Ease of doing business in Zim now a living reality

Zimbabwe, the IN ease of starting a business, small or big, has become a living reality. This is allowing entrepreneurs to pursue their dreams with greater ease and efficiency.

WHILE having the necessary capital is important, business growth and sustainability also depend on compliance with legal and policy frameworks. This article highlights recent developments that have brought relief to both existing and aspiring business owners.

Companies and Intellectual Properties Office of Zimbabwe (CIPZ)

In the past, the company registration process in Zimbabwe was a cumbersome task that required careful consideration. Although the name search process had been automated, the remaining 90 percent of the work had to be done manually, including processing documents like the CR5, the CR6 and the Memorandum and Articles of Association, which had to be submitted physically for approval. This time-consuming process often resulted in missed opportunities.

However, the introduction of a new 100 percent automated system deserves applause. As a consultant, I can confidently say that it is now easy to register a company online. With everything being equal, your documents can be approved within a day, allowing you to print your securely sealed papers from the comfort of your home or office.

Gone are the days of interacting with officers at the registrar’s office, who, in our perception, seemed to prefer the old system for personal reasons.

The new system guides you through each stage, prompting you to provide the necessary information. It also incorporates an online payment platform, simplifying the entire process. This development is truly commendable.

With the user-friendliness of the new CIPZ system, everyone is motivated to register their company. The elimination of kickbacks and corrupt practices that were prevalent under the old system has made the process less expensive and more transparent.

Zimbabwe Revenue Authority (ZIMRA)

The introduction of the Tax and Revenue Management System (TaRMS) at ZIMRA deserves appreciation. This modern system is a significant improvement when you compare it to the old one. This aligns with the spirit of continuous improvement and the objective of facilitating business processes with minimal human interaction.

Thanks to TaRMS, you can now obtain your tax clearance certificate within two hours of application, provided all your documents are accurately captured.

The system is now integrated with the Companies and Intellectual Properties Office, allowing automatic verification of company numbers for registered firms and cross-referencing with the Civil Registry for sole traders.

TaRMS offers various modules, including debt management, payment options and agent registration, which are being gradually introduced to avoid overwhelming users with too many changes at once.

Tax agents can now register online and receive approval if they possess the necessary qualifications. This is a welcome development, as it discourages unqualified individuals from entering the tax consultancy space, thereby safeguarding the integrity of the profession.

To ensure the smooth functioning of any system, multiple checkpoints must be in place. The Ministry of Finance, Economic Development and Investment Promotion, in collaboration with ZIMRA, has implemented several measures, such as setting limits on purchases for those without tax clearance certificates and reducing the VAT registration threshold.

As a result, even small business owners, such as airtime vendors, can benefit from these changes.

Regarding the value added tax (VAT) registration process, you only need to upload the necessary requirements onto the portal and await approval. Once approved, you can conveniently download your VAT certificate from your office.