Introduction
In the rapidly evolving business landscape of Zimbabwe, compliance with current laws and regulations is crucial for sustained growth and success. One significant regulatory requirement is the re-registration of companies as mandated by the Companies and Other Business Entities Act (Chapter 24:31).
Introduced on February 13, 2020, this act necessitates that all Zimbabwean registered companies and business corporations re-register. This article delves into the process, benefits, and implications of re-registering your business, providing a comprehensive guide for entrepreneurs and SMEs.
Understanding company re-registration
Company re-registration is the process of updating or renewing a company’s registration with the Companies Registry to ensure compliance with the latest legal requirements.
This process is not just a bureaucratic formality; it serves several vital purposes:
- Updating the companies register: Re-registration helps establish a new, updated register of companies and private business corporations, ensuring that all active businesses are accurately recorded.
- Removing defunct entities: It aims to eliminate non-operating business entities from the register. Companies that are inactive, not submitting annual returns, or appear defunct are identified and struck off the register.
Why re-register your company?
The new Companies Act brings with it numerous advantages and responsibilities for business owners:
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- Legal compliance: Re-registering ensures that your business adheres to the current legal framework, avoiding potential legal issues.
- Continued operations: Failure to re-register will result in your company being struck off the register, meaning it will legally cease to exist.
Consequently, you will no longer be able to trade under your company name.
- Protection of business identity: Without re-registration, anyone can claim your company name and register it as their own, leading to possible identity and brand issues.
- Enhanced credibility: Complying with the latest regulations enhances your company’s credibility with clients, partners, and investors.
The re-registration process
The process of re-registering a company in Zimbabwe involves several key steps:
- Gather required information: You need to provide your company name and company number.
- Submit to the companies registry: Complete the necessary forms and submit them to the Companies Registry via the new portal.
- Receive certification: Upon successful re-registration, you will receive a certificate of re-registration.
Deadline and eligibility
Originally, the deadline for re-registering was set for February 13, 2023.
However, it has been extended to 2024, giving businesses more time to comply. All existing companies, including Private Limited Companies (PLCs), Cooperative Companies, Companies Limited by Guarantee, and Private Business Corporations (PBCs), are required to re-register.
Annual returns and AGM declaration
An essential part of maintaining compliance is the submission of annual returns and the declaration of the annual general meeting (AGM).
These documents confirm the operational status and details of the company.
Failure to file these documents will result in rejection of any amendments or updates to your company details by the Companies Registry.
Conclusion
Re-registering your company in Zimbabwe is not just a legal obligation but a strategic move to ensure your business’s continuity and credibility.
By complying with the Companies and Other Business Entities Act, you safeguard your business’s legal status and open doors to new opportunities and growth.
At The Finance Guy, we specialise in simplifying the re-registration process, ensuring your business remains compliant and poised for success.
Contact us today to get started on your re-registration.
- Mark Mtombeni is an accountant business growth strategist who currently consults for a several SMEs across sectors. For Feedback and assistance call him at +263719412008 or email: hello@thefinanceguy.africa
