Company Formation in Kenya | Business Registration | IMC
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SET UP A BUSINESS IN KENYA

Kenya officially named as the Republic of Kenya and it is a country in the African Great Lakes region of East Africa. Its capital city is Nairobi.  Kenya has a number of tax treaties and investment promotion and protection Agreements. Kenya is a popular business destination due to its free enterprise economy, and boasts the biggest economy in East and Central Africa as measured by gross domestic product (GDP).Kenya Investment Authority (KenInvest) is a statutory body established in 2004 with the main objective of promoting investments in Kenya. It is responsible for assisting the implementation of new investment projects, offering after care services for new and existing investments.

Scroll down for more information on Company Formation in Kenya.

 COMPANY FORMATION IN KENYA

  • An investor is free to choose to operate their business with either 100% ownership or in partnership with local investors except in the Insurance, Information and Communication Technology, Air services and investments in the stock market.
  • Limited liability companies is prohibited from inviting the general public to subscribe for its shares and it cannot have more than 50 members excluding persons in employment of the company
  • A company incorporated outside Kenya may carry on business in Kenya through a branch.

COMPANY REGISTRATION IN KENYA – LICENSING

  • Businesses operating in Kenya are typically required to obtain one or more licenses and permits, depending on the activities of their company. County councils being involved in licensing
  • Any Kenya Business is exempt from all business license requirement, only EPZ license is required to do business

ACCOUNTING AND TAX FOR COMPANY REGISTERED IN KENYA

  • The corporate tax rate is 30% and the Value Added Tax (VAT) rate is 16%
  • Capital Gains Tax not applicable as this tax is presently suspended in Kenya
  • Dividends are taxed on a withholding tax basis which is final tax. Expenses are not allowed on the dividends’ income or any other income of the taxable person. Dividends received by financial institutions are exempt
  • Personal tax rate is 10% up to 121,969 Kshs

TypeLimited Liability Company/Branch office
Under Kenya law, foreigners can own100%
Share CapitalMin of KES 100,000
DirectorsMinimum One
ShareholdersMinimum Two
Memorandum and Articles of
Association
Yes
Can the entity hire expatriate staff in
Ethiopia
Yes
Tax Registration Certificate requiredYes
Statutory audit requiredYes
SecretaryYes
How long to open Corporate Bank Account1 week
Timeframe to Incorporation3-4 weeks
Annual ReturnYes
Annual TaxYes
Access to Mozambique
double tax treaties
Yes