Every new business owner needs to know this
So you have written a business plan, validated the business case, and you are beaming with excitement to get your venture rolling. The next crucial step is to take a minute to pause and ask yourself: “Do I have all areas covered? Do I all the necessary documentation needed to become a legal entity in the country?”
New business owners often find themselves unaware or, more over, not having the necessary documents needed to become a legal entity and because of the dread of bureaucratic processes in making their operations legal, they resort to operating unregistered.
To help, we have researched and come up with a business starter pack that each new owner needs to know in order to get the required documents for their company.
STEP 1: Register your company
Contrary to the view that this is a long and tedious process, choosing the right registrar can make your life easier. What are the key considerations you need to make at this point?
Start with the name
This is the first step in the registration process. Many times, choosing the right name is equally important as running the business itself. Your name has to be unique, easy to remember, precise, and a reflective of your business. A name is important for it is that which a business will build its brand on. The requirement at registration is that registrants submit a list of at least four names in order of preference, for checks against a list of already registered companies. Names are approved when not similar to an existing company.
You have managed to figure out a list of names that are unique and would like to adopt, the next step is to understand what sort of business you are. This is often influenced by whether you need to create a Private Limited or PBC.
What is your business specialty?
It is important for a business to specify which area it ventures in by giving a brief summary of products and services including corporate objectives. Some business owners may not know what exactly they would like to start with; the provision being that you can register your business as a general trading business. That way you can broaden your scope when you need to do so. When you have completed this section you are required to provide information of your location
Where will your business be located?
Information to be supplied is that of the business’ physical address and contact information. New business owners often worry that they do not have physical premises because, well, sometimes the owner are the business. In such cases, it is permissible to use your residential address if the title deeds are in your name. If not, a signed affidavit from the owner suffices.
Who owns and manages the business?
Director’s information is mandatory and should be provided as you are registering the business. This includes full name, national identification number, and residential address of each director
These are the owners of the business who have invested capital into it to make it a viable entity. As such there is need to state who owns what percentage stake of the business. All share percentages total to 100 percent.
Submitting the application
Just as is, this is all the information needed to submit to the registrar who will facilitate the registration process for you. As M&J Consultants this is where we plug in to do all the heavy lifting for you. We handle all processes at the Companies Registry for you and in five days or less, your company will be registered.
Now that the first step towards legalizing your business is done, next is to think about how you will be transacting. At this point, you will need an account with a reputable bank.
To apply for a bank account one needs the official company registration documents, supporting documentation (proof of residence for al director), the deposit fee (varies according to bank), and a bank advice note which instructs the bank to open an account for your now registered company.
After the bank account is opened, you are just one step away from running legally, pending other certifications and permutations which can be requirements in specific industries. The final step needed in getting the legal documentation of your new venture is a Tax Clearance Certificate which is issued out by the Zimbabwe Revenue Authority (ZIMRA).
This is a written confirmation that a company’s tax affairs are in order and up to date.
Importance of tax clearance
- It is a compliance issue and businesses need to adhere to it
- A tax clearance is necessary when bidding for tenders
- Needed when applying for licences issued by the local authorities
- It inspires confidence in business counterparts and encourages them to do business with you
When all these documents have been put in place, your business is now considered a legal entity. This process is often misconstrued to be long and bureaucratic, but that is usually because of lack of information. Having the right registrar can smooth the process and make it hustle free.
At M& J consultants we have wide spread experience and knowledge across many industries and understand that registering a business is not simply about the paperwork. Our approach is different because we move with you each step of the way. We help you unpack your enterprise vision, so you know which type of business is best suited for your market, how to come up with a unique name which your brand is anchored on, and any business related advice you might need as you start your venture. That’s not all…we are still here to hold your hand because as a new business, we want you to focus on your core business of meeting your bottom-line. Leave the worrying about conducting tax health checks, filling tax returns, VAT registrations and any other accounting services to us because we understand it better.
Starting and making your business legal and compliant to company regulations is no longer as tedious as before. Choosing the right partner to help you can ensure all processes are complete and you are up and running in less than five days. So, what are you waiting for?