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Private Business Corporations

In Zimbabwe the law that governs the registration of Private Business Corporations (PBC) is, “The Private Business Corporations Act (for Private Business Corporation)”.

Requirements for company registration as a Private Business Corporations (PBC)

  1. 1 to 4 proposed names for your Private Business Corporation, these need to be submitted in order of preference. So you start with the name you want the most and then list the rest ending with the one you want the very least
  2. Easily generate millions of company names
  3. The type of business the PBC will be focused on. These are called the main objects of the PBC
  4. The full names and ID numbers of between 1 to 20 members. These will serve as the owners, shareholders, and directors of the Private Business Corporation
  5. Each member’s interest or stake or share in the PBC. The total interest of all the members combined must add up to 100%
  6. The physical and postal address of the business
  7. Date of financial year-end. This is the date when you close your financial accounts for your business
  8. Each member of the PBC must sign the Incorporation Statement before the Registrar affixes his seal, stamp and signature

Members of Private Business Corporations (PBC)

  1. The members of Private Business Corporations (PBC) are the registered “owners” and are listed as part of the registration process
  2. Any changes in respect of the members of the Private Business Corporations (PBC) must be notified to the Department of Companies & Intellectual Property (DCIP)
  3. Non-Zimbabweans may be members of a Private Business Corporation (PBC), provided that they have at least one Zimbabwean as a member
  4. A Private Business Corporation may have a minimum of one member and a maximum of 20 members. However, there are no limitations concerning the number of employees in a Private Business Corporation
  5. If a member of a Private Business Corporation (PBC) is under 21, the registration document must be signed by a parent or guardian on their behalf

Advantages of Private Business Corporation

  1. Easy and cheaper to establish and to operate
  2. The life of the Private Business Corporation is perpetual
  3. Members have limited liability
  4. Transfer of ownership is easy
  5. Fewer legal requirements than a private company
  6. No need for audits
  7. Allows one to register as a sole trader
  8. A Private Business Corporation does not pay annual returns at the Registrar of Companies
  9. It can employ an unlimited number of employees
  10. A PBC is not limited in terms of how much revenue it can make

Disadvantages of Private Business Corporation

  1. The number of members/ shareholders/ owners are limited to 20 natural persons
  2. Only individuals (i.e. natural persons) can be shareholders. This means you cannot have organizations as shareholders
  3. Not as popular as the Private Limited Company

Key Features of Private Business Corporations

  1. A Private Business Corporation (PBC) is a legal entity
  2. Audited financial statements are not required for Private Business Corporations
  3. Meetings are not compulsory and can be held on an ad hoc basis
  4. Private Business Corporations (PBCs) can become shareholders in other companies
  5. The shareholders or owners of a Private Business Corporation are called members
  6. All members may take part in the management of the Private Business Corporation
  7. The members/ shareholders/ owners of a PBC are not personally liable for the debts of a Private Business Corporation
  8. The legal procedures for the registration and administration of a Private Business Corporation are kept relatively simple