• Easy and cheaper to establish and to operate.
• The life of the Private Business Corporation is perpetual.
• Members have limited liability.
• Transfer of ownership is easy.
• Fewer legal requirements than a private company.
• No need for audits.
• Allows one to register as a sole trader.
• A Private Business Corporation does not pay annual returns at the Registrar of Companies. No longer applicable under the new Act, PBCs now pay an annual fee.
• Can employ an unlimited number of employees.
• A PBC is not limited in terms of how much revenue it can make.

• The number of members/ shareholders/ owners are limited to 20 natural persons.
• Only individuals (i.e. natural persons) can be shareholders. This means you cannot have organisations as shareholders.
• Not as popular as the Private Limited Company.
• Not accepted everywhere, some organisations and tenders do not accept PBCs.

• A Private Business Corporation (PBC) is a legal entity.
• Audited financial statements are not required for Private Business Corporations.
• Meetings are not compulsory and can be held on an ad hoc basis.
• Private Business Corporations (PBCs) can become shareholders in other companies.
• The shareholders or owners of a Private Business Corporation are called members.
• All members may take part in the management of the Private Business Corporation.
• The members/ shareholders/ owners of a PBC are not personally liable for the debts of a Private Business Corporation.
• The legal procedures for the registration and administration of a Private Business Corporation are kept relatively simple.

• Yes. For example, a Private Business Corporation may have grown substantially and in order to expand even further, an injection of additional capital by way of shareholders may be envisaged.
• Or, the PBC may find itself competing with large companies (PLCs) and believe that they too should become a PLC to “even the playing field” in the eyes of their market / customers. Accordingly, they decide to convert their PBC to a registered company.

PBC By-laws are the governing rules by which a Private Business Corporation operates. When a PBC is registered, the first act of the members must be to create the by-laws, which is a document encompassing all the rules

• The members of Private Business Corporations (PBC) are the registered “owners” and are listed as part of the registration process.
• Any changes in respect of the members of the Private Business Corporations (PBC) must be notified to the Department of Companies & Intellectual Property (DCIP).
• Non Zimbabweans may be members of a Private Business Corporation (PBC), provided that they have at least one Zimbabwean as a member.
• A Private Business Corporation may have a minimum of one member and a maximum of 20 members. However there are no limitations in respect of the number of employees in a Private Business Corporation.
• If a member of a Private Business Corporation (PBC) is under 21, the registration document must be signed by a parent or guardian on their behalf.
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