Types of companies to register in Kenya
There are two types of Companies namely to register in Kenya:
A limited company is a type of business structure whereby a company is considered a legally distinct body. If you choose to run your business as a limited company, the business will:
Be legally distinct from the people who run it;
Keep finances separate from the owner’s personal finances;
Be able to own assets and keep any profits it makes after tax.
Types of limited company
There are two kinds of limited company:
Private limited companies
Public limited companies
Private limited companies cannot offer shares to the general public. In Kenya this is one of the most common set-ups for small businesses under the companies’ act of 2015.
Public limited companies (PLCs) can raise capital by offering shares to the general public. Shares are traded on the stock exchange, and a PLC must have issued shares to a value of at least 20,000,000 before it can trade. This structure is more common for larger, more established businesses.
Because a limited company has separate finances and is legally distinct from its owners, shareholders have limited liability – meaning that owners and shareholders are not personally liable for any losses or debits incurred by their business in its operation. Limited liability is one of the main advantages of the limited company set-up as shareholders are only legally responsible to the extent of their original investment, and can only lose the capital they initially put into the business..
For unlimited companies there is no limitation on the liability of members to pay the debts of the company and the members are jointly and personally liable for the debts in case of winding up.
Setting up a limited company
To set up a limited company, you will need to register with the registrar of companies – this is called incorporation.
You can register your limited company online at the Kenyan government e-citizen portal. You can either do this yourself or pay a lawyer or cps to do the process on your behalf.
When registering, you will need to provide:
The full registered name and address of your company;
The names and addresses of directors
Details of shareholders and capital
Mobile numbers for the directors
Kra pin numbers for the directors
Identity card for the directors
E-citizen account for the directors
Limited companies and tax
Once your limited company is incorporated, you will need to register for income tax or corporation tax.
All limited companies must pay corporations tax, but you may also be eligible for other kinds of taxes such as vat, or paye and National Insurance contributions.
For fast, affordable and effective business name, private and public company registration in Kenya call 0746522216