Having defined and outlined all the advantages and disadvantages of every form of business; it is very important to also discuss or know the processes or procedures on statutory obligations or the registration processes and which institution is responsible for what type of registration. It is widely recognized that while in the developed countries Small and Medium Enterprises (SMEs) play an important role in many sectors of the economy, in less developed countries such as Zambia, they constitute the fabric on which social and economic stability depends upon.

Small Medium Enterprises constitute more than 90 percent of all firms and hence play an important role in economic development, job creation and poverty reduction. This will explain the legal framework for small enterprises; every enterprise must be affiliated or registered under a certain body for it to be considered legit.

Below are the statutory bodies in which each business/company must be registered with in order to operate in Zambia.

1. Patents and Companies Registration Agency (PACRA): Is a statutory body under the Ministry of Commerce, Trade and Industry. PACRA (hereinafter also referred to as the Agency) is established under the Patents and Companies Registration Agency Act No. 15 of 2010 with the principal mandate of providing Business Registration and Intellectual Property Protection Service. The Agency confers Intellectual Property Rights and Services as a legal repository for Business Registration and Intellectual Property Information. Patent and Companies Registration Agency (PACRA) is the authority that is responsible for registering a businesses and companies in Zambia, and to get more information on the fees, producers or what is involved in registering a business or company in Zambia, you can visit any PACRA branch or visit their website on www.pacra.org

Functions of PACRA

• Administer and attend to matters incidental to the companies Act Cap.388; The registration of Business Name Act No. 16 of 20111; Patents Act Cap 400; Trade Marks Act Cap. 401 and Registered Designs Act Cap 402.
• Ensure Zambia’s continued adherence to the protection of intellectual property, namely trademarks, patents, industrial designs, and copyrights.

Let us look at ways of protecting Intellectual Property with PACRA; there are differences between patents, trademarks, copyrights and industrial design. Depending on the work you are trying to protect, you may use one or more of these intellectual property tools to protect your work. Some of these tools are patents, trademarks, copyrights, industrial designs and trade secrets.

To understand when to use which and the difference between them, let’s take a look at the meaning of each;

• Patents: Protect new, useful, and non-obvious inventions (ideas). An invention can be a device, a structure, process, machinery, etc.
• Trademarks: Trademarks protect source identifications, usually for brands, slogans, logos or designs (sometimes even scents or colors). A trademark protection may extend perpetually.
• Copyrights: Protect original textual works and visual or artistic expressions such as books, novels, movies, songs, etc.
• Trade Secrets: Protect valuable secret information like ideas that must be kept confidential. Others to whom they are disclosed to just also keep them confidential. Similar to trademarks. Trade secret protection mat extend perpetually.
• Industrial Designs: Protect the ornamental or aesthetic aspect of a product. Industrial designs are companies of lines or colors or any three – dimensional forms which give a special appearance to a product.

Some general Intellectual Protection (IP) Strategy Information:

• You can use more than one intellectual protection for your business: there are various types of IP tools which can be used individually and collectively to protect tour unique business. For example, if your business sells new and innovative water bottles, you could have a design patent to protect the look and feel of the bottle and utility patent to protect the unique functionalities of the water bottle (assuming this is a cutting edge water bottle). You can also protect your business brand with a trademark, and your owner’s manual and website with a copyright. Any company secrets can be protected as trade secrets. An effective and efficient IP strategy may use one or more IP tools to give your business a competitive advantage over competitors in the marketplace.
• Create a brand and get a great name: Before you decide on a business name or brand, make sure that the name you choose doesn’t infringe or conflict with anyone else’s business name or logo. Do your research. A few minutes at the beginning could save you a lot of time and money down the road and help you avoid unwanted disputes. Once you pick a brand, make sure you use it consistently throughout your business. This is your business’s personality. It should be consistent throughout your products, services and various platforms.

2. Zambia Revenue Authority (ZRA): Is a governmental authority having jurisdiction over the assessment, determination, collection or imposition of any Tax in the country.

Tax Registration: As soon as you commence your business, you are required to register with your Local Revenue Authorities office to obtain a Tax Payers Identification Number (TPIN) and Tax Clearance Certificate that proves you are tax compliant. Depending on other factors such as turnover, payroll amounts, annual returns whether you are involved in imports and exports etc. you could also be liable to register for other taxes, duties levies and contributions such as Value Added Tax (TAX), Pay As You Earn (PAYE), Customs, and Excise. The Zambia Revenue Authority is a statutory body under the Ministry of Finance in charge of collecting taxes on behalf of the Zambian Government.

Types of Taxes in Zambia and Tax System

The Ministry of Finance and National Planning is responsible for the formulation of tax policy in Zambia and the implementing agency is the Zambia Revenue Authority (ZRA). The Income Tax Act requires every person (embracing every business entity, enterprise or individual) receiving income liable to tax under the Act to notify the ZRA, in writing, accordingly within thirty (30) days from the date of first receiving such income and Act also providing for penalties for failure to give the necessary notice. There are penalties for late submission of tax returns on or before the stipulated date.

The above are the most important statutory bodies into the business world. However, there are many other mandatory statutory bodies that you must register with as your business grows, such as:-

Kindly visit these statutory bodies to find out more on how you can be compliant, remember most businesses fail due to lack of legal compliance 

1.  Napsa
2. Workers’ Compensation Fund
3. Zambia Bureau of Standards
4. Zambia Public Procurement Authority.