Costs of Registering a Company in Kenya
Costs of Registering a Company in Kenya
Costs of Registering a Company in Kenya | New Company Registration in Kenya – The first part of seeing your business goals attained should be registering a company in Kenya. Nothing gives you the ultimate drive to commit to growing the organization like accountability does. Now here I do not mean taxes, just yet. I instead want you to understand how being able to operate legally will also push you to apply for that tender, take on the new contract, or recruit a few team members.
Before we look into the costs of registering a company in Kenya, I would like us to look at some other important facts about New Company Registration in Kenya
Simple Steps For Company Registration In Kenya For Foreigners
Here is how to register with the Kenya Registrar of companies
The Registrar of Companies in Kenya maintains a registry of records concerning new and old companies, which are registered with them, and allows the public to access services to register and maintain businesses through the BRS System.
Ecitizen Business Registration In Kenya
To Access the BRS, you have to have an Ecitizen profile. The Ecitizen platform is used by both Resident and non Residents in Kenya to access most online government services including Business Registration in Kenya.
Once you login to the Ecitizen Business Registration Service, you have the option of registering either of the entities below;
- A Business Name
- A Limited Liability Partnership (LLP)
- A Private Limited Company (LTD)
- A Public Limited Company (PLC)
- An Unlimited Organization
- A Company Limited by guarantee
On this Article, we shall dwell more on the two main forms of businesses in Kenya: A Business Name and a private Limited Company.
1. Registration of A Business Name Kenya
This is normally registered by owners of very small business looking to trade in a name that is different from their own name. This type of business is known for its simplicity and ease of setup. It is the easiest form in which one can operate.
2. Registration Of A Private Limited Company In Kenya
This is type of entity is preferred because the liability of the shareholders is limited to the extent of their individual contribution. It is a separate and distinct entity from its owners and is registered for tax as a separate entity.
Read more on the different types of companies in Kenya here
So what are the Costs of Registering a Company in Kenya?
The government of Kenya imposes different Cost Costs of Registering a Company in Kenya based on the entity type one is interested in.
Here are the costs of Limited Company Registration in Kenya (Statutory Costs)
- Registration of Business name – KES 950 ($95)
- Private Limited Company – KES 10650 ($107)
- Public Limited Company KES – 10650 ($107)
- Unlimited Companies – KES 20050 ($205)
- Company Limited by guarantee – KES 10000 ($100)
- Limited Liability Partnership- KES 25000 ($250)
Some of the Payment options when registering a company in Kenya include the following;
Kindly Contact us Today for a full quote on our service charge to Register your entity + Tax Registration + Bank Account Opening + Registered Address.
Here is how to register a company in Kenya
As discussed earlier, the whole company registration process is carried out online and the sequence is as follows;
- Enter your proposed company names
- Enter the Articles of Association Details
- Enter the registered Office Address
- Add the Share Information
- Add the Details of all the Directors and shareholders
- Declare the Beneficial owners of the Company
- Upload Signed application Forms
- Make Payment
Important Facts about Company Registration In Kenya
Now that you have an idea about the sequence to register a company in Kenya, we shall now look at the major things you need to know.
1. Business Name Search In Kenya
Before we jump into the process to register a company in Kenya, it is important to understand how the business name search in Kenya works. Name reservation is part of the registration process and you are required to submit at least 3 and a maximum of 5 unique names in order of priority and the first available name will be automatically assigned to you.
If the names you have submitted are similar to an already existing company or business, you will be requested to provide other unique names. Kindly note that the words “Kenya” “East Africa” or “Africa” are not considered differentiating words
2. Company Registration Requirements in Kenya
The requirements to register a company in Kenya Vary depending on the entity you are looking to register. For now, we will have a look at the requirements for a Branch Company (Foreign Company), Subsidiary (a Company whose main shareholder is a foreign company) and a New independent company.
| Requirements for Branch registration in Kenya | Requirements for registering a Subsidiary in Kenya (Independent Company Registration) |
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PS. If the Kenyan Company will have a Foreign Company as a shareholder, we shall then require the following details of the beneficial owners of the Foreign Company Valid Travel Passport, Passport size photograph, Postal, physical and e-mail address, Telephone number and their occupation. |
Read more on the requirements for Company & Branch Registration in Kenya here
3. Documents Needed To Register A Company in Kenya | Company Registration Forms in Kenya
Each entity type in Kenya has a set of unique forms completed by the subscribers as shown below.
