tenders are being flighted on the local press. Most of them are flighted in the Sunday Mail, Thursday Herald or Financial Gazette. Those willing to apply for government tenders, you can check the Government Gazette as well. Due to technological advancements, you can also get tenders from corporate websites, other tender-listing websites like: www.tendernoticeboard.co.zw or https://tendertube.co.zw/ etc. To check tenders on a company website, just type the name of the company + tenders. Example: Zinara Tenders or POSB tenders. Other companies are just putting a very short advert in the press and share a link to their website for full details.

POSB Tenders

02


STEPS TO WIN A TENDER

What are the steps in applying for a Tender?

To apply and win tenders, you have to:

(i) thoroughly read the tender and see if it’s applicable to your line of speciality. Some tenders maybe marked as domestic tenders and that means the tender is open to the residents of that specific region only. For example, Buhera Rural District council can flight a domestic tender that is limited to Manicaland Province companies only.

(ii) check if the tender is still valid and whether you can or cannot meet the delivery period. If you come across a tender with a tight deadline that you cannot meet, you better leave it. We however advise you to try all the possible means to increase your workforce, capital or any other economic resource in the short run so you can deliver.

03


INTRODUCTION

Documents required to apply and win tenders.

Here is a list of the documents that will be required when applying for a tender in 2024. Note that this list shares the common documents that are requested. At some point in time, there may be extra documents required or some documents we have listed below may not be required.

1. Company registration documents

These documents are a prerequisite when applying for a tender. They include Certificate of Incorporation, CR 5, CR 6, Memorandum and Articles of Association. Companies that were registered before February 2020 may show CR 6 and CR 14 instead of CR 5 and CR 6 respectively. Of you do not have Company Registration documents, please get in touch with us :+263716196475 | +263777069078. Check more about why you must register a company here… We advise you to make sure that all shareholders and directors’ details are upto date. Should you need any changes to your company registration documents, please get in touch as well.

2.Tax Clearance Certificate

This is another prerequisite when applying for tenders. A tax clearance certificate shows that you are paying your taxes to the government. If you don’t have a Tax Clearance Certificate, it means you will lose 30% of your earnings as Withholding tax by the government. Example, you wanna sign a deal of 100 000 but you do not have a Tax Clearance Certificate, it means you’ll lose $30 000. In most instances, you’ll lose the deal entirely of you do not have a tax clearance certificate. If you do not have a tax clearance certificate, please get in touch with us so we can process one for you. Remember to check our document on how to obtain a Tax Clearance Certificate in Zimbabwe…

3.Business bank account

This is where your funds will be deposited once you win the tender. At no point in time will a tender be awarded to a company without a bank account. Check out how you can open a corporate bank account in Zimbabwe here. Make sure you type the correct account number and branch codes when applying for a tender. Mistakes are costly. Do things right at the first time.

4. PRAZ Registration.

The Procurement Regulatory Authority of Zimbabwe (PRAZ) is the arm of the government that governs how tenders are flighted, selection process etc. When applying for government tenders, PRAZ Registration is a prerequisite. Register for PRAZ here…

5. Vendor Number

If you want to apply and win tenders from the government, you are obliged to have a vendor number. You maybe wondering what a vendor number is? It’s a unique code, usually 5-digits that you’re assigned by the Ministry of Treasury. It’s use of for you to get paid by the Ministry of Finance whenever you have supplied something to the ministry. We covered the vendor number application process on this blog.

6. Detailed company profile.

A detailed company profile helps you stand out from the crowd! Make sure you keep your Company profile updated to reflect the requirements of the specific tender.There is no one size fits all in business. What must be included in the company profile: Company name, physical address, phone numbers, email address, list if products and services on offer, key projects you have done, details of key personnel and their qualifications, payment details (bank account, branch code etc). Make sure you document whatever is necessary as per tender requirements. The art of winning tenders is by following instructions like you’re carrying arm orders. In case your company profile is not updated, get in touch with City Cloud Private Limited. They’re the best web and graphic designing agency we have dealt with so far.

7. Trade references.

From our experience, to apply and win tenders, you must have trade references that are signed and stamped. Trade references serve the purpose of making sure you have supplied the same items before. They help you become more authentic and increase your chances of winning the tender. Make sure the contacts on your trade references are reachable.

8.NSSA Certificate:

A NSSA Clearance Certificate is a certificate issued by the National Social Security Authority [NSSA] to registered employers liable for NSSA contributions, under any of the Acts administered by the National Social Security Authority. The certificate is issued upon request from employers whose contribution accounts are up-to-date or has made alternative debt settlement arrangement with NSSA.

 What are the benefits of NSSA Clearance Certificate?

NSSA Clearance Certificate is required when bidding for tenders.

It acts as an assurance that, the trading partner’s employees are adequately covered by social security schemes as enshrined under Section 12 of the Accident Prevention & Workers’ Compensation Scheme SI 68 of 1990.

A NSSA Clearance Certificate is a pre-requisite when applying for licences issued by local authorities.

Business counterparts have confidence in doing business with companies who are compliant to statutory obligations

What is required to obtain a NSSA Clearance Certificate?

The Employer’s account must be up-to-date in terms of contributions & premiums.

Employers with outstanding legacy debt, must make alternative debt settlement arrangement, approved by NSSA.

The Employer must furnish all statutory returns particularly P4 return or make satisfactory arrangements with NSSA for the furnishing of such returns.

