U mean u cn set up a whole co. With all the legal work to trade ??!
All the same i prefer beign solo . That's y i whip arses in this forum .ask @guru .

Paul Wanderi Ndungu bys shares in his name... 'Nuff said!

Money whisperer,

Have you read the book "Rich Dads' Guide to Investing"? The author advocates for one to set up a business that will then buy assets for you. His main reason for advocating for this is the tax advantage in that you use pre-tax income to invest before you pay the taxes.

The only technicallity is that tax laws may not be the same. If you formed a company whose principle activity is to invest here in Kenya, you will pay taxes on investment gains. On the other hand as an individual Capital gains are tax exempt.

However if you intend to leave the investments behind as an inheritance to your folks, you are better off incorporating a company and transfer the investment role to the guys you hire. If you die there will be a structure in place to undertake the investment philosophy. This is what Centum, trancentury and of course Olympia does.

I am sure the Wanderi empire would be so huge if he had invested with other gurus the way Transcentury did

Disadvantage: as an individual, you can avoid paying taxes (only 5% withholding), but as a company, 30% corporation tax + 30% income tax = total 51%(correct me if am wrong)

Advantage: makes sense if you want to achieve something you cannot achieve alone (e.g. trading, controlling stakes, book building, insider info, et al)

@stat if the company is purely in investing at nse the tax effect is same as an individual. No capital gains tax. No further tax after Withholding tax on dividend.

@Gatheuzi...was capital gains tax reintroduced or am I missing something?

Either...you go with what will satisfy your needs at a particular time, for example, for day to day trading solo but during an IPO as a corporate + solo!

Thanks guys. keep the ideas coming. I really appreciate this.

He must hav heard a sweeter package frm Telkom. NOT just sweet .