Summary of the provisions of the companies act, 2015 that came into operation on 6th december 2015 the companies act, 2015 was assented by the president on 11th september 2015 with only section 2 of the act coming into operation on the date of gazettement on 15th september 2015. Apr 05, 2016 introduction we all know or, at some point, have heard about kenyas companies act, 2015 hereinafter referred to as the act which was enacted on 11th september, 2015. In this article, we will highlight some of the key changes that are proposed to be effected through the new. The companies act 2014 the companies act commences on the 1 june 2015 here are some of the important changes that will affect companies from the 1 june 20. Although quite voluminous, the act takes into consideration, developments in technology and procedure, to boost the ease of doing business. President uhuru kenyatta on 25 march 2020 delivered a number of measures designed at cushioning kenyans from the impact of covid19 the president acknowledged that following the declaration by the world health organization who categorising covid19 as a pandemic, it was necessary for the government to make targeted state. The companies act 2014 has introduced the concept of division. The companies act, 2015 has brought with it many changes and one of those changes is the incorporation of a private limited company. The following lists events that happened during 2015 in kenya incumbents. New companies act 2015 in improving the ease of business registration in kenya by james musee nduna a project report submitted to the chandaria school of business in partial fulfilment of the requirement for the degree of master in business administration mba united states international universityafrica spring 2017.
Jul, 2016 in this write up, we are going to analyze how a company formed under cap 486 laws of kenya can be liquidated. The ca amendment 2015 has been published in the official gazette on 26 may 2015 and is a welcome step towards addressing some of the concerns. Legal alert highlights of the covid19 tax measures. Definition of expressions used in these articles 1 in these articles a the act means the companies act, 2015. Sep 18, 2016 at 1,026 sections running to over 1,600 pages without schedules the new act is by far the most extensive piece of legislation on the statute books in kenya. This is a summary of the penalties and offences that officers of the companies will be liable. Disclosure requirements under the new company regulations. The name of the association is african securities exchanges association. The purpose of this article is to highlight some of the main changes and challenges that will come with.
The new companies act 2015 has come into operation in kenya. The registered office of the association will be situate in kenya. The companies act, 2015 was assented by the president on 11th september. Understanding the new companies act pwc south africa. These regulations come into force on 6th april 2015 and extend to the whole of the united kingdom, reflecting the extent of the companies act 2006 c.
It is a 759 paged document with 1026 sections with 6. Kenya budget highlights and quick tax guide 2015 diving deep. The companies act 2006 amendment of part 18 regulations 2015 no. For the time being the old companies act, cap 486, will continue to operate until the corresponding or new provisions of the companies act, 2015 come into force through legal notices prepared by the cabinet secretary in the kenya gazette. Subscribe for updates on vacancies, tenders and ministry updates. The cabinet secretary for industrialisation, adan mohamed, said that the day when president uhuru kenyatta signed 4 bills into law the companies. The new companies act provides that a company can have one member. Registration of beneficial owners and takeover transactions. A case where one of the company directors is declared to be of unsound mind.
The latest available updated version of the legislation incorporating changes made. The purpose of this article is to highlight some of the main changes and challenges that will come with the new companies act, 2015 new act. In order to understand the rationale behind the requirement as set out in section 1 b of the companies act 71 of 2008, a comparison has to be drawn between the repealed companies act and the companies act 71 of 2008 in respect of the powers of a company. The companies act 2015reforms the companies act 2015. On september 11, 2015, the president assented to the companies act, 2015, which repeals the 1948 companies act cap 486. Highlights of the amendments to the companies act, 2015. Despite the change that has characterised modern business ecosystem, kenya has been relying on an old legislation for over 60 years. This week president kenyatta pictured above signed into law the companies bill 2015 that does away with the companies act chapter 486 of the laws of kenya which is an archaic piece of legislation dating back to 1948. As per section 741a and companies acceptance of deposit rules, 2014 every company who has accepted deposit before commencement of companies act, 20 has to file a return in form dpt4 within 3 months from commencement of companies act, 20 i. The act is, in my opinion, the most comprehensive and extensive legislation kenya has ever enacted. While it is not immediately clear whether companies which are yet to pay the balance of tax for the year 2019 due at the end of april for companies with december year ends can apply the reduced corporate tax rate of 25%, this new corporate tax rate will enhance cash flows for companies on.
