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How To Start A Business in Zambia

How to Start a Business in Zambia (Locals & Foreigners) - Step by Step Guide

Starting a business in Zambia involves registering with key authorities, securing permits, and meeting compliance obligations. Below is a step-by-step guide for both Zambians and foreign investors.

For Local Investors

  1. Register the Business Name or Company:
    Register with the Patents and Companies Registration Agency (PACRA).
    Fees: ZMW 166 for business name registration; company registration fees vary depending on share capital.
    Duration: 1–3 days.
  2. Register with the Zambia Revenue Authority (ZRA):
    Obtain a Taxpayer Identification Number (TPIN) and register for VAT (if applicable).
    ZRA Website
    Fees: No fee for TPIN; VAT registration is free.
    Duration: 1–3 days.
  3. Register with NAPSA (National Pension Scheme Authority):
    Mandatory for employers to contribute social security for employees.
    NAPSA Website
    Fee: 10% of gross salary (5% by employer and 5% by employee).
    Duration: 1 day.
  4. Obtain a Business Levy:
    Obtain from the relevant local council or municipality.
    Fees: Varies by business type and location (ZMW 250–1,500 annually).
    Duration: 1–3 days.
  5. Apply for any Sector-Specific Licenses:
    Depending on the industry (e.g. tourism, food, mining, etc.).
    Fees: Varies widely.
    Duration: Varies.

For Foreign Investors

  1. Obtain an Investment License:
    Apply at the Zambia Development Agency (ZDA).
    Fees: USD 500 application fee.
    Duration: 5–10 working days.
  2. Incorporate the Company:
    Register with PACRA as a limited liability company.
    PACRA Website
    Fees: From ZMW 1,000 depending on capital.
    Duration: 1–3 days.
  3. Register for Taxes with ZRA:
    Obtain TPIN and register for VAT (if applicable).
    ZRA Website
    Duration: 1–3 days.
  4. Register with NAPSA:
    Mandatory for all employers.
    NAPSA Website
    Fee: 10% of employee’s gross salary.
    Duration: 1 day.
  5. Apply for an Investment Permit and Residence Permits:
    Apply through ZDA and the Department of Immigration.
    Zambia Immigration Website
    Fees: Residence permit starts from USD 500.
    Duration: 2–4 weeks.
  6. Obtain Sector-Specific Licenses:
    As per the industry requirements.
    Fees: Varies.
    Duration: Varies.

Useful Resources

Disclaimer:
The information provided above is for general guidance only and may be subject to change. For the most up-to-date requirements and procedures, please consult the relevant government authorities or a legal professional in Zambia.