The Republic of Malawi, originally known as Nyasaland, is a landlocked country in Southeast Africa. It is bordered on the west by Zambia, on the north and northeast by Tanzania, and on the east, south, and southwest by Mozambique. Lilongwe is Malawi’s capital and largest city. Because of its people’s kindness, the country is known as “The Warm Heart of Africa.” People can register a private or public company under the Malawi Companies Act. A minimum of two people must be associated for any lawful purpose to create a private business in Malawi; the association of two or more people can be intellectual property or capital sharing. A public business, on the other hand, requires a minimum of seven members to register.
Registration process
The process of registration entails the following:
Making a corporate name reservation
The company name must be distinctive. The registrar general’s office in Malawi conducts corporate searches to see if the name you choose is available for registration.
Registering for income tax
The memorandum and articles of association, the certificate of incorporation (copy), and an application letter or completed online application for registration, including the accounting date, the name of a public officer, and the nature of the business, must all be filed with the Malawi Revenue Authority. After that, the Malawi government grants a taxpayer identification number.
Obtaining a business seal
It can take up to a week to make a seal. The price is determined by the length of the company’s name and the size of the seal. The procedure usually takes three days.
Requesting a permit from the City Assembly
Wholesalers must apply for a wholesaler’s license, whereas retailers must apply for a retailer’s license, according to the Business Licensing Act. Fees, procedures, and licensing requirements for industrial activities are determined by the manufactured goods. The corresponding ministry is in charge of issuing licenses. If the authorities do not react within 7 days after the application date, the business is considered fully licensed. The Department of Planning examines whether the location and usage of the property comply with city regulations. It costs 400 MWK.
Paying the required amount and getting your license
The license is issued a few days after approval and mailed to the investor. The amount due is determined by the type of business and its location in the city. It takes one day and costs between MWK 20,000 and MWK 120,000.
Applying for a workplace registration
Applicants must submit Form Lab/W/1 (workplace registration application) to the Ministry of Labor’s Occupational Safety, Health, and Welfare Department. The entire procedure takes 28 days. The workplace registration fee schedule; MWK 1,000 for less than 20 workers; MWK 3,000 for 21-50 employees; MWK 5,000 for 51-200 employees; MWK 10,000 for 201-500 employees; MWK 15,000 for more than 500 employees.
Inspection by the Occupational Safety, Health, and Welfare Department
Officers from the Occupational Safety, Health, and Welfare Department inspect the premises when a company makes an application for workplace registration. They issue the Company a Certificate of Registration if they are satisfied with the conditions. Otherwise, they will advise the organization on how to enhance working conditions by implementing particular steps.
Registering for PAYE and fringe benefits tax by mail
Form P1 (PAYE) and Form FBT1 must be filed by promoters (fringe benefit tax). Applicants who register for pay-as-you-earn (PAYE) tax receive the following forms: WTF1 (withholding tax certificate); WTF2 (summary of withholding tax); P9 (PAYE certificate of total emoluments and tax deducted); P10 (advice of employees tax deduction certificates issued); P12 (PAYE monthly deduction payment form); and P16 (PAYE monthly deduction payment form) (reconciliation of the number of tax deduction certificates and schedule of tax deductions to be sent to the Inspector of Taxes). All forms can be gotten at the Malawi Revenue Authority.
