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    14Feb, 2023
    COMPANY LIMITED BY GUARANTEE

    Did you know that you can register a Company Limited by Guarantee in place of an Association?

    A CLG is an alternative type of corporation used primarily for non-profit organizations that require legal personality.

    A CLG does not have a share capital.

    The liability of its members is limited by the company’s articles to the amount that the members undertake, to contribute towards the debts of the company in the event of its winding up.

    Its certificate of incorporation states that it is a company limited by guarantee.

    Various associations for charitable causes and not for profit (for example, clubs, and associatio may be incorporated in many forms including as a company limited by guarantee.

    The profits realized is not distributed to the shareholders as in the case of a private company limited by shares but is rather re-invested for the good of the business.

    We offer registration services for a company limited by guarantee.

    We also offer other registration services namely:

    • Registration of Sole Proprietorships
    • Registration of Partnerships
    • Registration of Private Limited Companies
    • Registration of  Societies( Associations,Welfares,Foundations,Alumni groups etc)
    You can reach us on 0768-050-866
     or
    Email us on info@jamiicapital.co.ke
    Contact us
    19Jan, 2023
    REQUIREMENTS FOR REGISTRATION OF SOCIETIES IN KENYA

    Registration of societies which includes:Association,Welfare,Foundations,Alumni,churches etc, requires a number of  things to complete its registration.

    What are some of the requirements?

    • A maximum of three names in order of preference.
    • A letter explaining the meaning of names incase they are provided in vernacular language.
    • Three objectives of the society that you intend to register.
    • Officials details:-ID,Phone Numbers,KRA PIN,Postal  Addresses ,Passport  Photos (WITH A WHITE BACKGROUND) and Signatures (SIGNED ON A PLAIN PAPER SEPERATELY)
    • Members details same as those of the officials apart from the signatures.

    THE REGISTRATION PROCESS FOR SOCIETIES SHOULD TAKE UPTO A MAXIMUM OF 120 DAYS TO BE APPROVED DEPENDING WITH THE NATURE OBJECTIVES OF THE SOCIETY, THERE ARE THOSE THAT MUST UNDERGO VETTING PROCESS LIKE RELIGIOUS SOCIETIES AND FOUNDATIONS.

    Contact us and help you achieve the dream of starting a welfare,association,foundation etc.

    CONTACT US
    18Jan, 2023
    REGISTRATION OF SOCIETIES IN KENYA

    WHAT IS A SOCIETY?

     A society is a grouping of individuals, which is characterized by common interest and may have distinctive culture and institutions.

    Societies in Kenya include; charitable societies, private member clubs, churches, welfare societies, political parties etc. They must be registered under the Societies Act (Cap 108) for them to be functional. Under section 8, the Registrar of Societies in Kenya is appointed and this includes the assistant and deputy registrar.

    WHICH ARE THE DIFFERENT TYPES OF SOCIETIES THAT CAN BE REGISTERED IN KENYA?

    1.WELFARE

    Its a type of  society formed by group of individuals aimed at offering programs that provide aid eg. Financial aid to themselves or to those who cannot support themselves.

    A welfare can be formed for instance in work places to help a staff incase of sicknesses or demise, relatives can form a welfare for the same purpose,or also supporting individuals in a certain location who cannot support themselves.

    2.ASSOCIATION.

    A type of society formed by a group of people for a particular purpose or objectives as permitted by the Societies Act Cap 108

     

    3.FOUNDATION

    A society set up for solely charitable purposes and relies on its members contributions to support its activities.

    Can also be defined as a charitable trust that makes grants to organizations, institutions, or individuals for charitable purposes such as science,education,culture and religion.

     

    4.ALUMNI

    The word Alumni means graduates or former students of a particular school,college, or university.

    Therefore an ALUMNI society is a siciety formed by a group of persons who have either attended or graduated as students or pupils of a school, college, university or institution. 

    The alumni then can decide to start a society to probably give back to the institution they were in eg by planting trees,building modern classes,buying sanitary pads to girls of that school etc.

    5.RELIGIOUS

    A society formed by a group of persons who relate to, or devoted to certain similar religious beliefs or observance.

    6.PROFESSIONAL.

    A society formed by a group of persons who are competent or skilled in a particular activity that requires a certain level of education, skill, training, standard of competency, knowledge, or education that must be demonstrated often in the form of a credential as well as adhering to codes of conduct and ethical standards.

    7.RECREATIONAL CLUB

    A society formed by a group of persons for social and recreational purposes and offering a facility that has all with the related facilities eg. golf club- houses, swimming pool clubhouse, tennis clubhouse etc.

