One of the key steps of starting your own business is formalizing your business. Company registration will open up the doors to new opportunities for your business. These include the ability to apply for tenders as well as to participate in government programs. It is also a way of protecting your personal assets if things do not go well.
You can therefore register your company as a private business corporation or a private limited company.
There are many companies and consultants who offer company registration services, but as you are starting your business, the funds might be inadequate. This article will discuss in detail, how to register a Private business corporation. Thanks to technology some aspects of company registration such as the name search can now be done online in Zimbabwe. You will still need to submit the PBC 2 form however and I'll cover all that in detail.
WHAT IS A PRIVATE BUSINESS CORPORATION (PBC)
A private business corporation is a legal entity with limited liability and is used for the purposes of carrying out business activities.
It is the cheapest form of business to register in Zimbabwe and it is gaining popularity due to the simplicity and ease of setting up.
The main difference between a private business corporation and a private limited company is that a PBC can be owned by one individual and this number can go up to 20, whereas a private limited company needs at least two directors and can have as many owners.
ADVANTAGES OF REGISTERING A PBC
Registering a PBC comes with the following benefits:
• A PBC has limited liability, which means that as the owner, your personal belongings are protected in the event of the business going into bankruptcy.
• Less paperwork- for example you are only supposed to submit your annual returns to the registrar within 12 months
• Can be owned by one person, so you don't have to add people just for the sake of meeting a quota.
• A PBC is recognized as a legal entity and thus it enjoys benefits such as the ability to open a business bank account, participate in tenders and more.
• Due to its simplicity, decisions can be made much faster if you register as a PBC. You do not have to run around looking for the directors' signatures or board resolutions if you are the sole owner
• It is cheap and easy to register
STEP 1: HOW TO DO A COMPANY NAME SEARCH
The first step in registering a private business corporation is doing the company name search. This is done online via the government's e-services portal. 1. To get started, visit http://zimeservices.pfms.gov.zw
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| The Zim E-services portal home screen |
You will be required to sign up or log in, depending on whether you are a new user or not. If you do not already have an account, you will need to create one.
2. After you've created your account, navigate to “Companies and Deeds” under the “government services online” menu.
3. Next click “request a company name search”
That will take you to the following screen.
Click new payments. That will take you to the following screen.
Click 'Make payment now!' That will take you to the PayNow portal. If you're not logged in, use the anonymous email and login. If you are just login using your credentials. That will take you to the following screen.
4. Make your payment. This costs about US$5.00 or the local equivalent (currently about RTGS250.00) but remember to make provisions for transaction charges depending on the method of payment that you will be using. Also note that you can pay using all three mobile payment platforms.
5. After making your payment navigate back to the Companies and deeds section and the click request a name search. [Refer to step 2 and 3.] Your screen should now indicate that you have 1 available name search as shown below.
6. This time, click 'Start search'
7. Enter your First name, last name, national ID, designation (e.g. Founder, Accountant etc.) and your province in the form shown below. Click 'Next' when you're done.
8. Choose your preferred company names in order of preference. Start with your first choice and follow up with other acceptable alternatives. Avoid choosing names just for the sake of it... you might end up being stuck with an undesirable name.
Write your justification for the chosen name. This is a simple reason why you have chosen that name.
Before proceeding you can check availability of the names. Despite how unique it might seem to you, that desired name might already be taken. So this helps to confirm the availability of that name.
In the screenshot above, the preferred names 'might be available' so I can proceed. I will have to redo everything from step 5... but this time instead of checking availability, I will submit my form.
9. After I have submitted my name, I will be taken to the following screen. I will be given a reference number, and this is now the reference number that I will use when following up on my name search at the Registrar of deeds' office.
Here's a video tutorial I created on how to do a company name search.
STEP 2: FILL IN A PBC 2 FORM
After your name has been approved and reserved, you can then fill in a PBC2 form. The PBC2 form looks like the one in the image below.
You can download a free Microsoft word version of the PBC form in the Free tools section. The PBC2 form looks like the one in the image below.
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| Page 1 of the PBC2 form |
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| This is the second page of the PBC 2 form |
TIPS FOR FILLING IN THE PBC2 FORM
• Try filling in all sections of the form electronically. Only leave the signatures. I filled in my forms in my own handwriting and I didn't like it. Remember, this form has to be displayed publicly and it looks better when typed.
• Write what your business will do under Main objects e.g. To create and sell digital movies.
• If you have no postal address you can use your home address.
• On page 2, the value of member contribution is virtually your capital. So you can use an estimate of the labour you've put in. If you haven't started, ask yourself this: How much would you pay yourself for the process of registering? The preparation and planning? Creating prototypes? The pile of raw materials you've purchased? Use that amount... no one will come after you.
• If you only added yourself or have left the other fields on page 2 blank, then remember to cross out the blank spaces as shown on the image above.
STEP 3. GETTING AN ACCOUNTING OFFICER
Your company will need an accounting officer to help you complete the company registration process. There are some individuals who have presented their credentials to the Registrar's office. I once tried using my own details so don't go that same route, unless you are registered with them. An accounting officer will add their name to your PBC2 form as well as their qualification and signature. They charge anything from about $10 up to even $100.
If you need to be linked up with a reputable and affordable Accounting officer, just talk to me... I know a guy 😉 Just download the Asaqè Business Pro app on Google Play and search for Likhwa:
STEP 4. SUBMITTING YOUR FORM
Once your form has been filled in, you can then submit it to the Registrar of companies' office. You will be required to pay about US$20.
Once your form has been submitted it will take a few days for them to stamp it and give you a company number.
That's it... and you're all set.
but before you go... you might also want to read this guide on everything you need to know when starting a business.
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