This week could be considered a turning point in Kenya’s business history when it comes to ease of doing business. If the Companies Bill 2014 becomes law, local residents and foreigners will soon be able to register a limited company as a single director in Kenya.
At the moment, if you want to register a limited company, you will need to look for a business partner in order to meet the minimum threshold of 2 company directors. This is all about to change once the current Companies Bill 2014 which is being debated by the parliament is passed.
According to Hon. Samuel Chepkong’a, Chairman – Justice & Legal Affairs Committee, you can now register a company as an individual as single director. You do not need to look for a partner to register the company. The current law inhibit one person to register a limited company.
During the debate that took place on the 9th July 2015 in Parliament;
Hon. Tom Kajwang’ – MP, Ruaraka suggested that the new law should also help businesses that have an annual turnover of Ksh. 5 million or less to be not compeled to have a company secretary to perform company returns. You should be able to simply fill the returns as a director rather than hiring a company secretary. However, if your company is generates more than Ksh. 5 Million annually, you will be required by law to acquire the services of a company secretary in order to make your company returns.
I believe this will attract more people both locally and internationally in registering a limited company as it will be much more easy once this Bill sails through in the third reading before it becomes law.
It is commendable that the Kenyan Government is working hard to improve the environment for doing business.
It is my hope that Kenya Revenue Authority makes it easier for the registeration of KRA PIN for both local residents and foreigners in order to make Companies Bill 2014 a success.
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