Lainac Consultants

Frequently Asked Questions

This FAQs section contains a list of answers to questions frequently asked by our clients. Simply browse!. The answer to your question could have already been provided here. Select a category below to view answers to most commonly asked question.

Company registration frequently asked questions

PBC stands for Private Business Corporation and PLC stands for Private Limited Company.

  • A PBC (Private Business Corporation) is meant mainly for small operations. It is good for those who have a limited budget or specifically want something small.
  • A PLC (Private Limited Company) accommodates all sizes of businesses from small to large enterprises.
  • In a PBC the shareholders are also the directors. If you want the shareholders to be different from the directors then you should choose the PLC.
  • A PBC is also ideal if you want to be a sole trader.
  • Some types of businesses cannot register as a PBC e.g. a pharmacy or a micro-finance company since the requirements of the MCAZ or the RBZ don’t accommodate a PBC.
  • A PBC only has a certificate of incorporation and does not include CR6, CR14 or Memorandum & Articles of Association. If you want these then you should register as a PLC.
  • If your budget permits choose the PLC as it is more popular and therefore more recognized by almost everyone. The PBC may pose a challenge if you deal with third parties who are not familiar with it. If you are on a strict budget you can start with the PBC and upgrade it later when funds permit.

If your list of names is not available for registration, you will need to supply us with a new list of names at no extra cost. While this process is offered by the Registrar of companies at a cost, we do not charge you for this. The new name search process will need additional 3 – 6 working days.

The PBC is a lot cheaper to register as it is government’s attempt to formalize the informal sector. It’s also specifically designed for small to medium businesses hence the attempt to reduce the price to accommodate smaller businesses who cannot afford the higher costs of registering a PLC. Not only is a PBC cheaper to register, it’s also cheaper and easier to maintain. It has no annual returns and laws that govern it are pretty straight-forward.

A PBC allows for between 1 to 20 directors. That means you can have a minimum of just 1 director and a maximum of 20 directors.

Sole traders are registered as PBCs since a PBC allows for a minimum of 1 director/ member or shareholder. This means you can register a PBC and be the sole owner in it.

Definitely. A PBC can do pretty much anything that a PLC can do.

Unfortunately it cannot. Only individuals are allowed to be members or shareholders in a Private Business Corporation.

The answer no. It depends with the agreement of the once investing. A private limited can have on one shareholder with 100% onwership and the other are directors only without any ownership.

Taxation frequently asked questions

What is a tax clearance certificate

A Tax Clearance Certificate is a certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is satisfactory.

Purpose of a tax clearance

Tax clearances enhances business compliance profile as the taxpayer deals with other businesses.

Benefits of having a Tax Clearance Certificate

  • No 10% Withholding Tax is deducted when payments are made for goods and services supplied.
  • No Presumptive Tax will be levied on importations.
  • Tax clearance is required when bidding for tenders.
  • A Tax Clearance Certificate is a pre-requisite when applying for licences issued by local authorities.
  • Business counterparts have confidence in doing business with compliant taxpayers.

What is required to obtain a Tax Clearance Certificate?

  • Client should have registered with ZIMRA in terms of Section 42, of the Income Tax Act.
  • The client must furnish all statutory returns required to be submitted under all Acts administered by ZIMRA, or making satisfactory arrangements with ZIMRA for the furnishing of such returns.
  • The client must have paid the taxes due in terms of all the Acts administered by ZIMRA.
  • Clients with outstanding tax obligations must approach ZIMRA for approved arrangements before making the application.

For Public and Private companies

  • Copy of Certificate of Incorporation
  • Copy of Memorandum of Association
  • Copy of Articles of Association
  • Cr6 (formally Cr14)
  • Cr5 (formally Cr5)
  • Copy of Current Company Bank Statement
  • Copy of Current Bank Statement of a public officer
  • Certified Copy of Identity Document for each director
  • Proof of Residence for Directors eg water bill, electricity bill etc, attach affidavit if not in the name of the director
  • Proof of company operating address
  • Letter of Appointing Public Officer/Representative

For Indivials

  • Certified Copy of Identity Document
  • Copy of Current Bank Statement
  • Proof of Residence eg water bill, electricity bill etc, attach affidavit if not in the name of the applicant
  • Letter of Appointing Public Officer/Representative

List of requirements for VAT registration.

  • Must be registered with ZIMRA having a BP Number.
  • Sales Schedule from the time of commencement of trade to date.
  • Sales invoices from the time of commencement of trade to date showing customers name and telephone numbers OR confirmed and signed contracts.
  • Sales projections schedule for the next 12 months.
  • Current stamped bank statement.
  • Letter appointing public officer.
  • Valid lease agreement in the company name (if property is rented) or title deed (if property is owned)
Upon registration, every registered operator will be issued a letter confirming registration, VAT number and the VAT category.

