Business and Company Registration Services in Kenya – At East Africa Business Consultants, we help you Chose and Register the right Business Entity that Allows you to Reduce liability Exposure, Minimize Taxes, and Ensure that your Business can be Financed and Run Efficiently.
Before Settling on which form of Business Entity to register at the Companies Registry, we normally look at the following;
(1) The Degree to which your Personal Assets are at risk from liabilities arising from your Business;
(2) How to best Pursue Tax Advantages and avoid multiple layers of Taxation;
(3) The Ability to attract Potential Investors;
(4) The ability to offer Ownership interests to key Employees; and
(5) The costs of Operating and Maintaining the Business Entity.
The Most Common Forms of Business to Register in Kenya Include the following;
A sole Proprietorship is a Business Entity owned and run by one individual. The sole proprietor has no distinction between him/her and the Business And he/she enjoys all the Profits and has an unlimited responsibility for all the losses and debts accrued by the Business.
Major advantages of operating a sole Proprietorship is that it is easy to start and run due to the small amounts of capital required, and the owner enjoys all the profits of the business. Its major pit fall is that the proprietor has unlimited liability for the business debts and incase the firm is wound up the creditors may force the sale of the proprietors personal and business property to satisfy their claim.
A partnership is a legal form of Business Entity owned by a minimum of 2 and a maximum of 20 people who share management and profits.
One of the major Advantage of a Partnership is the Tax benefits it enjoys because it doesn’t pay Tax on its income but passes through any of its profits or losses to the individual partners.
Major disadvantage of partnerships include the unlimited liability of all the partners and the Business Partners are jointly or individually liable for the actions of the other partners.
We strongly recommend partners to regulate and record their relationship by means of a Partnership Agreement (also known as a Partnership Deed) to substantially minimize the likelihood of disputes between the partners
The new Companies act allows registration of companies with between 1 – 50 Directors and the registration requirements include the following;
– A Description of the Company’s main Objective
– Preferred Company Names
– Copies of the shareholder’s Travel Passport/Kenyan National ID
– Copy of the shareholder’s Personal Identification Number
– 2 Passport size photographs,
– Postal Address, Telephone Number and Email Address of the Shareholders
– Shareholders Physical Address
– Share Apportionment Percentage.
A Limited Liability Partnership is a hybrid Form of Business combining certain aspects of both a Limited Liability Company and a General Partnership.
A Limited Libility Partnership has the folowing advantages –
– It protects individual Partners from personal Liability for Negligent acts of other partners or employees not in their
direct control and not personally responsible for company debts or other obligations.
– A Limited Liability Partnership is not limited on the Maximum number of employees it should have.
A foreign Company is also referred to as a Branch Company is not a Separate legal entity of the Parent Company but is is Commercially Independent from the Parent Company. Foreigners choose to register a Branch in Kenya in order to Access to New Markets For their Products and Services, to Expand their Brand Recognition, to move to a More Cost-Effective Production and Manufacturing location, to implement their Global Expansion Plan and to Participate in Local Economic Opportunities.
Requirements for Business and Company Registration Services in Kenya
– Certified copies of foreign company’s certificate of Incorporation and memorandum and Articles of Association (If in a Foreign Language, certified copies of translated documents by a Notary Public.)
– Appointment of a Local representative of the Foreign company in Kenya.
– Registered address of the Foreign company in Country of registration.
– Proposed Registered address in Kenya.
– Copies of Passport and passport photos of the Directors / shareholders.
Click Here to Talk to One of our Business Consultant for more details on Business and Company Registration Services in Kenya