[vc_row][vc_column][vc_custom_heading source=”post_title” use_theme_fonts=”yes”][vc_column_text]Definition and regulation of a company. A company is legal separate entity (also referred to as ‘artificial person’) formed by an individual or group of individuals (also referred to as ‘natural persons’) to engage in the commercial or industrial activities. In the Republic of Kenya, company incorporation is the process undertaken by a promoter of a company to register a company with the registrar of companies as prescribed by the Companies Act, 2015. Major differences between a company and other forms of business entities A. Company registration Requirement for company registration In Kenya to register a company the following are the requirements: The proposed name of company. Nature of the business and the intended objectives of the company. Names of the proposed directors of the company. Names of the proposed shareholders/ members if different from the directors. Contact information of the directors and shareholders i.e. email address, telephone number, postal address and residential addresses. Proposed nominal capital of the company Proposed capital structure of the company. Class of shares being issued by the company. Passport photographs of the proposed directors and shareholders. Proposed physical address of the company. The process of company registration in Kenya The promoter of the company will lodge the process of incorporation with the registrar of companies by; Fronting at least three names of the company according to the order of their preference. Executing the following documents; Form CR1- Application for Registration Form, Form CR2- Model Memorandum of Association, Form CR6- Notice of Appointment of Directors and Particulars, Form CR8- Notice of Residential Address of Directors, Statement of Nominal Capital and, Statement on the proposed beneficial owners of the company. Making payment with the registrar of companies. Thereafter, the registrar confirms the name reserved. In completion the registrar of companies issues a certificate of incorporation. Transfer of share(s) and change of directorship Transfer of share(s) and change of directorship of a company is usually lodged with the registrar of companies by one of the existing director(s) of the company or by a Certified Public Secretary of Kenya (CPSK) on behalf of the company. The process of transfer of shares and/or change of directorship occurs when the company intends to; Increase or decrease the number of members and/or, Increase or decrease the number of directors. At MNC Consulting Group, we help our clients realize the proper procedure for their needs and facilitate in the process to ensure that process is duly lodged and completed in accordance to the law stipulated in the Companies Act, 2015. General requirements for transfer of share(s) and change of directorship Copy of Certificate of Incorporation, The company must have filled all its annual returns for the previous years with the registrar of companies and, The company must file interim returns (for part of the current incomplete year). For addition of director(s) and member(s)/shareholder(s) the following must be present; Minutes of the meeting in which the resolution(s) were made, Full name of the new officer(s) (i.e. director(s) or member(s)), Consent from the person(s) being appointed as director(s), Contact information i.e. email address, telephone number, postal address and residential addresses, Passport size photo for the new director(s) or member(s) and, Class and number of shares being issued to a new member. For reduction of director(s) and member(s)/shareholder(s) the following must be present; Minutes of the meeting in which the resolution(s) were made, Written resignation letter and affidavit from the outgoing director(s) and, Parties involved i.e., the transferor(s) and transferee(s) should sign a transfer deed (Form of transfer). Following the execution of the above stated requirements and documents, we at MNC Consulting Group follow the statutes requirements in the Stamp Duty Act, and thereafter lodge the transfer with the registrar of companies. At MNC Consulting Group, we not only provide you with fast and reliable services for your business but also offer you fast and reliable communication. Our experienced experts have reputably given our clients confidence through excellent customer service to individuals and groups of individuals (both locals and foreign nationals) seeking to company related services in Kenya. Follow this link to FIND OUT THE TRANSACTION COST OF COMPANY REGISTRATION, TRANSFER OF SHARES AND CHANGE OF DIRECTORSHIP About the Author Thank you for reading this article. The author, James Ndambiri is an avid Business Advisor and Consultant: A Tax Surgeon, Proficient Accountant, Skilled Auditor, a Guru in Financial and Investment management, Expert in Business Strategy Formulation, Business Transformation Wizard, Family Business Advisor, Lecturer, Business Coach and a Family Man. James is the Founder, Team Leader, CEO & Managing Partner of MNC Consulting Group. MNC Consulting Group is your most trusted and respected professional business consulting firm recognized by our clients for delivering excellent business advisory and consulting services that create value to their ventures. With our focus set on value addition, we offer our clients the highest quality professional services in Accounting, Audit and assurance, Tax, Business Transformation, Investments and Financial Advisory, Family Business Advisory, Company Secretarial Services and Property Management that addresses their business needs through attracting, recruiting and retaining knowledgeable and passionate professionals who enable us to deliver superior results while contributing positively to the community in which we live and work. Make us your business partner by always consulting with us. ‘‘With us, you are in safe hands’’[/vc_column_text][/vc_column][/vc_row] Consult Us

