Company Formation

HLB Reliance (Zambia) offers one of the best and most professional ‘Company Registration’ services in Zambia. We ensure that our clients are provided with every detail connected to establishing business entities based on Zambian law. This comprehensive service we feel is very unique on the market, because we allow the client to choose the level of service, subject to their actual needs and budget. HLB Reliance (Zambia) pay very strict attention to every detail, at each stage of the Zambian ‘Company Registration’ process.

Why not become familiar with our services? Then it is simple for us to fulfil your requirements, quickly and professionally.

Please note: We can also arrange the ‘Company Registration’ process in a way that there will be no need for a client to come to Zambia.


Economies around the world have taken steps making it easier to start a business – streamlining procedures by setting up a one-stop-shop, making procedures simpler or faster by introducing technology and reducing or eliminating minimum capital requirements. Many have undertaken business registration reforms in stages – and they often are part of a larger regulatory reform program. Among the benefits have been greater firm satisfaction and savings more registered businesses, financial resources and job opportunities.

Below are the business registration reforms HLB Reliance (Zambia) have recorded in Zambia.

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Here are the bureaucratic and legal steps that an entrepreneur must complete to incorporate and register a new firm. These can be are identified by doing business through collaboration with HLB Reliance (Zambia), we are local professionals and study the laws, regulations and publicly available information on business entry in the Zambian economy. The following is a detailed summary of those procedures, along with the associated time and cost. These procedures are those that apply to a company matching the standard assumptions (the ‘standardised company’).

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Summary of time, cost and procedures for starting a business in Zambia

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Two types of frameworks can facilitate access to credit and improve its allocation: credit information systems, borrowers and lenders’ rights to view a potential borrower’s financial history (positive or negative) – valuable information to consider when assessing risk. And they permit borrowers to establish a good credit history that will allow easier access to credit. Sound collateral laws enable businesses to use their assets, especially movable property, as security to generate capital – while strong creditors’ rights have been associated with higher ratios of private sector credit to GDP.

What do the indicators cover?

Assessing the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions through 2 sets of indicators. The depth of credit information index measures rules and practices affecting the coverage, scope and accessibility of credit information available through a credit registry or a credit bureau. The strength of legal rights index measures whether certain features that facilitate lending exist within the applicable collateral and bankruptcy laws. There are two case scenarios, Case A and Case B, to determine the scope of the secured transactions system, involving a secured borrower and a secured lender, while examining legal restrictions on the use of movable collateral.

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These scenarios assume that the borrower:

  • Is a private limited liability company
  • Has its headquarters and only base of operations in the largest business city. For 11 economies with a population of more than 100 million, data for a second city have been added
  • Has up to 50 employees
  • Is 100% domestically owned, as is the lender

The ranking of economics on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the strength of legal rights index and the depth of credit information index.


Where does the Zambian economy stand today?

How well do the credit information system and collateral and bankruptcy laws in Zambia facilitate access to credit? The economy has a score of 7 on the depth of credit information index and a score of 7 on the strength of legal rights index (see the summary of scoring at the end of this chapter for details). Higher scores indicate more credit information and stronger legal rights for borrowers and lenders.

Globally, Zambia stands at 23 in the ranking of 189 economics on the ease of getting credit (Figure 1). The rankings for comparator economics and the regional average ranking provide other useful information for assessing how well regulations and institutions in Zambia support lending and borrowing.

Figure 1.

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One way to put an economy’s score on the getting credit indicators into context is to see where the economy stands in the distribution of scores across economies. Figure 2 highlights the score on the strength of legal rights for Zambia and shows the scores for comparator economies, as well as the regional average score. Figure 3 shows the same for the depth of credit information index.

(Figure 2) How strong are legal rights for borrowers and lenders?

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(Figure 3) How much credit information is shared – and how widely?

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When economies strengthen the legal rights to lenders and borrowers under collateral and bankruptcy laws, and increase the scope, coverage and accessibility of credit information, they can increase entrepreneurs’ access to credit. What credit reforms has Doing Business recorded in Zambia (Figure 4)?

(Figure 4) By Doing Business report year from DB2010 to DB 2015

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What are the details?

