Business entities in Zimbabwe

Healy Consultants will assist our Clients with incorporating the best corporate structure befitting their business needs. The most common entity being the LLC or a PLC. Alternatively, foreign companies can also incorporate a Branch Office or a Representative Office.

The Zimbabwe limited liability company

• The Zimbabwe LLC is commonly used by entrepreneurs to setup an SME. An LLC must appoint at least one director and shareholder who can be of any nationality. The minimum paid-up share capital is not distinctively mentioned in the Zimbabwe companies act thus the investors have the liberty to decide the limit of their company share capital to complete the incorporation process;
• This business entity is generally not required by law to file annual audit reports with the Registrar of Companies.

The Zimbabwe publicly limited company

• This business entity is recommended when the investors intend to publicly list the company on the Zimbabwe Stock Exchange and offer shares to the general public. Such a company has no limits on the required share capital for incorporation. A registration fee is of US$5 is charged for every US$100 of the company’s share capital, with a minimum fee of US$100. Furthermore, at least 2 shareholder and 1 director must be appointed;
• PLCs are required to file annual financial reports and must designate a statutory auditor for that purpose.

The Zimbabwe branch

Companies that are not domiciled in Zimbabwe are allowed to establish businesses within Zimbabwe by opening a branch and carrying out their business as a branch of the foreign company. The scope of operations for this entity will be defined by the parent company. Also, the branch office will have an independent management team and corporate bank account based in Zimbabwe.

The Zimbabwe representative office

While the Zimbabwe representative office can be 100% foreign owned, it is not allowed to make direct sales with Zimbabwe for profit. Consequently, this entity can only engage in i) market research and ii) promoting the business of the parent company.

Table of comparison between Zimbabwe business entities