Company Registration Services in Kenya
Everyone in Kenya has a dream to start a business. Everyone wants to start a company to move forward with this dream and turn it into a reality. Therefore, there exists company registration services in Kenya. Through the Incorporation of a company, you can start your business legally where you are provided not the only infrastructure of growth but also assistance from the government.
What is Company Registration as a service?
Before we dive into company registration, let us understand the concept of a company. What is a company? A company is a business entity comprised of at least two directors and members/shareholders. It is a legal business unit incorporated under CompanyCompany’ssregistrationtion rules established under CompanyCompany’ssactsact
Simply put, Company registration is a process to acquire a company registration number in Kenya through which the business gets a legal infrastructure through which you can do business.
So, how to register a company in Kenya? The process, even though simple, requires the assistance of company registration service providers like 2Max Group. Thankfully, you are with 2Max Group. We can provide you with end-to-end assistance- guiding you with every step one needs to take to register a company in Kenya.
However, there are many factors that you have to take into account before the name of your company lands inside the company register.
Types of Companies in Kenya
- Statutory Companies
A particular act of parliament incorporates these companies, and the treasury provides for the initial capital. The Company has no shareholders but can make profits and operate under understated commercial laws. When it accrues losses, the government can come to its rescue, and the creditors cannot make an application to the court for the Company to be dissolved. Examples of such companies in Kenya are the Kenya Power Limited Company (KPLC), Kengen, and the Kenya Tea Development Agencies (KTDA).
2. Registered Companies
These are companies that are registered under the companies act. This is where the mass of all the Kenyan companies fall under.
Registered companies can be classified into two sets: Unlimited and limited.
- Unlimited companies
In this type of Company setup, there are no limitations on the liability of the members to pay the debts, which means that they are jointly and personally liable for the debts in case of a winding-up scenario. Suppose the Company needs more money to pay its obligations or liabilities on winding up. In that case, it can call on the shareholders to contribute whatever amount is necessary to make up for the shortfall.
Here are the instances where this kind of Company is necessary;
- Where the risk of insolvency is small.
- The owners do not wish to file financial information publicly and are keen on secretion about financial matters.
- The Company will operate in a field where limited liability is frowned upon.
- Where it can be seen that reductions in capital may become desirable.
2. Limited companies
The owners or shareholders keep their assets and finances separate from the entity. The liability of the shareholders is limited to the extent of the amount of capital they had invested initially or guaranteed in the Company as per the Memorandum of association, which means that they are only liable up to the amount they invested and no more.
This is a very suitable arrangement as one can get involved without risk to personal wealth. Contact us to get more about Company Registration services in Kenya
They can either be limited by shares or by a guarantee
- Limited by Guarantee
If the Company is being wounded up, the Memorandum of association provides for the liability on the part of its members to contribute a fixed sum towards its debts. The shareholders put up a guarantee to pay an amount to pay up the deficit.
The following are instances where one should register it as a company limited by guarantee.
- When there is no immediate need for capital.
- If you are looking to avoid the need of having to transfer shares every time a member leaves or joins.
- When you want to limit the liability of the members.
- Incorporation is necessary or desirable.
2. Limited by shares
The liability of its members is limited by the Memorandum to the amount, if any, unpaid on the shares respectively held by them.
This category can be further classified into Sole proprietorship, Partnerships, and limited liability companies.
- Sole Proprietorship
This type of business is known for its simplicity and ease of setup. It is the most accessible form in which one can operate. The owner and the business are regarded as one, and therefore the owner assumes all the risks of the business and is personally liable to the extent of all their assets that are used in the business and those that are not.
Types of Partnerships are ordinary partnerships, limited partnerships, and limited liability partnerships.
- General/Normal Partnerships
Two or more people come together to form an organization to carry on a business. Partners contribute their share, which can be in the form of their expertise, money, property, etc. They are liable for any/all debts taken on by the business or the other partners and share in all the affairs ie, assets, profits and liabilities.
- Limited Partnerships
This type of Company has both a general partner and a limited partner. The general partner is responsible for the day-to-day management of the business and does not have limited liability because they are active in the decision-making, while a limited partner who acts as an investor as his only role is to provide capital and receive the share of the profits is liable up to the amount he invested within the business.
