- Did you know that Zimbabwe currently ranks 182 out of 189 economies on the ease of starting a business according to a survey conducted by The World Bank in June 2015. (Source: Doing Business 2016 Zimbabwe Profile)
- The survey also showed that starting a business there requires 9 procedures and takes up to 90 days when you use formal channels.
- Zimbabwe is ranked lowest in Southern Africa.
- On a Southern African developing economies level, Zimbabwe is ranked below the average (Current average is 128)'
- The last update to the registration process was in 2011. Zimbabwe eased business start-up by reducing registration fees and speeding up the name search process and company and tax registration.
"I really wish someone would wake up and say something here! I mean, we need to make it easier for people to start formal businesses that have many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law.Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government."
The alternative is to get lawyers or business consultants who will deal with the process for you and who will know the laws that apply directly to your business. This is actually my recommendation - pay extra for the business consultants/lawyers because that way your business is set up properly from the get go.
* Register with the National Social Security Authority for pension and Accident Prevention and Compensation Scheme
The employer and the employee must each contribute 4% of employee gross monthly salary
* Register with the Manpower Development Fund
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
* Pick up the form of license application notice from the City
* Advertise on a local newspaper the application for a trade and business license
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
Submit an application form for issuance of new licenses to the Licensing Office in Harare Municipality
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.
* Licensing officers visit the company site
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.
Vongai C Mudzamba
Co-Founder Zimbabwe Entrepreneur Zone
I am and always will be inspired to inspire.