The getting credit indicators reported here for Zambia are based on detailed information collected in that economy. The data on credit information sharing are collected bureau (if one exists). To construct the depth of credit information index, a score of 1 is assigned for each of 8 features of the credit registry or credit bureau (see summary of scoring below). The data on the legal rights of borrowers and lenders are gathered through a survey of financial lawyers and verified through analysis of laws and regulations, as well as public sources of information on collateral and bankruptcy laws. For the strength of legal rights index, a score of 1 is assigned for each of 10 aspects related to legal rights in collateral law and 2 aspects in bankruptcy law.

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Taxes are essential. The level of tax rates needs to be carefully chosen – and needless complexity in tax rules avoided. Firms in economies that rank better on the ease of paying taxes in the Doing Business study tend to perceive both tax rates and tax administration as less of an obstacle to business according to the World Bank Enterprise Survey research.

What do the indicators cover?

Using a case scenario, Doing Business measures the taxes and mandatory contributions that a medium-size company must pay in a given year, as well as the administrative burden of paying taxes and contributions. This case uses a set of financial statements and assumptions about transactions made over the year. Information is also complied on the frequency of filing and payments, as well as time taken to comply with the tax laws. The ranking of economics on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the component indicators, with a threshold and a non-linear transformation applied to one of the component indicators, the total tax rate***. The financial statement variables have been updated to be proportional to 2012 income per capita; previously they were proportional to 2005 income per capita. To make the data comparable across economies, several assumptions are used.

  • TaxpayerCo is a medium-size business that started operations on 1st January, 2012.
  • The business starts from the same financial position in each country. All the taxes and mandatory contributions paid during the second year of operation are recorded.
  • Taxes and mandatory contributions are measured at all levels of government.
  • Taxes and mandatory contributions include corporate income tax, turnover tax and all labour taxes and contributions paid by the company.
  • A range of standard deductions and exemptions are also recorded.

***The non-linear distance to frontier for the total tax is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is defined as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis. It is calculated and adjusted on a yearly basis. The threshold is not based on any economic theory is not based on any economic theory of an ‘optimal tax rate’ that minimises distortions or maximises efficiency in the tax system of an economy overall. Instead, it is mainly empirical in nature, set at the lower end of the distribution of tax rates levied on medium-size enterprises in the manufacturing sector as observed through the paying taxes indicators. This reduces the bias in the indicators towards economies that do not need to levy significant taxes on companies like the Doing Business standardised case study company because they raise public revenue in other ways – for example, through taxes on foreign companies, through taxes on sectors other than manufacturing or from natural resources (all of which are outside the scope of the methodology). This years’s threshold is 26.1%.

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Where does the economy stand today?

What is the administrative burden of complying with taxes in Zambia – and how much do firms pay in taxes? On average, firms make 37 tax payments a year, spend 177 hours a year filing, preparing and paying taxes and pay total taxes amounting to 14.8% of profit (see the summary at the end of this chapter for details). Most indicator sets refer to a case scenario in the largest business city of an economy, except for 11 economics for which the data are a population-weighted average of the 2 largest business cities.

Globally, Zambia stands 78 in the ranking of 189 economics on the ease of paying taxes (Figure 4). The rankings for comparator economics and the regional average ranking provide other useful information for assessing the tax compliance burden for business in Zambia.

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Economies around the world have made paying taxes faster and easier for businesses – such as by consolidating filings, reducing the frequency of payments or offering electronic filing and payment. Many have lowered tax rates. Changes have brought concrete results. Some economics simplifying tax payment and reducing rates have seen tax revenue rise. What tax reforms has Doing Business recorded in Zambia (Figure 5)?

By Doing Business report year from DB2010 to DB2015

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What are the details?

The indicators reported here for Zambia are based on the taxes and contributions that would be paid by a standardised case study company used by Doing Business in collecting the data (see the section in this chapter on what the indicators cover). Tax practitioners are asked to review a set of financial statements, as well as a standardised list of assumptions and transactions that the company completed during its 2nd year of operation. Respondents are asked how much taxes and mandatory contributions the business must pay and how these taxes are filed and paid.

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The taxes and contributions paid are listed in the summary below, along with the associated number of payments, time and tax rate.

(Figure 6) Summary of tax rates and administration

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