Running a registered company in Zimbabwe? Your company has got 12 months from now to re-register or cease to exist. Whether it is a way government hopes to use to dust up old, forgotten money or not, all existing companies which were registered before February 22, 2020, are required to re-register with the Registrar of Companies within a period of 12 months under a new Companies and Other Business Act [Chapter 24:31].
“Yes, I can confirm that that the new Companies Act requires all companies to re-register, but I cannot comment on that because the registration of companies falls under the ministry of justice and their operations fall under the industry ministry. So those are the rightful ministries to comment on that matter,” Deputy finance minister, Clemence Chiduwa said in an interview.
Here Is What You Need To Know
- According to the new Act which came into effect in the first quarter of 2020, companies have up to March 2021 to complete the new registration process or risk being struck off the Companies Register.
- For the first time ever, the new Companies Act will do away with manual registration process by introducing electronic registration.
- The re-registration exercise is reported to be an administrative process aimed at establishing a new and updated register of companies so that inactive companies do not appear on the updated companies register.
- The new Act repeals the old Companies Act, which was crafted on April 1, 1952, and incorporated provisions of the Private Business Corporations (PBC), encouraging small to medium enterprises to register and be recognised as players in the market.
- The new Act now, also empowers the Registrar of Companies to strike off defunct business entities from the register. It also stipulates that shelf or shell companies that do not file returns on the anniversary of their incorporation shall be removed from the register.
Zimbabwe companies re-register Zimbabwe companies re-register
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“I have frequented this office for more than two months now trying to register my new company, but the chaos here is pathetic,” one businessman was quoted as saying. “To worsen the matter, I was told that they have run out of paper to print Certificates of Incorporation. That shows poor planning. How is it that they start a new thing without adequate resources?
“To be frank the Act requires commitment for it to become effective as it is already evident the implementing office is struggling with the new requirements just a few weeks since its inception,” he said.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer