Company Registration

Registrar of Companies

WHY SHOULD I REGISTER

1. To qualify for a company bank account
2. To be able to access financial loans and other SME facilities
3. To be able to qualify to apply for any formal tenders in the market
4. To set up sensible legal platform and formal business operations that aid in attracting investors
5. It is one step the ladder of growth of an SME

There are two ways of registering a company:

1. Private Business Corporation
2. Private Limited Companies

Private Business Corporation

What is a Private Business Corporation?

It is a body corporate formed by one or more natural persons, but not exceeding 20, formed for the lawful purpose of carrying on business with the object of acquisition of gain. It must be incorporated in terms of the Private Business Corporations Act(Chapter 24:11)

Requirements for PBC Registration

A name search must be done by way of PBC 1 form
An incorporation statement (Form PBC2) must be submitted in duplicate
Details of the Accounting Officer (can be provided by TIPS)
Pay the registration fee

PBC is more suitable for SMEs (Advantages)

1. PBCs are cheaper forms of registration & faster to process
2. Forms are straight forward and easy to complete
3. No extensive drafting of legal documents is necessary as is the case with companies
4. Less paperwork as the Incorporation statement serves also as the certificate of registration.
5. No further requirements ,except when there are major changes.PBC3 filled in

Post Incorporation requirements

1. No other burden of requirements is put upon the PBC once it has been incorporated
2. Except where major changes take place, such as changes in shareholding structure in which case a Form PBC 3 is filed.

Private Limited Company

A Company means a body corporate with one or more persons formed for the lawful purpose of carrying on business that has for its object the acquisition of gain by that association. It must be incorporated in terms of the Companies Act (Chapter 24:03) It is a body corporate formed by two or more natural persons, but not exceeding 50, formed for the lawful purpose of carrying on business with the object of acquisition of gain.

Requirements for Registration

A name search must be done by way of C.R.21 form. Where in seven proposed names are listed according to preference. Objectives are communicated to the Registrar of Companies. Physical and postal addresses of directors are also stated.
Pay the registration fee. The registered office should also be given.
Prepation of the Memorandum and Articles of Asssociation.CR 14 and CR 6 are submitted to the Registrar of Companies.

Advantages

1. Shareholders have Limited liability
2. There is sepation between owners and workers.
3. Greater potential to raise Capital
4. Easier transfer of ownership

Disadvantages

1. More paper work compared to the PBC
2. Expensive to start up and operate
3. Rigorous legal requirements