Contact our team if you need assistance with NSSA Certificate: +263716196475 | +263777069078

9.Bid Security

It is also known as a bid bond. This is a refundable fee that you pay as a security. This is done to avoid suppliers who win tenders and fail to deliver.The bid security shall be payable through the below options:

First Option…………. A certified bank cheque; or

Second Option………A bank guarantee from a commercial bank;

Third Option…………A cash deposit to the Procurement Regulatory Authority of Zimbabwe (PRAZ) – If the third option is chosen, bidders must also submit proof of payment of non-refundable Bid Bond Establishment fees in terms of the section 90 part IV of the S. I 5 of 2018. The amount payable to PRAZ as non- refundable cash bid bond establishment differs. Any bid not accompanied by a Bid Security where this is a requirement of bidding, will be rejected by

the Procuring Entity as non-responsive.

10.Declaration of corrupt practises.

Most companies now require you to declare that you have not been involved in any corrupt activities and you’ll not even do so. A sample of a declaration of corrupt activities takes this form:

We at [your company name] do hereby declare that we do not egage in any corrupt activities.

Signed: [Company secretary or any other signatory]

Please note that most companies take the declaration of corrupt activities seriously and failure to declare that you’re corrupt means automatic disqualification. Make it a habit to include this even if it’s not mandatory.

The Government of Zimbabwe requires that Procuring Entities, as well as Bidders and Contractors,

observe the highest standard of ethics during the procurement and execution of contracts. In pursuit

of this policy: the Procuring Entity will reject a recommendation for award if it determines that the Bidder

recommended for award has, directly or through an agent, engaged in corrupt, fraudulent,

collusive or coercive practices in competing for the Contract or been declared ineligible to be

awarded a procurement contract under section 99 of the Act;the Authority may under section 72 (6) of the Act impose the sanctions under section 74 (1) of the Regulations; and any conflict of interest on the part of the Bidder must be declared.

Tender application checklist

Inorder to apply and win tenders, have a checklist so you will not ommit important items. Here is a checklist you can ammend to fit yours:

  1. Company Registration documents.
  2. Tax Clearance Certificate.
  3. PRAZ Registration
  4. NSSA Registration
  5. Vendor Number
  6. Check if you have FULLY signed the Bid Submission Sheet.
  7. Check if you have attached Proof of Payment for a Bid Security Fee.
  8. State bid validity and delivery period.
  9. Recommendation Letters.
  10. Any proof of being a member of a certain professional body.
  11. Detailed Company Profile.
  12. Declaration of corrupt practises.
  13. Business bank account.

Tenders are an opportunity for your company to showcase itself and to demonstrate that you have what it takes to be considered as a potential supplier. It is not easy to win a tender. However, with proper preparation, you can increase your chances of winning.

One of the main reasons why companies lose tenders is that they do not always meet the requirements set out by the client. To make sure that you get shortlisted for the next round, it is important that you understand what the client is looking for. This will help you to complete your proposal in a way that addresses the client’s needs and demonstrates how your company can meet their requirements.

This guide has given you all the steps of writing a successful tender application in 2024 and give you practical tips on how to write a winning proposal.We wish you all the best in your business.

Our contact details: +263716196475 |+263777069078 | [email protected]

Requirements to open a corporate bank account with Ecobank in Zimbabwe

BANK OPENING REQUIREMENTS

Here are the requirements to open a corporate bank account with Ecobank in Zimbabwe.

1. Completed account bank opening form

2. Fully signed mandate card

3. Dully signed mandate resolution

4. Memo and articles of association

5. Cr14 and cr6

6. Cr2 or letter confirming shareholding (signed by company secretary and a director)

7. Tax clearance form

8. Vat registration

9. Signatories (a) 1passport size photos(b)certified copies of id(c)proof of residence {not more than

3 months old} foreign nationals to provide extract of passports work permits and residential

permit

10. Certificate of incorporation

11. Directors –(a) certified copies of id (b)proof residence permit

12. Other shareholders (a)certified copies of id (b0 proof of residence(not more than 3 months

old)(c)foreign nationals should provide extract of passport , work permit and residence permit

13. Initial deposit $100

14. Directors don’t need to be physically present as long they provide #11

15. It takes 3 – 5 working days

Should you require assistance with Memorandum and Articles of Association, Tax Clearance Certificate, CR2, VAT reguistration and other services, feel free to reach to us: +263716196475 | +263777069078 | [email protected]

How to register for VAT in Zimbabwe

VAT REGISTRATION REQUIREMENTS

1. Must be registered with ZIMRA having a BP Number. Get your BP number from us. Click here: 

2. Payments for all tax heads must be up to date.

3. Fully completed REV I FORM (download from www.zimra.co.zw).

4. Sales Schedule from the time of commencement of trade to date.

5. Sales invoices from the time of commencement of trade to date showing customer’s name and telephone numbers OR confirmed and signed contracts.

6. Sales projections schedule for the next 12 months.

7. Current stamped bank statement.

8. Letter appointing public officer.

9 Valid lease agreement in the company name (if the property rented) or title deed if owned)

 

ZIMRA Tax Clearance renewal for 2024

ZIMRA Tax Clearance renewal for 2022

The Zimbabwe Revenue Authority (ZIMRA), has issued a statement on the renewal of Tax Clearance Certificates for 2022.

The Zimbabwe Revenue Authority (ZIMRA) has issued a statement with regards to Tax Clearance Renewal for 2022. It has announced that Tax Clearance (ITF 263) Certificates for 2022 will be auto-generated to compliant customers.

