Register your business in Zimbabwe as a PBC (Private Business Corporation) or PLC (Private Limited Company). We have assisted thousands of local and foreign investors to register companies in Zimbabwe.
Overview
When registering a business in Zimbabwe the first step is to figure out the type of company that is suitable for your line of trading. 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: We strongly advice you to seek professional assistance before making your decision. Our business consultants look forward to assisting you.
Table with differences
| 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 |
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