[vc_row][vc_column][vc_custom_heading source=”post_title” use_theme_fonts=”yes”][vc_column_text]BUSINESS AND PARTNERSHIP REGISTRATION AND CHANGE OF OWNERSHIP Major differences between a sole proprietorship, partnership and other forms of business entities   (A) Business name and partnership registration Requirement for business name and partnership registration In Kenya to register for a business name and/or a partnership, the following are the requirements: The proposed name of the entity, Nature of the business and the intended objectives of the entity, Names of the proposed proprietor (for business name) or partners (for partnership), Contact information of the proprietor (for business name) or partners (for partnership).i.e. email address, telephone number, postal address and residential addresses, Proposed profit/loss sharing ratio (for a partnership), Passport photographs of the proposed proprietor (for business name) or partners (for partnership) and, Proposed physical address of the entity. The process of business name and partnership registration in Kenya The promoter of the entity will lodge the process of registration with the registrar of companies by; Fronting at least three names of the entity according to the order of their preference. Executing the following document; Form BN2 – Application for Registration Form, Making payment with the registrar of companies. Thereafter, the registrar confirms the name reserved. In completion the registrar of companies issues a certificate of registration. (B) Change of ownership In sole proprietorship, the natural person is the entity and therefore, the entity cannot change ownership. However, in partnerships, the process of change of ownership occurs when the partnership intends to; Increase the number of partners or, Decrease the number of partners. Here at MNC Consulting Group, we help our clients realize the proper procedure for their needs and facilitate in the process to ensure that process is duly lodged and completed in accordance to the law stipulated in the Partnership Act. For addition of partners, the following must be present; Copy of Certificate of Registration, Minutes of the meeting in which the resolution(s) were made, Full name of the new partner(s), Contact information i.e. email address, telephone number, postal address and residential addresses and, Passport size photo for the new partner(s). For reduction of partners, the following must be present; Copy of Certificate of Registration, Minutes of the meeting in which the resolution(s) were made, Written resignation letter and affidavit from the outgoing partner(s) and, Following the execution of the above stated requirements and documents, we at MNC Consulting Group follow the statutes requirements in the Stamp Duty Act, and thereafter lodge the transfer with the registrar of companies. Payment is then made to the registrar who upon satisfaction that the process lodged is valid, approves the changes.   Follow this link to FIND OUT THE TRANSACTION COST OF BUSINESS NAME AND PARTNERSHIP REGISTRATION AND CHANGE OF OWNERSHIP About the Author Thank you for reading this article. The author, James Ndambiri is an avid Business Advisor and Consultant: A Tax Surgeon, Proficient Accountant, Skilled Auditor, a Guru in Financial and Investment management, Expert in Business Strategy Formulation, Business Transformation Wizard, Family Business Advisor, Lecturer, Business Coach and a Family Man. James is the Founder, Team Leader, CEO & Managing Partner of MNC Consulting Group. MNC Consulting Group is your most trusted and respected professional business consulting firm recognized by our clients for delivering excellent business advisory and consulting services that create value to their ventures. With our focus set on value addition, we offer our clients the highest quality professional services in Accounting, Audit and assurance, Tax, Business Transformation, Investments and Financial Advisory, Family Business Advisory, Company Secretarial Services and Property Management that addresses their business needs through attracting, recruiting and retaining knowledgeable and passionate professionals who enable us to deliver superior results while contributing positively to the community in which we live and work.   Make us your business partner by always consulting with us. ‘‘With us, you are in safe hands’’[/vc_column_text][/vc_column][/vc_row]

