Depending on where an individual is starting their company, the rules vary, and need to be followed, adhering with the state or country. In Kenya, for instance, there are rules about the way a company is registered.
How do you register a company in Kenya?
When registering a company, it is ideal that it is done by a citizen of Kenya since the application needs their identification cards. However, foreigners planning on starting a company in Kenya
can do so using their Foreigner Certificate number instead. Additionally, at least one director should be Kenyan to access eCitizen and submit certain forms which cannot be done by people
who are not citizens of Kenya.
The company registration process begins by applying for an e citizen account online. This website is used by most since it assists with Government interactions. Some of the information
asked for when completing this registration process are Kenyan ID number (found on all government-issued identification documents), name, and working email address.
When registering a company, the type of service it will provide should be mentioned when submitting the business applications. Some of the company types are:
* Sole proprietorship
* Registered companies (public or private)
* Limited liability partnership
* A branch office of a foreign-registered company
* Business societies
Additionally, the applicant will have to select a name for their company and make a payment to register it. The other requirements for running a company, like the MOU and the AOA, have to be filed.
In some instances, this is handled with some legal assistance, but that depends on the directors. Furthermore, all the director’s details have to be mentioned on the forms, including their addresses.
After all the documents have been submitted, the website generates an e-business certificate, which sometimes takes a couple of hours. The certificate can be printed out through the e-Portal itself.
What does the VAT registration process look like?
Much like all companies, some rules and regulations have to be met, such as the tax requirements. VAT registrations are not mandatory, but after a company crosses a certain limit, it has to pay VAT.
Value Added Tax is charged on the supply of taxable goods or services made or provided in Kenya and coming into the country.
There are online portals to register for VAT, and these can be used by people, without having to go to an office. Since these aren’t individual taxes, the people going through them have to select the Non-individual version of the form.
Additionally, they will have to fill out an online form with the details of their taxation and their company.
The following details have to be provided:
* Basic information
* Details of Director and Associates
* Agent details
Furthermore, the following documents will have to be submitted as well.
* Proof of identity
* Proof of physical and postal address, with contact numbers
* PIN of business proprietors
* Business licenses
* Tax Agent PIN
After providing all this information, the tax will be processed, and the applicant will be told the amount to be paid.