About Private Business Corporations

About Private Business Corporations

What is a Private Business Corporation

A Private Business Corporation is an alternative company structure to a Private Limited Company that is registered with the Companies Registry – the Registrar of Companies in Zimbabwe – through the process of incorporation. When a Private Business Corporation is registered through the Companies Registry, it becomes an individual in the eyes of the law. As such, a Private Business Corporation is a completely separate entity from its owners, because it is responsible for its own actions, finances and liabilities.

Who owns a Private Private Business Corporation?

A Private Business Corporation is owned by one or more members (shareholders). One person can be the sole shareholder and director of the company, or multiple people can be shareholders and/or directors of the Private Business Corporation company. This means you can register a Private Business Corporation on your own.

Private Business Corporations members are required to provide capital to the business. This determines how much of the company each shareholder owns.

Private Business Corporations must pay income tax on all taxable income. Post-tax profits are then issued to shareholders in relation to the number and value of their shares. Alternatively, the company may choose to reinvest surplus income in the business.

Key features and benefits

• Can be owned and managed by one person or multiple people.
• Personal liability of shareholders is limited to the value of their shares.
• Company enjoys limited status which is more appealing to clients, investors and lenders.
• A tax-efficient way to run a profit-making business.
• Shareholders can keep all company profits for their personal use.

The legal requirements

• Can be owned and managed by one person or multiple people.
• Personal liability of shareholders is limited to the value of their shares.
• Company enjoys limited status which is more appealing to clients, investors and lenders.
• Company can sell shares to raise capital.
• A tax-efficient way to run a profit-making business.
• Shareholders can keep all company profits for their personal use.