Here is the full statement by Zimra

PUBLIC NOTICE

ISSUANCE OF TAX CLEARANCE CERTIFICATES (ITF 263) FOR THE YEAR 2022

The Zimbabwe Revenue Authority (ZIMRA) would like to inform all its valued clients that year 2022 ITF 263s will be auto-generated by the ZIMRA system to compliant clients only and thereafter, sent through email addresses that are captured in the ZIMRA database. From henceforth, compliant clients are no longer required to apply for a tax clearance. Clients are therefore, implored to ensure that they

have complied with the following in order to access their ITF263 for year 2022:

Updated Tax Affairs – All registered Clients should be up to date with:

i) submission of their tax returns,

ii) tax payments.

iii) all debts should be cleared, where debts are outstanding, payment terms should be arranged with ZIMRA officials, way before 31 December 2021.

Master data – Clients should ensure that their master data information is correct and up to date. Master data includes the following:

i) Physical Address,

ii) Email Address,

iii) Telephone Number,

iv) Bank Accounts and

v) Industry Classification.

Where email addresses being used are not the ones that are in the database, kindly fill in Rev 2 form obtainable from the ZIMRA website.

Fiscalisation and interface – Clients registered for Value Added Tax (VAT),

should ensure that they are fully interfaced for multi-currency with their invoice/ receipts showing currency of transaction.

Please note that the devices should be configured to show:

 Transactions done in local currency ZW$

 Transactions done in foreign currency like the US$

Kindly note that 2022 tax clearances will be generated to compliant Clients from 08 November 2021. Tax clearances for LCO an MCO clients will expire on 31st December 2022 while the rest of the regions will expire 12 months from date of issue. This will

result in some tax clearances expiring in 2023.

For any ITF263 related enquiries, clients are advised to continue using the following

email addresses:

1) Large Client Office (LCO) –[email protected]

2) Medium Clients Office (MCO) – [email protected]

3) Small Clients Office (SCO) – [email protected]

4) Region 2 – [email protected]

5) Region 3 – [email protected]

Submit Tax Returns online via ZIMRA e-services http://www.efiling.zimra.co.zw or

alternatively use email addresses as published on ZIMRA website.

All Tax Payments, use ZIMRA Bank Accounts on website

https://www.zimra.co.zw/profile/203

Need further assistance with Tax Clearance renewal for 2022? Check this recent blog post here

By Admin


Get in touch

For all your Company registration, Tax Clearance, PRAZ registration and Vendor number, get in touch with Us…

Bank Advice Note – What is it and what are the requirements

Bank Advice Note for Elliot Minerals and Explorations

The bank advice note is the first step in getting a corporate bank account for the purposes of getting a ZIMRA Tax Clearance Certificate. The purpose of the bank advice note is to inform bankers of your company’s name, location, and directors.

The process of getting a bank advice note

1. Register your company

The first step in your new account is to register a company. We can take care of that for you.  Contact us here for assistance with company registration.  This way you will automatically be able to comply with local regulations and start the process.

 

Apply for a bank advice note

Apply for a bank advice note. According to Zimbabwean law, you need to have a tax clearance certificate to open a company bank account. Since it’s not possible to get tax clearance without a bank account, the tax authority, therefore, makes a special authorization to the bank that allows for new companies to be able to open a business account without tax clearance. This is what is called a bank advice note or simply a bank opening letter. The process requires your original company papers.

What to do after obtaining a bank advice note?

The next step is to visit your bank account with the bank opening letter or bank advice note and the bank account opening requirements below…

Bank account opening requirements

The requirements for opening a company bank account in Zimbabwe differ from bank to bank but these are the general requirements:

  • Memorandum and articles of association (applicable to Private Limited Companies only).
  • Certificate of incorporation (applicable to Private Limited Companies only).
  • CR14 (applicable to Private Limited Companies only).
  • CR6 (applicable to Private Limited Companies only).
  • Incorporation statement (only applicable to Private Business Corporations).
  • Directors’ ID’s and proof of residence in the form of a utility bill like water, phone or electricity bill.
  • Passport size photos.

We recommend using BancABC,  CBZ, Agribank or Nedbank if you’re in Zimbabwe.

Do an initial deposit

Once you have your bank account available, you need to pay the initial deposit in order to activate your account.

Conclusion

There are three main steps in order to set up a new bank account: registering your company, getting a bank advice note, and finally, opening the corporate bank account then a tax clearance certificate. It is important to note that bank accounts can be used for numerous purposes, including purchasing things online without having to pay cash or wait for wire transfers. The steps may seem very different depending on who you speak with or what bank you are with. But if you understand the process behind each one, you should be able to navigate them successfully no matter which bank you might be working with.

 

Need a bank advice note, order here: 

 

 

 

How to register a driving school in Zimbabwe

Driving School vehicle
  1. Register your company as a Private Limited Company

Register your driving school company as a Private Limited Company by following this link.

Register your driving school and maintain a good reputation from the onset. Don’t take an unnecessary risk by operating without a proper license or even using a motor vehicle that is road-worthy.

  1. Apply for an instructor’s ID and certificate with the Traffic Safety Council of Zimbabwe

  • You must pass a course that includes both the theory and practice of driving.
  • Upon passing this test, you become eligible to become an assistant instructor and must then work a 12 month period under the supervision of a qualified instructor.
  • After this period you may advance to becoming a qualified instructor:
  1. After passing the examination conducted by the Zimbabwe Traffic Safety Board relating to the teaching of subjects set out in the driver instruction and;
  2. After holding a valid driving license for five years.
  • The two years prior to the date of registration as an instructor should be clear of any traffic offenses. The certificate provided is valid only for two years, and during this period the instructor is subject to sporadic checks by staff at the Zimbabwe Traffic Safety Board to ensure that standards are being maintained.
  • A license can be revoked at any time should circumstances dictate the necessity for this

Traffic Safety Council of Zimbabwe Requirements

  • Driver’s license.
  • Instructor’s ID and certificate.
  • Driving school premises should not be less than 14 square meters.
  • Each vehicle used for driving instruction should at least be fitted with an additional adjustable internal rearview mirror, an adjustable driver’s seat; and a handbrake which is positioned so as to be readily operated by the instructor.
  • The name of the driving school must also be clearly and prominently displayed on the vehicles.

