Business Formalization

Importance of formalization

  • To be eligible to open a company bank account
  • To be able to access financial loans and other SMEs service packages from the relevant financial institutions
  • To be able to qualify to apply for any formal Tenders in the Market


TIPS assist companies to register business ventures using the Companies and Other Business Entities Act (Chapter 24:31) which registers:


a) A Public Limited Company

b) A Private Limited Company

c) A company limited by guarantee

d) A Co-operative Company

e) A Foreign Company

f) A Private Business Corporation


Differences between Private limited Company and Private Business Corporation

There are basically 3 differences between a Private limited Company and Private Business Corporation.


Private limited Company

Registered by 2-50 directors

The sky is the limit to the lines of business one can venture


Private Business Corporation

Registered by 1-20 directors

Easy and cheap to start up

Less paper work


Private (Limited) Company


Cr 2

CR 5


Cr 6

Basic Purpose

Name Search

Location of the company in particular Physical and postal address

Of the registered company address

List of Directors, Their ID numbers, nationality, physical and

postal address

Certificate of Incorporation Confirm of Registration
Memorandum of Association Line of business
Articles of Association Share Capital and internal affairs of the company


There must be between 2-50 directors and a company secretary should also be appointed


Company secretary – he/she will also be a director and will sign on the CR5, CR6, and Memorandum & Articles of Association.

Other director/s – Must sign against his/her name in the Memorandum & Articles of Association


Private Business Corporation


Cr 2

CR 28

Basic Purpose

Name Search

Registration of PBC



A certificate of Incorporation with attached information on;

  • Address
  • Line of business
  • Director/s’ details – Full Name, ID Number
  • Capital contribution and percentage ownership for each director



There must be between 1-20 members



Each member must sign against his/her name.

Accounting Officer

TIPS will appoint an accounting officer (listed and approved by the Registrar of Companies) for the purposes of registration only. Afterwards the company is allowed to engage any accounting officer they prefer