As soon as you decide to work in Zambia, you need to prepare to establish a subsidiary in the country. A legal entity is necessary to set up your payroll, hire employees, and work in Zambia. However, it can take companies weeks or months to establish a subsidiary, and you’ll need full knowledge of Zambia’s subsidiary laws.
Globalization Partners understands these issues with a global expansion, which is why we offer Zambia subsidiary outsourcing. Using our existing PEO, you can start working in Zambia in a day or two. Plus, you can count on us as the Employer of Record to ensure that you stay compliant. We’ll manage all the risk for you, which means you can focus exclusively on managing your company.
How to Set Up a Zambia Subsidiary
Do you know all the factors that impact how to set up a Zambia subsidiary? The two biggest ones are location and business goals. Just like states in the US have different laws and regulations, cities and regions in Zambia can have variations in Zambia subsidiary laws. If you don’t know what location has the most friendly laws for foreign corporations, we recommend working with an expert who can help you find the best place to incorporate.
Another important part of the Zambia subsidiary setup process is figuring out the best entity for your needs. If your company plans to operate in Zambia like a resident company, you may want to incorporate as a limited liability company (LLC). However, if you need to perform only a limited range of activities, you could set up your subsidiary as a representative or branch office.
The Zambia subsidiary setup process involves:
- Appointing directors of the foreign company
- Appointing at least one documentary agent
- Creating a Certificate of Incorporation and attaching it to Form 46
- Submitting the charter, statutes, regulations, memorandum, and articles
- Paying registration fees and establishing an in-country bank account
- Obtaining and sealing the Certificate of Registration
Zambia Subsidiary Laws
Zambia’s subsidiary laws also vary based on type of entity chosen for incorporation. LLCs require at least two shareholders and two directors who can be of any nationality. At least one of your directors must be a resident of Zambia, however. Your LLC also needs to employ a registered legal firm that you pay for on an annual basis. Finally, Zambia’s subsidiary laws require all LLCs to employ a company secretary.
Although LLCs have favorable laws for foreign companies, you still need to worry about tax requirements. For example, LLCs must file yearly tax returns, and sometimes your accounts will get audited.
Benefits of Setting Up a Zambia Subsidiary
Establishing a subsidiary will ensure that you get to work in Zambia. However, it usually takes companies weeks, months, or even up to a year to incorporate in the country. Globalization Partners can help you work in the country quickly, without all the stress of meeting Zambia’s subsidiary laws.
We’ll use our existing Zambia subsidiary so that you can start working in as little as a day. You won’t need to establish your own subsidiary, and you can take advantage of our wealth of knowledge and resources. Through Zambia subsidiary outsourcing, we’ll handle your payroll, give out compensation and benefits, and recruit top talent for your staff. You’ll have ultimate peace of mind that we’re handling compliance, so you can focus on managing your company.
Other Important Considerations
Incorporating on your own requires both time and expertise. Most companies need at least seven weeks to incorporate as an LLC, which is why we recommend clearing your schedule for those seven weeks and delegating tasks. Next, talk to your finance department about all the fees involved with incorporation, and make sure you have the money for a global expansion.
If you already have a Zambia subsidiary laws expert, you can incorporate with ease. Otherwise, you’ll need to find a skilled lawyer, accountant, or other expert who can help you stay compliant. Without an expert, you could face fines and delays in the process.
Let Globalization Partners Help With Your Expansion
Globalization Partners wants you to enjoy all the benefits of an expansion to Zambia without any unnecessary stress. Contact us today to learn more about Zambia subsidiary outsourcing.