When registering a company in Zimbabwe the first step is to figure out what type of company you would want to incorporate. You have to decide between a Private Limited Company (Pvt Ltd) or a Private Business Corporation. It is important to understand the differences between a PBC (Private Business Corporation) and a Private Limited Company (Pvt Ltd) and the table below provides some information in this regard. Please note that we strongly advise you to seek professional assistance before making your decision. Our business consultants look forward to assisting you in this regard. Simply contact us.
Comparison table.
| Private Business Corporation | Private Limited Company |
| Mainly meant for small to medium businesses | Mainly meant for medium to large businesses |
| Can accommodate sole traders | Only accommodates 2 or more people |
| Has a legal persona of its own apart from its owners | Has a legal persona of its own apart from its owners |
| Has perpetual succession | Has perpetual succession |
| Can have a maximum of 20 directors | Can have a maximum of 50 directors |
| Members are the same as shareholders or owners | Shareholders are owners and can be different from the directors |
| Companies cannot be shareholders or hold a member’s interest in a PBC, only individuals can be members | Both companies and individuals can be shareholders in a PLC |
| Comprised of members | Comprised of directors and shareholders |
| After official registration it acquires a Certificate of Incorporation and a CR28 | After official registration it acquires a Certificate of Incorporation, Articles of Association, Memorandum of Association, CR6 (Previously known as a CR14) , CR5 (Previously known as a CR6) |
| Articles of association are not required | Registered Articles of association |
| Annual Returns are compulsory | Annual returns are compulsory |
| Has member’s contributions | Has share capital |
| Has an accounting officer | Has an auditor |
| Annual general meeting not required | Annual general meeting is required |
| Members hold member’s interest | Shareholders hold shares |
| Can purchase a member’s interest | Can acquire its own shares under certain circumstances |
| Members are responsible for the day to day management of the PBC | Directors are responsible for the day to day management of the company |
| No register of members is required | Register of members is required |
| Offers limited liability to its owners | Offers limited liability to its owners |
| No financial statements needed | Audited financial statements |
| No prohibition on a PBC to provide financial assistance for the acquisition of a member’s interest | Prohibition on a company to provide financial assistance for the acquisition of its own shares |
Contact us today to register your company.
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