Hi Everyone,
Personally I think this focus on "making easy to register a
business" is misplaced, the focus should instead be on making
easier "having a business".
Annoying as the registration process may be, it is only a one-off
process once it's done it will not bother you again - whereas the
processes you have to complete on a monthly, quarterly, yearly
introduces overhead time and time again.
My favorite example is ofcourse all the monthly statutory
payments, NSSF, NHIF, KRA, NITA, etc all have their own individual
process. Each institution have their own process, their own
collection procedure, their own queue's. You can easily spend
several hours completing a monthly return - for each of them.
Why can't they work together so that you go to ONE place and
perform ONE payment, then they could split the collections between
them self.
A few years back it was announced that KRA would start becoming a
collection point for NSSF, this was a step in the right direction.
The day before it was supposed to go into effect it was announced
that it was postponed due to the IT-systems not being
compatible.... (the inital iTax version even had a non-working
button for it)
Second example would be the requirements for nil-returns, often
when you see someone registering a new company they are quite
"green" in terms of what their obligations are, there is a
learning curve to climb. Often you find startup's in a situation
where they had been caught unaware about the need to file
nil-returns, and the business activities they had planned is
delayed for whatever reason.
Why is it even necessary to file a nil return (?), could it not be
assumed that if nothing else is filed then it's a nil-return...
Yes there are practical (and maybe legal) reasons but it really
should be possible to work around this and make it unnecessary to
file nil-returns.
On the bright side the new company act removes the need to have an
official company secretary to do your annual legal return - that
is a clear improvement for startups and helps reduce the overall
overhead.
..
Mike
On 2/1/16 3:03 PM, Ahmed Mohamed Maawy via kictanet wrote:
- How to make the business registration process a bit less
hectic.
- Tax breaks for some amount of time during which they
operate to pick up business and traction around this.
Having managed the eco-system in Mombasa for a while, I think
you end up finding potential kids and other chaps having
ideas, but who can not enter into some contests or can not be
eligible to enroll to specific support frameworks because of
their lack of a business registration certificate. Which is
sad, to see such potential go all the way down the drain
because of financial or other constraints.
There is a pipeline issue for potential startups here
that needs to be resolved, but how can we work together
around this?