What is a Business?
Business is the practice of making one’s living or making money by producing or buying and selling products.
It is also “any activity or enterprise entered into for profit.”
How To Register A Business In Zambia
1. Acquiring a tax ID number
In order to acquire a TIN (tax identification number), the investor has to file a certificate of incorporation and register with Zambia Revenue Authority.
2. Registering with Social Security
If you are an investor then you are required to register with National Pension Scheme Authority. Registering with NPSA requires you to file a certificate of Incorporation.
3. Clearing business Levy
Before business operations commence, the investor has to pay the business levy first. The business levy fee has to be cleared with Lusaka City Council.
4. Registering for Value Added Tax (VAT)
Registering for VAT is mainly for businesses or companies that manufacture goods. An investor must get a VAT tax number only if the value of taxable supplies exceeds approximately 800,000 in twelve consecutive months or ZMK 200,000 in three consecutive months. Registering for VAT must be done with the Zambia Revenue Authority.
5. Acquiring an investment registration certificate
Getting an investment registration certificate is optional for all investors. To get this certificate, you must have invested at least $250,000. The Development Agency of Zambia does the issuance of the certificate. The certificate is issued upon inspection of premises to ensure the use of registered premises is uniform with the operational activities of the business.
6. Opening a bank account
If you are an investor, you are free to open a bank account only if you have successfully obtained a foreign taxpayer registration ID. However, there are several banks in Zambia that investors can access to secure accounts for their businesses.
7. Acquire the necessary licenses and permits
The kind of licenses and permits that an Investor has to acquire must specifically depend on the type of business or company one runs. For instance, if a company is involved in manufacturing food and related products or businesses involved in handling consumables might be required to obtain a health clearance and food hygiene license.
Employees of such businesses have to acquire a food handler’s medical certificate.
8. Obtaining a fire clearance certificate
A fire clearance certificate must be obtained by all businesses. The issuance of this certificate is based on the council in which business activities take place. The fire clearance certificate lasts for a year, and it’s renewable.
Added clearances:
(a) Business operation permit
The business permit is harmonized and processed throughout the country. However, the issuance is done at the council level.
Business activity is chargeable, and the fee depends on the investor’s activity and the number of workers. A business operation permit is issued only when business premises are ready.
(b) License to manufacture excisable goods
Businesses involved in manufacturing and importation (excisable goods) have to get an excisable goods license from the Revenue Authority of Zambia.
How much does it cost to register a business in Zambia?
The minimum nominal capital amount for a business to start operating is ZMK 15,000. Certificate of Incorporation costs ZMK 150.
Certificate of a share capital costs ZMK 175. Declaration of consent costs ZMK 150.
How long does it take to register a business in Zambia?
The filing fee is K750 and the process is completed within 24 Hours. Upon receiving your signed Certificate of Registration after 24 hours from the PACRA desk,
you should fill in the “ONE STOP SHOP REGISTRATION FORM” to apply for tax registration (ZRA), registration as an employer (NAPSA), and MSE registration (ZDA).
What documents are required to register a business in Zambia?
Pay business levy.
Health clearance and food hygiene license.
Fire clearance certificate.
License to manufacture excisable goods.