- Limited Liability Partnerships.
This type shields the other partners from the negligent actions of the other partners making every partner individually liable for their actions or their inactions. They combine the elements of a company with those of a partnership and can only be created by certain types of professionals like law firms, accountants, etc.
Once an LLP is registered, it becomes a corporate, legal entity separate from its members and may own property in its name. It is not subjected to corporate tax ratiit’staiit’staxedaxed income of the individual partners.
3. Limited Liability private companies.
They are separate and distinct entities from their owners and are registered for tax as separate entities. It has its rights, obligations, and a life different from its owners. It requires a minimum of at least one director and a maximum of 50 members.
4. Limited Liability public company
The public can buy and sell shares in the Company. The company shares can be traded on the Over Counter (OTC) market and the Nairobi Securities Stock Exchange.
In the OTC market, the Company is the one that controls the market and offers specific shares for trading to particular persons who, in most cases, are the shareholders of the Company. Family Bank is an example of a company that trades in the OTC market.
It requires a minimum of 7 shareholders and two directors and has no maximum limit.
The Company will have to publish and file its audited financial statement and statutory reports with the Registrar of companies.
It is allowed to start its operations only when they are granted a certificate of commencement of business.
Features common to every type of Company
- Separate Legal Entity: A company is a separate legal entity from its directors. The company registration number that a company gets after the completion of a new company registration process acts as a symbolic birth certificate of the Company – making a company an individual as far as the rules are concerned.
- Limited Liability: A company’s members/shareholders and directors are only liable to its losses to the extent of their share subscriptions.
- Incorporated business entity: A company is a combined business entity – governed under the Companies Act, 2013 by the Ministry of Corporate Affairs.
- Transferable Shares: The shares of a registered company are transferable among the members of that Company.
- Perpetual existence: Since the reality of the Compiisn’tbiisn’tboundound existence of the directors, a company continues to exist even after the death of the director.
- Common Seal: After registration of a company online (or offline), the company’s directors must put a common seal on every document related to company transactions.
Benefits of Company Registration Services in Kenya
The Advantages of Registering a Business
Due to these benefits, it is optimal for any starting entrepreneur to undergo a Company registration process in Kenya.
Checklist for company registration services in Kenya
1. Proposed company/business name;
2. Objectives of the company/business;
3. Names of the Directors, Contact details, and email addresses;
4. Passport photo (copy) for each director;
5. Identity card (for Kenyan Citizens)or Foreign National Registration Certificate – Alien Card (for foreigners residing in Kenya) or Passport (for nonresident foreign nationals);
6. Kenya Revenue Authority (KRA) PIN certificate (copy) for each Director with Kenyan citizenship;
7. Duly signed copy of Notice of Registered Address Form (CR8) by all Directors;
8. Duly signed copy of Company Registration Form (CR1) by all Directors;
9. Duly signed copy of Memorandum of a Company with Share Capital Form (CR2)by all Directors; and
10. Duly signed copy of Statement of Nominal Capital by all directors
Requirements for registering a company in Kenya
The following are the requirements for registering a company in Kenya.
When forming a limited company in Kenya, the law requires that certain documents be submitted by persons interested in incorporating the Company.
These documents include personal documents of the persons registering the Company and legal documents.
The personal documents that are required include:
- A copy of the Identity Card of each of the directors.
- A copy of the KRA PIN certificate of each of the directors.
- A passport-sized photograph of each of all the directors.
The legal documents that you must submit to the registrar of companies include.
- Memorandum of Association – This document sets up CompanyCompany’ssconstitutionjectivesives.
- Article of association – This document contains the rules and regulations of its internal affairs. It deals with matters such as share capital, directors, shares, and company meetings, among other things.
The documents above must be signed by a minimum of 7 people in the case of a public limited Companies or a minimum of 2 people foa r private limited Company. If the Company is formed has share capital, each share subscriber must write the total number of shares owned opposite to their name.
Other documents that must be submitted include:
- Statement of Nominal Capital – This document states the amount of nominal capital in KES. The stamp duty paid during registration is determined by the share capital stated by the Company. The paper is only required if the Company has a share capital.
