Frequently asked questions on registering a company in Kenya as a Foreigner
1. Can a foreigner register a company in Kenya?
Yes, foreigners can fully own and register a company in Kenya without requiring a local partner. However, some business sectors (e.g., telecommunications, insurance, and banking) may have restrictions on foreign ownership.
2. What is the best business structure for a foreigner starting a business in Kenya?
Foreign investors typically register as:
- Private Limited Company (Ltd) – Most common and flexible for foreign ownership.
- Foreign Branch Office – If you want to extend your existing company to Kenya.
- Limited Liability Partnership (LLP) – Suitable for professional service firms.
3. What is the minimum capital requirement for a foreign-owned company in Kenya?
- Most businesses have no specific minimum capital requirement.
- However, companies owned 100% by foreigners in certain sectors (e.g., trade businesses) must have a minimum capital of USD 100,000 (Ksh 15 million) to qualify for an investor work permit.
4. Do foreigners need a Kenyan partner to register a company?
No, foreigners do not need a local partner unless required by industry regulations (e.g., security services, telecommunication). A foreigner can own 100% of a private limited company.
5. Can a foreigner be a director of a Kenyan company?
Yes, a foreigner can be a director of a Kenyan company. However, at least one director must have a Kenyan Personal Identification Number (KRA PIN), which foreigners can obtain by registering with the Kenya Revenue Authority (KRA). Please note you need an Investment Permit to obtain the KRA PIN.
6. What are the tax obligations for a foreign-owned company in Kenya?
Registered companies in Kenya must comply with:
- Corporate Income Tax (30% for resident companies, 37.5% for non-resident companies).
- Value Added Tax (VAT) (16% for businesses earning over Ksh 5 million annually).
- Pay As You Earn (PAYE) for employees.
7. What is the process for registering a company in Kenya as a foreigner?
- Reserve a company name (via eCitizen).
- Prepare registration documents (Memorandum & Articles of Association, Form CR1, CR2, CR8).
- Provide copies of passports, KRA PINs, and passport photos of directors and shareholders.
- Indicate a registered office address in Kenya.
- Submit application on eCitizen (processed within 5-10 working days).
- Receive Certificate of Incorporation.
- Register for tax (KRA PIN), NSSF, NHIF, and Business Permit.
8. Does a foreigner need a work permit to register and run a company in Kenya?
- No work permit is needed to own a company.
- A work permit (Class G Investor Permit) is required if a foreigner wants to work and manage the company in Kenya.
9. Can a foreigner open a business bank account in Kenya?
Yes, but the company must first be registered. The requirements include:
- Certificate of Incorporation
- KRA PIN for the company
- Board resolution to open a bank account
- Copies of directors’ passports and KRA PINs
- Proof of physical address
10. Can a foreign company register a branch in Kenya?
Yes, a foreign company can set up a branch office in Kenya. The parent company remains responsible for liabilities, and the branch must file annual returns.
11. How much does it cost to register a company in Kenya?
The government fee for company registration is Ksh 10,650. Additional costs may include:
- Legal and registration service fees (if using an agent)
- Work permit application fees (if needed)
12. What are the ongoing compliance requirements for a registered company in Kenya?
Once registered, a company must:
- File annual returns with the Registrar of Companies.
- File tax returns with KRA.
- Renew business permits annually.
