Company registration in Zambia

Company registration in Zambia
Zambia

Zambia is an independent state located in Southern Africa. It borders on DR Congo, Botswana, Namibia and other African countries.

If you are planning to register a company in Zambia and open an account with Zambian bank, please note that:

  • The capital of the state is Lusaka;
  • The currency is Zambian Kwacha (ZMK);
  • Zambia is a member of the World Trade Organization and enjoys all the benefits of membership;
  • English is one of the official languages, but it is spoken by about 1.7% of local residents.

Setting up a company in Zambia for international trade can be a profitable solution according to the following:

  • Two directors and shareholders are required (of any nationality);
  • There are no requirements for a minimum paid share capital for those, who want to register a LLC in Zambia;
  • There are tax holidays and exemptions, including import duty exemptions for most locally produced products in Zambia;
  • Due to its underdeveloped economy, Zambia also enjoys preferential treatment from the European Union, the United States of America, Japan and other developed economies.

For more information, you can request for qualified advice on a company registration process in Zambia and on opening a corporate bank account in Zambia.

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Popular business lines

If you are interested in opening a business in Zambia, then we recommend you considering the following options:

  • Setting up an agriculture company in Zambia. 85% of the population is engaged in agriculture sector. The cultivation of coffee, corn, sunflower, sorghum, peanuts, rice, tobacco, vegetables, cotton, sugarcane, tapioca, as well as breeding cattle, goats, pigs, poultry brings in 19% of GDP;
  • Registering an export company in Zambia. Non-residents exporting Zambian products can enjoy the reimbursement of VAT;
  • Opening a travel company in Zambia;
  • Registering a Zambian mining company. Zambia has the eighth largest copper reserve in the world. This industry makes a significant contribution to the development of the economy, which, according to forecasts of the IMF, will grow by 2020 at an annual rate of 6.5% -7%. Also, the country is rich in cobalt, zinc, lead, coal, emeralds, gold, silver and uranium;
  • Setting up a Zambian energy company.

Tax system

If you decide to open a company in Zambia remotely and open an account for a Zambian company, then you will be able to take advantage from:

  • 10% reduction in corporate tax for companies engaged in agriculture and agro-processing;
  • Up to 5 years of tax benefits for companies operating in priority sectors, including tourism and manufacturing;
  • Income tax exemption for dividends paid by mining companies and 5-year exemption for dividends paid by farmers;
  • Companies that have fulfilled the requirements of the Zambia Development Agency do not pay taxes for the first 5 years, and tax rates are reduced over the next 5 years;
  • Tax loss carryforward period can be extended up to 10 years for companies engaged in mining and energy sectors.

Those, who are intended to set up a Zambian company, should take into account that the maximum corporate and personal tax rate in Zambia reaches 35%. It is higher than in most African countries. The VAT rate is 16%.

In addition, Zambia has introduced income tax for the dividend payments to non-resident companies and individuals.

To learn more, please ask for personal advice on business organization process in Zambia and selection of the most appropriate legal form from YB Case experts.

Registration requirements

In order to register a company in Zambia remotely, you should know the following:

  • The share capital is 1000 USD;
  • A physical office is required;
  • 2 shareholders and 2 directors.
  • Terms of registration are 4 weeks (with qualified support services of YB Case specialists);
  • Although 100% foreign ownership is permitted, at least 2 directors must have a permanent residence in Zambia.

The most common legal form is LLC.

How to set up your own business in Zambia

The Central Bank of Zambia prohibits enterprises from quoting their products in foreign currency. All local transactions must be indicated in local currency (ZMK or Zambian Kwacha).

You can open a Zambian bank corporate account remotely. Please, contact our specialists, and receive individual advice on a company registration procedure and account opening in Zambia.

Also, YB Case specialists can provide you with assistance in registering a physical office in Zambian.

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