The best thing about having a registered company in Kenya is that you can secure tenders running into millions of shillings.You can register sole proprietor business,partnership or limited company with ease in Kenya.
Sole Proprietorship is a business that is registered and run by a single individual. It allows one to earn all the profits. Partnership on the other hand is a business that is registered, run and controlled by more than one individual. In partnership, profits are shared based on the agreement made on the Partnership deed.
Registering a sole proprietorship business in Kenya only requires an individual to present the company name and personal details to the company registrar whereas registering a partnership requires a detailed partnership deed which shows how the partners will distribute profits and losses and how they will share their assets in case of dissolution. It also shows procedure to be followed in case one of the partners decides to leave the company.
One issue that most entrepreneurs are not aware of is that when you want to register a company, ensure that you make a wise decision on the specific type of a company to register. For Instance, a sole proprietorship company is easy to start and operate but one disadvantage is that the company is not provided with KRA Pin; instead one is allowed to use a personal pin.
By not being provided with a company pin, you are limited on the type of tenders to apply for. Most advertised tenders require a company pin and not a personal one. This is where a sole proprietorship will let you down.
A partnership on the other hand is the best to register because a company Pin is provided. This will enable you to apply for any type of tender without restrictions.
As you register a Partnership company in Kenya, make sure you obtain a pin from KRA i-Tax system; it takes few minutes to get your pin. This will enable you apply for tenders and also successfully fill tax return forms.
As for Sole Proprietorship, you will use the personal pin that you always use to obtain your salary and other taxable revenues.
Remember, in order to continue applying for tenders, you must fill tax returns annually even if you made zero profits. Failure to do so will make you tax non-compliant, which will automatically disqualify you from winning any tender.
