Zimbabwe company registration

DOING BUSINESS IN ZIMBABWE IN 2017

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Zimbabwe. Our services include i) Zimbabwe company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.

SummaryTax resident LLCFast business setup solutionRepresentative officeTrust
Also known as(Pvt) LtdFast business setup solutionROTrust
Best use of company?All products and servicesClose a customer deal nowMarketing & researchTax planning
How soon can you invoice Clients/sign sales contracts?2 months2 weeks2 monthsCannot
How soon can you hire staff?2 months2 weeks2 monthsCannot
How soon can you sign a lease agreement?2 months2 weeks2 months1 month
How long to supply corporate bank account numbers?3 months3 weeks4 months2 months
How long to supply company/entity registration/tax numbers?2 months2 weeks2 months1 month
Corporate tax rate on annual net profits?25%25%0%0%
Limited liability entity?YesYesYesYes
Resident director/partner/manager/legal representative required?NoNoYesNo
Minimum /recommended paid up share capital?US$1US$1US$1None
Can bid for Government contracts?YesYesYesNo
Corporate bank account location?Standard CharteredStanbic BankBarclays BankEcobank
VAT payable on sales to local customers?15%15%Cannot tradeCannot trade
Average total business set up engagement costs?US$17,600US$27,960US$16,500US$19,600
Average total engagement period?3 months3 months4 months3 months


See full table

Accounting and tax considerationsTax resident LLCFast business setup solutionRepresentative officeTrust
Statutory corporate tax payable?25%25%0%0%
Legally tax exempt if properly structured?NoNoYesYes
Must file an annual tax return?YesYesNoNo
Must file annual financial statements?YesYesYesNo
Monthly VAT reporting to the Government?YesYesNoNone
Must appoint an auditor?NoNoNoYes
Access to double taxation treaties?YesYesYesNone
Withholding tax on payments to foreign shareholders?15%15%Cannot tradeNone
Company RegistrationTax resident LLCFast business setup solutionRepresentative officeTrust
Resident director/partner/manager/legal representative required?NoNoYesNo
Minimum number of shareholders/partners?111No
Maximum shareholding for foreigners?100%100%100%100%
Minimum number of directors/managers?1111
Minimum / recommended statutory paid up share capital?US$1US$1US$1US$1
Shelf companies available?YesYesNoNo
Time to incorporate a new entity?7 weeks3 weeks8 weeks6 weeks
Must sign an office lease agreement during incorporation?NoNoYesNo
Can easily convert to a PLC?YesYesNoNo
Public register of shareholders and directors?YesYesYesYes
Can have preference shareholders/partners?YesYesNoNo
Business ConsiderationsTax resident LLCFast business setup solutionRepresentative officeTrust
Can secure residence visa for business owner?YesYesYesYes
Good entity for trademark registration?YesYesNoNo
Can secure an import and export license?YesYesNoNo

Sponsorship by a local citizen required?No
Our Client needs to travel to Zimbabwe for business set up?No
Temporary physical office solutions available?Yes
You need a local resident as bank signatory?No
Can be wholly foreign owned?Yes
The entity will likely be regulated by?DCIP
Shareholders & directors documents to be attested\translated?Yes
Each foreign director needs a personal income tax number?Yes
Foreign non resident director needs a residence visa?No
Maximum number of staff allowed?No maximum number for any entity
Expatriate to local staff ratio?None
Other useful information
What will be included in my customer sales invoice?Click link
This country has signed free trade agreements?Yes
This country is a member of WIPO/TRIPS?Yes
This country is a member of the ICSID?Yes
Average custom duties suffered?5.43%
Government foreign investment approval required?Yes
Average monthly office rental? (US$ per sq m)US$9
Minimum statutory monthly salary?US$100
Average monthly US$ salary for local skilled employees?US$350
US$ deposit interest rate? (1 year average)121.5%
Overseas remittance currency controls?None
Banking considerations
Multi-currency bank accounts available?Yes
Corporate visa debit cards available?Yes
Quality of e-banking platform?Average
Crowd funding available in this country?Yes
Group HQ tax incentives?No
Security deposit to be kept with Government?No
Can secure trade finance?Yes
Government grants available?Yes
Government approval required for foreign owners?No

