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Entrepreneurs can add nominal shares in their company in a situation where new shareholders or new directors are being incorporated into the company.
So, What’s The Procedure!
- You will need to write a notice indicating the company intentions of the increase of the nominal share capital to the company registry.
- Make sure that as you plan to increase share you file the annual returns which you need to request for a Form for filling returns which will cost you Ksh. 400.
- Fill the Notice of increase in nominal share capital (Form No. 204). Thereafter which you will be required to pay for stamp duty.
The Stamp duty payment are Ksh. 2000+1% of the nominal share capital
For example a company looking to increase nominal capital worth Ksh. 2,000,000
Initial pay: Ksh. 2,000 Plus 1% 0f Ksh. 2,000,000 equals to Ksh. 20,000
In order for the new nominal share capital of Ksh. 2,000,000 to be processed you will be required to pay a total of Ksh. 22,000
Legally the law allows a minimum of 1,000 shares with a nominal share capital of Ksh. 100,000 in all Limited Liability Company being registered in Kenya.
This shares can be split accordingly among different directors. Nominal Share Capital can be used by entrepreneurs to attract investments from Venture Capital, Private Equity, Angel Investors and many more.
Here Is To Your Success!
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Hi Jeff,
Thanks for the great work you are doing
Are there any payments in terms of tax that a dormant company is required to make? By law how long can a company be dormant?