- Business name – form BN 2
- Limited Liability Partnership – New Registration LLP 1
- Private Limited Company – CR 1, CR 2, Cr 8, Statement of Nominal Capital
- Public Limited Company – CR 1, CR 2, CR8, CR 10, CR 12 and the Nominal Capital Statement
- Unlimited Companies – Cr 1, CR 4, Cr 8 Statement of Nominal Capital
- Company Limited by guarantee – CR1, CR 3 and CR 8
We will help you prepare all the relevant documents required to register your entity and comply with the relevant Kenyan laws so that you can focus on setting up and running your company
4. Memorandum and Articles of Association in Kenya
The new companies act allows you to adopt the model articles of association in the companies act and hence reducing the time and cost of registering a company in Kenya. This also makes the process easier because you can remotely register the without the need for you to travel to Kenya
5. Company Registration Stamp Duty in Kenya
Kenya has abolished stamp duty that was previously charged as a percentage of the new company nominal capital. This is one of the many deliberate effort by the Kenyan government to give incentives to both foreign and local investors looking to setup new companies.
This means that you can setup the company with the highest possible nominal capital depending on your company needs in both the short and long run. Any subsequent increase of nominal capital will be subject to a stamp duty of 1% of the increase in the nominal capital
An Easier Solution to Company Registration in Kenya
While the wealth of information exists on the process and Costs of Registering a Company in Kenya, this process is tedious and time consuming. Some of the common issues experienced by individuals who take on the process alone include:
- Loss of funds. When the registration is not successfully completed due to missing files.
- Time spent. Follow up with the registry offices without certainty on the conclusion of the process can be very devastating.
- Choosing a non-suitable option. You may find that it would have been better to register as a company rather than a sole proprietorship. Changing this would pose a challenge for business operations.
Seeking some assistance business registration from East Africa Business Consultants not only enables you to know which entity suits you, but how to also go about it. Our Company Registration in Kenya service eliminates the hustle, saves you time and money.
When we take on the process, we do all the company registration work for you remotely. Therefore, you can attend to other projects over the period. Furthermore, our combined service ensures that you tap into our years of experience and hence ensuring that you avoid falling into the numerous pitfalls when setting up and running the company.
It is important to save your time and money through leaving it to the experts in the field. You will be certain to get the whole Company Registration work done within 10 days and your business will be ready to engage in all activities soon after. Yes, even when you are outside Kenya, we got you covered!
Read more about our customized process to guarantee you quality services
What you get after Company Registration in Kenya
1. Certificate of Incorporation in Kenya
This is the official document showing that the company is duly registered in Kenya. The certificate indicates the date of registration, Unique company registration number and the full company name.
2. Shareholders Certificate in Kenya | Form Cr12 Kenya | CR12 Certificate
The form Cr12 is issued upon successful registration in Kenya and it provides more details as listed below;
- The Company’s registered address
- A list of the company’s current shareholders, their postal address and share apportionment
- A list of the company’s current directors and their postal address
- Any encumbrances registered against the company
3. Company KRA PIN Certificate | KRA Pin Registration
A KRA Pin certificate is an official proof of registration with the Kenya Revenue Authority. The registration is important and a requirement when opening a Bank Account, Paying Taxes, Import and Export of goods
Things to do after you have registered a company in Kenya
1. Process a Business License in Kenya | Nairobi County Business Permit
A Business License is issued by the county government where your business is located. The costs for this depend on factors like the size of your warehouse and Number of employees.
2. VAT Registration in Kenya
It is Mandatory for companies to register for VAT if they will be dealing in Vatable Goods or Services. VAT is charged at 16% and payable on or before the 20th day of the following month.
3. Work Permit application in Kenya
All foreign employees, directors and shareholders looking to work in Kenya are required to apply for a Work Permit. Class D work permit is issued to any foreign employee bringing in a skill that is not readily available in Kenya and Class G Work permit is issued to company owners investing more that 100,000 USD into the country.
Conclusion
We hope that this article answered most of your questions relating to the costs of registering a company in Kenya & Africa and all the other important topics to help you make an informed decision. Feel free to reach out to us for more info or to speak to a consultant.
Read more on company registration in Kenya here
