When you register a business in Zimbabwe, the first big decision is the type of entity. Most small and medium businesses choose between a Private Limited Company (Pvt Ltd) and a Private Business Corporation (PBC). Both are registered with the Registrar of Companies under the Companies and Other Business Entities Act [Chapter 24:31], but they suit different businesses.

Private Limited Company (Pvt Ltd)

A Pvt Ltd is run by a board of directors and owned by shareholders. Ownership is divided into shares, which makes it straightforward to bring in investors or partners later.

  • Best for: businesses that plan to grow, raise capital, bid for larger tenders or work with corporate clients who expect a "(Pvt) Ltd".
  • Consider: more formal governance, such as board resolutions, a company secretary and registers to maintain.

Private Business Corporation (PBC)

A PBC has between 1 and 20 members and no board of directors. Members run the business together, usually guided by an agreement between them. The name must end in "PBC".

  • Best for: sole owners, family businesses, consultants and professional practices that want limited liability without the paperwork of a company.
  • Consider: less suited to bringing in outside investors, and the 20-member limit.

Quick comparison

  • Governance: Pvt Ltd has a board; a PBC is managed by its members.
  • Owners: Pvt Ltd has shareholders; a PBC has 1 to 20 members.
  • Running it: a PBC is simpler and usually cheaper to register and maintain.
  • Growth: a Pvt Ltd makes it easier to add investors and scale.

The registration steps

  1. Name search and reservation: choose two or three possible names.
  2. Company documents: the CR5 (addresses), the CR6 (directors and secretary) and, for a Pvt Ltd, the Memorandum and Articles of Association.
  3. Certificate of incorporation: issued by the Registrar once everything is approved.

After you register

Registration is only the start. You should register with ZIMRA on the TaRMS portal within 30 days of starting to trade, register with NSSA if you employ staff, open a business bank account, and get your ITF263 tax clearance so clients pay you in full.

Still not sure?

Tell us about your business and plans, and we'll recommend the right structure and handle the whole registration for you in Harare.