4. Register with ZINARA

Register your driving school with  ZINARA  for insurance cover and a ZINARA road license disc.

 

 

5. Acquire a certificate of vehicle fitness from VID

Acquire a certificate of fitness for all your driving school vehicles, from Vehicle Inspection Department (VID). 

 

6. Register with ZIMRA

Register with ZIMRA taxes or find  tax consutant to assist.

 

 

7. Register with NEC

Register with the NEC for your industry or get a NEC CONSULTANT   to assist.

 

                 WHAT YOU NEED

DRIVING SCHOOL BUSINESS PREMISES

You require a small office space where students can come and register for lessons.

You are going to need furniture, desks, a computer and perhaps a simulator which you can use to test the students before they get to do their lessons on the road.

In Harare, driving schools usually rent offices that are on the peripherals of the Central Business District. This is so to reduce costs and also to get able parking space for the driving school vehicles.

DRIVING INSTRUCTORS AND LICENCES

Companies need driving instructors for their driving school business. All their driving instructors should have valid drivers’ licenses, defensive certificates and should have acquired an instructor’s certificate.
All your driving instructors should have enrolled for the Driving school instructor’s courses with the Traffic Safety Council of Zimbabwe.
This certificate shows that your driving instructor has successfully completed a recognized driving course and has the necessary knowledge, skills and attitudes to teach driving.

 

MOTOR VEHICLE REQUIREMENTS

For driving school owners, it’s important to have a fleet of vehicles. It is vital to the success of a driving school business.
The vehicle will also have to be fitted with two-way brakes. This is required for the vehicle to be driven by learners. Driving school vehicles are required by the law to display L plates. These plates show that a vehicle is being droved by a learner.
The vehicle also needs to have a speedometer, odometer rear-view mirror, a horn, brake lights, stop lights, horn, and windshield wipers.

 

INSURANCE FOR YOUR DRIVING SCHOOL BUSINESS

You do need business insurance for your driving school business, whether it’s for cars, vans, or other vehicles. The level of protection you need depends on the nature of the work you do. If you’re teaching learners or novices to drive, you probably don’t need the same level of cover as a professional driver.
As a driving school, your business has two main risks:
1. Your vehicles
2. Your customers

 

MAINTENANCE OF RECORDS

Record progresses made by students, maintain details on lessons, identification, address, hours they have drove and dates. These details will be required when the student goes for the road test.

TARGET MARKET

In Zimbabwe, there is a large market of people looking for driving jobs and even those with a hope to buy a car later in the future. Some college graduates are getting job opportunities that require a driver’s license. Know how to reach out to all the different age groups in order to tap in and have many students enrolling at your driving school.

MARKETING YOUR DRIVING SCHOOL BUSINESS

A driving school is just like any other business, and like any other business, it needs to market itself. Marketing doesn’t have to be expensive. Most driving schools just need to make sure they know what they’re doing.
The first thing you need to do to market your driving school is to make sure you know what you’re doing. You need to understand the market, the demographics, and the drivers.
You also need to make your brand as recognizable as possible. This might mean creating fliers, posters, and even creating a website.

Get a website developed by Zimbabwe’s leading website designers: City Cloud Pvt Ltd. 

You can create your own website by following this blog or watch this video:

The biggest part of marketing the business will come through referrals. Make you your service is superb in order to get recommendations from your students. People are different and you may face challenges as some students may be slow learners but it’s important that you stay calm and be patient with all your students..

CAPITAL FOR DRIVING SCHOOL BUSINESS

You need vehicles for your driving school business. The amount of capital you need to start your driving school business will depend on the size of your driving school, and the kind of vehicles you need. There are different classes of motor vehicles. You can offer lessons for all classes. However, if you are starting with little capital, you can concentrate on class 4 driving lessons only. You will require more capital for a class 2 driving school. This is because you will need to purchase lorries which are more expensive.

Buying cars for your driving school business online from Japan is a quick and convenient way to start your driving school business.
For a car used by the driving school, its condition should be good. For example, a car used for driving school should have no scratches and dents, no rust, and no mechanical problems.Beforward is a popular Japanese website where people buy cars from.

Beforward alternatives

You can buy your car for a Driving school from these Beforward alternatives:

  1. Autocj
  2. SBT Japan

PROFITABILITY AND COSTS

The main costs associated with running a driving school are fuel, marketing, rentals, salaries, car servicing, and maintenance. Driving lessons in Zimbabwe for class 4 cost $3-4 per lesson (30 minutes lessons). Getting many customers will ensure that your cars will not lie idle during the day. This is why it is important to have a robust marketing strategy. The driving instructors should be motivated to bring customers to the business. The salary paid to the instructors should be tied to the number of customers they bring to the business, by including a commission component in their remuneration package.

Ensure that you regularly service your vehicles so that they are always in road-worthy condition. Failure to service your cars is a disaster to your driving school business. Students don’t want to train driving in vehicles that are not in a good condition. You will be chasing customers away if you fail to service your vehicles. Also, the life span of your vehicles will be greatly reduced.

