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Learning how to set up a Zimbabwe subsidiary requires time and money that many companies don’t have. When you’re ready to expand to the country, you need to understand all the applicable laws, hire employees, run your payroll, and give out compensation and benefits. That’s all on top of continuing to run your parent company and establishing a successful subsidiary.

G-P can make the expansion process easier and hassle-free through Zimbabwe subsidiary outsourcing. We have existing subsidiaries in countries all around the world, including Zimbabwe. When you work with us, you can use that infrastructure for your expansion instead of establishing your own entity. You’ll benefit from a quick expansion, and we’ll handle Zimbabwe’s subsidiary laws for you.

How to Set Up a Zimbabwe Subsidiary

Establishing a Zimbabwe subsidiary requires many considerations about your location and planned business activities. First, try to find a location in Zimbabwe with the most favorable laws and regulations. Zimbabwe’s subsidiary laws can vary by city, region, or locality, so it’s important for you to understand the area where you want to incorporate. Work with an expert who can help you find the area with the best laws if you’re still not sure where to incorporate within Zimbabwe.

Another important consideration is what type of subsidiary works best with your business goals. The subsidiary structure isn’t one-size-fits-all — you can choose from entities such as a limited liability company (LLC), public limited company, branch, or representative office. If you want an office in name only or just need to handle a few activities, we recommend incorporating as a branch or representative office. However, most companies decide to use the LLC structure since it provides the most benefits and operating freedom.

The steps to set up a Zimbabwe subsidiary include:

  • Choosing a unique company name
  • Completing the company registration process
  • Obtaining an investment license issued by the ZIA
  • Meeting the indigenization requirements
  • Obtaining operational permits based on your sector
  • Obtaining residence and work permits issued by immigration

Zimbabwe Subsidiary Laws

Zimbabwe’s subsidiary laws change by entity, so you must follow the correct regulations based on your subsidiary structure. LLCs require at least one director and one shareholder who can be of any nationality. Investors have the responsibility of determining minimum paid-up share capital, as Zimbabwe’s laws do not outline a specific amount. Although LLCs operate like a resident company, you won’t have any annual audit requirements.

Benefits of Setting Up a Zimbabwe Subsidiary

Once you complete the Zimbabwe subsidiary setup process, you can get all the benefits of working in Africa. You’ll get to work with new companies, benefit from brand new employees, and provide updated products and services to a new client base. You can also protect your parent company and subsidiary through the LLC structure. Shareholders are limited in liability by the amount they contribute, and your parent company and subsidiary will operate separately to avoid fines and litigation.

Some companies are content with waiting months or a year to receive these benefits, which is how long it can take to set up your subsidiary. However, many businesses need to start working immediately or require a quick way to expand while still following Zimbabwe’s subsidiary laws. G-P offers the solution through Zimbabwe subsidiary outsourcing. By using our existing infrastructure, you can start working in a day or two without worrying about compliance.

Other Important Considerations

Incorporating in a foreign country is a major decision that requires a significant amount of time and planning. Start the process by working with your other executives to discuss who can handle what tasks. You should also talk to your accounting department about how much money you’ll need to first set up the subsidiary, then continue to run it for years to come.

We also recommend finding someone who understands Zimbabwe’s subsidiary laws. This can be a lawyer, accountant, or consultant who can help you avoid any fines and delays due to non-compliance. You can also choose someone within your company to learn the correct laws, but they’ll need the time to do so.

Let G-P Help With Your Expansion

G-P has an entire team of global compliance experts who will work hard to make your expansion as smooth as possible. Contact us today to learn more about Zimbabwe subsidiary outsourcing.

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