17,000 companies comply with new share capital Act

The Patents and Companies Registration Agency (PACRA) says about 17 000 companies in the country have complied with the changing of the share capital between 2014 to date .

PACRA says this represents a 45 percent compliance level.

PACRA Public Relations Officer Vaida Njojvu confirmed this in an interview with ZANIS in Ndola today at the on-going 51st Zambia International Trade Fair whose theme is “Prosperity through Business Reforms and Linkages.

The 2015 ZITF will be officially opened tomorrow by Republican President Edgar Lungu and his Kenyan counterpart Uhuru Kenyatta who has since arrived in the country.

Ms. Njojvu said about 14 000 businesses have registered with PACRA between January and June 2015 and that they include general dealers, entrepreneurs and other businesses.

She attributed the positive response from people to register their businesses to the fact that  they (PACRA) are as close to the people as possible.

She explained that in August 2015, PACRA will go online with a view of reducing the cost of doing business with its clients as businesses will be able to register and filing in of post returns such as the filing of annual returns.

She further explained that this is one way PACRA is reforming its linkages and that this helps serve the businesses time to go to PACRA offices as they will be able to do business at the click of a button.

She said doing so would assist businesses to be self-sustaining as the reforms will be a mechanism of modernizing the way of doing business.

She explained that share capital is the authorized nominal capital that the promoters of a company intend to infuse into its operations and that it denotes the maximum amount that can be subscribed for in a company and is divided into shares of a given value.

Ms. Njojvu said Statutory Instrument No. 53 of 2014 prescribed the minimum share capital for different categories which indicate that a Private company’s minimum capital being ten thousand Kwacha (K10, 000) while a Public company is One million (K1, 000, 000).

Ms. Njojvu added that the minimum nominal capital for a Bureau de change is Two Hundred and Fifty thousand Kwacha (K250, 000), for a Financial Institution its Five hundred thousand Kwacha (K500, 000) while Local and Foreign banks its One hundred and four Million Kwacha (K104, 000, 000) and Five hundred and twenty million kwacha (K520, 000, 000) respectively.

She said for an Insurance Broker the minimum nominal capital is Five hundred and twenty thousand Kwacha (K520, 000) and an Insurance company its One million Kwacha (K1, 000, 000) while a Re-insurance company is at Five million Kwacha (K5, 000, 000).

By law, all companies that were incorporated before the statutory minimum capital was revised and are required to comply, failure to which constitutes an offence under the Act.

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