Advantages of registering your company as a Private Limited Company (PLC)

Types of Private Limited Companies
The Companies and Other Business Entities Act (Chapter 24:31) allows for the registration of 5 different types of companies namely:
• Private companies (the most common type).
• Public companies (those listed on the Zimbabwe Stock exchange).
• Companies limited by guarantee (mostly used for Non-Profit companies, this form of company does not have shares).
• Co-operative companies (formed with the purpose of providing service to its members).
• Foreign companies (mostly used for a company registered outside Zimbabwe that wants to trade in Zimbabwe)
A PLC can be converted to a Private Business Corporation.
Possible scenarios where this might be desirable could be:
• A Private Limited Company may desire the simple regulatory requirements of a PBC
• A Private Limited Company may no longer want to pay annual returns.
• A Private Limited Company may now want to trade as a sole trader.
Members of a Private Limited Company (PLC)
• The members of a Private Limited Company (PLC) are the registered owners or shareholders of the company and are listed in the Memorandum and Articles of Association.
• Any changes in respect of the members of the Private Limited Company (PLC) must be notified to the Department of Companies & Intellectual Property (DCIP).
• Non Zimbabweans may be members of a Private Limited Company (PLC), provided that they have at least one director who is resident in Zimbabwe.
• A Private Limited Company can have a minimum of one (1) member and a maximum of fifty (50) members. However there are no limitations in respect of the number of employees in a Private Limited Company.
• If a member of a Private Limited Company (PLC) is under 18, the registration document must be signed by a parent or guardian on their behalf.
Directors of a Private Limited Company (PLC)
• The directors of a Private Limited Company (PLC) are different from the members/ owners or shareholders of the company and are listed on the CR5 (formerlly called CR6).
• The minimum required number of directors for a Private Limited Company is two (2).