[vc_row][vc_column][vc_custom_heading source=”post_title” use_theme_fonts=”yes”][vc_column_text] What is an Asset? An asset is an item, thing or entity that has potential or actual value to an organization. What is Asset Management? Asset management is the coordinated activity of an organization to realize value its assets. We can also refer it as the art and science of making the right decisions and optimizing the delivery of value. A common objective is to minimize the whole life cost of assets considering other critical factors such as risk or business continuity. Key Areas of Asset Management Balancing of costs Balancing of opportunities and risks against the desired performance of assets Achieving organizational objectives Importance of Asset Management Asset management is important because it can help organizations to: – Reduce the total costs of operating their assets Reduce the capital costs of investing in the asset base Improve the operating performance of their assets (reduce failure rates, increase availability e.t.c) Reduce the potential health impacts of operating the assets Reduce the safety risks of operating the assets Minimize the environmental impact of operating the assets Maintain and improve the reputation of the organization Improve the regulatory performance of the organization Reduce legal risks associated with operating assets LINE OF SIGHT as a Key Element of Asset Management An approach within an organization that looks to line up the work that is done directly on assets with the objectives of that organization A discipline which recognizes, accommodates and aligns the risk of owning a particular asset with the goals of the organization that operates the asset The Seven Principles of Asset Management Holistic: Looking at the combined implications of managing all aspects, the functional contributions of assets within asset systems and the different asset life cycle phases and corresponding activities, rather than a classified approach Systematic: An orderly approach, promoting consistent, repeatable and auditable decisions and actions Systemic: Considering the assets in their asset system context and optimizing the asset systems value (including sustainable performance, cost and risks) rather than optimizing individual assets in isolation Risk-Based: Focusing resources and expenditure, and setting priorities, appropriate to the identified risks and the associated cost/benefits Optimal: Establishing the best value compromise between competing factors, such as performance, cost and risk, associated with the assets over their life cycles Sustainable: Considering the long-term consequences of short-term activities to ensure that adequate provision is made for future requirements and obligations such as economic or environmental sustainability, system performance, societal responsibility and other long-term objectives Integrated: Recognizing that combined effects are vital to success. This requires a combination of the above attributes, coordinated to deliver a joined-up approach and net value Decision making in Asset Management Good decision making is also vital in joined-up asset management. This requires adequate information about the assets and their associated strengths, weaknesses, opportunities and threats. In particular, it is important to understand the relationship between asset management activities and their actual or potential effect upon short-term and long-term costs, risks, performance and asset life cycles (or asset system sustainability). It is only after understanding the factor above that an informed decisions can be made about the optimal mix of life cycle activities (such as design/selection, acquisition/construction, utilization, maintenance, renewal, modification/enhancement, decommissioning or disposal). In many organizations, there will be more potential tasks to carry out than resources, time or budgets will permit. The continuous optimizing and prioritizing of tasks and plans are a way of life for such organizations. About the Author Thank you for reading this article. The author, James Ndambiri  is an avid Business Advisor and Consultant: A Tax Surgeon, Proficient Accountant, Skilled Auditor, a Guru in Financial and Investment management, Expert in Business Strategy Formulation, Business Transformation Wizard, Family Business Advisor, Lecturer, Business Coach and a Family Man. James is the Founder, Team Leader, CEO & Managing Partner of MNC Consulting Group. MNC Consulting Group is your most trusted and respected professional business consulting firm recognized by our clients for delivering excellent business advisory and consulting services that create value to their ventures. With our focus set on value addition, we offer our clients the highest quality professional services in Accounting, Audit and assurance, Tax, Business Transformation, Investments and Financial Advisory, Family Business Advisory, Company Secretarial Services and Property Management that addresses their business needs through attracting, recruiting and retaining knowledgeable and passionate professionals who enable us to deliver superior results while contributing positively to the community in which we live and work.   Make us your business partner by always consulting with us. ‘‘With us, you are in safe hands’’ [/vc_column_text][/vc_column][/vc_row]