IN PREVIOUS articles we have looked at the formation of businesses under which most of the small and medium businesses come to be.
Today, we want to look at another important aspect of the existence of the Small and Medium Enterprises (SMEs) by having a glance at how the businesses are registered with the Patents and Companies Registration Agency (PACRA).
The PACRA is a Government institution which is among other things mandated to register any business formation in the country.
PACRA which used to operate under the Patents and Registration Office (PACRO) has been established under the Act of Parliament number 15 of 2010.
Doing business in Zambia begins with PACRA in the sense that any formal business registration is only undertaken by PACRA.
Therefore, business entrepreneurs should get acquainted with the operations of PACRA for compliance purposes.
The business registration of a sole proprietorship, partnership and private limited company under which most small and medium businesses register their business undertakings is regulated by two pieces of legislation.
The first two forms of businesses are regulated by the Business Names Act number 16 of 2011, while the latter is regulated by Companies Act number 388 of the Laws of Zambia.
It is important to mention in passing here that, the Business Names Act number 16 of 2011 replaced the Business Names Act number 29 of 1939 CAP 389 of the Laws of Zambia which had been in force all that long.
However, the certificates issued under the old Act have been allowed to remain valid under the new Act whereas applications which remained pending before the commencement of this new law were dealt with in accordance with the provision of the new Act.
The Business Names Act number 16 of 2011 is responsible for the birth of the sole proprietorship and partnership.
These forms of business registration capture a large number of SMEs in the country because of ease of procedure of registration.
The registration of private companies limited by shares is regulated by CAP 388 of the Laws of Zambia which requires attention of legal procedures.
It is important when you enter business premises to ascertain what business registration is in force at that particular time because this will help you to know what kind of a business you are dealing with.
It is a legal requirement for each business to display the kind of the registration in force at that particular time.
It is important that now we look at the registration requirements of each business formation which I have already alluded to.
Sole proprietorship: To register a sole proprietorship, one needs to buy business name form number 111 which is a form designed for individuals registering businesses.
Under this category, we have groceries, butcheries, tailoring shops, stationery shop, hardware to mention but a few, hanging their business registration certificates in their premises.
Note that if one is operating a business without this form of registration, then that business is operating illegally.
On this form the applicant is required to fill in the following details:
–       The proposed business name( submit three choices)
–       The nature of a business
–       The location of a business
–       First and surname of applicant
–       The nationality
–       Age and sex
–       Date of commencement of business
–       Financial year end
Currently the registration form should be filled in duplicate and should be accompanied with a fee before being submitted to the registrar.
PARTNERSHIP: If two or more people want to form partnership and require registering a partnership business, they need to obtain a business name form 11 from PACRA at a fee.
On this form the same details that are required for form 111 for individuals need to be repeated except where individual’s name featured here need to be filled with names of partners in the business.
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