Have you been curious in finding out what is a foundation in Kenya? Well, a foundation is a non profit organization that mainly majors on charitable purposes such as education, culture, religion, health and science. A trustee holds charitable property in Kenya.
Starting a foundation in Kenya is always easy when you strictly follow the steps that I will give you. This article will be used as an eye opener for you as a starter.
Charitable trust deed in Kenya will help you in holding and managing assets for the benefit of the majority in the society.
You have to register your foundation so as to be recognized in Kenya. You can register a foundation online at the comfort of your seat or you may decide to take a physical process.
Process To Start A Foundation In Kenya
Let us get started on the procedure of how to start a Foundation in Kenya:
Step 1: Preparation Of The Trust Deed
This involves clear indication of the name as well as the objectives of the trust. Also, full names of the trustees should be clearly stated.
Location of the trust such as plot number should be included. In addition, the power of the trustees must be given in details.
Step 2: Stamp Duty
After signing of the prepared trust deed it is further submitted for the stamp duty.
Step 3: Registration Of The Trust Document
This is done under the registry of the documents Acts for the purpose of registration process.
This process takes a period of 1-4 weeks to complete though it does not make it a trust yet.
Step 4: Incorporation Of The Trust Document
This is done under perpetual succession Act where a certified copy of the trust deed and the petition for the incorporation is prepared and lodged with the minister of lands for the Incorporation of the trust.
Step 5: Completion Of The Registration Process
A certificate of incorporation is then processed to indicate completion of the registration of your foundation.
Besides, you may be wondering what is the difference between a trust and a foundation Kenya. The major difference is that a foundation needs to be registered for it to exist while a Trust does not require registration for it’s existence.
I wish you luck in starting you foundation in Kenya.
Requirements For Trust Registration
The following are necessary information and documentation you must have for trust registration to be successful:
1. Have trust deeds.
2. Major objectives of the Trust.
3. Full names of the Trustees.
4. PIN certificates of the trustees.
5. Copies of the Trustees IDs or passports.
6. Physical Addresses of the trustees.
These requirements are always necessary when registering a trust in Kenya.
Taxation Of Charitable Trusts In Kenya
You may also be interested in knowing the taxation of charitable trusts in Kenya.
Charitable trusts are always exempted from income tax if they were majorly formed to eradicate poverty, distress or improve education country wide.
Cost To Register A Foundation In Kenya
Perhaps you are wondering how much does it cost to register a foundation in Kenya? It costs an average of Ksh.500,000 to register a Foundation in Kenya.
Advantages Of Registering A Foundation As A Society
There are several advantages of registering a foundation as a society such as:
1. Tax relief.
2. No equity investment.
4. Public recognition and trust.
5. There is a lock on assets.
To conclude, starting a foundation in Kenya will be a big help to many people in the country at large. Besides, there is an added advantage of registering a foundation in Kenya such as tax relief.