In his Eighth Point out of the Country Handle on 30th Nov this calendar year, President Uhuru Kenyatta submitted a report to the parliament recognizing Micro, Smaller, and Medium Enterprises (MSMEs) as the lifeblood of Kenya’s economy however a large number of them are unlicensed.

According to the 2017 Financial Survey, there are about 1.56 million certified MSMEs and 5.85 million unlicensed related organizations in Kenya.

This indicates that considerably less than 27 % of all businesses in Kenya are registered. Out of these, 92.2 % are micro-enterprises although only 7.1 % and .7 per cent are modest and medium enterprises respectively.

The rationale some of the MSME operators give for not registering their organizations is that they worry being subjected to superior taxation that may possibly conclusion up taking in on their gain.

Even so, as you will before long find out, there are numerous rewards that await unregistered MSME operators as taxpayers that which includes loans and government companies. 

Bid for government contracts

Bid for govt contracts

As a registered little organization operator as a taxpayer, you will be placing your self in the best position to bid and gain authorities tenders and trade with the govt and non-government establishments.

If your small business is not registered, you cannot bid for authorities contracts or even husband or wife with other businesses to choose gain of communal added benefits like essential networks, especially with more substantial companies with who they could even enter into sub-contracts.

Hence, you will consistently be locked out of valuable company associations. Simply put, if an enterprise is not a taxpayer it cannot increase!

Personalized tax and customs advisory services

Personalised tax and customs advisory products and services

These are services available by the Kenya Profits Authority (KRA) via its broad community, social media, and telephony among many others to hell MSMEs operators realize the tax and customs environment especially if they intend to get into import and export business enterprise.

This is in addition to sector and networking chances by means of its taxpayers’ roundtables that the taxman organizes to bring with each other businesses for purposes of sharing concerns affecting them and getting company advice in line with the main organization of the authority.

It is through these conferences that the Authority avails options for entrepreneurs to network and even set up new markets.

Import and export incentives

Import and export incentives

As a little business enterprise operator, your intention is to increase from serving the community men and women to accomplishing enterprise globally. No business operator would their venture continue being stagnant that’s why the need to have for registration.

MSMEs registered with the taxman stand the possibility of acquiring import incentives that include things like diminished import tariffs on inputs these types of as equipment and uncooked resources to spur producing of items for export wherever the authority offers free of charge VAT for its members.

The taxman also has a provision for money allowances on mounted machinery and a attainable 20 % export payment arrangement.

Numerous business opportunities

A lot of small business opportunities

Did you know? In line with the authorities directive on general public procurement, 30 per cent of all procurement at KRA goes to enterprises run by the youth, women, and folks with disabilities which are mainly MSMEs. Another reason why you need to sign-up as a little organization operator.

Unregistered enterprises should really sign-up as taxpayers in buy to open up doorways to organization options that can only be accessed at the time the business enterprise acquires the all-significant PIN variety.

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