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This section identifies the bureaucratic and legal hurdles an entrepreneur must overcome to incorporate and register a new firm in Zimbabwe.
The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.
The table below provides a summary of the procedures and the associated completion time and cost for setting up a standardized company. The table is followed by additional country-specific information on business registration requirements.
* Takes place simultaneously with another procedure.
Registration Requirements Details
Procedure 1.
Register the company name with the Chief Registrar of Companies
Time to complete:
7 days
Cost to complete:
USD 5
Name of Agency:
Comment:
The reservation is valid for 30 days and can be extended for another 30 days for an additional fee.
Procedure 2.
File memorandum and articles of association with the Registrar of Companies
Time to complete:
21 days
Cost to complete:
Registration Fee is US$5.00 for every US$100.00 or part thereof of the nominal/ authorised capital of the company with a minimum fee of US$600.00
Name of Agency:
Comment:
The law provides for model or boilerplate articles of incorporation. on the date of incorporation, the Registrar of Companies must be notified of the appointments of the company’s directors and secretaries. This is done by filing the particulars (a) of register of directors and secretaries and any changes therein or a list of directors and principal officers (Form CR 14) These documents must be accompanied by a duplicate original or a printed notarized copy.
In practice, companies usually start up with a low amount of capital to avoid the exorbitant stamp duty. A company may also issue shares at a premium to circumvent the requirement.
Procedure 3.
Register with the tax authorities for income tax, VAT, and PAYE
Time to complete:
21 days
Cost to complete:
no charge
Name of Agency:
Comment:
Upon formation, a company must register at the regional Zimbabwe Revenue Authority Office. A copy of the company’s certificate of incorporation is required for the Collector's records, along with the memorandum and articles of association and a certified copy of the identification of the assigned public officer. The company will be issued a registration number, as well as the current tax tables and the pay-as-you-earn (PAYE) receipt books. The P8 and P6 Forms now must be generated by the applicant itself and are not freely available. The ITF 16 Form must be completed in consultation with the Income Tax Office. According to Zimbabwe’s Finance Act (as amended), companies must now budget to pay all their company tax within the trading year. The tax must be paid as follows: 10% by the 25th of March, 10% by the 25th of June, 40% by the 25th of September, and the balance of the estimated tax for the tax year by the 20th of December.
Firms with a turnover of more than ZWN 120 billion must register for VAT with the Zimbabwe Revenue Authority (ZIMRA). An application must be made on an Application for Certificate of Registration (Form VAT 1), which, along with Forms VAT 2 and VAT 3, is found at ZIMRA Web site (www.zimra.co.zw). Firms with a turnover of less than ZWN 120 billion may apply for voluntary VAT registration.
Procedure 4.
Register with the National Social Security Authority for pension and Accident Prevention and Compensation Scheme
Time to complete:
14 days
Cost to complete:
no charge
Name of Agency:
Comment:
The employer and the employee must each contribute 4% of employee gross monthly salary.
Procedure 5.
Register with the Manpower Development Fund
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
Employers must register with, and contribute 1% of their wage bill to, the state-run Manpower Development Fund. The fund allows employers to recover expenses when employees complete training.
Procedure 6.
Pick up the form of license application notice from the City Health Department
Time to complete:
1 day, simultaneous with procedure 3
Cost to complete:
no charge
Name of Agency:
Comment:
Procedure 7.
Advertise on a local newspaper the application for a trade and business license
Time to complete:
4-6 weeks, simultaneous with procedure 3
Cost to complete:
USD 30
Name of Agency:
Comment:
A trade and business license applicant must publicly announce the proposed application twice in a local newspaper. The form, Notice of intention to apply for the issuance of a new license, is available from the City Health Department. The first notice must be published no more than 6 weeks, but at least 4 weeks, before the application will be heard by the licensing authority. The second notice must appear 7 days after the first notice. Any objections to the application must be submitted in writing to the licensing authority within 7 days of the second notice.
Procedure 8.
Submit an application form for issuance of new licenses to the Licensing Office in Harare Municipality
Time to complete:
30 days
Cost to complete:
UDS 550
Name of Agency:
Comment:
Two copies of the application forms are submitted and proof of both publications in a local newspaper of a notice of intention to operate a business. On receipt of the application, the Licensing Office requests a police report on the applicant, as well as a report on the person who will be in actual and effective control of the premises to which the application relates, that person is not also the applicant. The Licensing Office also seeks a report from the Harare Town Planner to ensure that the application is consistent with the zoned use of the premises.
Application for the license can start once the Registrar of Companies grants its approval of the company name. It is also possible to apply for a temporary license pending the grant of the full license, which can take up to a month or longer.
Procedure 9.
Licensing officers visit the company site
Time to complete:
1 day, simultaneous with previous procedure
Cost to complete:
no charge
Name of Agency:
Comment:
Officers inspect the company site to check if the intended premises are suitable for the intended use. The criteria used by the officers are specified in the relevant bylaws.
Procedure 10.
Obtain the trading license
Time to complete:
1 day
Cost to complete:
no charge
Name of Agency:
Comment:
The Licensing Office submits the application and supporting documents to the Harare Licensing Committee (comprised of City Councilors), which hears any lodged objections and rules on the application. The committee may grant the application conditionally or unconditionally, or it may refuse the application. The committee meets monthly. Under law, decisions must be made within 45 days; in practice, the minimum time is 10 days. Licenses are renewable annually. Licensees are subject to an inspection to ensure compliance with the conditions of the license and payment of the annual fee.
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