Company Registration in Kenya, Your Questions Answered
Here’s a breakdown of some frequently asked questions in regards to company registration in Kenya-Your questions answered.Lets dive in!
Q: What are the different types of business structures I can choose from?
- Sole Proprietorship: This is the Simplest structure and it is reserved for locals only. The owner has unlimited liability since the structure is not a separate legal entity.
- Partnership: Two or more people co-own and manage the business, sharing profits, losses, and liability (unless a Limited Liability Partnership is formed).
- Limited Liability Company (LLC): Popular choice, especially for foreign investors, as it separates personal assets from business liabilities.
- Company Limited by Guarantee (CLG): Commonly used by non-profits and social enterprises, with members guaranteeing a specific contribution if the company is liquidated.
Question: How much does it cost to register a company in Kenya?
- The government fees for company registration in Kenya vary depending on the nominal capital (authorized share capital) of your company. It typically ranges from KES 10,750 (around USD $100) for a company with low capital to KES 25,000 (around USD $250). There may also be additional costs for professional services like business consultants, accountants, depending on your needs.
Q: Can foreigners register a company in Kenya?
- Absolutely! Kenya welcomes foreign investment and allows foreigners to register companies in the country. You can establish an independent/subsidiary Limited Liability Company (LLC) or a branch of your existing foreign company.
Q: What documents do I need to register my company?
The specific documents required vary depending on your chosen structure. Generally, you’ll need:
- Three proposed company names
- Details of directors and shareholders (names, nationalities, IDs, & addresses)
- Registered office address
- Share capital details (if applicable)
- Share apportionment
- Choose the business structure i.e an LLC
- A brief description of the company activities.
Question: Who is the Registrar of Companies?
- The Registrar of Companies is a government agency under the Ministry of Trade, Industrialization and Cooperatives. They are responsible for the registration, regulation, and supervision of companies in Kenya. You can access information and forms through their website: https://brs.go.ke/
Q: What are the tax rates in Kenya for LLCs
LLCs in Kenya are subject to the standard corporate income tax rate of 30% on their net profits. This applies to both resident and non-resident LLCs.Branches of a foreign company are taxed at 37.5% since they are regarded as foreign entities.
Q: How can I register my company in Kenya?
You can register your company online through the official Ecitizen portal.visit the attached link for further guidance https://afrilinkconsultants.com/company-registration-in-kenya/
Q: What are the post-registration requirements after company registration in Kenya?
- Register with the Kenya Revenue Authority (KRA) for tax purposes.
- Open a dedicated corporate bank account.
- Obtain a Business Permit from your local county government.
- Maintain company records, fulfill tax obligations, and file annual returns with Kenya Revenue Authority.
Question: Do I need any additional registrations depending on my industry?
Yes, depending on your business activities, you may require specific licenses or permits from relevant authorities. Consulting a local business consultant can help you navigate these requirements.
Conclusion
Remember: This is a general guide. Consulting with a legal or business registration professional can ensure a smooth registration process tailored to your specific needs.
