Business Registrations & Secretarial services
We assist individuals in registering their business we don’t only end on company registration but we go a step further in assisting out business to registry also under various statutory organisations that govern certain industries that our operate or would like to operate in. To date Netvest consultancy has registered several business The other services we offer include amendments of company documents and filing of annual returns
Corporate registration
A company has limited liability and it can sue and be sued in its own name. If the business’ assets are attached over debt this will not affect the owners’ personal assets
When you do business as an individual, your business dies with you. Registering a business ensures the continuity of your business beyond just you as a person.
Competing in business as an individual is not easy. The only way to level the playing field is to be a registered company. That way you can effectively compete with the big guys.
Both government and commercial tenders require company papers as one of the conditions for participation. That means only registered companies are able to get tenders.
Types of companies recognised in Zimbabwe
There are two types of companies recognised in Zimbabwe namely:
- Private Business Corporation
Private Limited Company (PVT) LTD
Private Business Corporations
- A Private Business Corporation (PBC) is a legal entity.
- Its documentation includes a certificate of incorporation and a incorporation statement (CR28)
- 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
Private Limited Company
- A Private Limited Company (PLC) is a legal entity.
- Key Documentation includes Certificate of Incorporation, Memorandum and Articles of Association, CR6 (directors particulars) and CR5 (registered address)
- Audited financial statements are required for Private Limited Companies.
- Meetings are compulsory and are held as general or extraordinary general meetings.
- Private Limited Companies (PLCs) can become shareholders in other companies.
- The shareholders or owners of a Private Limited Company are called members.
- The members/ owners or shareholders of a PLC are not personally liable for the debts of a Private Limited Company
Pros & Cons
Private Business Corporation
Pros
- 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.
- Can employ an unlimited number of employees.
- A PBC is not limited in terms of how much revenue it can make.
Cons
- 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.
Private Limited Company
Pros
- A Private Limited Company allows another company or organisation to own shares in the business.
- The Private Limited Company is the most popular form of business incorporation in Zimbabwe.
- A Private Limited Company makes it easy to separate between members/ owners or shareholders and directors/ employees.
- The members/ owners or shareholders have limited liability.
- Transfer of ownership is easy.
- A Private Limited Company can employ an unlimited number of employees.
- A Private Limited Company is not limited in terms of how much revenue it can make.
Cons
- A Private Limited Company can be de-registered by the Registrar of Companies if it does not submit annual returns for more than 2 years.
- Has slightly more legal requirements than a PBC.
- A Private Limited Company pays annual returns at the Registrar of Companies.
- A Private Limited Company is slightly more expensive to register and run.
Company secretarial services
When business are registered they are amendments that are sometimes needed to be done on later dates that ensure the smooth running of your business for example change in directors, increase in share capital, change of registered address, at netvest we facilitate these amendments and the following is company secretarial work that we do
- Conversion of private limited to a pbc cr15
- Conversion of pbc to private limited CR31
- Increase of company shares CR10
- Replacement of lost documents CR4
- Change of address CR5
- Change of directors CR6
- Special Resolution CR8
- Conversion, consolidation and split of share capital CR9
- Return of allotments CR!!
- Memorandum and Articles of Association Alteration CR34