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To register a company in Malawi, firstly, you register a business name.
There many business ideas to start in Malawi. When you identify a business idea to start in Malawi the next thing to do before you launch your business is to register a business name. Register a company in Malawi to make your business formally recognized.
If you want to know steps required to register a company in Malawi read on as I will show you the steps to follow. If you are doing business in Malawi your business it is either you have an informal business or a formal business.
In Malawi 79% formal business started their operations without being registered (Enterprise survey Malawi, 2009). The statistics clearly show that majority of businesses are informal, they are unregistered businesses.
In theory, doing business informally in Malawi affects a firm’s ability to source finances and access markets (World Bank). Therefore, congratulations for deciding to learn on how to register your business in Malawi. You are unique!.
Malawi online business registration
Malawi online business registration is the easiest way to register a business in Malawi online. In the past registration of a company was being done offline. To register a business online in Malawi, sign up on the Malawi registrar website. Once signed follow the rules to get your company registered.
Offline company registration requires that you download or get a copy of the Malawi business registration forms at the registrar general office and complete the form by filling in the details. Malawi online business registration is expected to increase the number of registered businesses in Malawi.
Online business registration is user-friendly, quick, and simple yet secured. There are many business opportunities to start in Malawi. If you have the best business idea to start business in Malawi there are many benefits of registering your business. As such before we look at the steps required to register a business let’s look into benefits of formalizing your business.
Benefits of registering a company in Malawi
You will get the Business registration certificate (BRC).
Be able to open a business bank account.
Acquire land for your business.
Qualify to apply to government assistance programs.
Acquire export license to export goods to other countries from Malawi.
Access business loans from lending institutions like banks.
Business registration helps the government to know that a business or company exists.
See also 20 Small Business Ideas To Start in Malawi
Disadvantages of informal business
While doing business in Malawi formally has many benefits, but there are several problems that come when doing informal business in Malawi. Some of the challenges are on the list below: The tendency to combine household and business resources negatively affects business efficiency and often results in depletion of capital resources.
Informal businesses typically grow more slowly There is poor access to business credit or loans. In informal sector there are fewer employees. As most informal business owners tend are self-employed and do not take advantage of leverage in terms of labour and technology.
That is all about advantages and disadvantages of registering a business in Malawi.
Now here are the steps to follow in registering a business in Malawi.
Reserve a company name. Business name has to be unique. Malawi company search takes place at the registrar general’s office to see if your chosen company name is available for registration.
Apply for a certificate of incorporation Register for income tax with the Malawi Revenue Authority (MRA) Obtain the company seal. This may a take up to one waiting week.
Obtain license from the city assembly. You can get the license from Blantyre, Lilongwe, or Mzuzu city assemblies. Obtain registration of the workplace from the occupational safety, health, and welfare department. Officials will come to inspect workplace. Once you meet the minimum requirements you will get the certificate or be advised on areas to improve if you haven’t satisfied the needs.
Register for pay as you earn (PAYE) and fringe benefit tax with Malawi Revenue Authority (MRA)
Requirements for Formation of a company in Malawi
According to Malawi companies’ act 2013; people can register private or public company if they meet certain requirements. To register a private company in Malawi there has to be a minimum of two persons associated for any lawful purpose.
Association two or more people can either be intellectual property or sharing capital. Registering a public company requires a minimum of seven people (Malawi companies’ acct, 2013).
Some of the required information to register a company in Malawi
Find a company name Name(s) of company owner Nationality of company owner Number of employees Post office and physical address Share capital Contacts i.e. phone numbers, and email address You may also read Top 10 Causes of Death in Malawi
5 Keys areas to build a successful small business in Malawi
Identify (create) a burning need/problem in the society.
Any successful business exists to solve a problem within the environment.
Create a product or service that solves the problem you find
A business is about provision of unique physical/digital products or services to the target customers. Success in business requires that people should have the willingness to pay you in exchange for the products or services you offer.
Make a simple business plan
A business plan is the blue print of your small business. Your product or service has first to succeed on the paper before it has to succeed on the ground. Write a business plan to guide you through the life of the business. There are also simple business plan templates that you can download and change them.
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Register your business
You can register your business through the Malawi online business registration is the new way of registering a business online.