Kenya - Export Processing Zones (EPZ) Enterprise Commercial License

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Procedure

The investor contacts the Export Processing Zones Authority with his initial project proposal and discusses it in some detail to see whether the intended activities are suitable for the EPZ scheme. The Authority provides the investor with appropriate application forms and the investor completes these and returns them to the Authority with a US$ 250 fee. The application covers such issues as intended company name, product description, shareholders, production flow chart, machinery requirements, production costs, intended markets, sources of technological know-how, project cost, sources of finance, employment created, utility requirements and intended location.

Within 30 days of receipt of the completed application the Authority advises the investor of the decision to accept, reject or accept with modifications the proposed investment project.

The approved applicant completes the registration of an EPZ company in Kenya whose articles of association and memoranda reflect only EPZ related activities.

The new firm is then issued with a letter of approval which will enable it to establish its activities in a gazetted export processing zone. This approval letter may have terms and conditions attached to it including:-

• permitted activities
• permitted volume of sales to the Kenyan market
• date by which the firm must have commenced exports

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Required Documents

• Application is in form (completed and signed where required)
• Flow Chart of commercial activities
• Implementation Timetable
• Letter from Bankers attesting to your capability to undertake the project
• 2 letters from buyers showing interest in purchasing your products
• Application fee

Office Locations & Contacts

Export Processing Zones Authority - Head Office
Administration Building, Viwanda Road,
off Nairobi-Namanga Highway,
Athi River, Kenya
P.O. Box 50563
Nairobi 00200
Kenya
ISDN +254-45-6621000
VoIP Lines: 020-7606040/3
Cellphone (Safaricom):0713-051172/3; (Airtel):0786-683222/0733-683222
Email: [email protected]
website: Export Processing Zones Authority contacts

Eligibility

An investor involved in or intending to become an Export Processing commercial enterprise.

Fees

• Application - US $ 250
• Annual License - US $ 1,000

Validity

One year

Documents to Use

Application for Export Processing Zone Enterprise License (Commercial)

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

30 Days

Related Videos

Videos explaining the procedure or to fill the applications. 
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Please remove the "&" inside the tags during implementation.
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sevenload, viddler, vimeo, youku, youtube
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e.g In the following url "http://www.youtube.com/watch?v=Y0US7oR_t3M" Video ID is "Y0US7oR_t3M". 
	

Instructions

Contact Office: Export Processing Zones Authority HQS Athi River

Resolution Criteria: establish evidence of ability to offer

Guidelines for filling the EPZ Commercial Enterprise License Application The commercial license application is in form EPZE (1).

• In addition to information requested on form, please provide additional items:
• Insert the tariff HS Code and describe the products to be traded in (at top of form)
• Provide a schedule of sales in Units and value for Years 1-3, indicate the destination markets
• Provide a flow chart of commercial activities
• Provide bank reference letter attesting to promoters ability to raise required capital and his banking conduct
• Provide 2 letters from foreign market buyers indicating intention or desire to source from the new EPZ commercial entity. These letters should be on company letter-head with name of officer and telephone contacts and email/fax

Note that special conditions apply to commercial licenses:

• No domestic sales allowed even if duty is paid
• A single EPZ entity may not operate under both commercial and manufacturing license
• No 10 year tax holiday applies to commercial entities
• Approval of licenses is done in consultation with Commissioner General, Kenya Revenue Authority
• Commercial activities must be undertaken in a building premises SEPARATE from those where manufacturing activities are undertaken

Required Information

• Proposed Activity
• Products - Specify
• HS Tariff Code
• Particulars of applicant/company
  • Name of applicant
  • Address of applicant
  • Telephone No.
  • Name of contact persons(s)
  • Name of Company which will under the service/project
  • Date of incorporation of company
  • Address of registered office
  • Telephone No.
• Particulars of Directors
  • Names
  • Identity Card No. /Passport No.
  • Nationality
  • Residential Address
• Cost of proposed project (KShs)
  • Land (specify area)
  • Buildings (Specify covered area)
  • Equipment
  • Pre-operational expenditure
  • Working capital requirement
• Financing
  • Authorized capital
  • Sources of fund
• Service flow chart and equipment required
• Sales schedule
• Requirement of machinery
• Market
  • Export
  • Domestic markets
• Service pricing (for each service activity, provide the percentage cost breakdown in terms of price)
• Location of premises
• Employment
• Source of technical know-how
• Declaration
• Signature of Applicant
• Details on manpower requirements for the project
• Details on electricity requirement for the project
• Details on water requirement for the project
• Details of telecommunication requirement for the project
• Details of port and airport requirements for the project
• Environmental checklist

Need for the Document

The Export Processing Zones (EPZ) Enterprise Commercial License is one of the EPZ enterprises licenses for companies directly involved in export-oriented commercial activities such as breaking bulk, repackaging, re-labelling and trading.

Information which might help

• No person shall carry on business as an export processing zone commercial enterprise or hold himself out as providing or maintaining activities or facilities within an export processing zone enterprise unless he has been licensed as an export processing zone commercial enterprise.
• The Authority may, on receiving application in the prescribed form, issue a license to any person to carry on business as an export processing zone commercial enterprise and every license issued under the Licenses section of the Export Processing Zones Act shall be in the prescribed form.
  • The Authority shall, before issuing a license allowing commercial activities, consult with the Commercial-General of the Kenya Revenue Authority.
• The Authority shall give notice to the Kenya Revenue Authority of every Export Processing Zone enterprise licensed under the Licenses section of the Export Processing Zones Act specifying
  • the activities in respect of which the enterprise is licensed and shall, in relation to commercial activities, indicate whether the enterprise is permitted to deal in goods not directly related to its manufacturing activities; and
  • any conditions attached to the license.
• No export processing zone enterprise shall be established, unless the export processing zone enterprise holds a valid license issued by the Authority.
• The license shall be granted by the Authority if the application is found to meet the objectives of the Export Processing Zones Act and if the proposed business enterprise
• is incorporated in Kenya, whether or not it is one hundred percent foreign owned, for the sole purpose of producing goods or services for export within an export processing zone;
• proposes to engage in any activity or activities eligible to be undertaken by an export processing zone enterprise in the export processing zone;
• shall not have a deleterious impact on the environment, or engage in unlawful activities, impinging on national security or may prove to be a health hazard; and
• conducts business in accordance with the laws for the time being in force save for any exemptions that may from time to time be granted.

Other uses of the Document/Certificate

Allows the EPZ Company to engage in commercial activities (breaking bulk, repackaging, re-labelling and trading).

The export processing zone enterprises, the export processing zone developers and the export processing zone operators are granted exemption from all existing and future taxes and duties payable under the Customs and Excise Act (Cap. 472) and Value Added Tax Act on all export processing zone imports for use in the eligible business activities of the export processing zone enterprise including machinery and equipment, spare parts, tools, raw materials, intermediate goods, construction materials and equipment, office equipment and supplies, and transportation equipment subject to the limitations on goods specified in the Second Schedule to the Export Processing Zones Act and according to the conditions specified in the Customs and Excise Act and the Value Added Tax Act.

External Links

Export Processing Zones Authority

Ministry of Industrialization and Enterprise Development

Export Processing Zones Act CAP 517

[http://www.epzaken