    NB: 

    • SOCIETIES REGISTERED UNDER THE SOCIETIES ACT IN KENYA SHALL BE NON-POLITICAL AND NON-PROFIT MAKING.
    • NAME SEARCH ANS REGISTRATION PROCESS WILL TAKE A MAXIMUM OF 120 DAYS UPON SUBMISSION AND PAYMENT.

     

    Jamii Capital is ready to offer you registration service for any kind of society you and your colleagues or family may want to start.

    Click here
    11Jan, 2023
    INCOME TAX IN KENYA

    INCOME TAX.

    Income tax is tax charged for each year of income for income from persons ,resident or non-resident income which is accrued or derived in Kenya.

    Income Tax is imposed on incomes from:

    • Employment
    • Rent
    • Business from any trade or profession.
    • Digital marketplace
    • Dividend and Interests.
    • Pension among others.

     

    METHODS OF COLLECTING INCOME TAX.

    Income tax is categorized as a direct tax  in Kenya.

    Income Tax is collected using various methods depending on the sources of income.

     

    • CORPORATION TAX

    This is a type of Income Tax that is levied on corporate bodies such as Limited companies, Trusts, and Co-operatives, on income derived on a given year of income.

     

    NB:Companies based outside Kenya but operate within Kenya,also pay corporation tax on income accrued in Kenya only.

    •  PAY AS YOU EARN(PAYE ) TAX

    PAYE tax  is tax chargeable at source to persons with monthly employment income of Kshs. 24,000 and above.

    This is directly deducted by employers from employees salaries depending on the prevailing tax rates and  directly remitted to the KRA on or before 9th of the following month.

    • WITHHOLDING TAX(WHT)

    WHT is deducted at source from the following sources of income:

    • Interest
    • Dividends
    • Royalties
    • Management or professional fees (including consultancy, agency or contractual fees)
    • Commissions
    • Pensions
    • Rent received by non-residents
    • Other payments specified
    •  
    • Advance Tax

      This is a tax paid in advance before a public service vehicle or a commercial vehicle goes for the annual inspection.

       

    •  Installment Tax

      Installment tax is paid by persons who have tax payable for any year that amounts to Kshs. 40,000 and above.

    Jamii Capital Limited is here to sort and fulfill your needs of filing taxes.

    CONTACT US
    12Dec, 2022
    TYPES OF BUSINESS ENTITIES THAT CAN BE REGISTERED IN KENYA

    When starting a business in Kenya, there are many forms the business can take depending with various factors be it nature of business,the ownership structure etc.

    Different businesses will fit in various forms of entities and to help you come up with a sound decision of what form of business you want to register, we have discussed the various forms of entities that can be registered in Kenya.

    SOLE PROPRIETORSHIP

    A Sole Proprietorship is the simplest form of business that one can open and operate.

    It is owned by one person who is liable for its debts and solely enjoys the profits and suffers losses of the business.

    Thus a business name is not a legal entity and therefore it is not separate from its owner.

    In Kenya Sole Proprietorships are registered under the registration of Business names Act.

    NB:

    The business name takes the owners KRA Pin and thus the owner declares his/her  taxes using his/her pin.

    PARTNERSHIPS

    Unlike a Sole Proprietorship, a Partnership is owned by  two or more persons to a maximum of up to twenty who come together with the sole purpose of carrying on business  and sharing profits according to the agreed ratios in the partnership deed.

    In Kenya Partnerships are registered under the registration of Business names Act.

    NB:

    A Partnership has its own seperate KRA Pin for the purposes of filling tax returns but its not subject to any corporate tax.The profit /loss realised is then declared by the partners individually according to the profit sharing ratios agreed.

    LIMITED LIABILITY PARTNERSHIPS (LLP)

    These are unique forms of business associations which combine the features/elements of a company with those of a partnership.

    The number of partners is not restricted.

    LLP has limited liability where partners in the LLP are  not personally liable directly or indirectly for obligations in the partnership, however individuals are liable for their own wrongful acts or omissions.

    The LLP can enter into contracts in its own name, can own property in its own name and can sue or be sued in its own name.

    NB:

    An LLP is not subject to Corporate Tax and therefore partnership income is taxed in the hands of the individual partners and not at the firm level.Partners are deemed self-employed and hence each partner declares their profit and pay tax on their share of profit. 

     

    PRIVATE LIMITED COMPANY

    Also known as a limited liability company.

    A Private Limited Company requires a minimum of  one director/shareholder of any nationality and who can be living outside Kenya.

    A private limited company  has share capital,its a seperate legal entity and the liability of members is limited to the  amount, if any, unpaid on the shares respectively held by them.

