Day: February 18, 2021

BECOMING A MEMBER The shares can be purchased if a promoter invites a prospective member through a private invitation – for a private company – or through the public advertisement of the prospectus for a public limited company. . REGISTER Read More …

DEBENTURES Public limited companies have the power to borrow money necessary for their operations by issuing debt securities (debentures). Unlike shares debentures do not create an ownership interest in the company. They create a debtor- creditor relationship. Accordingly, the company’s Read More …

.  SUBSCRIPTION OF SHARE CAPITAL Subscription is the acceptance by the subscriber of the offer to subscribe for shares made by the promoters or their agents (usually a bank). By subscribing the subscriber promises to take up the number of Read More …

The partnership agreement, Memorandum of Association  or Articles of Association must be drawn up and or signed by a notary or witness – see Appendix 1.. From the foregoing it is evident that the contract establishing the commercial company must Read More …

COMPANY LAW   The expression “company law” may be defined as a branch of law governing the companies. It deals with all aspects relating to companies, such as incorporation of companies, allotment of shares and share capital, memberships in companies, borrowing Read More …

Tax and EAC Under EAC Law, business people will continue to pay VAT, Consumption Tax and Withholding Tax on goods originating from EAC Partner States. East African Community (EAC) Member states have begun implementing the Common Market Protocol. This means Read More …

 Avoidance and Evasion Evasion of paying tax is a simple breaking of the law whether it be a tax law or any other law. Avoidance is a means of reducing one’s tax liabilities but within the law.  Transfer pricing whether Read More …

. Distinction between trading in and trading with a country  When an individual, or a business, is trading there are two possibilities: Either the trade is carried out within their own country: i.e. both supplier and customer are in the Read More …

.  Purpose of the Law 59/2001 of 31/12/2011  Establishing the sources of Revenue and property of decentralized entities and governing their management Article One :  Purpose of this Law The purpose of this Law is to describe and establish the Read More …

CHARACTERISTICS AND MECHANISM Characteristics of VAT The characteristics of VAT are as follows: VAT is a tax on Sales which constitutes a tax on the expenditure paid by the ultimate consumer since it concerns a general tax on products and Read More …