Private Business Corporation (PBC)

In the business world, Private Business Corporations are quite common with very small businesses, sole traders or individuals who operate in the business world. You may have even dealt with a few yourself without really noticing it. A private business corporation is usually set up by one person (sole trader) or between two or more mutually understanding people with and aim to pooling skills and resources to create a ‘for-profit’ business. Or to put it more simply, two or more people working together to make money.

1. A legal entity in its own right, a private limited company enables you to keep your company finances separate from your own personal finances.
2. Personal Liability Protection: Your personal assets are not put at risk should your business fail. Your liability as a shareholder is limited to the amount unpaid of the shares held by you.
3. Registering a company will add to your business creditability. This makes it easier to secure finance for your business with less personal risk.
4. Boosting customer confidence: You business will be perceived as more professional and reputable, so building trust with your customers and commercial partners.
5. Indefinite lifespan: Private limited companies do not cease trading if a director or shareholder dies.
6. Lower rate of tax liabilities: As a private limited company you can gain tax benefits.
7. Low cost way of protecting a business name.