Formalise your Business in Zimbabwe

From “Backyard Hustle” to “Big Business”: Why 2026 is the Year to Formalise in Zimbabwe

Are you running a thriving business from your spare room or selling out of your car boot? While the “hustle” is the heartbeat of Zimbabwe, there comes a point where being “under the radar” actually holds you back.

In 2026, the Zimbabwean business landscape is more digital and integrated than ever. If you want to move from “informal trader” to “industry leader,” it’s time to get legal. Here is everything you need to know about formalising your business, staying compliant, and navigating the rules for foreign investors.

Why Formalise? The “Power Move” for Your Business

Many entrepreneurs fear the taxman, but the reality is that the costs of staying informal often outweigh the taxes of being formal.

The Top 3 Advantages of Complying:

• Access to Capital: No bank or serious investor in Zimbabwe (like Old Mutual or CBZ) will look at you without a Certificate of Incorporation and a Tax Clearance. Formalisation turns your “hustle” into an asset you can borrow against.

• Government Tenders & Corporate Contracts: The government and big corporations like Delta or Econet require a PRAZ (Procurement Regulatory Authority of Zimbabwe) certificate. Without registration, you are locked out of the biggest contracts in the country.

• Limited Liability: If your business is a Private Limited Company (Pvt Ltd), your personal assets (your house, your car) are protected if the business hits a rough patch.

The Registration Roadmap: What You Need

To get started, you don’t need a massive office, but you do need these essentials:

1. A Unique Name: You’ll need 3-5 proposed names for a search at the Companies Registry.

2. Directors & Shareholders: At least one director (if a PBC) or two (if a Pvt Ltd).

3. A Physical Address: No P.O. Boxes! The Registrar needs a physical location (you may use your home address).

4. Articles of Association: These are the “rules” of your company.

The “Compliance Club”: Bodies You Must Register With

Once you have your Certificate of Incorporation, you aren’t done yet. To be fully compliant in 2026, you must “check in” with:

• CIPZ (Companies and Intellectual Property Office): For your initial registration and annual returns. Deadline Alert: All companies must re-register on the new electronic system by April 20, 2026, or face being struck off the register!

• ZIMRA (Zimbabwe Revenue Authority): You must register for a Taxpayer Identification Number (TIN). If your turnover exceeds US$25,000, you must also register for VAT.

• NSSA (National Social Security Authority): If you have even one employee, you must register and contribute to their social security.

• ZIMDEF & SDF: These are mandatory levies (usually 1% of your payroll) for manpower development.

• Local Authorities: You need a trade license or “shop license” from your City or Rural District Council to operate legally.

For the Global Visionary: Requirements for Foreigners

Zimbabwe is “Open for Business,” but foreign investors have a few extra steps to ensure their investment is protected:

• ZIDA License: Foreigners are strongly encouraged to apply for a Zimbabwe Investment and Development Agency (ZIDA) license. It provides legal protection and assists with work permits (TEPs).

• Minimum Investment: There is typically a capital requirement (often starting at US$100,000 for certain benefits) to prove the investment is “bona fide.”

• Foreign Company Registration: If you are an extension of an overseas firm, you register as a “Foreign Company” with the Registrar.

The Indigenisation Factor: What is “Reserved”?

Under Statutory Instrument 215 of 2025, Zimbabwe has clear “Reserved Sectors” where the government prioritizes local citizens.

Important: While most of the economy is open to 100% foreign ownership (like Mining and Manufacturing), certain sectors are Reserved for Zimbabweans.

Common Reserved Sectors include:

• Retail and Wholesale trade (small-scale).

• Passenger transportation (taxis and buses).

• Estate Agencies.

• Grain Milling and Tobacco Grading.

• Artisanal Mining.

The 2026 Rule: Foreigners already in these sectors must now apply for a special permit and are generally required to divest 75% ownership to local Zimbabweans over a three-year period. If you are a foreigner looking to invest, it is best to focus on high-tech, manufacturing, or large-scale infrastructure to avoid these restrictions.

Ready to Take the Leap?

Formalising isn’t just about “paying tax”—it’s about building a legacy that can grow beyond you.