Doing Business in Zambia
There are several resources available to you that provide information on how to invest in or do business with Zambia. It is my hope that the information provided here will provide you with a strong foundation as you embark on your money making venture.
As with any market, there are some key areas that one needs to explore. I have attempted to provide access to those sites where you can get the required information.
Citizens Economic Empowerment Commission (http://www.ceec.org.zm/)
Citizens Economic Empowerment Commission is a body corporate established by the government of the republic of Zambia to promote the economic empowerment of its citizens. Loan Application available at http://www.ceec.org.zm/
Zambia Association of Chambers of Commerce and Industry (ZACCI) (http://www.zambiachambers.org/)
ZACCI is one of the leading private sector organization and the umbrella organization for the private sector in Zambia. Our chamber is an independent organization serving and promoting the commercial and industrial interests of our members. source: ZACCI
The Zambian International Trade and Investment Center (ZITIC)
The Zambian International Trade and Investment Centre (ZITIC) is a private Business Consulting firm, whose main objective is to provide efficient and cost effective services to investors and trading organizations.
How to set up a company
1. Check for name availability with the Patents and Companies Registration Office (PACRO) – http://www.pacra.org.zm/
2. Open a bank account
3. Register your company with the Patents and Companies Registration Office (PACRO) – http://www.pacra.org.zm/
4. Register your company with the Zambia Revenue Authority (ZRA) – http://www.zra.org.zm/
5. File VAT registration form with ZRA to obtain a VAT tax number
6. Register with National Pension Scheme Authority for Social Security – http://www.napsa.co.zm/
Getting Started in Business
|source: Zambia Revenue Authority (http:www.zra.org.zm/) Introduction
The aim of this leaflet is to explain registration procedures for TPIN, VAT, Income Tax and PAYE.TPIN Registration
TPIN (Taxpayer Identification Number) is a unique 13-digit number given to each taxpayer. The TPIN is a pre-requisite to all procedures of tax registration under VAT, direct Taxes and Customs & Excise Divisions. The TPIN was introduced because Zambia Revenue Authority is working towards integrating the operations of the three Divisions (Customs & Excise, Direct Taxes and Value Added Tax) in order to simplify the tax administration and to consequently reduce on the administration costs.What is a TPIN?
Taxpayer Identification number is a unique thirteen-digit computer generated number allocated to a taxpayer under any of the following types of business:
• Limited company
• Sole trader/proprietor
• OtherWhen this number is generated, it is presented for collection as a certificate.Who registers for TPIN?
• Companies or Partnership Businesses
• Non-Governmental Organizations, Clubs, Associations, Missionary bodies & other similar organizations registered with Registrar of Societies
• EntitiesGovernment ministries/institutions, including foreign Governments and agencies/missions How to apply for TPIN RegistrationApplication form TPIN 1 which can be obtained from the ZRA Advice Centre in Lusaka or any local ZRA office, has to be completed and submitted to the same office, accompanied by copies of the following documents:
Limited company under the companies Act
• Certificate of incorporation
• Certificate of share capital
• Articles of Association
Foreign company registration under the Companies Act
Partnership Firm registered under the Business Names Act
Firm registered under the Co-operative Societies Act
NGO, Club, Association, Ministry body, etc
GRZ Ministry/institution, foreign Government and agency
Completion of a TPIN Application Form
This can also be used by individual applicable who is registered with the registrar of business name to indicate the business name assigned to him. This should be supported by a business registration certificate copy.
Fields 14 to 17.
Fields 19 to 22.
Income Tax Registration.
Those Taxpayers whose turnover is above K200, 000,000 will register for normal Income Tax. This is applicable to individuals and Limited Companies.
Partnerships and Consultancy businesses do not fall under Turnover Tax regardless of their turnover being below K200, 000,000.
Partnerships will register for Income Tax to facilitate for the receipt of Partnership annual returns on ITAS at the end of the charge year. Partners will register for Income Tax separately as they will be taxed according to their profit sharing ratios.
It is extremely important for every person who registers for TPIN to register for Income Tax because the Income Tax account number is the one they shall be using to remit income tax.