May 27, 2015 download the companies amendment act, 2015 no. Tax changes are usually introduced annually through the finance bill, but in a break with tradition, the tax laws amendment act, 2018 no 9 of 2018 the tax laws act was assented to on 18 july 2018 and published by the government printer on 25 july 2018. Drastic changes to requirements for registration of foreign. It also includes references to changes in the practice of the kenya revenue authority where they are significant. Change looms with the new companies act business daily. Section i on 15th september, 2015 all other provisions. Be it enacted by parliament in the sixtysixthyear of the republic of india as follows. Ministry of industry, trade and cooperatives, kenya. The companies act 2015 the act is amongst a suite of new laws intended to streamline business in kenya, by making it easier for. The pbo act is meant to repeal the ngo act so that, among other changes, all ngos which are on the appointed day registered in kenya under the ngo act shall be deemed to be provisionally registered as pbos and have up to one year from the appointed date to seek registration as. A person interested in forming a company should submit the following documents to the registrar of companies.
New changes will have implications on audit, reporting and striking off measures for singaporeincorporate companies. The sixth schedule of the new act contains comprehensive transitional and savings provisions. See section 1 3 and 4 arrangement of sections section part ipreliminary i short title and commencement. Company registration in kenya done faster and cheaply. Our publication incorporates changes based on the 2015 budget speech. The key changes in the companies act 2014 knowledgebase. The studys findings on the impact of the companies act 2015 in improving the convenience of business registration are that the new companies act 2015 had greatly improved the convenience of.
A comparison between the repealed companies act and the. Penalties and offences under the new companies act, 2015. May 14, 2016 registration of companies under the new companies act, 2015 following the enactment of the new companies act, 2015, new forms have been introduced for registration of companies. The cabinet, chaired by prime minister narendra modi, had approved the 14 proposed changes in various provisions of the new companies act.
In this write up, we are going to analyze how a company formed under cap 486 laws of kenya can be liquidated. Summary of the companies act 2015 commencement capita. Ten key facts about the companies act 2014 june 2015 ltd the ltd will be a new form of simplified private company limited by shares and will have a single constitutional document. The new companies act is aimed at revolutionising business in the country by removing various preexisting legislative stumbling blocks to doing business in kenya. It is now possible for an irish company to be divided so that its undertaking can be split between two other irish companies. The analysed data was presented in form of tables and figures according to the research questions. A case where a director is prohibited from being a company director for a reason that is specified under section 189 of companies act.
January 4 a sixstory building collapse in nairobi kills one person and leaves several others injured january 5 for the second day in a row a multistory residential building in nairobi collapses, this time an 8story building, killing one person with eight people still. Up to now, it hasnt been possible to perform a merger between two private irish companies. New rules for intellectual property business as companies. The companies act, 2015 was assented by the president on 11 th september 2015 with only section 2 of the act coming into operation on the date of gazettement on 15 th september 2015. Section 931 of the companies act has been amended by deletion of the. In doing so, i will give emphasis on the provisions of the insolvency act 2015 and the companys act 2015. Omitting requirement for minimum paid up share capital, and consequential changes. Registration of companies under the new companies act, 2015 following the enactment of the new companies act, 2015, new forms have been introduced for registration of companies. Introduction we all know or, at some point, have heard about kenyas companies act, 2015 hereinafter referred to as the act which was enacted on 11th september, 2015. The companies act 2006 amendment of part 18 regulations 2015. Sep 11, 2015 new rules for intellectual property business as companies bill 2015 signed into law september 11, 2015 september, 2015 victor nzomo this week president kenyatta pictured above signed into law the companies bill 2015 that does away with the companies act chapter 486 of the laws of kenya which is an archaic piece of legislation dating back. Briefing reporters, corporate affairs minister nirmala sitharaman. Jun 30, 2014 as per section 741a and companies acceptance of deposit rules, 2014 every company who has accepted deposit before commencement of companies act, 20 has to file a return in form dpt4 within 3 months from commencement of companies act, 20 i. Briefing reporters, corporate affairs minister nirmala sitharaman said the priority is to decriminalise provisions in the act.
It is an exciting time for the business community in kenya. The insolvency act 2015 ministry of industry, trade and. Amendments to the companies act register of beneficial. Among the many changes that come with the 2015 act are new requirements for registration of foreign companies in kenya.
Jun 01, 2015 print this page changed utterly a new regime is born what changes on 1 june 2015. This is a summary of the penalties and offences that officers of the companies will be liable under the new kenyan companies act 2015. The amendment regulations introduce changes to the regulations which, inter alia, seek to transpose certain provisions of the fifth eu antimoney laundering directive the 5amld into maltese law. The 2015 act is, however, not fully operational yet. One major change introduced is the exemption of capital gains arising from the transfer of shares traded on any securities exchange licensed by the capital markets authority. However, the act now has clear guidelines on how a company that wishes to change its. The new laws will make it possible for one person to set up a. Fill a form of transfer of shares that is filled and signed by all the concerned parties.
