Astanah
Cost of starting a business in Zambia

What it really costs to start a business in Zambia.

Tell us who you would employ and what you would run. We work out what you actually need to sell to survive: every wage, every statutory payment, every licence, and still a profit at the end. And how much you need in the bank before you start.

Most people starting out find the real number is higher than they expected. That is the point of this page: it is better to find out now than after you have quoted.

Step 1

What kind of business is it?

This decides which licences appear and sets a practical starting point. Change anything you like afterwards.

Step 2

Who will you employ?

Add a group for each level of pay. The wage floors below are the legal minimums set by the 2023 Orders, so the calculator will not let a group fall under one.

Pay group 1

Minimum K 2,313.10 a month gross, of which K 1,487.00 is basic pay. Gratuity is worked out on the basic.

Step 3

What do you want to keep?

Your profit margin is the share of every kwacha of sales you keep after every cost and tax. At 20 percent, K100 of sales leaves you K20.

%
Step 4

Money to start with

Wages, NAPSA and NHIMA fall due whether or not your customer has paid you, and paying late costs more than paying. So you need cash in hand from day one. How many months of running costs do you want to hold?

%

A first business with no trading history and no security may not be offered a facility at any rate. Treat this as the cost if you can get one.

Step 5

Licences and registrations

Pre-selected for your industry. Every amount is our published figure and every one is editable, because yours will differ by council and by grade.

PACRA annual return
Annual company filing
K
ours: K 273.51
Council business levy
Lowest published Lusaka band; verify locally
K
ours: K 167.00
Fire certificate
Medium-risk planning assumption
K
ours: K 1,222.50
NCC contractor registration
Grade 6 starting point
K
ours: K 690.00
ERB enterprise licence
Application plus minimum operation fee
K
ours: K 3,833.60
EIZ organisation membership
Class C3 annual fee and first registration
K
ours: K 1,500.00
ZPPA supplier registration
Bid fees excluded
K
ours: K 300.00
Data protection registration
Micro-organisation fee
K
ours: K 733.60
EIZ individual registrations
One Professional Engineer. A bigger technical team needs one each
K
ours: K 1,740.00

Did we miss a cost you pay?

Tell us and we will add it. We store the cost, not you: no name, no email, nothing that identifies a person.

K
Step 6

Running the place

K

Everything else you pay to keep going

Rent, internet, airtime, security, cleaning, insurance, accounting, tools, stock. This is your business, so add whatever it actually spends. Yearly and one-off costs are welcome too.

K

Where every figure comes from

Current means we checked it against the instrument itself. Verify means a secondary source or an unsettled assumption. Indicative means it varies by circumstance.

Turnover tax
0% through K30,000, then 5% through K5,000,000. Checked 30 Jul 2026.
Current
Minimum Alternative Tax
1% of turnover for income-tax businesses; turnover-tax taxpayers are excluded. Checked 30 Jul 2026.
Current
VAT registration threshold
K800,000. VAT registration does not itself end turnover-tax liability. Checked 30 Jul 2026.
Current
PAYE
0% to K5,100, then 20% to K7,100, 30% to K9,200 and 37% above. Charged on gross pay: NAPSA is not deducted first. Reproduces ZRA's published worked example exactly, K15,000 gross giving K3,176.00. Confirm against the Act with the filing accountant. Checked 18 Aug 2026.
Verify
NAPSA
National Pension Scheme contribution rules and 2026 ceiling notice
5% each for employer and employee; K37,236 monthly ceiling. Checked 29 Jul 2026.
Verify
NHIMA
National Health Insurance Act and NHIMA guidance
1% each for employer and employee; no ceiling modelled. Checked 29 Jul 2026.
Verify
Skills Development Levy
0.5% of gross payroll from K800,000 annual turnover. Checked 29 Jul 2026.
Current
Workers compensation
1.57% planning rate. The assessment is set by WCFCB against the industry risk class and is not published as a single rate; confirm yours with WCFCB. Checked 18 Aug 2026.
Indicative
Fixed-duration gratuity
25% of basic pay earned during the contract period. Checked 30 Jul 2026.
Current
General minimum wages
Seven primary-verified categories, effective 1 January 2024. Checked 30 Jul 2026.
Current
Domestic-worker minimum
K1,100 basic plus K200 transport; separate termination benefit applies. Checked 30 Jul 2026.
Current
Shop-worker minimum wages
Seven primary-verified categories, effective 1 January 2024. Checked 30 Jul 2026.
Current
Living-wage preset
JCTR Basic Needs and Nutrition Basket, Lusaka, June 2026
K12,112.88 monthly take-home benchmark. Checked 29 Jul 2026.
Verify
Electricity
ZESCO commercial tariffs, November 2025 to October 2027
Stepped rates of K0.66, K1.35, K2.19, and K3.16 per kWh. Checked 29 Jul 2026.
Current
Diesel
Energy Regulation Board pump-price notice, July 2026
K28.11 per litre. Checked 29 Jul 2026.
Current
Fleet
Model assumptions
K800 annual road tax per vehicle and 2.5% insurance benchmark. Checked 29 Jul 2026.
Verify
PACRA annual return
K273.51 annually for a private company. Confirm the fee-unit count against the schedule before relying on it. Checked 18 Aug 2026.
Verify
Council business levy
K167 lowest published band; district and premises can change it. Checked 29 Jul 2026.
Indicative
Fire certificate
Local-authority planning assumption
K1,222.50 medium-risk starting point. Checked 29 Jul 2026.
Indicative
NCC registration
K690 Grade 6 starting point. Checked 29 Jul 2026.
Verify
ERB enterprise licence
K3,833.60 planning total; current charge requires confirmation. Checked 29 Jul 2026.
Indicative
EIZ organisation membership
K1,500 annual plus K700 first registration. Checked 29 Jul 2026.
Verify
ZPPA supplier registration
K300 annual assumption; bid fees excluded. Checked 29 Jul 2026.
Verify
Data protection registration
Data Protection Act and published fee schedule
K733.60 micro-organisation assumption. Checked 29 Jul 2026.
Verify
EIZ individual registrations
Engineering Institution of Zambia 2024 individual subscription schedule
Professional Engineer K1,740 to renew, K2,530 to register first. Certified Technician K1,010, Full Technician K880, Full Craftsperson K640. 2026 rates not yet confirmed. Checked 29 Jul 2026.
Verify
ZEMA environmental licence
Environmental Management (Licensing) Regulations, SI No. 112 of 2013, Sixteenth Schedule
Licences run three years, so a third of the fee is shown. SI 112 does not say whether the fee is charged per activity or once per licence, which changes the answer by about three times. Checked 29 Jul 2026.
Verify