Select the most appropriate business type
As part of the process to provision a workspace, one has to select a specific business type that best matches their needs. There are four listed entity types from which to choose:
Individual: suitable for individual users.Company: suitable for companies, which might range from small to large enterprises.Non-Profit Organization: suitable for legally-registered NGOs.Governmental Institution: suitable for government entities.
If you or members of your team are unsure regarding your entity type, please consult the business formation or tax documents for that entity.
Business structure
Every business type other than individual has different subtypes that identify its legal structure.
This business structure describes the details of a business entity, such as its organization schema and daily operations. This information is essential as it allows Falu to classify your business accurately for compliance purposes.
Companies
The table below provides descriptions of the business structures that can be used to classify your company.
| Business Structure | Description |
|---|
private_corporation | This is a privately owned business incorporated in Kenya. It is not traded on the public stock exchange. |
private_partnership | This is a business jointly owned by two or more people and which is created through a partnership agreement. |
public_corporation | A business that is incorporated under the laws of Kenya. Its ownership shares are traded on the public stock exchange. |
public_partnership | A business formed by a partnership agreement with one or more people, but has shares that are publicly traded on a stock exchange. |
sole_proprietorship | A business that isn’t a separate legal entity from its individual owner. |
Company merchant category codes
Falu also categorizes companies according to merchant category codes (MCCs), which is a four-digit number that indicates the types of goods and services being sold to customers.
The table below shows a list of general MCCs and their associated service industries.
| MCC | Associated Industry |
|---|
MCCs_0001_1499 | Agricultural Services |
MCCs_1500_2999 | Contracted Services |
MCCs_4000_4799 | Transportation Services |
MCCs_4800_4999 | Utility Services |
MCCs_5000_5599 | Retail Outlet Services |
MCCs_5600_5699 | Clothing Stores |
MCCs_5700_7299 | Miscellaneous Stores |
MCCs_7300_7999 | Business Services |
MCCs_8000_8999 | Professional Services and Membership Organizations |
MCCs_9000_9999 | Government Services |
Non-profits
Non-profits can be categorized as follows according to their business structure:
| Business Structure | Description |
|---|
incorporated_non_profit | A fully-registered organization within Kenya that is legally recognized as a non-profit entity |
unincorporated_non_profit | A non-profit organization that has obtained tax-exempt status within Kenya but is not formally incorporated. |
Government entities
A government entity can be classified into one of the following categories:
| Business Structure | Description |
|---|
government_instrumentality | An organization that is not an actual government body itself but was formed by a government statute to perform a specific function, for example, a parastatal. |
government_unit | A branch of the state or local Government of Kenya. |
If you or your team are unsure about the appropriate entity type, consult the business formation or tax documents for your entity.