All persons carrying out business in Zimbabwe are required by law to keep and maintain records of business transactions and proper books of accounts (in English), unless dispensation to the contrary has been granted by the courts or the Commissioner.
Books of accounts include the following:
  • ledgers,
  • cash-books,
  • journals,
  • paid cheques,
  • bank statements and deposit slips,
  • stock sheets,
  • invoices,
  • credit notes,
  • debit notes,
  • computer records,
  • bills of entry,
  • consignment notes, and
  • all other books of account relating to any trade.
The following sections of the Acts administered by the Zimbabwe Revenue Authority (ZIMRA) provide for this legal requirement:
  • Section 223 of the Customs and Excise Act [Chapter 23:02]
  • Section 37B of the Income Tax Act [Chapter 23:06]
  • Section 57 of the VAT Act [Chapter 23:12]
The above legal provisions require the following aspects to be observed:
  • That these records be kept for a minimum period of six (6) years
  • That they be open and available for inspection by a ZIMRA officer as may be required
  • That they be available for retrieval, in the original form or copied, by a ZIMRA officer as may be required.
  • That, where these records are kept on computer, the officer should have access to these records for inspection and/or retrieval from such computer or other computer related gadgets or media.
It should be stated that failure to keep records as required by the law constitutes an offence for which one may be penalised or even prosecuted.

Registered person is obliged to comply with the following requirements of the VAT Act:

  • Keep accounting records for at least six years after the tax period to which they relate.
  • Complete and submit VAT returns as per requirement.
  • Calculate and remit the VAT due to the Commissioner General of ZIMRA on or before the due date.
  • Issue fiscal tax invoices with effect from 1 January 2022, debit notes or credit notes.
  • Account for VAT if one sells or retains stock or assets.
  • Advise the Commissioner General of any changes in business details or when one ceases trade.

VAT Registration

There are 2 circumstances when a tax payer can register for VAT

1. Compulsory registration

With effect from 1 January 2022 a trader is liable to register for VAT if the value of taxable supplies exceeds or is expected to exceed ZWL7, 800,000.00 or US$60,000.00 within a period of 12 months. In cases where the operator has reached/exceeded a turnover of ZWL7, 800,000.00 or US$60,000.00 but failed to register, the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) may compulsorily register the operator. The operator would be required to pay the VAT due, interest and penalties on the computed debt. Failure to register for VAT constitutes an offence in terms of the VAT Act (Chapter 23:12).

2. Voluntary Registration
  • Subject to minimum turnover set by the Commissioner, conditions in the VAT Act
  • Who may be excluded from VAT registration?

    The following will not be obliged to register for VAT:

    • Traders who will be solely dealing in exempt supplies;
    • Any person conducting private or recreational pursuit or hobby;
    • Any service provided by an employee to his employer or small traders whose taxable turnover is below ZWL7,800,000.00 or US$60,000.00per annum

    NB:Only operators registered for Value Added Tax (VAT) may charge VAT on the supply of goods and services.

    Pay As You Earn -PAYE requirements includes the following:

    • Every business person who becomes an employer is required to apply to the Commissioner General for registration within 14 days of becoming an employer.
    • Calculation and deduction of PAYE in accordance with the tax deduction tables.
    • Remittance of PAYE to ZIMRA within 10 days after the end of the month during which the amount was withheld. Please note that with effect from 1st September 2010, the remittance of PAYE was moved from within 10 days after the end of the month during which the amount was withheld.
    • Keeping accounting records for a period of at least six (6) years.
    • Submission of the ITF 16 return which contains details on annual earnings, deductions, credits and PAYE for each employee within 30 days after the end of the year.
    • You will note that failure to withhold any amounts which you are required to withhold renders you liable to the amounts due as well as penalties and interest. Observing these basic requirements will assist you in running your business professionally and helps avoid the anxiety and stress associated with noncompliance and having to pay arrears, interest, fines and penalties.

    Accounting and bookkeeping frequently asked questions

    We have different rates for different services:

    Bookkeeping Services
    A fixed monthly fee is established for bookkeeping services. This eases your budget planning because you know exactly your monthly costs.
    Accounting and Business Consulting services
    Accounting services are invoiced at an hourly rate depends on the level of staff required.

    Financial reports can be prepared – monthly, quarterly, or annually.
    However, you enjoy the maximum benefits when your records are updated regularly. Many of our clients prefer receiving updated information each month and we highly recommend it to you.

    Absolutely. You can use our bookkeeping service. We will provide all necessary records and reports to your accountant. We are happy to answer any questions and assist your accountant to maximize the value of both our services and your accountant’s services. In fact, if you have a particular issue that we feel requires the advice of an expert, we will provide you a reference to a local professional and will work with them until the issue is properly resolved.

