Lettf Consultants

23/01/2024

A few months back I advised people to separate themselves from their businesses. To help achieve that goal I am giving an offer to those who wish to register their business. There are three forms of business that you can use in your business.
1) sole proprietorship. (Business name registration) This is the simplest form of business. It is a single persons business
2) Partnership. This for a business with more than one partner. It requires a partnership deed.
3) A company. This is an entity that is completely separate from you. Your liability is limited to the share subscribed. (Best way to do business)

All these entities operate their own bank accounts, own property, hire people, buy and sell. Let your firm do this not you. Liability of the proprietorship and partnership still lies with you while its limited in the company.

The government fee involved are Kshs 850 for sole proprietorship and Partnership with Kshs10,800 for Company. Payable through ecitizen.

You can change the profile of your Company
But not the age of your company. Register and let the company grow in age as you grow your business. Remember you can change a lot about yourself but never your age.

There is nothing to fear other than fear. Take a step out of your comfort zone and realise you have unlimited potential.

Let's talk registration at [email protected] +254703332625 or inbox me

05/08/2023

https://tinyurl.com/AHLKNYA

Please register this webinar here

This webinar will feature the administration of the: New Affordable Housing Levy. New Withholding taxes requirements Event Timing: Aug 7th 2023 Time: 10:00 am EAT Location: Google meet Contact us at +2547106788 or [email protected]

13/10/2021

Set your business rolling. Take action on your Ideas. Start now.
For today only 50% off Discount on Company Registration.
50% off on Business Name registration.
Today only.

26/08/2021

As you go on your business there are a few items that you must fulfill and make sure they are always up to date. Your business must always be in the correct books with these two persons 1) The taxman
2)The law.
As you dedicate your time to ensure that your business succeds never forget to allocate time to these two.

Taxes - Taxman.
The first tool to deal with the taxman is records. Always maintain proper records of all transactions related to your business. Receipts, invoices Mpesa statements, bank statements etc
Secondly make sure that your tax returns are always filed and on time,
These are mainly three.
a) Income tax returns - These are done once annually before 30th June. This is irrespective of whether the company traded or not. Income Tax payments are made four times in an year( April, June, September and December)
b) VAT returns - These must be done monthly. These are mandatory for all companies registered for VAT. Kindly download your PIN on itax and check if you have this obligation. A monthly penalty of 10,000 plus interest is charged for late or failure to file.
c) PAYE-These must also be filled monthy. This is the tax deducted from your employees. Stop "helping" your employees by not deducting their PAYE and/or underdeclaring their salary. If and when you are tax audited you will be charged 30% of their Income plus a 2% monthly interest plus penalty plus fine.usually amounts to over 60% of your total staff cost. It's not worth it, pay people well and deduct PAYE from the start of employment.

Other simple ones but very useful. Always make payments using cheques avoid cash transactions, avoid writing cheques on the directors names. Similarly avoid making bank transfers/ cheques to staff if the are not taxable benefits. Always pay your staff using the bank and make all statutory deductions. Make their NHIF payments it's very punitive but most importantly gives you peace of mind knowing they will be taken care of in times of need.

Finally on the taxman, always make sure your accounts are properly done and on time. A qualified accountant always adds a management letter that is very useful for the business. Failure to adhere to the above is a cash cow for the Taxman and his people. The ussual assesed unpaid taxes bill is more than your annual profits. Getting out is very expensive.Why wait for this.

The law

a) Always make sure that the affairs of the firm are run in accordance to the law.
b) For any major company decision eg. Opening bank account, hiring Managing Director, Fixing salaries of the board, selling or acquiring Major Assets, changing signatories are all accompanied by the relevant board resolutions. Make these proper resolutions that are correctly executed and copies properly maintained. Obtain the services of Certified Public Secretary(CPS) or an advocate for these.
b) Keep your company seal and stamp very secure. Avoid using Digital signatures these can come back to haunt.
C) If you are in a regulated industry file your submissions on time.
d) Always file the annual returns with the registrar of companies on time. This is cheap when done on time (within January) a 50% fine is charged for late filling. This also helps you to update changes early and note any unwarranted transactions on your company.
f) Make sure your company is linked with your ecitizen account. Manual transactions at Sheria house have been stopped. Linking takes time. Do it now or when you are not in a hurry. Annual returns, changes of company particulars, admission of new members (shareholders) removal and appointment of new directors are all online. Generation of CR12 is also online. Link now to avoid emergencies

If you check clearly most of the items on this are free. However failure to follow them is very expensive. It may cost you a lot including your company. Protect your investment by following the above tips. Avoid future costs and problems by following the above. For your own peace of mind just do the right thing the right way. Success in your business

we work with you to ensure you are up to date at all times. Talk to us on our page or inbox us at [email protected] or 0703332625.
Should you wish to formalize you business: register a company or a business name also talk to us. Grow your business let us handle these for you.

