foreigner Requirements to own a Business in Kenya.

foreigner Requirements to own a Business in Kenya.

 Is it your dream to open a company or a business in Kenya, this should be well sorted because we are here to help you in your process, Foreigners who want to own, or run a business in Kenya, need to have an Investor Class D permit from the Immigration Department?

Legal Provisions regarding Investor Permits in Kenya.

 It’s a criminal offence to own a business in Kenya if you are non-Kenyan without a permit, to avoid this offence it advisable to follow legal requirement when opening provisions of the Immigration Act (Cap 172, Laws of Kenya) are as follows: ‐

“Section 4 (1) “Subject to this Section, no person who is not a citizen of Kenya shall enter Kenya unless he is in possession of a valid entry permit or a valid pass.” (2) “…the presence in Kenya of any person who is not a citizen of Kenya shall, unless otherwise authorized under this Act, be unlawful unless that person is in possession of a valid entry permit or a valid pass.”

Section 13(2) (f):‐ “A person who, not being a citizen of Kenya, engages in any employment, occupation, trade, business or profession, whether or not for profit or reward, without being authorized to do so by an entry permit….shall be guilty of an offence and be liable to a fine not exceeding/ twenty thousand shillings or imprisonment for a term not exceeding one year or to both.”

Section 13(2) (g) provides for a similar penalty for “Any person who employs any person (whether or not for reward) whom he knows or has reasonable cause to believe is committing an offence under paragraph (f) by engaging in that employment.”

Class D Business Investor Permit

 There is certain process to follow in Kenya regulations for you to get the permit. A Class D Permit has legal restrictions on foreign ownership either wholly or partly. For instance, private companies that intend to purchase agricultural property in Kenya, Banking companies, Security companies and some telecommunication companies cannot have foreign shareholders at all.

Requirements as to Investment Capital in Kenya.

  • To Qualify for a Class D permit, the Investor is required to have a minimum of USD 100,000 or equivalent in a Bank account.
  • Class G Permit is applied for by foreigners who will be shareholders in the business. To Approval / Rejection of a business permit in Kenya.

Once the application is submitted to the Immigration department, it shall be presented to a committee for approval.
This process may take between two and six months depending on how many times the committee sits and the number of applications they must process.

The committee will usually consider the following things when deciding whether to approve or reject the application

  • The investment potential on the economy.
  • Job creation potential of the Business.
  • The nationality of the applicant. An applicant has a higher chance of approval of his application if his or her country has a stronger and low criminal statistics and security threats.

Upon approval and payment of the prescribed fees the applicant shall be provided with a Class D Permit which shall be endorsed in his / her passport.
On rejection, the applicant may make an appeal to the Minister or may have to cancel the investment plans as the case may be or reasons for rejection.

Application for registration as an Alien

Once the Permit is issued, the applicant shall then apply for registration as an Alien and be issued with an Alien card.

Requirements for Foreign Company Registration in Kenya

  • Certified copies of foreign company’s memorandum and Articles of Association.
  • Certified copy of the certificate of Incorporation duly certified by a Notary Public.
  • If in a Foreign Language, certified copies of translated documents by a Notary Public.
  • Appointment of a Local representative of the Foreign Company in Kenya.
  • Registered address of the Foreign Company in County of registration.
  • Notification of directors’ residential address (Form CR8)
  • Proposed registered address in Kenya.
  • Copies of Passport and passport photos of the Directors / shareholders.

Prescribed Forms for Foreign company Registration.

  • Form 236, this is the List of documents submitted for registration by a company incorporated outside Kenya.
  • Form 237, this the List and particulars of directors and secretary of a foreign company incorporated outside Kenya.
  • Form 238, List of names and addresses of the individual’s resident in Kenya authorized to receive service on behalf of a Foreign company incorporated outside Kenya.
  • Form 250, this is the Notice of location of registered or principal office or change notification of an overseas company incorporated outside Kenya.

contact ocl business associates for company registration in Kenya