16/09/2021
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Did you know
It is Easier To Raise Capital
As a registered company in Zimbabwe, its easier to raise capital than when not registered. Whether its through loans, angel investors or any other capital raising initiative such as the selling of shares.
This is because institutions such as banks or NGO’s who support businesses or investors prefer to deal with registered companies because they know that there is a formal structure to accept their investment.
Advantages of registering a acompany : Supplier arrangements Supplier Arrangements
Your business, when registered as a company qualifies to receive discounts from suppliers that are not normally offered to businesses that are not registered.
Suppliers commonly reserve wholesale rates for business owners who can show official paperwork.
In addition, if a business plans to bid for government tenders, a registered company, depending on the type of company required by the tender, is one of the major requirements.
Advantages of registering a company : Low tax liability Low Tax Liability
Depending on how much revenue the business generates, a registered company pays less tax than a sole trader arrangement.
In Zimbabwe, current tax rates for companies and small to medium enterprises (SME’s) is lower than the highest tax rate for an individual.
Sole traders pay taxes on the additional income received from the business but are however not able to take advantage of tax deductions that are available to registered companies incurred in running the company.
These expenses include but are not limited to transport expenses, internet expenses, stationary expenses, rent and rates, etc.
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