DOING BUSINESS IN ZAMBIA IN 2023
Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Zambia. Our services include i) Zambia company incorporation ii) government license registration iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
| Compare different Zambia entities | LLC | Multi-Facility Economic Zone company | Agri-business company | Tourism company | Mining company | Representative office |
|---|---|---|---|---|---|---|
| Also known as | Private company limited by shares | MFEZ company | Agri Ltd | Touris Ltd | Mining Ltd | RO |
| Best use of company? | All products and services | Manufacturing and trading activities | Agricultural and related activities | Eco-tourism, cultural-tourism and related activities | Mining, production and related activities | Marketing and research |
| How soon can you invoice Clients/sign sales contracts? | 3 weeks | 5 weeks | 3 weeks | 3 weeks | 5 weeks | Cannot invoice |
| How soon can you hire staff? | 3 weeks | 5 weeks | 3 weeks | 3 weeks | 5 weeks | 5 weeks |
| How soon can you sign a lease agreement? | 1 week | 1 week | 1 week | 1 week | 1 week | 1 week |
| How long to supply corporate bank account numbers? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| How long to supply company registration / tax numbers? | 3 weeks | 5 weeks | 3 weeks | 3 weeks | 5 weeks | 5 weeks |
| Corporate tax rate on annual net profits? | 30% | 0% for 1st 5-years, 30% thereafter | 10% | 30% | 30% | No income |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes | No |
| Government grants/incentives available? | Yes | Yes | Yes | Yes | Yes | Yes |
| Government approval required for foreign owners? | No | No | No | No | No | No |
| Resident director/partner/manager/ legal representative required? | Yes | Yes | Yes | Yes | Yes | Yes |
| Minimum paid up share capital? | US$1,000 | US$1,000 | US$1,000 | US$1,000 | US$1,000 | US$1 |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | Yes | Yes |
| Corporate bank account location? | Barclays Bank of Zambia | Citibank | Standard Chartered | Stanbic Bank | Access Bank | Ecobank Zambia Limited |
| Can secure trade finance? | Yes | Yes | Yes | Yes | Yes | Yes |
| VAT payable on sales to local customers? | 16% | 16% | 16% | 0% on equipment & machinery, 16% otherwise | 16% | No sales |
| Average total business set up engagement costs? | US$18,065 | Request a proposal | Request a proposal | Request a proposal | Request a proposal | US$17,950 |
| Average total engagement period? | 2 months | 3 months | 2 months | 2 months | 3 months | 3 months |
Zambia business setup summary
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Advantages of Zambia company registration
- Setting up a company in Zambia to trade globally can be straight forward for foreign nationals because:
- It only requires two individuals of any nationality who can be both shareholders and directors to register the company;
- The government imposes a low minimum share capital requirement of ZMW15,000 (Approx. US$1,000) to establish a private company limited by shares (LLC) in Zambia;
- Healy Consultants Group incorporation team can complete the company incorporation process from A to Z on behalf of our Client without the directors or shareholders traveling to Zambia to sign forms;
- Thanks to Healy Consultants, opening a global corporate bank account to support business registration in Zambia is easy. Healy Consultants Group works with internationally recognized banks to provide corporate bank account services;
- Healy Consultants can complete our Client’s Zambia company incorporation within 4 weeks following receipt of required due diligence documents.
- Our Clients investing over US$500,0000 in Priority Sectors or Economic Zones or Rural area will benefit from:
- A 5year exemption on import duty rate on capital equipment, plant and machinery imported to the country for investment;
- Protection against state nationalization of private investments and guarantees on foreign owned investments;
- Accelerated free facilitation on immigration permit applications for investors and employees. Easy approval of additional licenses and ease of acquisition of land;
- Zambia has the 8th largest copper reserves in the world. Our Clients looking to venture into this lucrative industry will find Zambia a prime location in Africa for copper mining and export or provision of services to players in this industry;
- Non-resident entities engaged in the exportation of Zambian products will be refunded the Zambian VAT charged on such exports.
- Our Clients investing in certain sectors of Zambian economy, will enjoy various Government incentives including:
- Reduced corporate income tax rate of 10% for companies engaged in farming and agro-processing activities;
- Up to 5 years tax break for companies operating in priority sectors including tourism and manufacturing;
- Exemption from withholding tax for payment of dividends paid by mining companies and a 5-year exemption for dividend paid by farming companies;
- Companies meeting selected requirements by the Zambia Development Agency pay no taxes for the first 5 years and reduced tax rates for the following five years;
- Up to 10 years extension of carry forward of tax losses for companies in the mining and energy sectors.
- Setting up a company in Zambia to trade globally can be straight forward for foreign nationals because:
Disadvantages of Zambia company registration
- Our Clients registering a company in Zambia will experience certain difficulties because;
- Although 100% foreign ownership is allowed, Zambian companies are required to appoint at least 50% of its directors to be ordinarily resident in the country;
- Zambian is a landlocked country far from seaports and companies engaged in import and export will be at a disadvantage;
- The countries neighbouring Zambia including the war-torn Congo DR and unstable Zimbabwe also pose a threat to stability in the country;
- The rule of law is not uniformly applied across the country and the judicial system is heavily influenced politically thereby breeding widespread corruption in the public and private sectors;
- High taxation and other disadvantages to setting up in Zambia include;
- The top corporate and personal tax rates in Zambia reaches 30%, higher than most countries in Africa;
- Additionally, Zambia imposed withholding tax to dividend payments to non-resident companies and individuals;
- The Central Bank of Zambia forbids businesses to quote their products in foreign currencies. All local transactions are to be quoted in the local currency (the ZMK or Zambian Kwacha).
- Our Clients registering a company in Zambia will experience certain difficulties because;
Best uses of a Zambia company
- International investors looking to invest in major industrial manufacturing, housing construction, energy sector, copper mining and infrastructure development will find Zambia an optimum jurisdiction to establish a presence due to lack of investments in these sectors;