You should also offer oral lessons for your driving school. Many students struggle to pass the provisional license. The oral lessons will attract clients to your business, who can then start driving lessons after passing the provisional license test. The profitability of your driving school business will be directly related to the number of students you get.

WHY SHOULD YOU OPEN A DRIVING SCHOOL BUSINESS?

The initial capital costs are manageable and can be minimized. There is a ready market that does not deplete. The law requires a license and there is no shortcut around that. The income stream is also steady especially if you market the business well and get a large clientele base. The business allows flexibility and it is not too demanding. The work pace maybe even more relaxed after the students know what is expected of them and how to drive. Even with a lot of driving schools registered, the market still is open for new instructors and you have a chance to make it in the driving school business.

 

FINAL THOUGHTS

Should you think of starting a Driving school business, here are key things to consider:

    • Get a detailed business plan for your driving school. A business plan works as a yardstick on what you must achieve (specific goals, sales, and profits), it gives you a clear picture of who your competitors are, where they’re operating, what are their key strengths and weaknesses.
    • You can get a pre-written business plan by clicking this link
    • Invest in driving school vehicles and other assets like land or rent an office.
    • Your staff (drivers) make or break your driving school. Select them carefully.
    • Heavily invest in the marketing of your driving school ( social media, a website, google my business listing, billboard advertising and more)
    • Hire a Digital Marketing Expert on Fiverr.com

 Should you need registration of your company, contact us: +263716196475 | +263777069078 

How to start a business in 17 easy to follow steps

So you’ve decided to take the leap and start a new business. Congratulations! Making that decision might feel risky and overwhelming, but as the saying goes, “Fortune favors the bold.” Here is a step by step guide on How to start a business in 17 easy to follow steps.

Creating your own business is a rewarding opportunity to achieve work-life balance while pursuing your passions. But it isn’t easy. Many business owners agree, the first year is the toughest. However, if you’re diligent when starting your business, you’ll put yourself in a much better position for success.

To help, QuickBooks asked 965 seasoned small business owners if they had any advice for people who are about to start their first business. These business owners recommended three things you should definitely do before you start, in this order:

  1. Write a business plan.
  2. Research the competition.
  3. Find a mentor.

Current small business owners say these three things can increase your chances of success. And yet, according to the survey, not all prospective business owners plan to follow this advice.

17 steps to starting a successful small business

Every business is unique, from the products and services it sells to the customers it attracts. But there are a few steps every aspiring entrepreneur must take to start and run a small business.

  1. Define your vision

A business without a vision is like a ship without a sail. Defining your business’s vision sets everything else in motion.

Drafting a mission statement should serve as the foundation for your vision. In a few paragraphs, identify your company goals and the high-level strategies you’ll use to accomplish them.

When writing your vision, be as clear and concise as possible. Make sure you include a compelling and motivational message that inspires you to work together towards your goal. Your statement should help convey your “why.” It answers, at the most basic level, why you got into business.

  1. Research your market opportunity

There’s a lot to consider when starting a new business, from developing your product to accounting and legal practices. That’s why you want to make sure you have a strong business opportunity before going too far.

Select a product or service

What will your business sell, and how do you plan to be different from competitors? In other words, what is your value proposition or unique selling proposition?

Define your target market

Who will your business serve? Begin to identify your target market with demographics like age, gender, income, and location. Then go deeper through personas or create a customer journey map.

Identify key competitors

Current business owners say researching the competition is the second most important thing you can do before you start a business. But according to recent research by QuickBooks, 19% of prospective business owners say they don’t intend to do it.

Having competition is a good thing—it means there’s a demand for your product or service. Compare similar products or services to replicate what your market loves and differentiate yourself from what’s already available.

Know your market size or opportunity

In the end, market research means quantifying the opportunity your product or service represents. Take time to figure out the total addressable market (TAM) of your potential customer base. Estimating the current and future value of your business idea and setting reasonable goals can help you win a piece of the pie.

  1. Write a business plan

Nearly 70% of people who already own a small business recommend writing a business plan before moving forward with your business idea. But 13% of prospective business owners say writing a business plan isn’t among their priorities.

Writing a business plan can be a daunting prospect. The good news is you’ve already done some of the work by tackling the first steps above. Keep in mind that your first business plan isn’t final. Parts of it will most likely change as you learn more about your market and grow your company.

Some experts recommend starting with a business model canvas: a one-page document that covers the critical information you need to get started. This option can save you time and get you up and running faster.

Once you’ve been in business for a while or are ready to seek funding, you can build a more detailed plan. Your plan should cover:

  • Your operating resources.
  • Your overall marketing plan.
  • Your cost and sales structure.
  • Your financial management and business growth.

Note: Need a bankable business plan in Zimbabwe? Contact Us: +263716196475 | +263777069078 | [email protected]

 

  1. Understand your startup costs

Even if you’re self-funded and have yet to work with angel investors, you still need to understand your startup costs.

Start by mapping out all of your anticipated costs for the next year. Then determine how much money you need to earn every month to stay in business (e.g., your operating income and salary). And be mindful of costs like business taxes.

Additionally, consider a Plan B. More than three-quarters (76%) of people who will start a business in the next 12 months said they “definitely” or “probably” have a contingency plan, according to QuickBooks’ research.

It can take time to build up your revenue, so it’s critical that you recognize costs and cash flow trends early on.

