Your Guide to Zambia Company Registration

The Republic of Zambia is powering on to realise its vision of becoming a prosperous middle-income country by 2030. Economic activity remains positive, with a substantial trade surplus and a 3.8% growth projection in its 2024 gross domestic product (GDP). Foreign direct investments (FDIs) also appear to be sustainably driving this South African nation’s economic growth and business ecosystem. Here’s a guide for entrepreneurs who are eager to know more about Zambia company registration

Types of Business Entities in Zambia

Investors and entrepreneurs can choose from several types of business entities in Zambia. These include the following:

Sole Proprietorship
Partnership
Limited Liability Company (LLC), which includes Unlimited Liability and Limited by Guarantee Companies
Public Limited Company (PLC)
Foreign Company, which is similar to a Branch Office

Limited companies are the go-to choice for most entrepreneurs as they offer their shareholders limited liability protection. Both an LLC and a PLC require two shareholders and two directors.

Company Registration Process in Zambia

The registration or incorporation process varies according to the type of business entity. For example, a sole proprietorship and partnership do not require incorporation. A simple registration of the business name usually suffices.

Incorporating a private or public limited company is more complex and begins with a company name search. Business registration occurs with the Patent and Companies Registration Agency (PACRA). Entrepreneurs may also have to submit several declarations and application documents. These include

Companies Form 3 Application for Incorporation of Company
Companies Form 5 Declaration of Consent to Act as Director or Secretary
Companies Form 11 Declaration of Compliance signed by a Commissioner of Oaths
Companies Form 46 Registration of a Foreign Company

The Zambia company registration falls under the purview of the Registrar of Companies. Upon successful registration or incorporation, the Registrar will issue one of the following, depending on the business structure:

Certificate of Registration: for business registration
Certificate of Incorporation: for locally incorporated companies
Certificate of Compliance: for foreign companies

Upon receipt of the relevant certificate, owners can register for taxes (including value-added tax or VAT) and social security. You must also pay the business levy, open a bank account, and apply for the relevant licences.

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