If you are looking for a promising investment option or are looking to start a business in the African continent, then opening a company in Kenya will be an excellent choice.
The Republic of Kenya is an independent agricultural state located in the eastern part of Africa, washed by the waters of the Indian Ocean and Lake Victoria.
Among the neighboring countries of jurisdiction are South Sudan, Uganda, Ethiopia, Tanzania, and Somalia.
The main industries are agriculture (fruits, coffee, sugar, tea), extraction of natural resources (soda, salt, limestone, spar, gypsum, zinc, rubies, gold), industry (textiles, electrical engineering, soap, tobacco, cement, oil refining ), tourism.
The capital is Nairobi. The largest city is Mombasa. The state currency is the Kenyan shilling (KES). Official languages: Swahili / English. The population of the country is over 50.9 million people. The climate is subequatorial.
Participation in international and regional organizations: IBRD, African Union, COMESA, East African Community, Group of 77, ACP, ADB, IMF, ICRC, and others.
The main advantages of registering a company in Kenya
In the Doing Business rating, this jurisdiction is ranked 61st in terms of ease of doing business, 11th in protecting minority shareholders, and 8th in obtaining loans.
If you are interested in registering a company in Kenya, then we draw your attention to the list of key advantages of this state, contributing to the creation and development of international business:
- Dynamic economic growth;
- An important economic, financial, and tourist center of Africa;
- Trade relations with the Netherlands, China, USA, India, Great Britain, Japan, South Africa, and not only;
- Favorable environment for creating a startup and developing an existing business (small, medium, large)
- Available labor resources;
- Loyal tax system;
- The soon opening of the world’s largest African Free Trade Zone (AFTZ);
- Availability of DTA agreements.
Those wishing to register a company in Kenya remotely can choose one of the data, the most priority business areas: hotel business, real estate operations, construction, restaurant business, service sector, IT-sphere, and light industry.
Types of business in Kenya
Those who are going to open a company in Kenya should consider the following organizational and legal forms:
- Limited Liability Company (LLC);
- Free Trade Zone Company (EPZ Company);
- Joint Stock Limited Liability Company (PLC);
- Limited Liability Partnership (LLP);
- Branch (B);
- If you want to register a company in Kenya remotely, we draw your attention to the fact that a limited liability company (LLC) and a free trade zone company (EPZ Company) are considered the most promising in terms of investing and doing international business.
Regulator Requirements
Those wishing to register a company in Kenya must comply with these conditions of local authorities:
- The unique name of the enterprise (the ending indicates the full form or abbreviation of the selected OPF);
- An allowable number of directors/shareholders: 1 or more. For PLC – minimum 7, for LLP – minimum 2;
- Resident status: yes (for a director);
- The presence of a secretary: not required;
- Enterprise management: carried out by both individuals and legal entities;
- The authorized capital of the company: is 2 USD. For PLC – 97 thousand USD;
- Local physical address: yes;
- Reporting and filing: yes (monthly).
Kenya tax system
If you are interested in registering a company in Kenya, then we suggest you carefully read this list of taxes provided for legal entities:
- The standard corporate tax rate in Kenya is 30%. EPZ companies are exempt from tax. For branches, the rate is 37.5%
- Dividend tax – 10%
- VAT – 16%
Pros of Jurisdiction: Why It’s Easy to Start a Company in Kenya
- If you register an enterprise in Kenya, you can manage cash flows remotely.
- Obtaining a license takes up to a month.
- Kenya has a well-developed export infrastructure.
- 80% of Kenyans are fluent in English.
- Record low wages: $ 40 per month.
- Very cheap mobile communication and internet.
- $ 2 – the minimum authorized capital for opening any OPF company in Kenya, except for PLC (for this form you need $ 97 thousand)
