Company Registration in Zimbabwe

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Company Registration in Zimbabwe

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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

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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.

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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.
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