Key differences between a Private Limited Company (PLC) and a Private Business Corporation (PBC)

by | Dec 10, 2021 | Company Registration | 0 comments

Difference between a PLC and a PBC

The two most popular types of companies registered in Zimbabwe are a Private Limited Company (PLC) and a Private Business Corporation (PBC).

Differences between a Private Limited Company (PLC) and a Private Business Corporation (PBC)

Private Limited CompanyPrivate Business Corporation
Separate legal entity Separate legal entity
Perpetual successionPerpetual succession
Can have a maximum of 50 membersCan have a maximum of 20 members
Companies can be shareholdersCompanies can not hold members interest
Comprised Of Directors And ShareholdersComprised of members
Has a memorandum of associationsHas a founding statement
Registered articles of associationArticles of association are not required
Compulsory annual return required to be lodgedNo annual return to be lodged
Has share capitalHas members contributions
Has an auditorHas an accounting officer
Convenes an annual general meeting (AGM) and has to be declared with the Companies RegistryConvenes an annual general meeting and has to be declared with the Companies Registry
Has a certificate of incorporationHas a certificate of incorporation
Directors are responsible for the day to day running of the Private Limited CompanyMembers are responsible for the day to day running of the Private Business Corporation
Has a register of membersDoes not have a register of members
Has limited liabilityHas limited liability
Audited financial statementsNo financial statements needed

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