About Private Limited Companies
What you need to 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
Who can be the owner of a Private Limited Company?
A PLC can be owned by any individual person or any recognised body.
What is the number of people 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.
What is the process of registering a Private Limited Company in Zimbabwe?
Companies Made Easy offers an easy company registration service – start by choosing any one of our Private Limited Company Packages that suit your budget and complete our easy application form (online or at our offices). We will prepare all the neccessary documantation and your company will be ready to trade in 5-7 working days.
What are the mandatory annual reporting and filing requirements for a Private Limited Company?
Every Zimbabwean registered Private Limited Company is supposed to prepare and file an annual return (fourth schedule) and a declaration of annual general meeting to the Companies Registry every year.
An annual return is
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).
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.
Tele: (0242) 753 168
Mobile: 0786 507 151
WhatsApp: 0786 507 151
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Closed on all public holidays but available on Mobile and WhatsApp 24/7.
Company Number: 19879/2021
Copyright 2022 © Companies Made Easy (Private) Limited, a Numeri Secretarial Services (Private) Limited company.
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.