Private Limited Companies (PLCs) make up the majority of newly registered companies in Zimbabwe. Due to their limited financial liability and ability to distribute profits among the corporation’s shareholders, private limited companies are incredibly popular. Only up to the value of the shares they own in the corporation are the shareholders liable for debts incurred by the corporation. Therefore, should the registered industry experience financial difficulties, its assets will be safeguarded.
Steps for registering a company in Zimbabwe
The following are the guidelines:
Pick a company name before registering
When registering a business in Zimbabwe, several regulations must be followed. The most crucial factor is that it doesn’t sound similar to any of the names of businesses that are already registered in Zimbabwe. Every name must receive the registrar of companies approval. This is the main justification for submitting four to five names for registration and reservations, just in case, your top choice is turned down. On the other hand, the Companies Act [Chapter 24:03] serves as the registrar’s guide. You must comprehend the grounds for the registrar of companies’ rejection of a company name for registration by the act. Before the change, names were previously submitted for name search by submitting a PBC form or PLC form depending on the type of company being registered. The most common method for submitting names today is online or through your company registration agent.
You can proceed with the other steps after a name search has been completed and the name has been approved.
Select a corporate structure
The best option for company registration in Zimbabwe may seem obvious: A Private Limited Company (PLC). However, it might not be your best choice. Most people only consider it in passing without giving it much thought. The most successful businesses are registered as Private Limited Companies, which influences their decisions and may be the reason why it is the most common industry structure.
Appoint a company secretary and directors
When a company is registered in Zimbabwe, it must appoint a director and a company secretary. The secretary and at least one of the directors must both be citizens of Zimbabwe. It should have at least two directors, but only one secretary is appointed by a company. There are some situations in which someone may be ineligible to serve as a secretary of a company and a director of a corporation at the same time. A private limited company and a private business corporation have entirely different legal documents. However, the data required is typically the same.
The following details will be included in the papers:
- The name of the company.
- The physical address.
- Its postal address, directors’ and shareholders’ information, and main lines of business.
Sign the paperwork, then submit it
The documents are signed by all of the shareholders and directors of the corporation before you submit them. Additionally, there are instructions on where and how to mark the registration papers, and the registrar is clear on these matters. The registrar typically rejects documents because of problems with the signature.
Create company policies and procedures documents
When a company is registered in Zimbabwe, some documents are prepared. Simply put, it depends on the business structure you’ve selected.
Various tasks
Before you can begin business operations, you may need additional services after registering your company with the registrar’s office. You might also need to comply with some legal requirements. For instance, you need a bank advice note from ZIMRA to open a bank account. You might require secretarial services, such as board minutes that list the bank to open an account with or the signatories, among other things.
These are some additional tasks you might have to complete:
- Establish a bank account.
- Registrations with ZIMRA, such as income tax, VAT, and PAYE.
- Registrations required by law, such as NSSA, NEC, and PRAZ Registrations
Take away
In conclusion, registering a company in Zimbabwe is a difficult task for many people and organizations. The registrar’s office has been backlogged for months or even years. bureaucracy, ongoing system failures that have become the norm, and complete inefficiencies. As a result, to help those who want to register companies, the government collaborates with executive organizations like the Zimbabwe Companies Registry to address some of these issues.
