Zambia is a country in South-East Africa. The capital city is Lusaka, the official currency is Zambian kwacha (ZMW, or simply K), and the official language is English. Unemployment and poverty are some serious problems for this country, but recent economic reforms have shown promising results. The economy has been highly dependent on the copper mining industry; however, the diversification program has resulted in the development of other sectors. In this scaling-economy country, most people who decide to start their own business choose to operate as sole traders.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole trader in Zambia
A sole trader (or sole proprietorship) is a business run by one person, the owner. There is no legal distinction between the owner and the business, and the liability is not limited. This means that the owner is liable with all their debts and assets and can operate the business with all of their fortune. It is easy to establish and run a sole proprietorship. This business form is highly flexible and can adapt to the changing environment with ease, unlike big companies with more complex structures. The decision-making is rather easy since you are the only one operating it.
To operate a business legally, you have to register with the authorities first.
Business Name Registration
To register as a sole trader in Zambia, first, you have to register your business name. The registration is done at the Patents and Companies Registration Agency (PACRA). The head office is located at Haile Selassie Avenue, Longacres, Lusaka. You can also visit a branch office in your region.
To apply for registration, ask for BN FORM III Application for Registration. Fill out the form and submit it. Make sure you bring an ID document in case the authorities request identification. A fee of K166.00 will be charged.
If the application is valid, you will obtain the Certificate of Registration, which should be displayed at the place of business.