The Government and most state departments procure services and goods through a tendering process as per the Public Procurement and Disposal Act, of 2015. Whenever there is an open tender invitation to the public to bid for these tenders, the tendering entity gives Tender Requirement guidelines, one of which includes tenders that only be eligible for business with an AGPO Certificate. In this article, we will highlight more on the AGPO Certificate, how to register for AGPO, businesses eligible for AGPO etc.
- What is an AGPO Certificate
- Aim of AGPO Certificate
- Who is Eligible for AGPO Certificate?
- Requirements for Registration of AGPO Certificate
- How to Register for AGPO Certificate
- How to Renew AGPO Certificate
- Restructuring a Company to be eligible for AGPO Registration
- Why you should have an AGPO Certificate for your Business
What is AGPO Certificate?
AGPO is an acronym whose full meaning is Access to Government Procurement Opportunities. It is a Certificate issued to businesses (Sole Proprietorships, Partnerships and Limited Companies) that are eligible to participate in the government procurement process.
The Certificate shows the name of the Business, the Business address and the Category under which it is registered. The certificate also has a unique Certificate Number for identification purposes.
AGPO Certificate is valid for 2 years
Aim of the AGPO Certificate
The aim of the AGPO Program is to facilitate the youth, women and persons with disability-owned enterprises to be able to participate in government procurement. This will be made possible through the implementation of the Presidential Directive that 30% of government procurement opportunities be set aside specifically for these enterprises. It is affirmative action aimed at empowering youth, women and persons with disability-owned enterprises by giving them more opportunities to do business with Government.
Who is Eligible for AGPO Certificate?
AGPO certificate is only issued to eligible businesses on application. The Business must be a legally registered business with all documents. The Business can either be a Sole Proprietorship, a Partnership Business or a Limited Company.
The Certificated is issued under three Categories:
- AGPO – for Youth
- AGPO- For Women
- AGPO – For Persons with Disabilities
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AGPO Certificate for Youth
The AGPO Certificate is issued to a business that is owned by the youth. The Youth is anybody within the age bracket between 18 years to 34 Years.
The Business must also be owned by a majority of Youth with at least 70 % of the Ownership for the AGPO to be approved under the Youth Category.
For a Business name, it must be fully owned by a youth, for a partnership at least 70% of the Partnership must be youth while for a Limited Company, at least 70% of the Director Shareholders must be youth.
AGPO Certificate for Women
This Certificate is issued to a business that has at least 70% of ownership as Women. The AGPO certificate is an Affirmative action to empower women by giving them a chance to participate in the government procurement process.
For a Business name, it must be fully owned by a woman, for a partnership at least 70% of the Partnership must be women while for a Limited Company, at least 70% of the Director Shareholders must be women.
AGPO Certificate for Persons with Disabilities (PWD)
The Saying disability is not inability, and persons with disabilities are differently abled. The AGPO Certificate (PWD) gives People with disabilities a chance to also participate in the procurement process. A business can only be registered under this category if at least 70% of the owners are persons with disability. The Business must also present a registration document from National Council for Persons with disabilities.
For a Business name, it must be fully owned by a person with a disability, for a partnership at least 70% of the Partnership must be persons with a disability while for a Limited Company, at least 70% of the Director Shareholders must be persons with disability.
Requirements for Registration of AGPO Certificate
For a Business to be registered with AGPO it must be a Registered business, if you have not registered your business you can contact us for the Service.
Other Requirements for a Business to be registered for AGPO under either of the 3 Categories include:
AGPO registration requires original scans of:
- National identity card/ passport
- Business registration certificate/ certificate of incorporation
- Company CR 12 for limited companies
- Partnership deed for partnerships business
- KRA pin and Tax Compliance Certificate
- National Construction Authority letter/certificate for the construction category
- Registration documents from the National Council for persons with disabilities
Business registration certificate/ certificate of incorporation
A business registration certificate or certificate of incorporation is a prerequisite for AGPO registration. It is obtained upon registration of a business. We help you register your business. To register your business name, you will need to provide the information listed here. Get in touch with us and register your business today.