Submission of Tax Returns
Businesses are required by law to apply for VAT registration if they deal in taxable goods and services and their taxable turnover exceeds registration threshold of K200 million per annum.
Applications for VAT is made using VAT 1 form. Copies of your certificate of incorporation or registration must be attached to the application form and also the form 42 (Directors details) from Registrar of companies. The following requirements must also be attached to the application form:
• Taxpayer Identification number
Businesses may also register for VAT on voluntary basis provided they fulfill the conditions set out in Gazette notice No.80 of 2007.
Procedure for VAT registration
Effective Date of registration (EDR)
VAT Returns and payments
Late Return Penalty
Late Registration Penalty
Zambia Development Agency
The Zambia Development Agency is geared towards building Zambia’s economy by supporting businesses and enterprises at all levels. From our strong understanding of the challenges faced by small businesses and entrepreneurs to our ability to support large-scale corporate investments in the mining sector, Zambia Development Agency is opening doors to Zambian business. With it’s central location in sub-Saharan Africa, while landlocked, Zambia can act as a regional hub and a powerhouse of agricultural and mineral production.
Zambia Development Agency understands the complex issues surrounding investment. On the one hand, investors need to see clear opportunities with appropriate returns; on the other hand, the local economy needs to directly benefit from the investments made. ZDA work to make opportunities available – for investors keen to make a small investment in a growing or developing business, or for those looking to create joint ventures or strategic partnerships, or, at the other end of the scale, working closely with those intending to set up large manufacturing, agribusiness or mineral plants.
The import and export of goods to and from Zambia has always been of critical importance to the country.
Zambia’s main major exportable commodities include: copper, cobalt, electricity and tobacco, with her main exports heading to the UK, Switzerland, Tanzania, Zimbabwe and South Africa. There are also many important importable commodities for the country, including petroleum products, electricity, fertilizer, and machines and transportation equipment. Zambia’s most important imports partners are the UK, the UAE and South Africa.
The Micro and Small Enterprise (MSE) Division of the Zambia Development Agency is responsible for the operationalising of government policy on the sector through various focused programmes on MSME development. The ZDA, Micro and Small Enterprise (MSE) Division is specifically mandated to establish strategic partnerships with various MSME Development Organisations and build the capacity of these organisations to effectively deliver services to MSMEs. The Division is also responsible for developing, coordinating and monitoring and documenting all MSME development interventions.
Zambia Revenue Authority (ZRA)
source: Zambia Revenue Authority (http:www.zra.org.zm/)
Zambia Revenue Authority was formed on 1st April 1994 as a corporate body, under the Zambia Revenue Authority Act No. 23 of 1993. The Authority is charged with the responsibility of collecting revenue on behalf of the Government.
The Authority was created to redress the serious shortfall in revenues available to the Government and the increasing dependency on donor funding to support basic necessities.
Zambia Revenue Authority is committed to maintaining the key principles of efficiency in taxation, maintaining equity through a broadened tax base and simplicity of tax administration and compliance processes.
How we achieve our mandate
Zambia Revenue Authority achieves its mandate by promoting Voluntary tax compliance, trade, border legislation and regulations through communication, quality service and enforcement. ZRA also provides efficient tax registration, efficient methods of tax refunds and
The Bank of Zambia
Functions of the Bank of Zambia
- To ensure appropriate monetary policy formulation and implementation
- To act as the fiscal agent of the Government
- To license, regulate and supervise banks and financial service institutions registered under the Act to ensure a safe and sound financial system
- To manage the banking, currency and payment systems operations of the Bank of Zambia to ensure the provision of efficient and effective service to commercial banks, Government and other users.
source: Bank of Zambia
The Lusaka Stock Exchange (http://www.luse.co.zm/)
The Lusaka Stock Exchange (LuSE) was established with preparatory technical assistance from the International Finance Corporation (IFC) and the World Bank in 1993. The Exchange opened on 21st February 1994. In it’s first two years of operation the LuSE and Securities and Exchange Commission (SEC) are funded by the UNDP and Government of Zambia as a project on financial and capital market development in Zambia under the multi component private sector development programme. The LuSE is made up of stock broking corporate members and is incorporated as a non – profit limited Liability Company.