Wazua
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Corporate or solo?
Rank: Elder Joined: 2/16/2007 Posts: 2,114
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During IPO's, corporates are offered a larger
chunk of shares to purchase as compared to individuals who have to resort the relatives and friends for help...
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Rank: Elder Joined: 9/23/2009 Posts: 8,083 Location: Enk are Nyirobi
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@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. Life is short. Live passionately.
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Rank: Chief Joined: 3/24/2010 Posts: 6,779 Location: Black Africa
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Rank: Member Joined: 4/14/2010 Posts: 806 Location: Nairobi
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Gatheuzi wrote: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. @Gatheuzi...was capital gains tax reintroduced or am I missing something?
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Rank: New-farer Joined: 7/1/2010 Posts: 16 Location: Kenya.nai
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Solo is beta ...unles its to other activities.... Shillings dnt hv sex bt the multiply n divide dependin on their enviroment.
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Rank: New-farer Joined: 7/29/2010 Posts: 12 Location: Mombasa
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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!
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Rank: Veteran Joined: 6/2/2010 Posts: 1,091
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Money Whisperer wrote:Guys what is better, to trade as an individual or to set up a company and trade as a corporate? There is no right answer to this question; because it all depends on your objectives.
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Rank: Member Joined: 8/7/2010 Posts: 728 Location: Wazuaville
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Thanks guys. keep the ideas coming. I really appreciate this. "Money never sleeps"
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Rank: Chief Joined: 1/3/2007 Posts: 18,354 Location: Nairobi
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PKoli wrote:VituVingiSana wrote:Paul Wanderi Ndungu bys shares in his name... 'Nuff said! I am sure the Wanderi empire would be so huge if he had invested with other gurus the way Transcentury did Dude... The jamaa has way more money than many of the TransCentury folks!!! How much do you think he made off Safaricom? And he must have a sweet package from Telkom/Orange... Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: User Joined: 5/9/2010 Posts: 1,418 Location: Nai
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He must hav heard a sweeter package frm Telkom. NOT just sweet . Your future depends on your dreams so go to sleep !
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Wazua
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Corporate or solo?
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