When starting a business, one of your first tasks should be to open a business bank account. Keep your business banking separate from your personal banking. Generally, it’s not enough to just keep separate records. Keep the money physically separate in different accounts. Set one as a business checking account. Below is the procedure for opening a business bank account in Zimbabwe:
1. Register your company
Register your company with the registrar of companies. It is the process of getting legal approval to conduct business. Furthermore, it is a legal requirement that ensures that your business is operating under it’s lawful functions.
Usually, company registration portrays your business in a good way. It enhances your brand image. Customarily, legal papers make your business credible. In the same way, professionalism is key when dealing with entities likes banks. Banks require original company papers when verifying business credibility hence the importance of company registration.
2. Apply for a bank advice note
Apply for a bank advice note. According to Zimbabwean law you need to have a tax clearance certificate to open a company bank account. Since it’s not possible to get tax clearance without a bank account, the tax authority therefore makes a special authorization to the bank that allows for new companies to be able to open a business account without tax clearance. This is what is called a bank advice note or simply bank opening letter. The process requires your original company papers.
3. Common requirements needed by the bank
- Memorandum and articles of association (applicable to Private Limited Companies only).
- Certificate of incorporation (applicable to Private Limited Companies only).
- CR14 (applicable to Private Limited Companies only).
- CR6 (applicable to Private Limited Companies only).
- Incorporation statement (only applicable to Private Business Corporations).
- Directors’ ID’s and proof of residence in the form of a utility bill like water, phone or electricity bill.
- Passport size photos.
4. Pay the required initial deposit
Take all the above to the bank of your choice to begin the process and pay the initial deposit required by your bank.
Opening a company account in Zimbabwe is pretty straight-forward. This doesn’t mean that it’s easy though. Most Zimbabwean banks make this difficult even though it should be a simple process. Do you know someone who might benefit from this article? Share it with them. Let us know your thoughts in the comments below.