TIPSImportance of formalization
- To be eligible to open a company bank account
- To be able to access financial loans and other SMEs service packages from the relevant financial institutions
- To be able to qualify to apply for any formal Tenders in the Market
TIPS assist companies to register business ventures using the Companies and Other Business Entities Act (Chapter 24:31) which registers:
TYPES
a) A Public Limited Company
b) A Private Limited Company
c) A company limited by guarantee
d) A Co-operative Company
e) A Foreign Company
f) A Private Business Corporation
Differences between Private limited Company and Private Business Corporation
There are basically 3 differences between a Private limited Company and Private Business Corporation.
Private limited Company
Registered by 2-50 directors
The sky is the limit to the lines of business one can venture
Private Business Corporation
Registered by 1-20 directors
Easy and cheap to start up
Less paper work
Private (Limited) Company
| Documents
Cr 2 CR 5
Cr 6 |
Basic Purpose
Name Search Location of the company in particular Physical and postal address Of the registered company address List of Directors, Their ID numbers, nationality, physical and postal address |
| Certificate of Incorporation | Confirm of Registration |
| Memorandum of Association | Line of business |
| Articles of Association | Share Capital and internal affairs of the company |
Directorship
There must be between 2-50 directors and a company secretary should also be appointed
Signatures
Company secretary – he/she will also be a director and will sign on the CR5, CR6, and Memorandum & Articles of Association.
Other director/s – Must sign against his/her name in the Memorandum & Articles of Association
Private Business Corporation
| Documents
Cr 2 CR 28 |
Basic Purpose
Name Search Registration of PBC |
Features
A certificate of Incorporation with attached information on;
- Address
- Line of business
- Director/s’ details – Full Name, ID Number
- Capital contribution and percentage ownership for each director
Directorship
There must be between 1-20 members
Signatures
Each member must sign against his/her name.
Accounting Officer
TIPS will appoint an accounting officer (listed and approved by the Registrar of Companies) for the purposes of registration only. Afterwards the company is allowed to engage any accounting officer they prefer