DiDUKUNG

Friday, February 12, 2016

How to be Licensed as a Clearing Agent in Kenya

Licensing of clearing and forwarding agents in Kenya is undertaken by the Kenya Revenue Authority.
This article covers both new applications and renewals.

New Applications for Clearing Agents

An application for a Clearing Agent's License, on Form C50, is made and forwarded to the Licensing officer. Each application is recorded and assigned a reference number.The application is vetted to ensure all the required supporting documents have been submitted. 
These documents include:
  1. PIN certificates for the Company and all its directors
  2. National identity cards for all directors
  3. VAT registration certificate
  4. Memorandum of Association
  5. Articles of Association clearly indicating the Clearing and forwarding Agent's firm is a registered business.
  6. Certificate of Registration from the Registrar of Companies
  7. Certificate of good conduct for all directors
  8. Evidence of membership with a recognized Clearing &Forwarding Association (KIFWA). The evidence may take the form of a letter, payment receipt for annual membership fee or a certificate.
  9. A letter from a Kenyan bank showing the company maintains an account with them.
  10. A letter from Domestic taxes Department confirming that the Company and all its Directors have lodged current Income Tax and VAT returns.
  11. A receipt for payment for the application form. If the application was presented after the deadline, the receipt for payment of the prescribed late application fee should also be attached.

Applicants are then invited for interview by the Licensing Committee. Successful applicants recommended for licensing are notified.The successful applicants are asked to pay the required License fee.The application is then approved by the Commissioner and the clearing agent's license is issued.
Unsuccessful applicants can make an appeal. A hearing is conducted, after which licensing is either recommended or declined.

Renewal of Clearing Agents License

Application for renewal of the license is made on the prescribed License renewal form and submitted to customs.
The Licensing Officer checks for compliance with the conditions for renewal and confirms that the company has no outstanding transactions or pending queries.
If the applicant has no pending queries or outstanding transactions, a recommendation is made to the Commissioner's office for renewal of the license.
License is renewed.
No License is renewed if the applicant has any pending queries or outstanding transactions.

Suggested Reading
List of Clearing and Forwarding Agents


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