Most new company registrations in Zimbabwe are Private Limited Companies (PLC’s). This is the standard business structure for any company which has been registered with the intention to generate profit for the owners of the business. It is remarkably popular because it allows the sharing of profits amongst the shareholders whilst also offering restricted financial liability. The shareholders are only responsible for company debts up to the value of the shares they hold in the company. So their personal assets will be protected should the company encounter financial difficulties.
Private Business Corporation
The Private Business Corporation (PBC) is a less common but viable option to the Private Limited Company. It is mostly used by small businesses or home industries who want to regularise their business operations or those aiming to operate as consultants, contractors or partners such as lawyers and accounting firms. It protects the personal finances of the company owners in a similar way as a Private Limited Company. Instead of having shareholders and directors, it has members. The member’s financial liability is restricted to the amount of money they invest when forming the company.