  1. Plan your starting finances

More than a third (36%) of people who want to start a business admit that “getting funding” is one of their top three financial priorities. If you don’t have startup cash, you don’t have to seek angel investments or venture capital. You can turn to other methods instead.

Crowdfunding

You’ve likely heard of the crowdfunding platforms Kickstarter or Indiegogo. Crowdfunding is a popular route for many new business owners. You can use it to seek funds from many people, rather than one major investor. In Zimbabwe, check crowdfunding startups like Agrivolution, YouFarm among others.

Microloans

These are small business loans, often less than $10,000, that you can use to get your business off the ground. You’ll have to research microloan options in your city, state, or country, as there are many different services to choose from.

Personal loans

If you have a good credit rating, you can take out a personal loan instead of a business loan. You can also borrow against credit cards or a personal line of credit. Just be aware of long-term interest and tax implications.

Grants

Depending on your country, you may be eligible for grants, either from your government or private organizations. Again, you’ll have to do some research to find out what you qualify for and how to apply.

Friends and family

Last but not least, plenty of businesses get their start through the help of friends and family. Don’t be embarrassed to reach out. But take those pitches seriously by outlining all the work you’ve done through your canvas or business plan.

  1. Determine your business structure

Choose the legal structure of your business entity. Are you better off as a sole owner or proprietor? Do you have a partner? Do you plan to incorporate your business?

If you’re not sure how to answer these questions, you’re not alone. Seasoned business owners strongly recommend getting help choosing a business structure. But 50% of prospective business owners say they’ll be doing this on their own.

Each option has its advantages, as well as associated tax reporting responsibilities and regulatory requirements.

Sole proprietor or sole owner

This is a popular option for anyone who doesn’t have a lot of liabilities (e.g., no employees or significant investments) when they start out. As your business grows, you may wish to change legal structures. Being a sole proprietor could be an excellent option for those with a small side-hustle or day job.

Business partnership

If you’re going into business with a partner, then you will need to register as a business partnership or limited partnership. Expect to work with a lawyer and a tax professional to layout your partnership type, terms, and tax implications.

Incorporated business

Some notable benefits of incorporating your business are tax breaks and liability protection. Due to upfront costs, many sole proprietors wait until they have earned enough funds and are at the right stage to incorporate.

Wanna have a Company registered? Shoot us a message now! +263716196475 | +263777069078

Private Limited Company (Pvt Ltd)

This type of business structure safeguards business owners, managers, and the company itself against certain types of personal liability. If you plan to operate from a brick-and-mortar location, personal liability is an important consideration. Should someone get injured on your property, you may not be held personally liable for the damages.

If your business is an Private Limited Company, corporation, or partnership, you’ll likely need to register your Company with any state where you conduct business activities.

There are several other business structures to choose from, depending on which country you live in. Speak with an accountant or bookkeeper to determine which option best suits your needs.

  1. Investigate your legal requirements

Complying with legal regulations is a top priority for current and prospective business owners, according to the QuickBooks survey. Before you launch your business, consult a lawyer to ensure you’ve considered all the legal requirements. A reliable lawyer can help you solve legal and contract disputes and give advice before you sign a new contract.

Here are some essential questions to ask your lawyer:

  • Should I trademark my company name or logo?
  • Do I need a patent, copyright, or intellectual property protection?
  • Can you create standard contracts for negotiating with other businesses and vendors?
  • How do I form a sole proprietorship, partnership, or corporation?
  • What’s the process for sharing equity when seeking private investors?

Different laws apply to every type of business, product, or service. Every country, and even region, will have its own set of rules as well. Your local and federal government websites are an excellent place to begin your research about requirements.

You should also consult national consumer and privacy laws for collecting personal customer information.

  1. Create and register a business name

After you’ve had a conversation with your accountant and lawyer, it’s time to register your “doing business as” or Trade As name. The process may differ by country and region.

Seasoned business owners recommend consulting an expert to help you choose your business name, create your logo, and register your business. But 76% of prospective business owners say they’ll be choosing their own name, and 53% will attempt to design their own logo. You can change your name and logo down the road, but try to start with a name and brand that you can stick with. Before you register your business name, you may run a few options past an expert. Check company names on NameLix, Business Name Generator,  Squadhelp or Oberlo  .

Once you’ve landed on a name you feel good about, make sure it’s available. The quickest way to find out is through an online search. Enter your desired name into Google. Check social media platforms like Facebook, Instagram, LinkedIn, and Twitter. Then reference your local secretary of state’s office to ensure another company isn’t using the name. If you plan to conduct business in multiple countries, check for the name’s use in those countries as well.

You should register that name and ensure it’s valid before creating business cards, logos, websites, and other materials. Again, registration sites differ by region and country.

Finally, if you decide to register your name as a trademark, you’ll need to do so at this point. Your lawyer can guide you through this process. Keep in mind that there are additional costs associated with every registration.

  1. Apply for permits and business licenses

Visit your government services to determine whether your business requires any national or local licenses or permits.

While you’re at it, check to see if you qualify for any tax deductions and credits. Many local governments design special credits to help small businesses grow faster.

You will also need an Employer Identification Number (EIN) if you plan to hire employees or open a bank account. This will also serve as your tax ID so that you can pay federal, state, and local taxes.

Your accountant can advise you on any other tax-related applications you may need to complete. Again, this process depends on where you live and the type of business you’re operating.

  1. Open a small business bank account

A business bank account can help you track business expenses and take advantage of tax deductions and credits available to small business owners. You might open a business bank account as soon as you start making business transactions.

Arrange a meeting with a business banking specialist to determine which type of account is right for your business. Cross-reference the bank’s advice with your accountant to determine which savings bundles or special accounts will benefit you.

