Definitions: What does PBC or PLC mean?
PBC stands for Private Business Corporation and PLC stands for Private Limited Company.
Should i register a PBC or a PLC?
- A PBC (Private Business Corporation) is meant mainly for small operations. It is good for those who have a limited budget or specifically want something small.
- A PLC (Private Limited Company) accommodates all sizes of businesses from small to large enterprises.
- In a PBC the shareholders are also the directors. If you want the shareholders to be different from the directors then you should choose the PLC.
- A PBC is also ideal if you want to be a sole trader.
- Some types of businesses cannot register as a PBC e.g. a pharmacy or a micro-finance company since the requirements of the MCAZ or the RBZ don’t accommodate a PBC.
- A PBC only has a certificate of incorporation and does not include CR6, CR14 or Memorandum & Articles of Association. If you want these then you should register as a PLC.
- If your budget permits choose the PLC as it is more popular and therefore more recognized by almost everyone. The PBC may pose a challenge if you deal with third parties who are not familiar with it. If you are on a strict budget you can start with the PBC and upgrade it later when funds permit.
How much does a PBC or a PLC cost?
You can always find our latest prices by visiting our Order Page
What paperwork do i get after registration?
In a PBC you get what is called a Certificate & Statement of Incorporation. This document specifies the name, address, directors/owners and objects of the PBC. PBC Bylaws are an optional document in a PBC and are equivalent to the Articles of Association in a PLC.
In a PLC you get a Certificate of Incorporation, CR6 (specifies the address of the business), CR14 (specifies the directors of the company) and the Memorandum and Articles of Association (documents that specify the objects of the company, who the shareholders are and govern the relationship of the shareholders in the company).
What happens if my names are rejected by the Registrar?
If your list of names is not available for registration, you will need to supply us with a new list of names at no extra cost. While this process is offered by the Registrar of companies at a cost, we do not charge you for this. The new name search process will need additional 3 – 6 working days.
How come i have never heard of the PBC?
The PBC has been around for quite a while. The PBC Act dates back to 1993. The reason why its not very popular is partly because of plain ignorance of it’s existence and also because most consultants generally don’t market it.
Why is the PBC cheaper to register?
The PBC is a lot cheaper to register as it is government’s attempt to formalize the informal sector. It’s also specifically designed for small to medium businesses hence the attempt to reduce the price to accommodate smaller businesses who cannot afford the higher costs of registering a PLC. Not only is a PBC cheaper to register, it’s also cheaper and easier to maintain. It has no annual returns and laws that govern it are pretty straight-forward.
How many directors can a PBC have?
A PBC allows for between 1 to 20 directors. That means you can have a minimum of just 1 director and a maximum of 20 directors.
How do i register as a sole trader?
Sole traders are registered as PBCs since a PBC allows for a minimum of 1 director/ member or shareholder. This means you can register a PBC and be the sole owner in it.
Where can i download the PBC Act?
Can a PBC register for tax and get a tax clearance certificate?
Yes it can! In fact, a PBC can do pretty much anything a PLC can do. A PBC can register for tax purposes with ZIMRA, apply for a tax clearance certificate and VAT registration.
Can i open a bank account with a PBC?
Definitely! The PBC is as much a binding and legal document as the PLC. After all, it’s called a Private Business CORPORATION. On top of that it’s established by a national act of Parliament (i don’t know of any wise bank that wants to fight against the government under which it operates). It’s also important to note that both the PBC and the PLC are registered by the same government office (the Department of Companies & Intellectual Property).
What if i want to change my PBC to a PLC?
That is possible. In fact, you can convert a PBC to a PLC and a PLC to a PBC. You do so without the need to change your company name, except for the PBC or Pvt Ltd at the end.
Can a PBC apply for tenders?
Definitely. A PBC can do pretty much anything that a PLC can do.
I have another company i own, can it own shares in my PBC?
Unfortunately it cannot. Only individuals are allowed to be members or shareholders in a Private Business Corporation.