What is the difference between a PBC and a company?
Someone recently posted on LinkedIn asking why consultants charge so much for registering a company. The fees range from $250 to $700. Some accused consultants of being greedy and suggested that new entrepreneurs go and do the registration on their own.
Well, this is bad advice. Apart from taking time that you could use more usefully building your business, developing your products or finding customers, the Companies Act stipulates that only practicing legal practitioners, chartered accountants and chartered secretaries can draw up and sign company documents.
After investing years of studying to become professionally qualified, you cannot expect a consultant to work for peanuts.
If your pocket is not yet ready for a regular company, you can register a Private Business Corporation, which costs much less.
There is a misconception that PBC is unprofessional or rather a dubious entity. The fact is the PBC was born out of the Christie/Fairbairn Inquiry into Zimbabwe Company Law, Final Report, with the objective of creating a simplified legal framework for small business enterprises to avoid legal complexities associated with the Companies Act. It is the equivalent of the South African Closed corporation, which is not regarded any lowly down south.
Below is an analysis of the differences between a PBC and Private Company.
A Comparative Analysis of the Private Company and the Private Business Corporation as Tools of Wealth Management and Preservation
|Private Company||Private Business Corporation|
|Juristic Person||Juristic Person|
|Enjoys Perpetual Succession||Enjoys Perpetual Succession|
|Can Have A Maximum Of 50 Members||Can Have A Maximum Of 20 Members|
|Companies Can Be Shareholders||Companies Cannot Hold A Member’s Interest|
|Comprised Of Directors And Shareholders||Comprised Of Members|
|Has A Memorandum||Has A Founding Statement|
|Registered Articles Of Association||Articles Of Association Are Not Required|
|Compulsory Annual Return To Be Lodged||No Annual Return To Be Lodged|
|Has Share Capital||Has Member’s Contributions|
|Has An Auditor||Has An Accounting Officer|
|Convenes An Annual General Meeting||Annual General Meeting Not Required|
|Certificate Of Incorporation||Certificate Of Incorporation|
|Members Hold Shares||Members Hold Member’s Interest|
|Can Acquire Its Own Shares Under Certain Circumstances||Can Purchase A Member’s Interest|
|Directors Are Responsible For The Day To Day Management Of The Company||Members Are Responsible For The Day To Day Management Of The PBC|
|Register Of Members||No Register Of Members|
|Limited Liability||Limited Liability|
|Audited Financial Statements||No Financial Statements needed|
|Prohibition On A Company To Provide Financial Assistance For The Acquisition Of Its Own Shares||No Prohibition On A PBC To Provide Financial Assistance For The Acquisition Of A Member.|
For a detailed analysis of the PBC in comparison to a company, its advantages as well as its limitations and disadvantages, please go to http://smebusinessslink.com/ask-an-expert.
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NSSA contribution rates go up in June
The National Social Security Authority has announced in increase in contributions, which will also so benefits increased.
With effect from 1 June:
- The maximum insurable earnings (the maximum amount of monthly salary on which NSSA is levied) goes up from $200 to $700.
- The employer and employer contribution rates both go up from 3% to 3.5%.
This means, for example, if an employee earns $500, the NSSA contribution to be deducted from her salary is $17.50, with the employer contributing a similar amount. A salary of $900 will have 3.5% being contributed by both employee and employer on the maximum insurable salary of $700 that is each contributes $24.50.
JOIN US FOR A SPECIAL NETWORKING BREAKFAST AS WE CELEBRATE WITH WINNING ENTREPRENEURS ON FRIDAY 31 MAY, 2013 AS WELL AS LAUNCHING THE BUSINESSLINK MAGAZINE
ZNCC HARARE WINNING 2012 AWARDS WINNING ENTREPRENEURS WILL SHARE THEIR SECRETS TO SUCCESS AND SOME BUSINESS ADVICE AT THE BUSINESSLINK NETWORKING BREAKFAST MEETING.
