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A limited liability company is a business structure that enables entrepreneurs to maintain a clear distinction between their personal assets and the company's finances upon establishment.
This structure ensures that shareholders, who have invested in the company, are liable for its debts only up to the extent of their investment, thus safeguarding their personal wealth from any potential liabilities beyond their investment.
Therefore, opting for a limited liability company provides a means for businesses to attract investment without exposing personal assets to risk. Such companies can be limited by shares or guarantees.
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To register a public limited liability company in Kenya, you must first open an E-Citizen account, as registration can only be done by a director, lawyer, or Company Secretary. The process involves the following steps:
Ensure all necessary documents and requirements are prepared and submitted accurately to complete the registration process.
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A Limited Liability Partnership (LLP) is a distinctive business structure that blends features of both a company and a partnership.
LLPs offer benefits similar to those of limited liability companies, such as liability protection for partners and the ability to hold property in their name. One significant advantage of LLPs is their simplified registration process compared to companies, which typically necessitate the preparation of memoranda and articles of association, among other requirements.
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According to the World Intellectual Property Organization (WIPO), Intellectual Property (IP) refers to creations of the mind, encompassing inventions, literary and artistic works, as well as symbols, names, and images used in commerce. It can be categorized into two main types:
As an investor, owner, or author of intellectual property, you have rights that allow you to prevent unauthorized use of your IP and require due credit and possibly monetary compensation. Registering your intellectual property offers several advantages, including establishing a stronger position among competitors.
Trademarks: A trademark is a distinctive mark or sign that sets apart the goods or services of one entity from those of others. It can comprise words, letters, numbers, drawings, pictures, signatures, colors, or combinations thereof. Similarly, a service mark distinguishes the services of one entity from another. Anyone, including individuals, companies, partnerships, or societies, can register a trademark as long as they meet the necessary requirements. Registration grants exclusive rights to the mark, serves as evidence of ownership, and provides legal recourse against potential infringements.
Examples of trademarks include "Jogoo" owned by Unga Limited and "Toyota" owned by Toyota Company. These marks are registered by their respective companies, granting them exclusive rights.
Copyrights: Registering a copyright for literary, musical, or artistic works affords exclusive rights to print, publish, perform, or record such works, and authorize others to do the same. In Kenya, the Copyright Act governs copyright law, making it an offense punishable by fine or imprisonment to infringe on another person's copyright. Copyright can be conferred to individuals who are citizens of or domiciled in Kenya, as well as corporate bodies incorporated under Kenyan laws.
Works that can be registered under copyright include literary works (novels, plays, textbooks, etc.), musical works, and artistic works (paintings, photographs, sculptures, etc.).
By registering intellectual property rights, individuals and organizations can protect their creations and assert their ownership, ensuring legal recognition and protection against infringement.
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The NGO Co-ordination Act provides a definition for "Non-governmental Organization" (NGO) as a private voluntary group of individuals or associations. These entities operate without profit or commercial motives but are organized nationally or internationally for various purposes:
Registered NGOs obtain legal status, enabling them to engage officially with government bodies, donors, and other organizations. Members of the NGO can represent the organization, open a bank account in its name, and sign contracts on its behalf.
Additionally, registered NGOs may qualify for financial assistance from government agencies as well as local, national, and international donors.
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The not-for-profit organization is a broad term for all independent organizations whose purpose is something else other than to make a private profit for directors, members, or shareholders.
There are various types of not-for-profit organizations, these include but not limited to: NGOs, Companies Limited by Guarantee, Community-based Organizations, Societies, Trusts, and even the branch of a foreign organization.
A community-based organization (CBO) is a registered non-governmental, non-profit and non-political organization. Within community-based organizations (CBOs), there are many variations in terms of size and organizational structure.
Some community-based organizations (CBOs) with a written constitution and directors are formally registered and incorporated. Others are much smaller and informal, are registered by the Ministry of Labour and Social Protection.
Another type of not-for-profit business structure is the registration of a charitable trust or foundation. A trust is an entity created to hold and manage assets for the benefit of others.
Under the Trustees Act, trusts can be registered as body corporates and established only for religious, educational, literary, scientific, social, athletic, or charitable purposes.
Charitable purposes may also be affected by forming a trust by way of a trust deed. (The trustees of a pension fund or provident fund may also apply to be registered as a body corporate).
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In Kenya, societies encompass various types such as charitable societies, private member clubs, churches, welfare societies, and political parties. These entities must undergo registration under the Societies Act to operate legally.
A society is defined as an association or partnership comprising ten or more individuals, with an office, headquarters, or business location situated within Kenya. Societies pursue various goals for religious, cultural, political, patriotic, benevolent, or cultural purposes.
Registration of a society is mandatory, and the application process must commence within twenty-eight days from its formation. A society cannot function without authorization from the Registrar. Any collection or donation from its members without proper authorization renders the society's activities unlawful.
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Sole proprietorships are registered under the Registration of Business Names Act and are formed by a single individual. This business structure is straightforward to set up and directly links the owner to their company.
Sole proprietorships can encompass various entities, including individual freelancers, creatives, growing startups, and established businesses with physical storefronts or workspaces.
Operating as a sole proprietor offers advantages, particularly for those building startups alongside their regular employment. The simplicity of establishing a sole proprietorship means that individuals can commence operations without full commitment or significant financial investment.
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