Company registration in Kenya

Kenya's investment environment has been completely liberalized, which opens up new opportunities for foreign investors. According to current legislation, foreign citizens can own up to 100% of the company's shares, with the exception of specific sectors such as securities, insurance, energy and lighting, as well as other industries identified by the government as posing a threat to the country's security.

Brief description of companies in Kenya

The most common legal entities in Kenya are a branch office and a subsidiary company. The main difference is that the subsidiary is a separate legal entity from the parent company, while the branch does not have such a status. This also affects taxation: branches are subject to a corporate tax of 37.5%, while subsidiaries are considered local and are taxed at a lower rate of 30%. You can also create a completely new and independent company if you do not want to register a subsidiary or branch.

Company registration stages

To create a full-fledged company, you need to go through three main stages:

1. Registration of the company in the Register of Companies — due date: 7 days.
2. Tax registration with the Kenya Revenue Authority — due date: 6 days.
3. Opening a bank account — due date: 7 days.

It is important to note that foreigners wishing to open a business in Kenya do not have special capital investment requirements. However, the presence of a local director (who does not own shares) or a company secretary is a prerequisite for registration. If you don't have a local director, IT-OFFSHORE is happy to offer its services.

Necessary documents for the establishment of a company

Requirements for branch registration:

• A notarized copy of the parent company's registration certificate.
• Copies of the directors' passports and identity cards of the local representative.
• Passport-sized photos of the directors and the local representative.
• Postal, physical, and email addresses, phone numbers, and occupation of the parent company, directors, and local representative.

Requirements for setting up a subsidiary/independent company:

• The three preferred names of the proposed company.
• Copies of valid passports of all directors/shareholders.
• A notarized copy of the parent company's registration certificate and a list of all beneficial owners of the parent company (if the parent company is a shareholder in the subsidiary).
• Passport-size photographs of all directors and shareholders.
• Postal, physical, and e-mail addresses, phone numbers, and occupations of all shareholders/directors of the proposed company.

Conclusion

Over the past 10 years, IT-OFFSHORE has been helping local and foreign investors create successful businesses in Kenya. We provide comprehensive support in the processes of company registration, compliance with legislation and overcoming all bureaucratic barriers. If you are ready to start your business in Kenya, we are ready to help you at every step of the process.