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Zimbabwe company registration

    Register business in Zimbabwe

    1. Zimbabwe is one of the world’s poorest countries, suffering from monetary and political instability and high corruption. However, uncharacteristically high growth rates over the past few years have made Zimbabwe a more popular option for high-risk investors. Due to heavy government restrictions on foreign investment in most industries, a properly structured Zimbabwe company is a necessity for Zimbabwe to be a viable investment choice for entrepreneurs;
    2. Zimbabwe has been a member of the World Trade Organization since 1995 and thus, enjoys all of the benefits that membership provides;
    3. Zimbabwe is gifted with plentiful resources in both the mining and agricultural industries, with diamond and gold deposits being particularly large;
    4. Zimbabwe has seen growth rates from 4.2% to 4.5% in the past two years. While this is significantly higher than rates over the past decade, the economy seems set to continue showing similar growth rates, at least in the short term;
    5. A Zimbabwe Limited Liability Company (LLC) requires only 1 shareholder and 1 director;
    6. Zimbabwe company formation is inexpensive and does not have a minimum share value;
    7. It is easy to open global corporate bank accounts to support Zimbabwe business registration. Healy Consultants works with internationally recognized banks to provide corporate bank account services;
    8. Zimbabwe is developing new Export Processing Zones (EPZs). Benefits for companies incorporated in these zones will include i) a five-year tax holiday, ii) duty-free importation of raw materials and capital equipment for use in the EPZ, and iii) no tax liability from capital gains arising from the sale of property forming part of the investment in EPZs;
    9. English is one of the official language of Zimbabwe and is spoken by 41% of the population, mostly from business and administration environment. Therefore, foreign investors will be able to communicate with employees, customers and suppliers with not much trouble.

    Disadvantages of Zimbabwe company registration

    1. The government of Zimbabwe has implemented restrictions on foreign ownership of Zimbabwe companies. Although some industries still allow 100% foreign-ownership, several lucrative industries, such as the mining industry, restrict foreigners to a minority-ownership;
    2. The economy of Zimbabwe is relatively fragile. In 2009, Zimbabwe was forced to abandon its own currency due to constant hyperinflation;
    3. Zimbabwe company setup is complex and time consuming, requiring an average of 90 days to complete;
    4. Zimbabwe is negatively ranked 150/169 in terms of corruption, according to the 2015 Transparency International Index, a global measure of corruption amongst public officials and politicians;
    5. A Zimbabwe LLC is liable for a corporate tax rate of 25%, and may be liable for a VAT rate of 15% as well;
    6. Zimbabwe was negatively ranked as the 175th freest economy over 178 economies in the Heritage Foundation’s 2015 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial investment and labor markets. A complete lack of monetary stability and having one of the world’s worst financial sectors were listed as the main reasons behind the poor rank;
    7. Zimbabwe is negatively ranked as the 125th most competitive economy over 150 economies in the world in the World Competitiveness Report 2016;
    8. Zimbabwe is negatively ranked as the 155th easiest country to do business in, over 189 countries according to the 2016 Doing Business Survey. The World Bank lists dealing with construction permits and resolving insolvency as the main barriers to business.
  • Best uses for a Zimbabwean company

    Best uses for a Zimbabwean company

    1. Zimbabwe is a great place to form a company in the agricultural and mining industries.

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Company registration

  • Time to incorporate: Two weeks
  • Cost to set up: US$17,600
  • Minimum capital: US$0
  • Physical office required: Yes

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: Yes

Key facts

  • Corporate tax rate: 25%
  • Corporate tax base: Worldwide
  • Shelf companies: Unavailable
  • Main company type: Limited company

Contact us

For additional information on our business registration services in Zimbabwe, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Zhang Yi, directly:
client relationship officer - Zhang Yi