Most SME’S are operating as unregistered. Some entrepreneurs think it’s expensive to register a company in Zimbabwe, however some do not know the types of companies in Zimbabwe that suit their needs.
There are 3 types of companies that you can register in Zimbabwe, that is a private limited company, a private business corporation and a cooperative. However, the best options for registration are a private limited company and a private business corporation.
This guide will explain the types of companies in Zimbabwe focusing on the private limited company and the private business corporation.
Private Limited Company
A private limited company is the most common company structure for entrepreneurs in Zimbabwe. It is preferred the most because it offers limited liability to the shareholders. This means that if a company incurs any debt, the shareholders are not liable to pay off the debts using their personal assets unless there has been some form of fraud or improper conduct.
The company’s rules and regulations are well-documented in the articles of association and therefore most companies and institutions find it easy doing business with a private limited company.
Private Business Corporation
A Private Business Company (PBC) has limited liability the same as a Private Limited Company. It can sue and be sued and is accepted by most institutions and organisations however it is not as popular as a Private Limited Company.
A PBC is liable for tax including income tax and value added tax (VAT) if it meets the minimum VAT threshold and can participate in government and private tenders just like a Private Limited Company.
See also: Private Business Corporation Packages
Our company registration service
If you wish to register your Private Limited Company or Private Business Corporation, Company Formations has the most comprehensive Private Limited Company Packages and Private Business Corporation Packages.
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