Doing Business in the United Kingdom VS Zambia – A Comparison
When considering business expansion, the United Kingdom and Zambia present distinct opportunities and challenges. The UK offers a mature, transparent, and digitally streamlined environment with access to global markets. In contrast, Zambia, a landlocked country in Southern Africa, provides a growing market with abundant natural resources, particularly in mining and agriculture, and is actively seeking foreign investment to diversify its economy.
This article outlines the main differences between both destinations to help you determine which location aligns better with your business goals.
The United Kingdom: The UK provides political stability, transparent governance, and access to business finance support. It’s a trusted jurisdiction for long-term investment.
Zambia: Zambia is implementing economic reforms to attract foreign investment, focusing on improving its business environment, infrastructure, and regulatory frameworks. However, challenges such as electricity shortages and bureaucratic hurdles remain.
Taxation
The United Kingdom: Corporate tax is set at 25%. Businesses enjoy R&D relief and SME support, making it an attractive option for starting a business in the United Kingdom.
Zambia: The standard corporate income tax (CIT) rate is 30%. However, specific sectors have different rates: 35% for telecommunications, 10% for farming and agro-processing, and 15% for public-private partnership projects in the first five years.
Zambia: Company registration involves several steps, including name clearance, submission of incorporation documents to the Patents and Companies Registration Agency (PACRA), and tax registration with the Zambia Revenue Authority (ZRA). The process can take several weeks.
Cost of Living and Business Operations
The United Kingdom: While the UK can be costly in cities like London, regional areas allow for affordable company setup and living.
Zambia: Zambia offers lower operational costs, including labor and office space. However, businesses may face challenges such as inconsistent electricity supply and limited infrastructure in certain regions.
Access to Markets
The United Kingdom: The UK is globally connected through trade agreements and acts as a hub to Europe, Asia, and North America.
Zambia: Zambia’s membership in regional blocs like the Southern African Development Community (SADC) and the Common Market for Eastern and Southern Africa (COMESA) provides access to regional markets. However, being landlocked, it relies on neighboring countries’ infrastructure for international trade.
Quick Comparison Overview
Here’s a quick overview of the key differences for easy reference.
When it comes to starting a business in the United Kingdom, navigating the legal and administrative processes can be complex without the right support. That’s where 3E Accounting comes in. As a trusted partner for company incorporation, we provide tailored solutions for entrepreneurs and investors looking to establish a strong business presence. Whether you need help with company registration or expert guidance on setting up businesses in the UK, our experienced team ensures a smooth and efficient process.
The UK provides strong legal infrastructure and business finance support, making it ideal for long-term investment. Zambia is improving but still faces infrastructure and governance challenges.
Zambia has lower labor and office costs, but frequent power outages and infrastructure issues add indirect costs. The UK allows efficient company setup in lower-cost regions.
You can contact 3E Accounting for full support with UK company registration, taxation, and compliance.
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.