24/01/2021

Company Owners Alert: 7 days to deadline. update Beneficial Owners Details for your company. For those whose companies are older than 2016 there is linking required. Save 500k and remain compliant. Talk to me on 0703332625 or inbox me. Hurry while you can.

23/01/2021

To all Company owners. 8 days to go. For those whose companies are older than 2016 you will need all least 3 days. Save 500k

13/01/2021

Legislative Allert: Limited Companies
,.,.,.,.,.,.,.,.,.,.,.,.,..,,.,.,.,.,.,.,..,.,.,.,.,.,.,.,..,.,.,.
All Company owners and Directors are requested to provide Beneficial owners details by 31st January 2021. The company shall be in default thereafter paying a hefty penalty for every day they haven't update the details. It shall also be illegal for you to enjoy your interests and rights in a company that has not updated your details. No dividends or voting.
Talk to me for these services today 0703332625.

08/01/2021

~All company owners have these two functions to complete before the end of the month.
1: Update Benefical Owners details
2: File 2019 and 2020 Annual Returns at Registrar of Companies (not to confuse with income tax returns)
Talk to me for all these services.
Compliance is cheaper~

16/12/2020

In April 2021, there will be alot of outcry in this country. Business peolple and companies will be scratching their heads in disbelief if its true. Most will start looking for accountants and others enquiring from their lawyers or learned friends if such a law exists.

Come 2021 you will be required to pay a minimum tax equivalent to 1% of your sales less VAT. According to KRA 92% of the companies in kenya were not paying any corporate tax. This is the targeted group.

As a company make the necessary plans for your 1) Sales; remember at a minimum 1% of your sales will be taxes, 2) margin; account for the 1% tax in your markup. 3) cashflows; make a plan to have the money available to pay your taxes.

Plan yourself acordingly. Talk to your accountant in January, stop waiting for April to make last minute adjustments, fillings and payments. create a relationship early.

Talk to us if you have any questions.

28/10/2020

BANK IT ALL

This may be a simple rule, yet it makes all the difference.

Bank all your sales intact.

It does not matter how huge or small they are.
Many business people are avoiding this, banking rule.

But if you want to improve your ability to get loans from the banks or other institutions, creating history is very important.

When banks ask you for 6 months statements they want to determine your cash flow history.

This is what I advocate for; even if it means banking in the morning and withdrawing hours later, please do.

By so doing you are setting yourself up for ease of getting financing in the future.
And honestly, as a start-up, this seems like mission impossible, but these are some of the sacrifices and disciplines you need to create when your business is young.
Many people keep on asking me whether it is good to borrow.
I come from the school of thought which believes that if your business is genuine (not corrupt), you will need a lot of support from your banks to create wealth.
Wealth that has a good foundation

So, rather than getting frustrated during the early stages of your business, keep on doing the right thing.
Eventually, you will be on the right standing and once you get to this level, you will scale your business easily.
Remember it has to start somewhere.
And as you do this, ensure that you cultivate good relationships with your bank.
Truth be told, banking is mainly about relationships.

Feel free to comment and ask me anything that is unclear to you.
I learned the hard way. Let me make it easier for you!

Over to you my great people.
Little by little, we will get to the top of our mountains.

02/10/2020

Case of Banks refusing to lend to the SMEs

Before you complain about banks refusing or not lending you money, you should always remember the following; banks don't lend money on the promise of a good future. Banks lend you money on two things
1) Assets
2) Future cash flows.
The bank wants an assurance/ guarantee that they will get their money back. Now and/or in the future
1) The assets. The assets you use as security acts as an assurance of one thing that if all fails and business collapses in day one and they sold all your Assets in a forced sale they will recover their money.
2) Future cash flows. This is the source of the money that will pay them back the loaned money in the future.
If you cannot show those two in a good documented way, then I am sorry you will not qualify for any loan no matter how big your business is.
Therefore, SMEs should always know that proper documentation and growing assets for your business are not secondary to running your business but primary to the running of the business. First show a proper flow of cash for your business, sales, purchases, costs and profits. Secondly don't eat up all your profits but grow assets; production lines, intellectual property, long-term sales deals and leases, land, machinery etc.
With these when you will need credit you will have the necessary ingredients.
Thank you

16/08/2020

Most successful businesses that you see today were started by people in the age bracket 30-40 years. The businesses gain firm experience and networks for the first 10-15 years and then start enjoying the fruits of that experience when the owners are in 40 - 55 years.
When you see that successful company understand
1) It takes time to get there. Start now most important try to start before you are 40 to give yourself time to grow the business and enjoy it's fruits while you have the energy. However if you are past that age the best time to start is now.
2) It will take time to build a successful business. Expect losses, failures and slow growth at the start
3) Success is for only those who wait and hold strong in the face of adversity.
Fist up. Start. Hold and see you on the other side.