A Need to Register Business Enterprise

"With unemployment rate so high, knowing a good business is equally important"

A picture of a limited company

Job creation is anyone’s responsibility. A county government can only employ up to 3000. An average population for a county is 700, 000. So, a creative administration, in order to reduce the rate of unemployment, takes advantage of 30% government procurement preference to employ –by funding start-ups. To venture into self–employment, would-be entrepreneurs must have business enterprises and companies.

Companies and business enterprises are registered by registrar of companies. To start with, a promising entrepreneur writes a letter to the registrar to reserve a favorite name. The name, from a list of three names, is picked after two days.

Afterwards, three documents, which prepared by a lawyer –to describe the objective rules, subscribers and authorized share capital –, are needed: memorandum and article of association and the statements of nominal capital.

The entrepreneur then fills a situation of office form, list of director’s form –always two or more for a limited company, declaration of compliance form, which is signed by the commission of oaths. It details the office address and number of directors.

After 21 days, a period that follows the filing of the documents at the registration office: memorandum and articles of association, the registrar of companies issues a certificate of incorporation. Here, a company seal is essential. A seal has a company’s name and acts as a signature.

A registered seal of a limited company

The statutory condition is that one must have a personal identity number, value added tax (VAT.), pay as-you-earn with the KRA, registration for NSFF and NHIF, and premise license. In the registration process, a business agent can support, or an individual can do it alone.

Knowing the process of company registration is not enough, a business idea must be at hand. This determines the location, the capital and the name of the company. Is it about construction or food? With unemployment rate so high, knowing a good business is equally important. Few have money to invest. And wise investment leads to employment. For instance, two trucks which cost forty million can employ four people, and investing the same amount of capital in a barbed wire rolling plant will employ more than twenty people with a higher profit margins.