TAX SAVING IN EAST AFRICA - STEUERN SPAREN IN OSTAFRIKA
WHAT CAN WE DO FOR YOU? WAS KOENNEN WIR FUER SIE TUN?
COUNTRY PROFILE OF KENYA
FORMS OF BUSINESS ENTERPRISES LEGALLY PERMITTED
The principal trading and business entities in Kenya are registered companies (private and public), branch offices of foreign companies, sole proprietorship, partnerships and co-operatives. Most large scale business are conducted through limited liability companies under "The Companies Act.
The choice of a particular form of business entity involves considerations such as its operations, tax savings, incentives, among others. Foreign investors normally require professional services and advice in this matter. Ordinary business companies require to be registered and licensed under the law. The establishment of banks, insurance companies, building societies and financial institutions requires specific government approval.
It is any business undertaking conducted by one person, and has unlimited liability and any income derived therefrom is taxable in the owner's hands. The business name must be registered with Registrar of Business Names and should not include the word "Limited".
Partnerships are governed by Common Law, but the terms and conditions set out in a partnership agreement take precedence between the partners. The Companies Act 1962 restricts a profit making partnership to a maximum of 20 partners. The restriction does not apply to a partnership of certain professions exempted by the Government. Generally, partners are jointly liable for all the debts of partnership, provided they were incurred in the name of, and with the authority, of the partnership.
Limited Liability Company
The formation of a Limited Liability Company is governed in Kenya by The Companies Act 1962 which restricts members of private companies to between 2 and 50 shareholders whilst limiting the minimum number of shareholders in a public company to seven. Once a company's name has been reserved with the Registrar of Companies, a printed Memorandum and Articles of Association should be prepared by a lawyer and submitted to the Registrar for registration. Both `private' and `public' companies must end their names with the word "Limited".
A limited company must file its annual financial statements with the Registrar of Companies where they are open to inspection by the public.
Public Limited Company may offer shares to the public if it is accepted by the Nairobi Stock Exchange after approval by the public Issues Committee of The Treasury and the Central Bank of Kenya.
FORMATION OF COMPANY
Registration Procedure: A company is registered by filling the following documents with the Registrar of Companies:
PROCEDURES FOR ESTABLISHING A COMPANY IN KENYA
The principal types of business enterprises in Kenya are:
Companies are registered as limited liability companies as in 1 and 2 above, and regulated by the Companies Act (Cap 486). Kenya's legal system is based on English law and practice. A wide range of legal services are locally available.
The initial step in forming a company is to register the proposed company name with the Registrar of Companies at the Attorney General's Chambers in Nairobi. The Memorandum and Articles of Association should be filed with the Registrar of Companies who, upon satisfaction, issues the Certificate of Incorporation.
OPENING A BRANCH OFFICE OF AN OVERSEAS COMPANY
An overseas company wishing to open a branch office in Kenya should deliver the following to the Registrar of Companies:
Both private and public companies may allot shares for considerations other than cash. Companies should inform the Registrar of Companies of such allotments and submit a written contract constituting the title of the allottee.
PATENTS AND TRADE MARKS
Patents are regulated by the Industrial Property Act and administered by the Kenya Industrial Property Office(KIPO), while trademarks are regulated by the Trade and Service Marks Act (Cap 506) and administered by the Registrar of Trademarks at KIPO. The duration of trademarks is seven years from the date of filing and renewable every 14 years.
The Government allows investors to have key expatriate staff in senior management positions or where locals with specific skills are not available. Work permits for such expatriates are issued by the Immigration Department and are valid for two years, renewable on application.
IMPORT AND EXPORT PROCEDURES
There is no import licensing except for a few items restricted for security, health or environmental reasons detailed in the Imports, Exports and Essential Supplies Act (Cap 502).
During the Budget for Fiscal Year 2001/02 the Minister agreed to waive the 2.75% Import Declaration Form (IDF) fees applicable on imported goods used for manufacturing goods for exports under the Export Promotion Programme Office (EPPO) scheme. Manufactures under the EPPO will however have to pay Kshs. 5000 which is processing fees.
GENERAL BUSINESS INFORMATION
Government offices operate on a five-day week while most private businesses are run on a six-day week. The official working hours are 8 a.m. to 5 p.m. on weekdays, with a one-hour lunch break. Sunday is not a working day.
Tourist and Transit Visas
A visitor should be in possession of valid travel documents and a return ticket. Visas will be issued as appropriate.
Personal effects may be imported duty free. The importation of firearms and game trophies is restricted, and pornographic literature is prohibited. Domestic animals and pets may be imported provided they have valid veterinary certificates.
Villa in Malindi for sale
for any hotel at the beach
Write to us
back to travel