- What are the major business organization forms, and how do I choose one that is right for my business?
A: The four major business organization forms are: (1) the partnership, (2) the limited liability company, (3) the corporation, and (4) the sole proprietorship. Each has advantages and disadvantages, but when choosing the correct form for your business the core focus should typically be on personal liability and tax implications.
- How can I register a business in Kenya?
A: To register a business entity, you will need to first have an E-Citizen Account. Every Kenyan citizen with a National Identity Card, Foreign Residents with a valid foreigner certificate or Business entities registered in Kenya can open an E-Citizen account. Once you have registered an E-citizen account, log in to your account then proceed to the Department indicated as “Business Registration Service.” There are however many technicalities that come with the registration process and filling of the various Company Registration Forms. Individuals are advised to seek legal advise from an advocate of the High Court of Kenya who is registered with the Law Society of Kenya (LSK) or a Company Secretary registered by the Institute of Certified Public Secretaries (ICPSK) to maneuver through those procedural technicalities.
- How do I register a limited company in Kenya?
A: To register a limited company in Kenya, the following requirements are mandatory in order to register;
1. Company Name Suggestions – to check availability of name for registration.
2. Nature of Business – For example real estate, road construction, business consultant, tours & travel.
3. Full names for each of the director.
4. Occupation for each of the director.
5. Postal address for each of the director.
6. Shares allocation for each of the director.
7. Situation of Registered Office.
Proof of Identity
1. Copy of ID/Passport for each director
2. Copy of KRA PIN Certificate (For Kenyans only, foreigners are not expected to produce KRA PIN)
3. Passport Photo – make sure it has a clear white background
- Can a minor be a director ina company registered in Kenya?
A: No. Section 131 (1) of the Companies Act 2015prohibits a minor from holding the position of director in any company incorporated in Kenya
- How can someone file their annual returns for their company?
A: Currently, Annual Returns are filed online. You will be required to log into your E-citizen account. If you registered the company online, you will click on the company name then click on VIEW button. You will be directed to a webpage where you click on the MAINTAIN A COMPANY icon then you click on ANNUAL RETURNS. You will be able to upload the ANNUAL RETURNS (Form Cr 29) then click SUBMIT button. However, if you registered your company manually, you will be required first to link the business and then follow the above cited procedure.
- What is the minimum nominal capital of a company in Kenya?
A: There is no set specific Nominal capital. You base the Nominal capital on the value of your company, number and value of shares.
- Can a foreigner own a company in Kenya without local partners?
A: There is no limitation on foreigners subscribing to and owning some or all of the shares in a private or public company registered in Kenya. However, foreigners setting up companies in Kenya must pay heed to local representative requirements if they do not intend to be resident in Kenya. Foreigners may register a local Kenyan company or they may register a branch of a foreign company.
- What are the requirements for a foreign company to operate in Kenya?
A: A foreign company can carry on business in Kenya by registering a local branch in Kenya which is required to have a local representative in Kenya who is legally liable for complying with the requirements of the Companies Act 2015. The details of the foreign company and its local branch are put on a foreign Companies Register at the Registry in Kenya.