Do you want to register a company in Zimbabwe? Or maybe you want to help someone register. Or maybe you just want to know how to register a company in Zimbabwe.
For whatever reason you might have come up with, it is however important to understand how to register a company in Zimbabwe before fully committing to it.
The environment is not perfect for someone willing to go it alone, but it is doable. Maybe with a little help from experts. That is why we have come up with this guide.
In this guide, we help you know how to register a company in Zimbabwe.
1. Choose A Company Name To Register
There are a number of rules governing what can be chosen as a company name when one is registering a company in Zimbabwe. The most important is that its not similar to any of the names of an already registered company in Zimbabwe.
Every name is subject to approval by the registrar of companies. This is the main reason it is important that you submit four to five names for registration and reservation in case the one you favored the most is rejected.
On the other hand, the registrar is guided by the Companies Act [Chapter 24 : 03]. Therefore, it is important for you to understand reasons why a company name can be rejected by the registrar of companies for registration as laid out by the act.
Names used to be submitted for name search by submitting a PBC form or PLC form depending on the type of company being registered but it has since changed. Names are now being submitted online or through the most popular way, that is, through your company registration agent.
Once a name search is done and if the name is approved, you can go ahead with the other steps.
2. Choose A Company Structure
It might seem obvious that a Private Limited Company (PLC) is the best option for company registration in Zimbabwe. But it might not be the best option for you.
Most people loosely consider it without putting much thought into it. The reason might be maybe because it is the most popular company structure and the most successful companies are registered as Private Limited Companies and it influences their choices.
There is however another company structure;
The Zimbabwean law requires you to register a company either as a Private Business Corporation (PBC) or as a Private Limited Company (PLC). Both have their advantages and it is important to fully understand their differences so that you can make a more informed decision on a company structure to register.
However, most people do not take time to understand the two company structures available for registration and it might cost them in the future.
Furthermore, there isn’t enough information availed to the general public on these topics. Especially regarding the Private Business Corporation (PBC).
3. Appoint Directors And A Company Secretary
It is a requisite to appoint a director and a company secretary when registering a company in Zimbabwe. At least one of the directors should be a Zimbabwean and the company secretary should be a Zimbabwean also.
A company should have at least two directors, however a company only appoint one secretary.
There are reasons why an individual can be disqualified to be a director of a company at the same time one can be disqualified for appointment as a secretary of a company.
4. Prepare Company Papers On How To Run The Company
There are a number of papers that are prepared when registering a company in Zimbabwe. It just depends with the company structure you have chosen.
A Private Business Corporation have different papers to a Private Limited Company altogether. However, the information needed is generally the same.
The following information is what will be on the papers; company name, company physical address, company postal address, company’s directors information, company’s shareholders information and the company’s core business activities.
For a thorough explanation on these, please read our article on requirements to registering a company in Zimbabwe.
4. Sign And Submit The Papers
Before you submit the papers, they are signed by all the company’s shareholders and directors. There are also guidelines on how and where to sign the registration papers and the registrar is specific on these issues.
Most papers that are rejected by the registrar are due to signing issues.
5. Collect Papers
The papers are collected by the registrars office or if one is dealing with a company registration consultant (which is the ideal thing to do), the papers are collected from the consultant’s office.
6. Other Tasks
After company registration with the registrars office, there might be other services you need before you start operating. There might also be some statutory requirements you need to fulfill. For example you cannot open a bank account without a bank advice note from ZIMRA.
Maybe you need secretarial services such as board minutes declaring the bank to open an account with or declaring the signatories.
Here are the other tasks you might need to fulfill:
- Open a bank account.
- Secretarial Services.
- ZIMRA Registrations e.g Income Tax, Vat and or PAYE.
- Statutory Registrations e.g NSSA, NEC, PRAZ Registrations
Conclusively, company registration in Zimbabwe is a daunting task for many individuals and groups alike; months if not years of backlog at the registrars office, continuous system breakdowns which have become a norm, bureaucracy and total inefficiencies.
As a result, to curb some of these problems, the government works with executive agencies such as Zimbabwe Companies Registry to assist individuals who want to register companies.
You may also want to read our article on requirements for company registration in Zimbabwe.
Let us help you register a company in Zimbabwe fast, easily and conveniently. You will not regret working with us.
We hope this article helped you understand the advantages of registering a company. Go ahead with registering a company in Zimbabwe.
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