About Private Limited Companies
What you should know…
Private Companies popularly known as Private Limited Companies or PLC’s are the most popular companies registered in Zimbabwe. This company structure is popular as the company exists as a separate legal entity from the individual owner.
This means the owners have limited financial liability, so their personal finances are protected if the company encounters financial problems.
Limited liability is a major benefit over the sole trader structure whereby the sole trader is liable for business debt. This page provides all of the need-to-know information about private limited companies
Benefits of Private Limited Companies
- Limited financial liability – Shareholders’ personal finances are protected and they are only responsible for company debts up to the nominal value of their shares.
- Incorporated status will greatly improve your professional image and business profile. Private Limited Companies are often more appealing to prospective clients and investors, giving the impression of a well-organised, established, and reputable business.
- You can choose to sell shares in your company at any time to raise additional capital or grow the business.
- Another company can be a shareholder in a Private Limited Company.
- Ownership of a Private Limited Company can be passed on. As the company exists as a separate legal entity from the individual, the company can continue to exist even in the event of the owners’ death – unlike a sole proprietorship.
- When you register a company name, it is protected and cannot be used by any other company or PBC, nor can another company register a name that is the same as, or too similar to your own company name.
Registering Private Limited Companies
Incorporating a Private Limited Company in Zimbabwe with Companies Made Easy is incredibly simple.
Here is what you need to know about the process of setting up a Private Limited Company and some key points about maintaining your business after company formation:
- All Private Limited Companies must be legally registered with the Companies and Intellectual Property (former Deeds, Companies and Intellectual Property; DCIP), the official Registrar of Companies in Zimbabwe.
- You must have a unique company name to get approval from the Companies and Intellectual Property.
- You must have a physical, postal and email address – these are the official addresses of the company which will appear on your CR 5 (list of company addresses). The physical address must be a full physical address (not a P.O Box Number) and should be a Zimbabbwean address.
- You require a minimum of one shareholder and at least two directors to register a Private Limited Company. The same people can hold both positions.
- Business objectives must be included to describe the business activities that your company will engage in. You can provide as many as you want.
- On incorporation, the Deeds and Intellectual Property will issue a memorandum of association to state the business objectives, names of the first shareholders (known as the ‘subscribers’) and their intention to form the company and take at least one share. A CR 5 which lists the company addresses and a CR 6 which lists the company directors, secretary or principal officer. These will be prepared by Companies Made Easy.
- A governing document called the articles of association must be adopted during the company incorporation process – this outlines the rules and regulation of the company and its members and officers and this will also be prepared by Companies Made Easy.
Are you ready to register your PLC?
Frequently asked questions
What are the advantages of this type of company?
The most significant benefit of registering a Private Limited Company in Zimbabwe is limited liability for company shareholders. Their obligation to pay for business debts is restricted to the nominal value of their shares. This means their personal assets – property, car, finances etc. – are secure and cannot be used if the company becomes insolvent. Sole trader businesses do not have this benefit, and the owner is personally responsible for any business debts.
The other benefits of this type of business structure are enhanced professional status, and the ability to effectively plan your company’s finances to take advantage of any favourable tax rules
Who can own a Private Limited Company?
Any person or corporate body can own a Private Limited Company. The owners are known as ‘shareholders’, ‘members’ or ‘subscribers’ and they will appoint directors to run the day-to-day activities of the company. In many cases, the shareholders will also be directors in their company.
How many people are needed to register a Private Limited Company?
You must have at least one shareholder and atleast 2 directors but the same people can also hold both of these positions.
How do I register a Private Limited Company in Zimbabwe?
Companies Made Easy offers an easy company registration service – simply choose one of our Private Limited Company Packages that you need and complete our easy application form with details of your new company. We will prepare all the neccessary documantation and your company will be ready to trade in 7 – 9 working days.
What are the reporting and filing requirements do Private Limited Companies have?
Every Zimbabwean registered Private Limited Company is required to file an annual return and a declaration of annual general meeting to Companies Registry each year.
An annual return is a document containing details about your company at a certain date. This is used by the Companies Registry to confirm and maintain the accuracy of their records and the information that is displayed on public record.
Declaration of annual general meeting declares that a Private Limited Company has conducted its AGM as required by the Companies and Other Businesss Entities Act (Chapter 24:32).
You must also report any significant changes to your Private Limited Company to the Companies Registry.
Are you ready to register your company?
Companies Made Easy (Private) Limited. Registered in Zimbabwe at Pockets Building, 50 Jason Moyo, 2nd Floor, Suite 208 & 209, Harare, Zimbabwe.
Mobile: 0786 507 151
WhatsApp: 0786 507 151
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Companies Made Easy (Private) Limited is a licensed business consultant with the Deeds, Companies and Intellectual Property (DCIP) Zimbabwe's official Registrar of Companies which licenses company registration agents in Zimbabwe to carry on company regstration and/or corporate secretarial services with their office on behalf of clients.
Our DCIP license gives our customers confident that they are dealing with a reputable, qualified and regulated consultant.
Companies Made Easy is a member of ZACRA, the association of company registration agents in Zimbabwe with the purpose of encouraging high standards amongst agents and acting as an open forum for professionals working in the industry.
ZACRA is a recognised association for company registration and ZACRA works closely with government departments such as the Companies Registry.
Our ZACRA membership is an endorsement of the quality of service we provide and gives our customers the confidence that they are dealing with an agent they can trust.