You may be planning an international business strategy and expecting to generate a high sales volume in those overseas markets. In which case, opening a bank account in the local market makes even more sense. You’ll save money on bank transfer and currency exchange rate fees.

Plus, establishing a financial presence by country will make it easier for your bookkeeper and accountant during tax season. They can see separate statements for country-specific revenue.

  1. Set up accounting and payments systems

Current business owners say setting up financial systems is the first thing you should get help with when starting a new business. If your accounting system is set up correctly from the start—with future growth in mind—you’ll save yourself time and money long-term.

Many small business owners outsource their accounting to a bookkeeper or chartered accountant. While that can save you a lot of time, you still need access to tools to help you review your finances month-to-month.

The top three financial processes current business owners say they wish they’d invested in sooner are expense tracking, inventory tracking, and invoicing. Since cash flow is critical in starting a business, don’t launch without a cash flow spreadsheet and a balance sheet. You might also consider accounting software that automates this process and can help you visualize the money coming in and going out.

Regardless of your choice, maintain a complete record of all of your finances in one place. Every level of business has legal and record-keeping tax obligations. Nailing down your bookkeeping from day one frees you up to work on growing your business.

  1. Prepare for tax time

For small business owners, tax time is all the time. Ultimately, small business owners claim tax breaks on their tax returns, but year-round tax planning is important to maximize tax benefits.

There are several important dates throughout the year that you’ll need to know. Remembering these dates and filing taxes for the first time can be overwhelming for new business owners. Changes in federal tax laws and tax deductions can trip up even the most experienced business owners.

  1. Outsource essential functions early

When starting a business, you might be tempted to do everything yourself to save money. But spending time on tasks that aren’t in your skill set can cost you time and money.

Delegate or outsource tasks that aren’t your area of expertise (e.g., accounting, graphic designing, social media management, administrative work, or public relations). If you have the funds and legalities worked out, you can hire a few employees to share the workload.

In fact, new business owners plan to hire 10 employees and seven contractors, on average, within the next 12 months, according to the QuickBooks survey. It might be tough at first to trust other people with your business. But if you hire great employees, you’ll question why you didn’t hire them sooner.

If money is tight but you still need help, you can enlist contractors or freelancers. Managing your sanity is just as important as managing your time.

Hire freelancers on Fiverr.com or any other Gig sites.

  1. Learn how to hire and pay employees

If you decide to hire someone instead of outsourcing, you’ll need to familiarize yourself with business taxes. You must withhold taxes from employee paychecks. Speak with your accountant to ensure you meet all your tax responsibilities. Ask common payroll questions to understand payroll basics.

Digital payroll services offer both self-service and full-service options. Using payroll software can help you:

  • Set up and track employee health insurance, retirement plans, deductions, and garnishments.
  • Monitor employee payroll data and annual changes (e.g., bonuses and salary bumps).
  • Establish a digital process to deposit your taxes automatically.
  • Add new employees to your payroll system automatically.
  • Enable automatic online direct deposits, which transfer funds into your employees’ accounts worldwide.

Overall, payroll software can help you manage payroll effectively and better understand how to process payroll.

Need a payroll software in Zimbabwe? Hit our WhatsApp inbox or call now: +263716196475 | +263777069078

  1. Find a business location

Nearly 1 in 4 small businesses starting within the next 12 months will have a 100% remote workforce. The majority of small businesses will still operate from a business location to some extent.

If you’re preparing to open a brick-and-mortar food or retail business, picking the right location is extremely important. As you scout locations, there are a few things you need to keep in mind.

  • Demographics: Consider who your customers are and how they’ll interact with your location. Does your target demographic frequent this potential location? Make sure your location reflects the image you’re trying to project.
  • Foot traffic: Before you sign a lease, monitor the foot traffic outside a potential location throughout the day. Is it tucked away, or does it see plenty of passersby? Does the location have suitable parking for your future customers? Is it accessible?
  • Competition: Having competitors nearby isn’t always a bad thing. Either way, you’ll want to be aware of them before you decide on a location.
  • Business community: Are their other businesses nearby? You may benefit from their foot traffic. Are there restaurants nearby? Your customers (and your employees) might enjoy a bite to eat after shopping at your store. Look for a location where you can benefit from other businesses—and they can benefit from you.
  • History: Research the history of the location. If other businesses have tried and failed in a space, you might want to know why.

No matter what type of business you plan to start, make sure your location can meet your present and future needs. Look for adequate electrical wiring and utilities, space for your employees or any special equipment, and even zoning ordinances.

Finally, keep the cost in mind. Rent is a major monthly cost for many small businesses. But there may be other location-related expenses like insurance, cleaning services, and parking fees.

  1. Market your business and launch a website

New small business owners say building a business website is their top marketing priority. In an increasingly digital world, it’s a smart move. In fact, 28% of small businesses say they are selling more products and services online this year. The majority of them are doing so as a direct result of the coronavirus. And experts predict that this shift to e-commerce is here to stay.

Whether you run an online business or a brick-and-mortar location, you must include a website as part of your marketing strategy. Fortunately, you don’t have to spend a ton of money to set up your business for online sales. There are lots of easy-to-build, affordable website options.

When you have the time and resources, you can begin creating social media profiles to boost your social media presence and bring in new customers. From there, consider investing in digital marketing tactics like paid ads, reviews, and search engine optimization.

As your business grows, you can budget for a stronger, more impactful digital marketing strategy.