Company CR12 for limited companies
A CR12 is an official confirmation by the Registrar of Companies in Kenya as to whom the directors/shareholders of a company are. It is obtained upon the complete registration of a company. We offer Company Registration and CR12 Official Search Services. Get in touch with us and register your company today. Secure that tender!
Partnership deed for partnerships business
A partnership deed is a legal agreement made between two or more individuals who have the intention of doing business with each other and sharing profits and losses.
KRA PIN and tax compliance certificate
A PIN is a Personal Identification Number used while doing business with Kenya Revenue Authority, other Government agencies and service providers. A business PIN is used during paying taxes such as Value Added Tax. A tax compliance certificate is obtained as a result of a taxpayer’s compliance with tax laws and regulations by paying taxes timely and accurately. Once you register your business with us, we help you obtain a company KRA PIN and a tax compliance certificate. We also offer tax consultation for all tax issues concerning your business. Contact us for further engagements on the same. Do not miss out on that tender because of tax-relation problems. We will definitely sort that out!
Nation construction authority letter/certificate
The National Construction Authority (NCA) is a government organization which regulates, streamlines and builds capacity in the construction industry. To obtain an NCA letter/certificate, you need to register as a contractor on the NCA portal.
Registration documents from the National Council for persons with disabilities
Persons with disabilities should obtain these documents from the national council which are mandatory for consideration in the tendering process. Application forms are found on the NCPWD website.
How to register for AGPO
Once you have the above-listed documents, we are here to help you create your AGPO account, register the business and submit the application documents for Approval.
The Certificate is not generated instantly, the application has to be reviewed and once approved that when you can download the AGPO Certificate. We offer the Service for AGPO Registration seamlessly and efficiently
How to renew AGPO Certificate
AGPO Certificate is only issued for a period of 2 years.
Once issued with the AGPO Certificate, there are very many changes that could occur in a business. For instance, a change of ownership where the new owners don’t meet the threshold to be registered for AGPO. Therefore, the AGPO certificate is only valid for two years.
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What happens in case the Business is Upgraded?
If you have an AGPO Certificate issued for your business name or Partnership and you upgrade the Business to a Limited Company, you will be required to apply for a new AGPO Certificate under the Company.
Once a Business name or a Partnership is upgraded to a Limited Company, it will retain the name it was using before,but on upgrade it will be a Limited Company having a different registration number.
The Initial AGPO Certificate is withdrawn and a fresh application can be made for the Limited Company.
Restructuring a Company to be eligible for AGPO Registration
The requirements for a Company to be registered for AGPO Certificate is to have at least 70 % of the ownership as either Youth, Women or Persons with Disabilities.
If a company does not have this, it can restructure its ownership and bring on board new director shareholders who reflect the 70% requirement.
We offer Company Restructuring services. Contact us for this and AGPO Certificate
Why you should have an AGPO Certificate for your Business
AGPO registration comes along with benefits. The benefits include;
- The Business will be able to participate in the 30% of government tenders that have been set aside for youth, women and persons with disabilities.
- A participant in a tender will be excluded from the requirement to get a bid bond and will instead sign a tender securing declaration form.
- One will be able to access local purchase orders or local service order financing from a youth fund or bank.
- Where there is a delay in payments for work performed, a procuring entity may facilitate invoice discounting arrangements with a bank for the purpose of advancing credit to the affected company.
Conclusion
As a business person, it is always good to have all your documents for the Business ready when an opportunity knocks you are able to sieze it. A Good Entrepreneur ensures that their business has all the necessary requirements and the AGPO certificate is one of them.
Be that Entrepreneur or Tenderepreneur ready with an AGPO Certificate to take up the 30% of Tenders reserved for AGPO Certificate Holders.