We will also be launching the new BUSINESSLINK MONTHLY MAGAZINE filled with insights, resources and opportunities to accelerate your growth.
Venue: ZimCafe Hotel and Conference Centre, Cnr Fife Avenue and 2nd Street, Harare
Date: Friday 31 May, 2013
Time: 0815 to 0945
Fee: BusinessLink Gold and Platinum Club subscribers FREE!
Silver Club subscribers $10
BOOK by completing your details on the form at http://smebusinesslink.com or call Christine on 0772 854 301
You can also subscribe to the BusinessLink Premium Club of your choice at the same site.
BUSINESSLINK MAGAZINE NOW OUT
It is jam packed with business insights to help you build a successful, sustainable and profitable enterprise.
We feature inspiring stories of remarkable entrepreneurs in our Fired- Up Entrepreneurs section, to help ignite you passion and accelerate your growth.
We also give you advice on how to source funding for your business and how to write a funding proposal that gets results.
People management, Information Technology and marketing are fundamental to every business. All that is covered in the magazine. And lots more.
The magazine will be available to paid up Silver, Gold and Platinum Club members at the breakfast meeting on Friday 31 May.
If you want to join any of the Clubs, please go to http://smebusinesslink.com. Individual copies are priced at $5 each, so join the clubs and save 50%.
We are now accepting adverts for the July issue. Classifieds are only $10 for twenty words, other rates are available on request, email firstname.lastname@example.org or call Christine on0772 854 301.
We want to feature your businesses and your products or services. Please email your stories and photos to email@example.com.
SPECIAL JULY SUPPLEMENT ON SME CONSULTANCY SERVICES PROVIDERS.
If you provide consultancy servicers to SMEs, such as accounting, tax, IT, business systems, etc, showcase your services in this special supplement. Email your stories and photos to firstname.lastname@example.org before 14 June.
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Distributors wanted for BusinessLink Magazine in Mutare, Bulawayo, Masvingo, Gweru, Kwekwe, Victoria Falls, Kariba, Chinhoyi.
If you own a business and are interested in being our distribution partner, please send me an email request.
Simple Ways to motivate your employees
Many Managers struggle to keep their subordinates motivated and willing to work harder. Traditional methods rely on financial incentives which can be quite costly for the company. Below are a few simple ways to improve staff motivation without breaking the bank.
- Celebrate people: Celebrate birthdays, long service and any other events like the birth of a child for your employees. This will make them feel valued and appreciated.
- Celebrate good performance: Having employee of the week/month/ year initiatives as well as celebrating when employees exceed their target or there is a jump in profits helps by giving employees feedback about individual and overall company performance as well as recognising the role they played in it. You can compose a group email to all staff applauding a certain employee’s good performance. It is important to be specific when doing this so that the employee and his counterparts know exactly what action or behaviour led to the good results. This is a good way of enforcing positive reinforcement.
- Allow employees to air their views: Have regular staff meetings where employees are able to give suggestions, comments and ideas. This gives your employees a feeling of being heard and valued.
- Increase your employee’s level of responsibility: Give employees autonomy in doing their job and also increase job responsibility levels to improve motivation. For example, an employee in charge of research for articles may be assigned the responsibility of writing an article himself. This will motivate him/her to get the job done on time every time as there is a sense of recognition and a feeling that “the boss thinks I have the capability”. He/she will therefore try to live up to the expectations you have set for him.
- Offer support during hard times: When an employee is going through bereavement/hospitalization or a difficult personal time, taking the time to visit will make him/her feel loved and will increase his/her loyalty and performance levels. Sometimes, a small financial gift, a gift of flowers or a card can make a huge difference to your staff turnover levels.
For more information on the above or on any other HR related issue, please contact All About People HR Outsourcing Consultants at email@example.com or 0773 974 669
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Contact Admiral Business Systems
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