Do you plan to register a company in Zimbabwe and wonder how your company would be quick to be registered? Perhaps you’re only looking at the PBC and want to learn more. You may ask in particular, “What are the benefits of a private enterprise (PBC)?”The purpose of this article is to assist you.
Zimbabwean legislation has two provisions for enterprise or company registration. Private Limited Company (PLC) is the first and most popular type of company incorporation. Private Business Corporation is the second and least known (although increasingly popular) type of registering.
There are certain benefits and disadvantages to a private corporation. We call them benefits or disadvantages, but depending on your specific conditions may not necessarily be benefits or disadvantages. So they’re more characteristics in that situation.
Benefits of a Private Business Corporation(PBC)
- Found and work easier and cheaper.
- In terms of how much income can be made, a PBC is not restricted.
- Can hire an infinite amount of staff.
- Annual returns are not paid by a private corporation to the Company Registrar
- No auditing neede
- Fewer regulations than private enterprise demands.
The disadvantages of a Private Business Corporation(PBC)
- There are only 20 natural persons in the number of employees and shareholders/owners.
- Shareholders can only be individuals (i.e. natural persons). You can therefore not have as shareholders organizations.
Private Business Corporation Members (PBC)
- Members of PBC are registered proprietors and they are listed in the registration process. PBC members are registered owners.
- The Department of Companies and Intellectual Property (DCIP) must be informed of any modifications in regard to the members of the Private Business Corporations (PBC).
- The members of a PBC may not be Zimbabweans, provided they have at least one Zimbabwean as a member.
- A private company may have at least one member and at least 20 employees. However, the amount of staff in a private corporation is not restricted.
- When a member is under 21, a registration document must be signed on their behalf by a parent or guardian.
A PBC may later become a private company.
- Yes. Yes, yes. For instance, a private corporation could have grown significantly, and an extra capital injection by shareholders could be envisaged in order to grow further.
- Or, in the eyes of its market/customers, the PBC can compete with major businesses (PLCs) and think that they also need to become PLCs that “even playfield.” They, therefore, opt into a licensed business to transform their PBC.
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