- Particulars of Directors and Secretary – This document is under section 201 of the Companies Act.
We have drafted a good article on registering a company in Kenya. Look at it, and you will get to know how these documents are used.
Process for Company Registration in Kenya
Online Company Registration process in Kenya
Procedure for registration of a company in Kenya.
- Name Search. The proposed company name has to be searched and reserved by the registrar of companies.
- Executing forms CR1, CR2, CR8, and statement of Nominal capital. Once the name is approved and reserved, the company registration forms are executed and signed by the subscribers and directors of the Company.
- Application for registration. – The application forms are then launched with the Registrar for registration.
- Registration and issuance of a certificate of Incorporation.
- PIN application
Our Reliable Company Registration Services in Kenya
Our experts provide you end to end company registration services in Kenya by assisting you in the following manner:
- Collecting and organizing the documents.
- Applying for the KRA Certificate.
- Digitally certifying the documents.
- Precisely drafting the Memorandum and Articles of Association.
- Applying for business registration online.
- Obtaining and forwarding the Certificate of Incorporation.
We ensure that your online company incorporation services requirements are always on time. Our professionals understand the intricacies of the online company incorporation procedure. Thus, we have expedited the process – helping you incorporate your Company at an affordable rate and a low price.
Registrationwala is an all-legal service provider for start-ups. They provide complete company incorporation services in Kenya. Each service is optimized for good results, and all are provided at the most affordable company incorporation fees you can hope for.
So, reach out to our experts and start realizing your dream of being your boss by creating your own Company.
Branch of an Overseas Registered Company
A company incorporated outside Kenya may carry on business in Kenya through a branch. The following documents are required for the formation of a company in Kenya as a branch of a foreign company (also referred to as a foreign company carrying on business in Kenya).
- A certified copy of the Charter, Statutes or Memorandum and Articles of the Company, or other instruments defining the constitution of the Company;
- A list of the directors and the secretary of the Company;
- A statement of all existing charges entered into by the Company affecting properties in Kenya;
- Names and postal addresses of one or more persons resident in Kenya authorized to accept, on behalf of the Company, service of notices required to be served on the Company;
- Full address of the registered or principal office of the Company in its home country; and
- Full address of the place of business in Kenya.
The Registrar issue a Certificate of Company Registration in Kenya. Companies that want representative or liaison offices are required to register using the above process.
- A partnership is restricted to a maximum of 20 persons, each jointly and separately liable for all debts incurred. The partnership must be registered under the Companies Act if these numbers are exceeded.
- Any agreement may form a partnership. This need not be formal but is usually in writing. If the partnership does not trade under the partners’ names, the business names to be used by the partnership must be registered under the Registration of the Business Names Act, Chapter 499 of the Laws of Kenya.
- A Partnership is required to file the statement of particulars form with the Registrar of Companies. The state has to be signed by all the partners. Partnership agreements do not have to be filed with the Registrar of Companies. The Registrar will then issue a Certificate of Registration.
Limited Liability Partnership
- A Limited Liability Partnership (LLP) may be formed under the Limited Liability Partnership Act, 2011. A natural person or a corporate body may be a partner in an LLP. In addition, the LLP must have a manager who must be a resident of Kenya.
- The partners in an LLP have limited liability, but the provisions of the Partnership Act apply in all other respects.
A sole proprietor is personally liable for all debts incurred.
The proprietor must file the Statement of Particulars form with the Registrar of Companies. Where a proprietor does not trade under his name, the business names used by the proprietor must be registered under the Registration of Business Names Act. The Registrar will then issue a Certificate of Registration.
For successful company registration services in Kenya, an investor is required to be in constant contact with professionals. The investor must be correctly informed about the specificities of the local business environment. It ranges from taxation matters, business venues, business registration processes, and the many requirements for compliance with Kenyan law.
Accessing valid information from the Registrar of Companies can sometimes be challenging since the business environment and its legal framework are regularly updated. Therefore, successful business registration is not only about submitting an application file. It is more about receiving valuable insights from your local partner to help you implement your strategy without a hitch. This way, you will enable your business structure to start successfully.
Once your Company is duly registered in Kenya, you can apply for a Tax Identification Number to start your payroll by recruiting local employees and expatriate staff.