Starting a business in Zimbabwe requires several legal and regulatory steps. Here’s what you need to know:
1. Company Registration (CIPZ)
Register your company with the Companies and Intellectual Property Office (CIPZ). This includes providing the following information:
- Four to five proposed company names of your choice (for selecting one name)
- Nature of business eg construction, retail, farming
- Company address, email and phone number
- Director and shareholder details (Picture of clear IDs, addresses, email address and percentage shareholding structure)
- If all documents are complete, registration usually takes a few days to a week.
2. Tax Registration & Tax Clearance (ZIMRA)
Once registered, apply to ZIMRA for:
- A Tax Identification Number (TIN)
- Registration for Income Tax and PAYE (if you have employees)
Once approved, you will receive a TIN Certificate which shows you have been registered for tax and Tax Clearance Certificate (ITF 263) — essential for doing business, tenders, and imports/exports. It must be renewed time and again depending on the period you are given by Zimra system but short periods are currently been given to push tax payers to be compliant so as to get a longer period.
3. Company Bank Account
Open a corporate account using:
- Company documents
- Current proof of residence of the directors in form of a utility bill (Zesa/Council/Telone/ Zol etc)
- Directors’ IDs
- Tax clearance certificate
- CR2 letter (depending with bank)
- Resolution to open bank account (depending with bank)
Compare banks for the best fees and services.
4. Council Licence
Apply for a local authority business licence (also called a shop licence). Requirements vary by town or city, but usually include:
- Proof of registration (certificate of incorporation, documents for company address and directors)
- Lease or title deed for your premises
- Possibly health or environmental certificates (depending with type of business)
- Directors IDs
- Fees depend on the type and size of the business and are paid annually
5. VAT Registration (If Applicable)
If your total sales are over USD $25,000 within a year, you must register for VAT. Submit the following for registration:
- Lease/title deed
- Current stamped bank statement
- Month to month current sales schedule (within one year)
- Month to month Sales/turnover projections (one year)
- Sample of 3 invoices
- Public Office letter
After registration, you receive VAT certificate and must charge VAT on your sales and submit returns monthly or bi-monthly depending on category registered. ZIMRA can force VAT registration if you surpass the threshold but fail to register—this comes with penalties and interest. If your business deals with exempt supplies (education, medical etc) there is no need to register for VAT
6. Fiscalisation
After VAT registration, you must register for fiscalisation. This records and sends your sales invoices (data) directly to ZIMRA to ensure accurate tax reporting and its mandatory. Failure to comply there is a spot fine of $1000 USD and daily penalties of $25 USD for a maximum of 180 days.
7. Monthly Bookkeeping & Tax Consultancy
Hire a bookkeeper or tax consultant from day one. This ensures:
- Timely PAYE, VAT, and Income Tax returns
- ZIMRA compliance
- Proper financial records
This helps you avoid fines and stay compliant.
8. NSSA Registration
If you employ staff, register with NSSA within 30 days and contribute to:
- Pension Scheme
- Accident Compensation Fund
You need to register the company and employee details. Contributions are made monthly based on salaries.
9. Customs (ASYCUDA) Registration
If you have plans to import or export goods, register with ZIMRA’s ASYCUDA system.
10. PRAZ Registration (Public Procurement)
To supply to government or participate in tenders, register with the Procurement Regulatory Authority of Zimbabwe (PRAZ).
Submit your company documents, company profile, tax clearance and directors’ IDs
11. Vendor Number Registration
Many large clients (especially government departments) require you to register as a vendor (supplier). This is an internal ID given by the Ministry of Finance to approved suppliers.
Submit your company documents, tax clearance, current proof of residence of the directors, IDs (original & copies) and stamped bank statement.
12. Standards Development Fund (SDF)
If your business makes products or provides services that need certification, you may need to engage with the Standards Association of Zimbabwe (SAZ).
This helps ensure your goods meet national or international standards and may involve contributing to the SDF.
13. Industry-Specific Licences
Some industries need special licences from regulators before starting operations. For example:
- Security – Ministry of Home Affairs
- Mining – Ministry of Mines
- Finance (banks, microfinance) – RBZ or SECZ
- Telecoms – POTRAZ
- Healthcare (Clinics, Pharmacy) – Ministry of Health
- Tourism – ZTA
Make sure you know what licences apply to your industry before operating.
14. ZIMDEF Registration
Employers must register with ZIMDEF and pay a monthly levy to support skills training and vocational education.
Payments are based on your payroll.
15. NEC Registration
If your sector has a National Employment Council (NEC), you must register with it. NECs set minimum wages, working conditions, and enforce labour rules.
16. Ongoing Statutory Compliance
Once your company is set up, you must stay compliant by:
- Update the Companies and Intellectual Property Office (CIPZ) on any changes to directors, address, or shareholders
- Filing annual returns to the Companies and Intellectual Property Office (CIPZ) once every year
- Submitting tax returns (PAYE, VAT, Income Tax) and payments to ZIMRA (monthly, bi-monthly quarterly, yearly)
- Paying NSSA, NEC, SDF and ZIMDEF contributions on time
- Renewing council and industry licences as needed
- Keeping accurate records of finances, employees, and governance
Failure to comply can lead to fines or legal issues.
✅ Quick Checklist for New Companies
| Requirement | Mandatory? | When to Do It |
| Company Registration (CIPZ) | ✅ Yes | At the start |
| ZIMRA Tax Registration | ✅ Yes | Right after Company Registration |
| VAT Registration | ✅ If eligible | After reaching threshold (ZIMRA) |
| Fiscalisation | ✅ If VAT registered | Immediately after |
| Bank Account | ✅ Yes | After tax clearance |
| Council Licence | ✅ Yes | Before operations |
| NSSA Registration | ✅ If employing | When hiring staff |
| PRAZ Registration | ❌ Optional | If tendering |
| Vendor Number | ❌ Optional | If required by client |
| SDF (SAZ) | ❌ Optional | For certified products |
| Industry Licence | ✅ If applicable | Before trading |
| ZIMDEF Registration | ✅ Yes | When paying salaries |
| NEC Registration | ✅ If applicable | When hiring |
| Ongoing Compliance | ✅ Always | Throughout the year |