    A private  limited company is subject to corporate tax and therefore  has its own KRA Pin for the purposes of filling tax returns and the director(s) declare their tax returns using their personal KRA Pins.

    COMPANY LIMITED BY GUARANTEE (CLG)

    A CLG is an alternative type of corporation used primarily for non-profit organizations that require legal personality.

    A CLG does not have a share capital.

    The liability of its members is limited by the company’s articles to the amount that the members undertake, to contribute towards the debts of the company in the event of its winding up.

    Its certificate of incorporation states that it is a company limited by guarantee.

    Various associations for charitable causes and not for profit (for example, clubs, and associatio may be incorporated in many forms including as a company limited by guarantee.

    The profits realised is not distributed to the shareholders as in the case of a private company limited by shares butis rather re-invested for the good of the business.

    FOREIGN COMPANY

    Its a type of company registered outside Kenya but has a branch/has established a place of business in Kenya.

    12Dec, 2022
    REASONS WHY THE PREFERRED NAME FOR YOUR BUSINESS MAY NOT BE RESERVED FOR REGISTRATION AT THE COMPANY REGISTRY.

    Every business operates under a unique name which gives it a unique identity.

    Probably you’ve you may have experienced a situation where your most preferred name was rejected during registration of your business and you did not understand why.

    Discussed below are some of the reasons why the submitted name may  be rejected for registration:

    • Its similar to a name appearing in the company’s registry.
    • Close phonetic resemblance to a business already registered either a company,business name,partnership or limited liability partnership.
    • Similarity with the name of a body corporate or established under a written law.
    • The registrar believes on reasonable grounds that the name is offensive or undesirable or it could offend members of a particular community or ethnic or racial group.
    • It differs from the name an already registered company,business name,limited liability partnership or partnership, by only addition of a name of a place,or locality within Kenya.
    • Similarity or close resemblance with a name already reserved by the registrar for use in connection with a proposed company,business name,limited liability partnership or partnership.
    • Similarity or close resemblance with a company,limited liability partnership that has been dissolved or struck off the register of companies or register of limited liability partnerships,or the entry of a business in the register of business names or partnerships has been ceased.

     

     

    We offer you registration services at  affordable charges and with a short timing.

    GET SERVICE
    26Oct, 2022
    OUTSOURCING ACCOUNTING AND BOOK KEEPING SERVICES IN KENYA

    Many small businesses, start-ups, and entrepreneurs find it challenging to hire a full time accountant especially with the right skills to prepare their company’s financial statements and to keep the accounting department streamedlined right from the start

     

    Accounting and bookkeeping can be done inside the business yes,but its important  to ask yourself whether your team has the necessary skills and experience to do this job even in future when the business will have so many transactions.

    Due to this fact, you might consider outsourcing accounting services to a company that has the right knowledge and qualifications and also a company that can do the same job more qualitatively and cost-effectively.

    Discussed below are some major benefits of outsourcing book keeping and accounting services:

    1. Saves you the cost of maintaining a fully functional accounting department.

    Outsourcing means that you do not need to have an accounting department.

    This  saves you money that otherwise could have been used the salaries, taxes, office supplies and benefits for the full-time or part-time employee.

    You only pay for what you need.

    1. Saves you the time and cost of hiring process

    Recruiting is such a rigorous process that involves creating a recruitment strategy,advertising,selection, interviewing,induction which may also take time for the employees to learn.

    Instead of all this, you can just choose to outsourse the accounting services.

    1. Increases efficiency of operations.

    Having an outsourced accounting and book keeping function makes you concentrate more on the growth of your business which eventually brings you more revenue.

    1. Expertise services.

    The outsourced company is purely experienced in that specific service that you seek from them and you are therefore guaranteed on quality services.

    1. You are guaranteed of business compliance.

    Accounting firms are always informed of the current trends and any changes in regulations and they will always ensure that your business is in the right track to any changes in for example;tax rates.

    1. Confidentiality

    Outsourcing ensures that the sensitive information of the business is not known in-house by the staff .

     

    When You Should Consider Outsourcing Your Accounting And Bookkeeping

    • If your business is a start up and you want advise on accounting operations
    • You want timely financial advise
    • You’re looking for tax-saving opportunities
    • You’re looking to reduce audit headaches

     

    Conclusion

    Outsourcing professional and experienced accounting services brings forth very many benefits and its upon the business owner to make considerations on the kind of accounting system you need, the expertise, the data security and the costing.

     

    JAMII CAPITAL LTD  is a reliable accounting service provider to small and medium-sized businesses.

    Try us today and we shall streamline your accounting system.

    Call / text / whatsapp us on 0768-050-866

     

    20Oct, 2022
    CONVERSION OF BUSINESS NAME TO A LIMITED COMPANY IN KENYA.

