Beyond Incorporation : Business compliance after Incorporation

Beyond Incorporation: Your Essential Roadmap to Business Compliance in Zimbabwe

Congratulations! You’ve received your Certificate of Incorporation and your CR5,CR6, Memorandum and Articles of Association forms. You are officially a legal entity. However, in Zimbabwe, registration is not operation. To start trading legally, issue invoices, and hire employees, you must navigate a series of mandatory statutory registrations.

Operating without these is like driving without a license—it’s only a matter of time before the “penalties” catch up with you. Here is your exhaustive guide to the post-registration compliance landscape.

1. ZIMRA (The Revenue Authority) – Your First 30 Days

By law, you must register with ZIMRA within 30 days of starting business activities. Zimbabwe has transitioned to the TaRMS (Tax and Revenue Management System), making registration digital and faster.

• TIN : You will be assigned a Taxpayer Identification Number (TIN).

• Tax Clearance (ITF263): This is the most important document for trading. Without it, your clients are legally required to withhold 30% of any payment they owe you.

• VAT Registration: Compulsory only if your annual turnover exceeds (or is likely to exceed) US$25,000.

• PAYE: Once you hire your first employee, you must register as an employer.

2. NSSA (National Social Security Authority)

Every employer in Zimbabwe must register with NSSA. This ensures your employees are covered for social security and workplace accidents.

• Contribution: The current rate is 9% of the basic salary (4.5% deducted from the employee and 4.5% paid by the employer).

• WCIF: You must also contribute to the Workers Compensation Insurance Fund to protect yourself against claims from workplace injuries.

3. NEC (National Employment Council)

In Zimbabwe, almost every industry has its own NEC (e.g., NEC Agriculture, NEC Commercial, NEC Construction).

• Why it’s mandatory: You must register with the specific NEC that governs your industry. They set the minimum wages, grading, and working conditions for your sector.

• Compliance: Failing to pay NEC dues or ignoring their industry-specific Collective Bargaining Agreements can lead to debilitating labor lawsuits.

4. ZIMDEF & SDF (Manpower and Standards Levies)

These are two critical funds designed to develop the nation’s workforce and quality standards.

• ZIMDEF (Zimbabwe Manpower Development Fund): Most employers are required to pay a levy of 1% of their total monthly gross wage bill.

• SDF (Standards Development Fund): Also calculated at 0.5% of your gross wage bill, this fund supports the Standards Association of Zimbabwe (SAZ) to ensure local products meet global benchmarks.

5. Local Authority: City of Council (Business Licences)

To operate from a physical premises in Harare, you need a Trade License or Business License from the City of Harare.

• Health & Fire: If you deal with food, chemicals, or public gatherings, you will need a Health Inspector’s report and a Fire Clearance before the license is issued.

• 2025 Reform: Note that as of late 2025, the government has moved to simplify “multi-license” requirements for SMEs, capping many fees to prevent small businesses from being over-burdened by separate permits for a single location.¹⁶

   

6. PRAZ (Procurement Regulatory Authority of Zimbabwe)

If you intend to bid for government tenders or supply to any “Parastatal” (state-owned enterprise), you must register with PRAZ.

• Requirement: You register under specific categories (e.g., Stationery, Construction, ICT).

• Renewal: This must be renewed annually to remain on the “List of Approved Suppliers.”

The Compliance Checklist

Where to Start?

The “Compliance Mountain” looks steep, but you don’t have to climb it alone. Most successful businesses in Zimbabwe outsource these registrations to a consultancy to avoid the common trap of missing a deadline in their first year.