Skip to content
Home » How To Register a Business in Kenya?

How To Register a Business in Kenya?

  • by

Can foreigners start a business in Kenya?

Kenya requires foreigners who want to conduct business to register their companies. To receive the firm registration documents, they must first register with the e-citizen site. Kenya is widely regarded as the economic, commercial, and logistical center of East Africa and has a market-based economy. Kenya has effectively attracted venture capital investments thanks to its strongest industrial base in East Africa. Recent statistics state that start-ups in Kenya raised more than $571 million in 2021. To capitalize on Kenya’s strategic location, extensive aviation lines, and status as a regional financial center, more and more foreign businesses and investors are establishing local and regional operations. In Kenya, registering a business is also simple. The Firm Regulatory Service (BRS) of Kenya recently changed its service charter to speed up the turnaround times needed to register a business in that country. Being a non-Kenyan conducting business or engaging in commerce in Kenya without a current Business Investor permit is prohibited, it is vital to know.

The following are provisions of Kenya’s Immigration Act (Cap. 172: Laws of Kenya):

“Section 4 (1) “Subject to this Section, no person who is not a citizen of Kenya shall enter Kenya unless he is in possession of a valid entry permit or a valid pass.” (2) “…the presence in Kenya of any person who is not a citizen of Kenya shall unless otherwise authorized under this Act, be unlawful unless that person is in possession of a valid entry permit or a valid pass.”

Section 13(2) (f):‐ “A person who, not being a citizen of Kenya, engages in any employment, occupation, trade, business or profession, whether or not for profit or reward, without being authorized to do so by an entry permit….shall be guilty of an offence and be liable to a fine not exceeding twenty thousand shillings or imprisonment for a term not exceeding one year or to both.”

Section 13(2) (g) provides for a similar penalty for “Any person who employs any person (whether or not for reward) whom he knows or has reasonable cause to believe is committing an offence under paragraph (f) by engaging in that employment.”

Deportation will invariably happen if any of these two offenses are shown to be true. One is not entitled to conduct business in Kenya simply because they have applied for investor permission.

How much does it cost to register a business in Kenya?

Companies are among the biggest companies in Kenya, contributing significantly to both the development of the national economy and the emergence of financial independence among the populace. Due to the high level of demand in the entire nation, starting a business is the finest business endeavor for you. You can launch a business that will only carry out a specific operation in the nation.

In Kenya, starting a business might cost anywhere from Ksh 1,000,000 to Ksh 500,000,000. This expense mostly covers the company’s start-up and registration charges.

Depending on the sort of company you are creating, the cost to register a corporation in Kenya can range from Ksh. 5,000 to Ksh. 30,000. Fees for registering a company varies depending on its nature. You can obtain a certificate of incorporation for Ksh. 11,000 by registering a private limited company. You might want to establish a construction business in Kenya. The cost of registering a construction firm in Kenya is an average of Ksh. 20,000. Here and in Kenya, foreign corporations may also be established and operated. A foreign company’s registration in Kenya might cost anywhere from Ksh.25,000 and Ksh.30,000. This covers every fee necessary for registration. You might be curious to know how much it typically costs to launch a betting business in Kenya, which ranges from Ksh. 20,000,000 to Ksh. 100,000,000. This corporation needs a lot of money because it operates as one of Kenya’s money companies. Additionally, security firms provide a lot of job opportunities for many residents, making them lucrative business enterprises. In Kenya, founding a security company often costs Ksh. 500,000.

In conclusion, businesses have done better than bad for society as a whole since they give locals numerous work opportunities, which boosts Kenya’s economy.

What is the process of registering a business in Kenya?

Foreigners can register two types of businesses in Kenya. These include registering a local business or a branch office abroad. For obvious reasons, most people and organizations prefer to register local businesses.

Let’s now take a closer look at how these entities are registered. The first one is the local company/subsidiary. A foreigner incorporating a local business follows a similar process to a citizen registering a local business, except for the prerequisites. There are numerous corporate structures, but the majority of foreign people or organizations choose a private corporation limited by shares. The next one is the branch office, and this may be accessible to businesses with a low amount of activity. These typically do not need to be incorporated in Kenya, but the parent business does demand specific financial disclosures in order to register one. Other requirements for registering a company in Kenya are a proposed company or a business name which ensures that it is not like an existing registered business. It is reserved for 30 days after approval. A minimum of three names must be submitted to BRS. The business is being organized to carry out. It must be completely legal and not in conflict with government regulations. KRA requires that the director’s details be included on the registration application for the sake of accountability and transparency. Each director must produce a current, unexpired proof of identification as part of the registration process. A foreign national registration certificate – Alien card is necessary for foreigners who are legally residing in Kenya, and an international passport is needed for non-resident aliens. Each Director and Officer of the Company shall furnish a clear and recent passport photograph. Any director, resident or not, must present a copy of their Identification Number (PIN) certificate from the Kenya Revenue Authority (KRA) to demonstrate their tax authority registration.

The following documents must also be signed by all directors and submitted with registration as well. Form CR1 – This is the document used to register a business. The Memorandum of Company with Share Capital is found on Form CR2. The notice of registered address form, Form CR8. After providing the necessary paperwork, the Kenyan Registrar of Companies issues the Certificate of Incorporation. whether an affiliate was authorized. There will be a certificate of compliance given out.

For obviously, it is crucial to stress the importance of speaking with professionals that have experience with Kenyan incorporation procedures as well as industry regulators. Getting a better perspective on constantly evolving legislation is the main goal of this. Side brief is a RegTech start-up that eliminates time-consuming paperwork, difficult legal requirements, and obfuscated costs to make starting and running a business simple for founders, entrepreneurs, and business owners across Africa. The direct application’s main drawback is that it takes a long time for a notification to arrive. When a candidate utilizes an agent to submit their application, they typically gain from the agent’s efficiency and expertise. Even though every effort has been made to assure the truth of this publication, it is not meant to be a substitute for legal counsel because every circumstance is unique and should be reviewed with a specialist or attorney

Leave a Reply

Your email address will not be published. Required fields are marked *