Why Set Up a Company in Kenya?
Kenya is a well-known country in East Africa. It is situated in the East Lake region of East Africa. The official name of Kenya is the Republic of Kenya. Then, Nairobi is the capital city of Kenya.
Many companies from across the globe want to set up business in Kenya. The main reason for this upwell of foreign companies in Kenya is Kenya’s enterprise economy’s free nature. In fact, Kenya’s GDP is lucrative and potent to attract such a significant number of businesspeople and investors. The Gross Domestic Product (GDP) of Kenya is noteworthy. Thus, Kenya is the most prosperous economy in Central and East Africa. Read on to know many more intriguing facts about Kenya Company Formation.
The organization responsible for the promotion of business-oriented investments in Kenya is named Kenya Investment Authority (KenInvest). Accordingly, it was established back in 2004. Of course, it is a well-established statutory body and helps the organization implement new projects on Kenya’s grounds. They also offer various kinds of assistance to the existing companies and extend their hand of corporate help to any company that wants to develop new projects. Furthermore, the core benefit of such a body as KenInvest is that foreign investors receive thorough guidance, which often becomes a challenge for investing in other countries.
Company Formation in Kenya – Key Points
Here are a few crucial points about company formation in Kenya:-
- Any investor who wishes to set up a Kenya company is entirely free to decide whether they want to have 100 per cent ownership of their business or indulge in a partnership business with the local investors. However, this rule does not apply to the following types of business:
- Stock Market Investment
- Airline Services
- Insurance industry
- The information and communication industry
- Any Company operating outside Kenya can operate through an approved branch. Also, all the facilities applicable to the enterprises in Kenya shall remain the same for the branch as well. Also, experts from reputed consultancy can guide you for doing business in Kenya.
- Companies with limited liability cannot get a subscription to their shares from the general public. Limited liability companies are also restricted to have members greater than 50 in number. However, this number does not take into account the already existing employees.
Registration of Companies in Kenya
- Any company that wishes to carry out business in Kenya must obtain a permit and license (it can be one or multiple depending upon the nature of activities carried out by the company) from the County Council of Kenya.
- This applies only to the companies that are foreign to Kenya. However, the native business houses of Kenya need only a single EPZ license to carry out any business activity. You can consult trusted consultancy firms for more guidance on how to register companies in Kenya.
Taxation Policies for Registered Companies in Kenya
- Capital Gains Tax is wholly suspended in Kenya and is not applicable in any sphere.
- Up to 121,969 Kshs, the rate of personal tax is 10%.
- There is a policy of dividend taxation in Kenya. You cannot make expenses on dividend income. Only financial institutions can make expenditure on dividend income. Dividends are subject to taxation on a withholding basis.
- The corporate tax rate is 30% in Kenya, and the rate of VAT is 16%.
3E Accounting is one of the most reputed forerunners in the domain of company formation consultancy. We have a team of experts who can assist you in every aspect of Kenya company formation. You can contact us for more details and seamless business experience.