Registering and Formalizing your Chama
Do you want to register and formalize your group? We delve into how you can legally go through the registration process for your group (Self Help Group).
Chamas are widespread because they collectively allow members of different income brackets face problems and opportunities as part of a group rather than individually.
Formalizing your Chama will enable the entire group to move steps ahead and gain in the future. A Self Help Group can be formalized in two main ways
- Registering as an association or as a Self Help Group
- Registering as a Limited company or Partnership
In order to achieve the formalization, a Chama needs to consider officials, a postal address, and a physical address including a plot number. The officials need to come from within the Chama to avoid any conflict of interest among the members.
Agreement among the members also needs to be reached to avoid any misunderstanding for the future of the Self Help Group. Each individual should be allowed to voice out his /her opinion about the options of formalization of the Self Help Group.
You can read our initial research on formalizing your Self Help Group which we had written sometime back.
Information and documentation needed to formalize a Chama
- Objectives of the Company, the nature of Business/activities the company shall
- Names of the shareholders in Full.
- Names of the Directors in full if different from the shareholders.
- Postal addresses, Email address, and Telephone Number of the shareholders and Directors.
- The number of shares to be held by each shareholder.
- Copy of ID / Passport of the Shareholders / Directors.
- Passport photos of the Shareholders / Directors.
- Copy of iTax PIN certificate of the Shareholders / Directors.