Corporation tax the standard rate of corporation tax has been reduced from 30 percent to 25 percent. We shall also look at case law both in kenya and in the u. The cabinet, chaired by prime minister narendra modi, had approved the 14 proposed changes in various provisions of the new companies act, 20, which came into force with effect from april 1, 2014. Legal alert highlights of the covid19 tax measures aln kenya. Apr 21, 2020 government approves more amendments to companies law 04 mar, 2020, 10. A further provision is made that will now enable a company to have an official seal for use outside kenya. How new set of regulations will change the business. The new companies act is alive to the current business practices. Bidding system changes ahead the new public procurement and disposal act, 2015. On september 11, the president assented to the companies act, 2015 the new.
The companies are also required to compulsorily have a registered office and would notify the registrar of change of the registered office. It provides our solicitors and trainees with detailed commentary on the new company law changes, with handy quick links to the text of the legislation. The amendment regulations now place a clearer burden on beneficial owners themselves to provide information to maltese companies in which they hold a beneficial interest. The changes were made in the income tax, excise tax, value added tax, tax procedures act, betting lotteries and gaming act and the companies act. The 2015 insurance act 2015 act applies to all commercial contracts of insurance, and variations to existing contracts of insurance, from 12 august 2016 and introduces what the uk government has described as the biggest reform to insurance contract law in more than a century. The companies act, for example, has been long overdue. On september 11, 2015, the president assented to the companies act. Drastic changes to requirements for registration of. Highlights of the amendments to the companies act, 2015 by the. How to add or remove a limited company director in kenya. Sep 16, 2015 to add or remove a director of a limited company in kenya, the following steps must be followed. Some changes may arise when the finance bill 2015 and subsequently the finance act 2015 are published. Government approves more amendments to companies law 04 mar, 2020, 10.
Annalise papa, stuart firman, saman bugeja published on july 24, 2019 the companies act register of beneficial ownersamendment regulations the amendment regulations came into force on 12 july 2019 save for one provision which comes into force on 1st january 2020 as shall be seen below. The set of regulations required by registrar of companies for company incorporation in kenya or in other words company formation in kenya for public, private and foreign company registration in kenya and sole proprietorship be legally registered are contained in the new companies act 2015 of the laws of kenya. As such, it is intended to provide the reader or hisher entity with general information of interest. Companies act what changes on 1 june 2015 knowledgebase. The objects for which the association is established are. Section compliance requirement timelines penalty on failure to comply 24 filing a copy of the amended articles of association to be filed to the registrar from. Change looms with the new companies act sunday, october 4, 2015 14.
The pbo act is meant to repeal the ngo act so that, among other changes, all ngos which are on the appointed day registered in kenya under the ngo act shall be deemed to be provisionally registered as pbos and have up to one year from the appointed date to seek registration as a pbo under the new act. A practitioners perspective on the impact of the new. At 1,026 sections running to over 1,600 pages without schedules the new act is by far the most extensive piece of legislation on the statute books in kenya. New laws to improve kenyas business environment ministry. By james musee nduna usiua digital repository home. May 29, 2015 bill got assent of the president on 25. On september 11th, 2015 president uhuru kenyatta assented to the companies act 2015, and set the kenyan record for adopting the most voluminous law in the country. Towards this, the companies amendment act, 2015 ca amendment 2015 received the assent from the president of india on 25 may 2015 after both the houses of the parliament approved the ca amendment 2015. Ten key facts about the companies act 2014 june 2015. Finance act 2015 insight 3 preamble the finance act 2015 was signed by the president and gazetted on 15 september 2015. The companies act 2015 the act is amongst a suite of new laws intended to streamline business in kenya, by making it easier for entities to establish a presence and operate.
This draft has since been made as a uk statutory instrument. The elearning platform is not only a very useful learning tool. The companies act, 2015 introduction many people will now be aware that kenya has embarked on its long overdue transition to modern company and insolvency laws with the recent enactment of the new companies act, 2015 and the insolvency act, 2015. As announced on 15 april 2015, the accounting and corporate regulatory authority acra will begin implementing the legislative amendments to the companies act, with 40% of the new changes to take effect from 1 july 2015. Knowledgebase is an invaluable tool for information on the new companies act.