Why you should formally register your business entity

Diaspora Matters by Victor Muchemwa on November 16, 2016 740 views

Did u know that registering your business is one of the best things you can ever do as an Entrepreneur? Paying your taxes and all relevant rates is extremely important.
Wa Mdala used to review tenders ten years ago,Whenever we flighted tenders one of the requirements was that you must be a registered company,you must comply with all relevant country laws etc.

The same still applies today.I urge you all to look closely at tenders and fi…nd out.The key message is that it pays in the long run.Here is another important tip…Whenever reviewing tenders we really looked at Year of Registration…izvi ndizvo zvairakidza your experience…now that’s a million dollar advice..muchazodei nhai hama?

Go and register early..ungave ku diaspora ..wherever you are ..just register your company coz nguva-nguva-nguva irikufamba.Your company must get experience..kana ndiwewo zvikanzi tender yema roads habilitation iyi..munopa ipi company ,one established in 2013 or the one established in 2015?

Ok,now we would like to find out processes of registering your company.We would like to find problems with registration of companies,the short cuts..Aripo here akambovharwa mari whilst trying to register your company?How long does it take to register your company?Ko Zimra yakambokushanyirawo here?What are the top companies that help folks with registration?

Lets discuss..Thanx for your responses in advance

Catherine Shavatru mdara kana.uine registered company mabasa hobho kunyanya.matender u bid with confidence kani

Ad Mire Prime Makushaanyone who does company registration

Nyasha Nguwoso like here is my case I have an idea to start something but should I just register my company with what I want to do without having the things on the ground?

Ishmael SitholeI would prefer registering a PBC but wont bid for public tenders

Ad Mire Prime Makushai agree with you Ishmael a PBC is easier for the entreprenure

Mlaleli Mcgreager Mhlangafrom $250 up

Hannah H. TarindwaNyasha test run your biz before registering if possible. Some businesses that’s easy but some will need a registration esp if you are going to need clients of big companies

Praise ChabonaKungofunga registrar of companies chete unotonzwa kuneta. Wen u are still small one might think kuregister ega without using the so called consultants but ey marwadzo kwaregistar kwacho. So one will end up shelving it achiti ambotsvaga mari $350 yacho iyi

Hannah H. Tarindwa$350 yakawanda hama dzadiwa. Kuno its abour N $300 but for 6 months kana uchida 24hrs N $1000 which about Us$110

Tori Elles MumWhatever business u want to do just register guys. The Memorandum and Articles of association covers I believe all kinds of businesses unless its a business that requires licencing like MCAZ for pharmaceutical supplies. I registered my company last year October at 250 but a shelf company is cheaper. I wouldn’t advise on a shelf company tho as I was enlightened to some aspects I overlooked in my previous company which was a shelf company. I thot having a CR 6 showing change of directors was good enough yet I didn’t know that when the company does well those former directors could come claim a certain percentage. There was need for another document which these consultants don’t mention that deals with that aspect. I’m being vague coz I can’t remember exactly wat I was told by this banker coz it didn’t affect me. My company was new.

Tori Elles MumU can go wega kuregistrar of companies. It must be around 50bux if u are not in a hurry to have your certificate coz it takes forever

Tori Elles MumWhatever business u are into, please legitimize it. U never know wat happens tomorrow and Mdala gave a good example kuti a company registered 2013 has greater advantage over a company registered in 2015. Sedco was/is giving loans and unlike in the past where u could just go with your proposal now one of the requirements is that u have a registered company that’s also registered with ZIMRA.

Ishmael SitholePersonally I feel a lot of things in Zim are tilted in favour of urburnites especially Hararenites. Imagine a rural entrepreneur in rural Chipinge like myself having to travel multiple times to Harare to register a business entity that is yet to perform well. Since we are in the IT age I strongly feel company registration should be done at provincial or even district levels

Rose MagorokoshoNdakambo vharwa mari yangu nevaiti vanogona kundi register. Ndikazoedza ndega zvikapedza makore zvinonetesa. Vakavimbika varipivanobatsira kuregister company

