Total Economic Policy Overhaul Lures Company Registration in Kenya
For the last 12 years, Kenya has proven to be far from the old East African country. Hence, many investors would not even consider doing business in Kenya. Company registration Kenya seemed close to unreasonable.
The government’s radical overhaul of its economic policy, however, changed its structural and economic bureaucracy resulting in economic growth. Kenya’s economic governance system has allowed more investments to come in since the passage of a new constitution in 2010.
To cut the long story short, Kenya has been averaging a decent 5.7% economic growth annually. In fact, today this country in the east Africa continent is deemed as one of the most promising investment hubs in Sub-Saharan Africa.
Kenya’s economic policies gave investors the confidence to infuse capital for business operations, which in turn translated to revenue and employment among its nationals.
World Bank-support Economic Endeavors
Among the significant organizations that believed in the potential of Kenya includes no less than the World Bank. In fact, the World Bank went as far as extending financial support to Kenya’s bid to close the fiscal gap to enable them to advance their inclusive growth agenda.
Among the industries that the government has given preferential attention includes manufacturing, universal healthcare, socialized housing and food security. These four industries beef up the four flick investments for many aspiring entrepreneurs considering company registration in Kenya.
With an economic policy embarking on ease of doing business, company registration in Kenya is far fetch from how it was 12 years ago. Moreover, web sources showed company registration in Kenya is quick and easy provided documentary requirements are properly complied with.
Guide for Company Registration in Kenya
Company registration in Kenya could be done online. Also, legitimate entrepreneurs are advised to comply on the following:
- Secure Kenyan ID [for Kenya nationals] or Foreign Certificate [for foreign nationals].
- Create an e-Citizen online account using Kenyan ID number for locals or the Foreign Certificate number for foreign nationals.
- Upload a 2X2 [passport size] recent photo.
- Click the Business Registration Service tab on the landing page and choose the preferred business type for registration on the web provision which reads “business name application.” Among the choices for business, types include Sole Proprietorship, Public/ Private Company, Partnership, Limited Liability Partnership, registered foreign company branch and business society.
- After picking the preferred business type, entrepreneurs vying for company registration in Kenya may enter the business name of choice. Note: The system automatically rejects the proposed business name entry that is too long or found to have already been taken by another company earlier. If that happens, enter a new business name and wait for 48 hours for feedback. Once admitted, entrepreneurs have 30 days to pay Kes. 150 or roughly $1.50 USD fee to proceed with the business registration cycle. It is important to note that the e-Citizen site doesn’t give feedback. One has to re-log in to check.
- The same website provides downloadable company registration form CR1. Entrepreneurs are required to fill-up the form with details including company name and business office address. The same form requires details and scanned copies of valid identification cards and passport-size pictures of the company directors and shareholders. Have the directors sign the downloaded document.
- Download form BN6 where entrepreneurs are required to state other businesses and declare nominal capital holdings. For new businesses, it is imperative to divulge capital holdings.
- Kenya Revenue Authority mandates all entrepreneurs vying for company registration in India to pay the Stamp Duty which will be computed out of the amount of company capital. Under existing state regulatory laws, entrepreneurs vying company registration in Kenya get to pay an equivalent of one per cent of the company’s nominal capital. On top of Stamp Duty, entrepreneurs vying for company registration in Kenya are charged Kes. 100 for every secured document for KRA approval. This particular process entails five to 10 days at the most.
- Prepare a Memorandum and Article of Association. The Memorandum should contain outlined business objectives, rules, subscribers, and authorized share capital. The Memorandum should also contain the business name, business address, the value of each company share and the number of shareholders. Likewise, a must are the company rules and regulations, members’ liability, organizational functions of the company directors, the manner in which the directors were selected and how to unseat them in case of a mess up.
- Only then can entrepreneurs vying company registration in Kenya would be allowed to submit the accomplished forms and pay the corresponding fee at the Kenyan Registrar’s office.
- Finally, entrepreneurs vying for company registration in Kenya should pay the mandatory fee of Kes. 10,650. The government provides payment options — through the e-Citizen portal or other legal tenders at the Registrar’s office.
Once completed, entrepreneurs should be able to download their business certificate from the e-Citizen web portal. Thus, the entire process would take three weeks at the maximum.
Calling Investors to Consider Business in Kenya
The government’s business-friendly economic policy is definitely attracting more investors to consider doing business in Kenya. However, the sheer knowledge of company registration in Kenya may not be enough to do the trick. Entrepreneurs are advised to seriously consider tapping the services of a business advisor with a track record of excellence, efficiency and economy.
3E Accounting, which maintains a dynamic team of professionals, just might be what you need to form and register a company in this eastern part of Africa. What we can guarantee our results, for less.
For more information about our Kenya incorporation services, contact us.