Companies are not opened. They are incorporated. Incorporation is registration as required by the relevant law dealing with companies. Businessmen out there say I have a company, yet legally, what they have registered are business names.
Now, if you have registered a company and have been issued with a Certificate of Incorporation then yes, the Company’s liabilities are separate from your personal liabilities. The company must file its returns independently from yours.
Ukifungua biz under Business Name Act ama Partnership under relevant act then utakuwa unafile your pin(s) to avoid liabilities. Catch ni ati uanze kufanya business either sales/service/tendering which will require you to have an etr machine. Ukishapata etr machine then, you file every 20th of each month hata kama hauna iyo obligation ya VAT
Mini-markets huwa haziko registered but coz they sell and have a etr, its tied to the owners pin
Kra plans to target small business making money mitaani
Izo zinapangiwa pia. Kuna biashara zinakaa ndogo but humake doh mob
Zile biz unafanya unapata mtu amefile return pande yake, pande yako unakosa kufile (passing that tax to kra). Hazikuwangi pesa zako. So ina accumulate hadi unaandikiwa barua ama pin yako kufungwa
I have a limited company, which i opened in the year 2005. But it doesn’t have a pin… Plus I’ve never traded using the said company…
Am i still obligated to file?
2015 Co.ACT inaalow kufungua a sole limited company, then it means iyo company inapata its own pin since it has a legal personality. Hapo unakuwa safer juu company itajisort issies zake na sio wewe personally
Follow the law and do the necessary research if you want to open a company or business
No pin then no obligations, until you engage in a business. However, if you intend to establish its status in terms of its directorship and shareholding or incase yo want to make changes then utalipia company registry returns as from 2005 hadi sahii
I registered a company last year na ctawahi tumia wanaeza kua wakinifuatilia?
Iko sole limited alafu itapata pin yake alafu itakua independent na returns zake zinakua filed aje
Returns zake zitakuwa filed according to the obligation iko nayo. Income tax company inapata once you apply for pin yake. Its filed at the end of each financial year.
Ukichukua VAT utakuwa unafile every month, failure to which kuna penalty ya 10k. You file nill returns kama haijafanya job iyo mwezi
That is how it works. When the taxes and penalties levied become unreasonable, the rate of tax avoidance spikes. Reason why increasing taxation rates does not automatically leads to higher revenue collection. The government needs to strike a delicate balance between reasonable tax rates and fines.
Do not complain, pay taxes for the development of your nation. Complain only when there is emblezzlement
taxes are the price we pay to live in a civilized society ,otherwise we would be like Somalia. When i got my first job straight out of campus i was earning 30k, after deductions,26 k. Alafu kuna umbwa ilikuwa inaearn more from his biashara na hajawahi lipa tax wakilia mkulima mdogo.
In order for taxes to become reasonable the tax base needs to be widened. it is quite a shame only about 2 million kenyans pay tax and about100 companies pay 75% of corporate income tax. That makes the rest of the country ticks on the backs of these hardworking Kenyans.
in the current budget you will pay tax as you renew your single business permit. This will help capture a lot of people who weren’t paying taxes for further assessment. It is either that or increase consumer taxes.
i hope they target farmers next. These guys receive subsidised fertilizer,higher than market prices and pay no tax.
when I was 19, I registered for my KRA pin. (i still believed Kenya was good country…didn’t know about the ngiritas). Two years later, I wanted to file nil returns but apparently they told me I had registered as a landlord, (according to their systems). TF, mind you I was still in 1st year campus. So they asked me to pay them 250k. Good thing I found an officer who understood my situation and he rectified that for me after laps between times tower and my local KRA station. I still regret registering for a pin because the kind of biz I do doesn’t involve banks, tenders etc. Ni cash money tu and I am one person who hates to fund a looting gvt
forrowing
Experts please explain like I’m a child, what is the difference between something that attracts VAT, something that is zero-rated, and something that is exempt?
:D:D:D kiendacho kwa mganga hakirudi baba. Njiraini hataki mcheso na vile amewekewa targets ziko juu.
Kwa hivyo kra ni what ? Hehehe
Uhuru na Ruto brought this online business and company registration. Uhuru actually went to sheria house to witness a possible one day company registration but the systems failed
Once you initiate or register a company online unlike a business name it will receive its own pin. Kaa rada as it will start getting penalties without your knowledge. Keep in mind that there are returns which are to be filed at the companies registry annually also. Kama ulifungua iyo company and you don’t intend to use it, then the other option is to wind it up…ama ungefungua non-profit making entity like ngo, foundation, society, ama company limited by guarantee