    Yes, no problem. For example, some of our clients invoice their customers by themselves. We will do whatever tasks are left. We can discuss with you an ideal solution to streamline the work.

    We will organize and summarize all of your receipts, invoices, bank statements, credit card statements, and anything else you might have that has piled up. No pre-sorting or organizing necessary!

    Not quite, but they do go hand in hand. Bookkeeping is responsible for the recording of financial transactions, whereas accounting is responsible for interpreting, classifying, analyzing, reporting, and summarizing financial data. Bookkeeping is very reactive, where you are recording transactions that have already happened. Accounting is more proactive, anticipating future financial needs and planning on how to meet them.

    Bookkeeping has a few important benefits to a small business. First and foremost, keeping your books up to date is essential in the event your business gets audited. It also allows you to analyze and plan based on your collected data, helps minimize accounting costs, and saves you time during tax season since you’ve done the work to keep your finances updated throughout the year.

    Accurate accounting serves as a baseline analysis for investors and lenders. It can help to provide a financial health report on your business for creditors, like banks, who might be providing you with a business loan. It can also help to guide your business and allows for accurate forecasting should you choose to grow and scale in the future.

    A Growth and Profitability advisor is a financial expert you hire to offer advice and help guide your business, especially if you’re looking to grow or scale. They can often help with bookkeeping and accounting services but go a step beyond that to truly partner with their clients and help them to gather and understand the holistic view of their organization. They can help clients to be more proactive instead of reactive which enables you to make projections for the future of your business and lessens the likelihood of any surprises.

    Web retaleted services frequently asked questions

    A domain name is a unique, easy-to-remember address used to access websites, such as 'lainac.co.zw'. This is what users type in a browser's search bar to directly access your website. A domain name is unique and cannot be shared between different sites.

    From a technical perspective there are no differences except in registration and nameserver update processes The only difference mainly is: Using a .co.zw domain localises your site in some respects, for example google will generally favour your site compared to a .com domain in zimbabwe, but outside zimbabwe it would likely favour the .com domain
    For a blog it wont make any massive difference having one or the other, the com will just be easier to manage and is more portable in future.

    Just to scare you, .com domains are controlled by USA, so if USA authorities sees something they doesnt like they can take it down without asking you. But if you have a .co.zw USA authorities have no power to do that, instead it will be th Zimbabwe government authorities which can take it down if they dont like it.

    In other words, the last letters reflect country of jurisdiction the domain resides and you should know rules which governs websites in those countries so that you dont fall fowl to the law.

    Web servers are critical elements of the internet, as every web site needs one in order to function. Essentially, web servers are computers that are responsible for transmitting data from a web site to the site visitor's computer. Without a web server your web site could not exist, because there would not be anywhere to store the data and send it to a visitors computer.

    There is a variety of web servers available on the market, with each one designed to accommodate a different range of client needs. If you want your site to perform optimally, then you will need a capable web server. Make sure you become familiar with web servers and their uses before you proceed with your online endeavors.

    SSL, or Secure Socket Layer, is a security protocol used to protect data as it is transmitted between devices on the Internet.

    SSL certificates indicate the presence of this technology being used by a website. Most online shoppers will not shop at your site unless you have an SSL certificate.

    SEO stands for search engine optimization, which is a very commonly used term in the web hosting industry. Search engine optimization is basically the practice of optimizing your web pages for higher search engine rankings. Being ranked highly for popular keywords in search engines is the best way to receive residual traffic with very little effort. Every web hosting account comes with tools that can help you tweak your search engine optimization efforts, such as traffic analysis tools and content management systems that simplify on-page SEO.

    A shared web hosting service is an agreement whereby each user gets a certain portion of total available resources. Multiple domains are hosted by the same server, which means that the server’s capabilities are split between multiple domains. This means that these websites will not experience as robust of performance as a website that has a dedicated server applying all of its resources solely to one website. If requests come in for multiple websites on the same server simultaneously, the server will only be able to transfer so much information at a single time. For low-bandwidth websites, the delays will often be unnoticeable, but for more burdensome websites, the delay can be significant.

    Regular maintenance is essential for a website to stabilize its flexibility and reliability. Proper maintenance would help in ensuring your website’s security, invite new visitors, boost traffic and more.

    Of course, we can help you out with proper and professional website maintenance in addition to development as it supports in achieving stabilized growth, keeping your business inclined.

    We like to work with all sorts and sizes of businesses and individuals, and we bring the same skills used to support our celebrity and big business clients to the work we do for smaller clients. We’re just as keen to work with small businesses as well as large ones, and as a local firm we’re ideally placed to understand the needs of growing organisations.

    We certainly can do! It’s important to approach website redesignssensitively to make sure your reasons for redesigning are valid. This will ensure the project is an overall success from your ROI point of view.