Understand the Jurisdictions Setup Requirement Before Proceed Your Kenya Company Incorporation Services
Kenya is a country in East Africa, and its capital is Nairobi. There are a couple of tax treaties and agreements for promotion and protection making it a popular business destination. Moreover, they have a free enterprise economy with the largest economy Central and East Africa based on GDP.
Kenya company incorporation services make it easier to start a business in their country after going through some significant changes.
If you are interested to register a company in Kenya, read on.
When it comes to doing business in Kenya, you must first know the legal requirements so you start legally.
You can register as a sole owner or partnership if there are more than 2 owners. Once you are done with this, you will receive a certificate of registration and nobody can use your business name. You can register your business name and only requires a small budget. For instance, you only pay 100 kshs per name for the list of names you give. This only takes 3 days and after it is checked, you can choose which name to use. This one normally takes 5 days and you pay Kshs 1000.
You can set up a limited company and this is the best structure when you are running a business. That is because you have limited liability to the assets and you can enjoy the tax benefits that sole proprietors cannot enjoy. You will need at least 1 director and a maximum of 7.
Memorandum and Articles of Association
You must ask your company secretary to draft a Memorandum and Articles of Association that includes the company’s objectives and internal constitution.
After the Memorandum and Articles of Association have been prepared, you will lodge the documents at the Kenya registrar of companies. You do not have to pay for a stamp duty based on the Companies Act 2015.
Requirements if You Register Online
- A proposed business name/s for your business and pay the reservation fee.
- The address of your proposed business and include the LR Number.
- The objectives of your company.
- If one director is a foreigner, then you need a Kenyan shareholder.
- Copies of identification cards of all directors or their passports if they foreign directors.
- PIN, and the certified copies of the directors.
- Passport size photographs for the local directors. Foreign directors do not need this.
- How much percentage each shareholder owns.
Location is an important factor. Different cities and regions could have different rules, availability, and costs. It is better to get advice from relevant professionals, they could be legal or business advisors, accountants, other entrepreneurs, and more. This depends on what you need.
You will be asked to obtain licenses and permits based on your company’s activities. The county councils are involved in licensing.
Tax and Accounting
The corporate tax rate in Kenya is 30% and they have a Value Added Tax (VAT) of 16%.
There is no capital gains tax applicable because it is currently suspended.
The dividends taxes are based on the withholding tax, and this is the final tax. You are not allowed to add expenses on the dividend income or other income of the person who is taxable. The dividends that financial institutions receive are exempted.
Their personal tax rate is 10% and a maximum of 121,969 Kshs.
They recently launched the Unified Business Permit that consolidates the requirements needed to run a business in Kenya.
If you need help in doing business in Kenya, you can contact us. Above all, our experts are always ready to assist you with anything you need so you can start your business smoothly.