| LLC | PLC | MFE | Rep Office | Branch Office | |
|---|---|---|---|---|---|
| Other Entity Name | Private Company Limited by Shares | Public Company | Multi-Facility Economic Zone | Representative Office | Branch Office |
| Company Setup Time | 10 days | 10 days | 10 days | 30 days | 30 days |
| Bank Account Opening | 10 days | 10 days | 10 days | 10 days | 10 days |
| Government Grants Available | Yes | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | Yes | No | No |
| Legal Liability | Yes | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Zambia Limited Liability Company (LLC)
- Clients interested in setting up their small or medium-sized businesses can opt to set up a Zambian LLC, locally known as a private limited company.
- A Limited Liability Company in Zambia must have 2 shareholders and should elect a minimum of 2 directors. Both of them can be Zambian citizens or international citizens. One out of two directors must be a resident.
- There is no required minimum paid-up share capital when incorporating a private company limited by shares. Nevertheless, to accelerate the business incorporation procedure, it is advisable to make a deposit of USD 1,000 as a share capital.
Zambia Public Limited Company (Public company)
- For a PLC set up there is a minimum requirement of two shareholders and two directors who can be of any nationality. Similarly, one of the two directors must reside in Zambia.
- The share capital requirement for incorporating a PLC is at least USD 10,000. A PLC company may venture into any type of business which may include financial services and banking.
- For customers who want to publicly list the business on the Zambia capital market, a PLC is the best option. A newly listed PLC on the Lusaka Stock Exchange has the privilege of reducing its corporate tax to 10%. If they have local shareholders the applied corporate tax is 7%.
The Zambian branch office
- An international or multinational company’s branch office is treated as a foreign entity. Under the Zambian Company Law, branches of foreign companies are allowed to have 100 percent ownership.
- All branches must appoint a director who must be a Zambian resident to supervise the operations of the company.;
- The branches of international companies are responsible to pay income tax and are obliged to file tax returns as well as annual financial reports of the audited company.
Zambia Representative Office
- The representative office of international companies can be fully owned by the parent firm. However, the company is not permitted to engage in direct sales or productive operations in Zambia.