Region
Sub-Saharan Africa
Income group
Low income
Most populous city
Lusaka

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Starting a Foreign Business Details
This index evaluates the regulatory regime for business start-up.
QuestionAnswer
* Are your country's laws and regulations regarding the establishment process available online through a website of a public institution (e.g. Parliament, official gazette, etc.)? Y
What is the precise name of limited liability company (LLC) in your country (for example, LLC, private limited company, private limited liability company)in English ? Private Limited Company.
What is the precise name of limited liability company (LLC) in your country (for example, LLC, private limited company, private limited liability company)in your principal official language (if different from English).
Is Limited Liability Company (LLC) the most commonly used legal form for the establishment of foreign-owned companies? Yes
If no, what is the most common form of establishment of foreign companies in your country? N/A
* Does your country have any restrictions related to the composition of the board of directors of foreign owned but locally incorporated companies (nationality, ethnicity, race, gender, etc.)? No
If Yes, what is/are this/these restriction(s)? 50% of the directors of the company must be residents (not nationals) of Zambia save for a special waiver of companies who have executed a Mines Development Agreement.
* Is a foreign-owned company required by law to establish its subsidiary through a local private sector third party (local counsel, notary etc.) or public entity (investment promotion agency)? Not required by law
Comment N/A
** Can a foreign-owned company expedite any of the establishment procedures through an official channel (fast-track procedure)? No
Comment N/A
* Is the investment approval/authorization a mere formality, only requiring submitting a notification to an appropriate authority? N/A
* Does your country give the investor the right to appeal the decision on the approval/authorization? Yes
* Is a minimum of projected annual sales required for an approval/authorization? No
If Yes, what is this minimum (in local currency units, LCU)? N/A
* Is there a limit on the period of validity of a foreign investment approval (separate from any operational licenses/permits that need to be renewed)? Yes
If Yes, what is the approval’s validity period (in years)? 10
Additional Comments
* Do laws and regulations specify a time limit within which authorities must notify the foreign company of the result of its registration? No
If Yes, what is this time limit? N/A
* If Yes, is this limit usually respected? N/A
Do laws and regulations specify that no response from authorities within this time limit can be interpreted as consent and registration complete (that is, silent/deemed approval)? N/A
* Is the company registration documentation downloadable online? Yes
* If Yes, can the investment registration documentation be submitted online? No
* Can the registration process be monitored online? (e.g., check the status of registration, etc.) No
Comment All forms for the registration process are downloadable, however they need to be submitted in person. The registration should be approved within a period of 7 working days.
* Can a foreign-owned company hold a commercial bank account in a foreign currency in your country? Yes
* If Yes, does a foreign-owned company have to seek approval/authorization before opening such an account? No
If Yes, which authority issues such approval/authorization (e.g., Ministry of Finance, Central Bank, etc.)? N/A
* If Yes, how long does it take, on average, to receive such an approval/ authorization? N/A
Comment
* Does your country have a paid-in capital requirement for foreign-owned limited liability companies? Yes
* If Yes, is this requirement a different amount than the one for domestic companies? Yes
Comment In the event of a foreign company incorporating a subsidiary in Zambia, the following paid in capital requirements will apply and a company cannot commence operations unless issued with a certificate ...more of compliance as to minimum share capital: 1. Private Company - K5,000,000 2. Public Company - K50,000,000 3. Bureau de Change - K250,000,000 4. Financial Institution or Insurance Company- K500,000,000 5. Bank - K1,000,000,000 ...less
* Is your country party to the Hague Apostille Convention ? No
* Scored ** Bonus Question
Procedures (number): all procedural steps involved in establishing a wholly foreign-owned subsidiary. Both pre- and post-incorporation procedures that are officially required for a foreign investor to formally operate a business are recorded.

Time (days): the number of days needed to go through each of the procedural steps for establishing a subsidiary of a foreign company.

No.ProcedureTime to Complete (days)
1 1
2 * 2
3 1
4 3
5 1
6 10
7 1
8 38
9 1
* Takes place simultaneously with previous procedure.


Procedure 1 :
Authentication / Regularization of the parent company's documentation overseas
Time to Complete (days) 1
Comments:


Procedure 2 :
Check name for uniqueness at PACRO
Time to Complete (days) 2
Comments: The name clearance is done at Patent And Companies Registration Office (PARCO).


Procedure 3 :
Open a bank account
Time to Complete (days) 1
Comments: This is assuming that all documents to satisfy KYC requirements of banks are in place.


Procedure 4 :
Register the company at PACRO
Time to Complete (days) 3
Comments: The registrar is located at the PACRO. PACRO is a stand alone office with a customer service center designed in a process chain platform, where applicant goes through various steps (check name, fill out form 2, 5, 55 and pay fee). At the end of the process, the applicant obtains a certificate of incorporation and a certificate of commencement of business. All fees are payable to PACRO.


Procedure 5 :
Register with the local Zambia Revenue Authority (ZRA) office, direct tax division to obtain a corporate tax number
Time to Complete (days) 1
Comments: The corporate tax number can be obtained from Zambia Revenue Authority (ZRA).This is mandatory for all companies operating in Zambia


Procedure 6 :
File VAT registration form with ZRA to obtain a VAT tax number
Time to Complete (days) 10
Comments: To obtain a VAT tax number at the Zambia Revenue Authority (ZRA), promoters must file the certificate of incorporation. Firms that earn less than ZMK 200,000,000 (approx. $ 48,000) can register for VAT on a voluntary basis.This is mandatory for all companies operating in Zambia whose turnover annually is or exceeds ZMK 200,000,0000.


Procedure 7 :
Register with National Pension Scheme Authority for Social Security
Time to Complete (days) 1
Comments: This is mandatory for all companies operating in Zambia


Procedure 8 :
Obtain a trade (import / export) license
Time to Complete (days) 38
Comments: This will depend on the nature of the business to be transacted. If the business will be involved in trading, it will require a trading license. If it is only involved in manufacturing, a license of a different nature will be required.


Procedure 9 :
Provide the Registrar of Companies with a list of its directors, a copy of its constitution, and the name of its local representative
Time to Complete (days) 1
Comments: A foreign company must, within 28 days of establishing operations in Zambia, provide the Registrar of Companies with a list of its directors, a copy of its constitution, and the name of its local representative.