A local start up, City Cloud Pvt Ltd develops custom websites and their staff is very knowledgeable and friendly.

  1. Explore business partnerships

We discussed reasons to enter a business partnership, but we should also address partnering with other companies for collective growth. There are several ways to form partnerships.

Referrals and revenue share

Some work with partners to help them sell services in exchange for a commission or revenue share wherein one business gives a percentage of a sale. Revenue shares are common for small sales teams and business owners who want to expand without hiring more full-time employees.

With referrals, you might offer a commission to a partner who helps introduce and assist you in closing a prospective customer.

Revenue sharing is usually better for businesses that help a customer use your product or service better. For example, software vendors have expert partners who might help a mutual customer use the software more effectively. As a result, the customer may spend more money with the software vendor. And the expert partner would get a percentage of sales based on agreeable terms.

Joint ventures

If you plan to build a tower for office space or make a movie, consider forming a joint venture with another business or group of companies.

Let’s say you have all the equipment and staff to film the story but want to add computer graphics. That’s where a partnership with another production company with those capabilities makes sense.

Cross-promotions

If two businesses have similar target customers, it often makes sense to partner on a cross-promotion.

Spend some time thinking about whether there are businesses in your community you can partner with. When approaching them:

  • Be honest and clear about what you want and what’s in it for them.
  • Be patient and willing to negotiate to ensure both parties are happy with the deal.
  • Be ready to walk away if you can’t arrange a fair and mutually profitable opportunity.

Just like when you’re hiring employees, place trust at a premium. You can always ask their existing or past partners whether they were happy with a recent joint venture or cross-promotional experience.

How much does it cost to start a business?

There’s no easy answer. The cost of starting a new business varies by business type, industry, and location. Estimate your startup costs on before starting your business to determine how much you’ll need and whether you should apply for funding.

There are a few costs every business can expect to incur upon startup. These include things like licenses and permits, registration fees, and insurance. If you plan to open a brick-and-mortar business, you’ll need to pay for office space, equipment and supplies, and utilities.

Regardless of your business structure, you still need to pay for things like marketing and advertising, a website, and market research. It’s a good idea for every new business owner to invest in an accountant or legal professional. And if you plan to hire employees or contractors, they’ll expect you to pay them too.

If you work in a trade, you may need to purchase special equipment or machinery to get started. Or you may need to outsource your production.

Start by identifying all your business expenses and how much they’ll cost. Some will have well-defined costs. You’ll have to estimate others to the best of your ability. From there, organize your expenses into one-time expenses and ongoing expenses.

One-time expenses—like paying a graphic designer to help you with your logo or purchasing equipment—are the initial costs you need to start your business. Track these expenses carefully because they may be tax-deductible.

Ongoing expenses include things like salaries and rent—things you’ll have to pay on a monthly or ongoing basis.

When should you start a business?

There’s never going to be a perfect time to start a business. Unless you have a crystal ball, you can’t predict what’s in store for the economy or your life. So the best time to start a business is when you feel you have the time and energy to devote to it. You’re passionate about your idea, and you’re ready to take the leap.

But there are a few other indicators that you might be ready.

  • You’ve done your market research. You know there’s a space for your new business in the market. You know who your competitors are and how you’re going to stand out.
  • You have a business plan. Remember, seasoned business owners recommend starting with a business plan.
  • You’re OK with the risk. If you’re terrified to fail—too terrified to take some risks—you might not be ready to start a business.
  • You have some cash saved. You’ll likely need at least some access to money during your startup phase. If you have some cash stored away, you may be better positioned than someone paying off large debts.
  • You can dedicate your energy. If you’re already experiencing a lot of stress in your personal life, it might not be the best time.

Of course, these are no hard and fast rules. Many would argue that a pandemic isn’t a great time to start a business. But 28% of people say that the coronavirus only accelerated their plans to start a business within the next 12 months. And 72% of prospective business owners feel optimistic about the road ahead. They affirm that the best time to start a business is when you feel ready.

Is starting a business difficult?

Starting a business can be difficult, but it’s easier with help.

Seasoned business owners recommend getting help setting up financial systems, choosing a business structure, registering your new business, and even choosing a business name. But prospective entrepreneurs aren’t totally eager to follow that advice.

Nearly half of prospective business owners say they plan to set up their financial systems on their own. Another 50% say they’re going to choose their own business structure and hope for the best. And 76% say they don’t need help choosing a business name.

It might seem like a frivolous cost to invest in help in these areas. But current business owners emphasize the importance of getting these things right the first time. Many said they wish they would have invested in financial management sooner, including expense tracking and invoicing solutions. And while registering your business might seem simple, structuring a business incorrectly can have costly consequences.

There are lots of steps you must take when starting a new business, but no one expects you to be an expert right off the bat. Finding a mentor or investing in outside help increases your odds of success.

Learning how to start a business is the first step

This article outlines the necessary steps you must follow to launch a new business, but we’ve only scratched the surface. Remember to start with your vision, research your opportunities, and record it all in a business plan or canvas.

It’s critical to understand and manage your startup costs and cash flow wisely. If you aren’t self-funded, find out which investment options make the most sense for your business.

Outsourcing or hiring employees who are experts in their field can free up your time to focus on what you do best and drive growth. You can also lean on business partners in your community to support and grow your customer base collectively.

When in doubt, ask for help. Expert advice can take your business to greater heights.

And remember that fortune favors the bold. But it smiles on the prepared.

More from QuickBooks:

This article originally appeared on the QuickBooks Resource Center

https://intuit.me/34iOyWk

and was syndicated by Companyregzim

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