Register a foreign company in Kenya.
The cost of registering a foreign company in Kenya is our most Frequently Asked Question and in this article, we aim to provide as adequate an answer to the question as possible.
Registering a foreign company in Kenya is a crucial step for international businesses looking to enter the hub of East African business. This article breaks down the cost of registering a foreign company in Kenya, ensuring you are well-informed and prepared to take the first step to setting up your business in Kenya.
Understanding Foreign Company Registration.
A foreign company is a business entity incorporated outside Kenya that wishes to conduct business within the country by either establishing a branch in Kenya or a representative office. Under the Companies Act, foreign companies must register with the Registrar of Companies to operate legally in Kenya.
A foreign company must also appoint at least one local representative who must be available at the registered company office within the prescribed business hours as provided in the Companies Act.
The costs associated with registering a foreign company in Kenya. While the list is not exhaustive, these are some of the activities you should expect.
- Read on: foreign branch registration in kenya.
The Cost of Registering a Foreign Company.
1. Initial Registration Fees
The first cost to consider is the registration fee itself. The fee varies depending on the type of foreign entity you wish to register. For example:
These fees are payable at the time of registration through the eCitizen platform.
2. Legal and Professional Fees
Hiring a legal advisor or company secretary is essential for navigating the registration process. Their expertise can help ensure compliance with local laws, reducing the risk of errors. Professional fees may include:
Engaging a legal expert can significantly streamline the registration process and help you avoid pitfalls.
3. Document Preparation Costs
You must prepare several key documents for registration. These include:
- Memorandum of Association: Details the company’s objectives.
- Articles of Association: Outlines the internal rules governing the company.
- Resolution from the Parent Company: Authorizing the establishment of a branch or office in Kenya.
4. Translation and Notarization Fees
If your documents are not in English, you may incur additional costs for translation and notarization. This process ensures that all legal documents meet Kenyan standards.
5. Registration with Tax Authorities
Once registered, your foreign company must also register for tax purposes with the Kenya Revenue Authority (KRA). This includes obtaining a Personal Identification Number (PIN). The registration process is free, but you may incur costs if you choose to hire a tax consultant.
6. Annual Compliance Costs
After registration, your foreign company must comply with annual filing requirements. These include: Maintaining compliance helps you avoid penalties and ensures your business operates smoothly.
7. Miscellaneous Expenses
Don’t forget to factor in other potential costs, such as:
- Office Rent: Costs vary widely based on location and size.
- Utilities and Operational Costs: Monthly expenses for running your business.
Budgeting for these expenses will provide a clearer financial picture.
Conclusion.
Registering a foreign company in Kenya involves several costs, including initial registration fees, legal fees, document preparation, and ongoing compliance costs.
While the costs can add up, they are a necessary investment for successfully entering the Kenyan market. Engaging professionals can make the process smoother and ensure compliance with local regulations. Understanding these costs will help you make informed decisions and set your business up for success in Kenya.
for more information contact as Junyan and associate.