Malawi is located in South-East Africa, and it’s one of the largest freshwater bodies in the world. The country is highly ranked by the World Bank by the Doing Business Index. The business terrain is good, and Malawi is one of the most peaceful countries in the world. There are several investment openings in tourism, fishing, manufacturing, mining,agro-processing, etc.
The business structures available in Malawi
There are three types of realities that can be registered at the office of the Registrar General in Malawi:
- Sole traders, which when registered is renewable every 3 years.
- Partnerships, when registered are renewable every 3 years.
- Limited liability companies.
The sole trader enrollment with the authorities in Malawi
The sole trader enrollment in Malawi is rather easy for both regional citizens and nonnatives it only takes less procedure. Before the operation, you should come up with three names for your business, which you’ll write on the form. However, the authorities will register the alternate, If one name is formerly taken or invalid. Make a duplicate of your ID card or passport, as it’s needed for submission. Submitting the operation form can be done online or in-person at the office. For online enrollment, a person goes to the Registrar General’s website. You’ll find the option to register online, and it’ll take you to the Malawi Business Registration System (MBRS). In-person enrollment Submit the operation form to the Department of Registrar General office. You can download the operation form then, or you can get one in the office. There are three services in Malawi Lilongwe, Blantyre, and Mzuzu. The enrollment figure costs MK2,000. Your registration document should be ready in 3-10 days.
Partnership business structure
A partnership is a business relationship in which two or further individuals contribute funds, expertise, and other assets and share in the profits and losses in agreement with the terms of the partnership agreement. Partnerships may be incorporated or unincorporated. A partnership earns different types of income including interest, dividends, settlements, and capital earnings. Income duty is charged and paid for each year of assessment on the income entered by, accrued to any existent from a source within, or supposed to be within Malawi. Duty is charged and paid on the existent’s total taxable income. Individuals are taxed using progressive duty rates and as far as the current periodic income rates are concerned, the first K540,000 is taxed at 0 percent, the upcoming K60,000 is taxed at 15 percent and the excess is taxed at 30 percent. Section 74 of the Taxation Act stipulates that person carrying on any trade-in partnership shall make a joint return in respect of their trade and each partner shall be independently and collectively liable for the picture of the joint return.
Limited liability companies in Malawi
Business Objectification applies to limited liability companies which are registered and administered under the Companies Act (Cap 4603). There are four types of limited liability companies that are can be registered in Malawi such as:
- private limited liability companies,
- public limited liability companies,
- companies limited by guarantee and,
- state owned companies (SOCs).
Company objectification is also registered through MITC’s One-Stop Service Centre (especially Foreign Direct Investment)in Malawi where a Companies Specialist (attached from the Department of Registrar General) sits.
Environmental impact evaluation
The Ministry of Natural Resources, Energy, and Mining’s Department of Environmental Affairs (DEA) issued an Environment Impact Assessment Certificate, which an investor should receive. Environmental performance must be regularly monitored by people and investments whose actions have a negative impact on the environment. The EIA guidelines are accessible to help government organizations, project developers, consultants, and funders in many industries comply with investors’ compliance with Malawi’s EIA regulations. For anyone looking to establish a project in one of these industries: mining, irrigation, drainage, sanitation, or waste management, the guidelines offer extensive advice.
