Are you undecided on whether to register a Sole Proprietorship or Partnership Business. Well, worry not more. We have done the comparison for you to help you make a decision on which entity you would like to register.
Name Search:
Usually the cost of the name search is the same all round. You will need to pay Ksh. 100 per each name that you intend to search to check availability. Sole Proprietorship & Partnership name search both take 2-3 working days.
Registration:
Sole Proprietorship & Partnership registration process are both fairly easy to register. You will only need to perform name search and register your business name.
Cost:
Registering a Sole Proprietor Business is affordable. The cost for both Sole Proprietorship and Partnership ranges starts from Ksh. 5,000 depending on your needs and how quick you want it to be processed.
Duration:
The length duration of registering either Sole Proprietorship and Partnership Business ranges between 2-3 weeks depending on how fast the name search is performed and also how quick the registration form is filled and paid for.
Requirements:
The registration requirements between Sole Proprietorship and Partnership usually don’t vary that much since they both use the same Business Name Registration (BN/2) Form. Find below the list of the details needed to process the registration.
- Name of Business
- Nature of business
- Address of the principal place of business
- Postal Address
- Address
- Full Names of you and any other partners
- Nationality
- Age
- Gender
- Place of residence
- Other business occupation
- Signature
Tax Compliance Certificate:
Every business planning to trade with Government must acquire a Tax Compliance Certificate. Both Sole Proprietorship and Partnership are not exempted either.
For Sole Proprietor, you will need KRA PIN which has been generated online and a business registration certificate.
For Partnership, you will need business registration certificate and KRA PIN of partners which has been generated.
Taxation:
Tax advantages if your business is not doing well, for example, deducting your losses from your personal income, lower tax bracket when profits are low, and so on.
Income would be taxable at your personal rate and, if your business is profitable, this may put you in a higher tax bracket.
Tax advantage, if income from the partnership is low or loses money (you and your partner include your share of the partnership in your individual tax return).