Doing Business and Company Registration in Kenya
Kenya has been ranked second in World Bank’s Ease of Doing Business index in East Africa. It is one of the largest economies in the East African Community and the 65th largest economy globally. Kenya has been regarded as a technical, financial and communications hub in East Africa.
Since 2004, Kenya’s GDP has grown at average rate of 6% with a Per Capita GDP of $1,991. Once you register a company in Kenya, you get access to the East Africa Community that has a market population of 150 million and a GDP of $145 Billion.
In the recent past, a couple of factors have attracted foreign direct investments to Kenya. They include:
- Macroeconomic Stability: Kenya’s GDP has experienced a steady growth annually
- Supportive Demographic Dividend: Kenya has a large young generation with a high disposable income. Also, the young generation has a growing demand for goods and services
- Improvement in Governance: The Kenyan Government embraced key and critical political reforms that have since strengthened governance.
- Security: The political climate in the country is at normalcy as such businesses have picked up and are booming gradually
- Ease of Doing Business: It is comparatively easier to do business now than it was a few years ago. In this regard, the country opened up to regional trade and supported infrastructure.
- Investment in Infrastructure: The government has, in the recent past, invested heavily in infrastructure such as the rail way, roads and other aspects that have boosted the economy.
The Tax Regime in Kenya is well elaborated with the tax rate for personal income ranging from 0 to 30%, VAT at 16% and Corporate Tax standing at 30%.
COMPANY REGISTRATION IN KENYA SUMMARY TABLE
|Entity||Subsidiary Company||Branch Company|
|How Long does the Company registration process in Kenya Take?||10 Days||10 Days|
|How long Does it take to Open Bank Account?||5 Days||5 Days|
|After how Long can you Invoice and Hire||15 Days||15 Days|
|Minimum Number of Directors and Shareholders||1||–|
|Foreigner Can own the Company 100%||Yes||Yes|
|Can the entity hire expatriate staff||Yes||Yes|
|Tax Identification Registration required||Yes||Yes|
|Access to Kenya’s double Tax treaties||Yes||Yes|
|Can bid for Government Contracts?||Yes||Yes|
|Can Secure Trade Finance?||Yes||Yes|
|Can Secure an Import and Export Licence?||Yes||Yes|
|Can Easily Convert into a PLC?||Yes||No|
|Can Secure Work permits for foreign Employees and Directors?||Yes||Yes|
|Multi Currency Bank Accounts Available?||Yes||Yes|