Differences between a PLC and PBC.
When forming a business in Zimbabwe it is vital to figure out what type of business you would want to incorporate under. You have to decide between a Private Limited Company (Pvt Ltd) or a Private Business Corporation. It is important to understand the differences between a Private Limited company (PLC) and Private Business corporation (PBC).
The table below carefully exploits the differences.
| Private Limited Company (PLC) | Private Business Corporation (PBC) |
| Mainly meant for medium to large businesses | Mainly meant for small to medium businesses |
| Only accommodates 2 or more people | Can accommodate sole traders |
| Has a legal persona of its own apart from its owners | Has a legal persona of its own apart from its owners |
| Has perpetual succession | Has perpetual succession |
| Can have a maximum of 50 directors | Can have a maximum of 20 directors |
| Shareholders are owners and can be different from the directors | Members are the same as shareholders or owners |
| Both companies and individuals can be shareholders in a PLC | Companies cannot be shareholders or hold a member’s interest in a PBC, only individuals can be members |
| Comprised of directors and shareholders | Comprised of members |
| Has a certificate, memorandum, articles, CR5 and CR6 | Has an incorporation statement and bylaws |
| Registered articles of association | Articles of association are not required |
| Annual returns are compulsory | Does not require annual return to be lodged |
| We have share capital | We have member’s contributions |
| Has an auditor | Has an accounting officer |
| Annual general meeting is required | Annual general meeting not required |
| Shareholders hold shares | Members hold member’s interest |
| Can acquire its own shares under certain circumstances | Can purchase a member’s interest |
| Directors are responsible for the day to day management of the company | Members are responsible for the day to day management of the PBC |
| Register of members is required | No register of members is required |
| Offers limited liability to its owners | Offers limited liability to its owners |
| Audited financial statements | No financial statements needed |
| Prohibition on a company to provide financial assistance for the acquisition of its own shares | No prohibition on a PBC to provide financial assistance for the acquisition of a member’s interest |