    Most start-ups   in Kenya are mostly registered as  business names (either a sole proprietorship or a partnership).

    After a certain period of time, need arises say diversification which requires the owners to a limited company for the same business.

    You need not start from scratch again but only need to convert that business name to a limited company, which enables you to enjoy the following advantages over a business name:

    • Separate legal entity

    The company is separate from its owners and the companies assets are also separate from the owners.

    • Perpetual succession.

    A company will always be in existence unless  would up even upon death of the directors unlike a sole proprietorship/partnership where the death of the owners may be the end of that business.

    • Sole directorship

    Many entrepreneurs seek to register sole proprietorships so as to enjoy the priviledge of being the sole decision making.

    Even upon converting the same remains since after the enactment of the Companies Act 2015, a company with one director is duly constituted to carry on business.

    The Procedure Of Conversion.

    • Linking a business if the business was registered under the manual system and not yet on boarded to the online system.
    • Apply for the ‘Cessation to Convert’ where you attach the prescribed documents eg the BN2(CERTIFICATE OF REGISTRATION)
    • Upon approval of cessation a certificate of cessation to convert is issued
    • The process of registering the ceases business name as a company commences.(It is similar to the normal company registration only that no submission of names will be made).
    CONTACT US FOR THE SERVICE
    20Oct, 2022
    BUSINESS CESSATIONS/ DEREGISTRATION OF BUSINESSES IN KENYA

    This normally occurs when a business cease its
    operations/business.

    The business is thus struck off the register of companies
    for limited companies and the register of business names for business names and
    partnerships.

     

    Grounds for Deregistration of a Company or
    Business Name:

     

          i.       
    Compulsory winding up of the company by a Court order.

         ii.       
    Voluntary Winding up where shareholders and directors of the company
    apply to the Registrar of Companies to have the company dissolved.

        iii.       
    Insolvency of a company where the company is no longer able to carry on
    operations.

        iv.       
    Where the Directors of the Company or majority of the directors make an
    application to the Registrar of Companies to have the company struck off.

         v.       
    Where the company is under liquidation and it has been wound up, the
    Registrar may strike off the Company’s name from the Register.

        vi.       
    Termination of partnership due to say death or withdrawal of a partner which
    makes it impossible to carry on the business

    Deregistration of a Company In Kenya

    For
    a deregistration of a company to be conducted:

    a)    The company must be linked/ automated through the e-citizen
    portal  if it was registered with the old
    manual system of registration since the application is lodged online.The
    process is done using the directors ecitizen account.

    b)    The company must have filed all the annual returns up to
    date.

    c)    A meeting of the
    Board of Directors should be held in which a resolution to dissolve the company
    is passed and minutes presented.

    d)    Application to the
    Registar  and payment of the prescribed
    amounts done.

    e)    Once  approved by the Registrar of Companies, the
    de-registration is published in the Kenya Gazette for intended dissolution: for
    a period of three (3) months to invite any outstanding claims owed to creditors
    by the company for settlement.

    f)     Removal from the
    Register of Companies: If there are no claims brought forward, the Registrar
    proceeds to strike off the company from the Register of Companies in Kenya. The
    process takes 6-12 months.

    g)    Filing of Closure
    accounts to KRA for the outstanding period.

    h)    De-registration of
    the company KRA PIN Certificate and all other obligation i.e. PAYE, VAT is done
    once: the company is stuck off at the Companies Registry. The directors
    therefore apply for de-registration of the company pin upon settling any
    outstanding taxes owed to KRA

    DEREGISTRATION OF A BUSINESS NAME.

    For a business name the following must be done.

    a)    The business name must be linked/ automated through the
    e-citizen portal  if it was registered
    with the old manual system of registration since the application is lodged
    online.The process is done using the proprietors  ecitizen account.

    b)    Application of the cessation done through form BN6 – Notice
    Of Cessation of business and signed by the proprietors.

    c)    Submission of the BN2-Certificate of Registration and the BN6
    and payment of the prescribed amount for the process.

    d)    Upon approval the business is struck off the the register of
    business names.

    e)    Lastly, an application for deregistration of the KRA PIN
    Certificate is undertaken for partnerships.

     

     

     

     

    HOW DO WE HELP YOU?

    You may not be in a position to know where
    to start in case you want to cease your business operations.

    As Jamii Capital Limited we assist our client
    in deregistration by making the process swift and seamless in the shortest time
    possible and at the convenience of wherever you are.

     (INFO@JAMIICAPITAL.CO.KE

    CONTACT US FOR THIS AND MORE SERVICES
    info@jamiicapital.co.ke

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