Mdala Wa RueRegister…Register n it’s for your own good..comply with all relevant laws of the country and it pays off in the long run..Wa Mdala will be registering his company for the first time and I will share my experience when done…Yeah. .registration inongonzwisa nungo..its a pity those who advertise on the forum about company registrations are not willing to share…anyway infor obtained by those who responded is still very important

Mdala Wa RueMukoma Ishmael..now this is inconvenient! So you cannot register your company in Chipinge?We are hoping that in future the registration will be decentralised or computerised

Tori Elles MumRose ini it was supposed to take 2 weeks but it took a month and one of the reasons for the delay was mazita andaiendesa for name search. The person I dealt with has a very good reputation but is not on fb. I paid 250 while others had charged me 300+. If u are interested and when u are ready let me know ndimubvunze if I can give u his number.

Ishmael Sithole@Hannah H Tarindwa, what I am saying is that we are aware of the vast benefits registering a business entity can usher one into, but the process of registering a business entity is Zimbabwe is not simple and fast. Its vailed in obscurity and unnecessarily too centralized. Since we now have computers why not decentralise it to privincial levels since we have government complexs in all provinces and some districts? That will make the process accessible to most intrested people and our government will benefit emensely from formaly operating entities through taxes and all. Personally I desire to register my business but the process is not as easy and simple as it OUGHT to be.

Judith Zimunyaand the money like the one i and my frend wanted to register wanted $500 yet it might be small to some ,,bt to us haa it was a draw back

Kava Matemai ChikoreIt takes seven working days from name search to the final registration. Please inbox or whatsapp on 0772347279 and we will take it up from there

Rodwell MaonekeThose who pls come forward with relevant information tibatsirikewo patichada kuregister

Kava Matemai ChikoreRodwell Maoneke first one has to come up with the main objectives of the company to be registered (meaning what the company will be doing when registered). Secondly one has to have at least six names from which the Register of Companies will approve one name for registration. After name search, at least two share holders and two directors will be required. In normal circumstances the two share holders automatical will be the directors. Then a document called memorandum and articles of association is prepared which is submitted again to the Register of Companies for final registration.

Praise ChabonaI read in the Sunday Mail that company registration can now be done online

Ishmael SitholeI am pleased to inform you all that I managed to register my business MacJohnson Apiaries. I registered it via the ministry of SMECD. The process took me 3 months ie August2015 to October 2015. The saame month we got incoperated ie October 2015, MacJohnson Apiaries scooped 5 awards at the Manicaland Agricultural Show and emerged as the best business in Apiculture/Beekeeping. We produce and retail the best honey, beeswax, hives, honey processing equipments etc in Manicaland(and some say the best honey in Zimbabwe comes from Manicaland). I overcame all excuses and so should you. Go ahead and register. We also offer beekeeping training and consulting services, swarm removal and relocation services. You may like our facebook MacJohnson Apiaries. We are also on linked in. We are working on our website and on how to penetrate the Harare market and supply the best honey out of Manicaland. If a rural 31 year old like myself can do it, so should you!

Tapiwa MubonderiThe PBC is the equivalent of the CC it has got the same rights as a private company and can do the same things. Its simpler to register as it has less documentation, costs less and doesn’t need annual returns. Its drawback is some bigger entities won’t want to deal with it as it seen as a one man band. Some bigger contracts or import or export trade would need a private company and its difficult to get loans. Our advice is to use for simple businesses especially trading. It can be converted to a private company, but a private company cannot be converted to a PBC

Tapiwa MubonderiIf you are interested in business its advisable to register a company beforehand and keep it compliant in case you may wish to use.

Tapiwa MubonderiThe Company’s Office is a bit bureaucratic and delays do occur because they handle a huge volume of documents. It’s advisable to deal with a competent consultancy firm there are over 200 such firms in the market. The drafting of memos and articles are a challenge to a lot of untrained people , this may delay your registration

Ps* Post originally appeared on Zimbabwe Business Ideas and Network Facebook page on May 19, 2015.

The author Victor Muchemwa

Victor Muchemwa is a Chartered Management Accountant, ACMA, CGMA and an award winning business coach and consultant. Author of 5 books and skilled in financial analysis, strategic planning, risk management, and business coaching. Contact +263 773 055 063