ZIMBABWE

(c) RESTRICTION

In Zimbabwe companies are able to offer similar advantages to investors to those offered by corporate bodies throughout the business world. Generally a shareholders liability is restricted to the amount outstanding upon his shares while shareholding can be freely transferred without affecting the continuity of the business

A foreign owned company in Zimbabwe has exactly the same rights as a locally owned company except for transactions that require exchange control approvals. (See section Foreign Investment in Zimbabwe).

Types of Enterprise

• Public Company - the equivalent to a joint stock corporation in other countries and able to offer shares to the general public with no limit to the number of shareholders participating. Legally required to have annual audited accounts and annual financial statements lodged with the Registrar of Companies;

 
• Private Company - this is the equivalent to a private limited liability company in other countries and may not invite the general public to subscribe to shares. Restricted to a maximum number of shareholders ,and not required to submit financial statements to the Registrar;

• Sole Proprietorship - a business undertaken by one person in his/her own right with no legal formalities required to effect formation, and with unlimited liability;

 
• Private Business Corporation - comprised of small scale entrepreneurs not more than twenty in number in partnership with others or through the medium of ia company;

 
• Partnership - regulated by the principles of Roman Dutch law comprised of individuals or companies, usually restricted to a maximum of twenty with each partner liable for all debts and obligations incurred.

 
• Cooperative Society - normally restricted to agriculturally based business or manufacturing and regulated through an act of Parliament.

Zimbabwe welcomes foreign investment and offers immense opportunities in various sectors. The economy has been liberalized and deregulated.

The ongoing trade liberalization programme has eliminated import licensing restrictions with the exception of a very limited range of non-commercially traded goods, making foreign currency readily available through the banking system and the exchange rate now determined by the market.

Legal protection for investors is provided through:

• Zimbabwe's constitution that guarantees the right to private property and prohibits expropriation of private property without adequate compensation.

 
• Various multilateral and bilateral protection agreements and treaties.

• The Zimbabwe Investment Act of 1992 and the Export Processing Zones Act of 1996 both of which provide for protection from compulsory acquisition of property or interest of a licensed investor to whom an investment licence has been issued in terms of either Act.