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Company incorporation

Company Formation in Kenya

We help founders, family businesses and foreign investors choose the right entity and incorporate it properly, from name reservation and share structure to what the company must do once it exists.

Choosing the right entity

A private limited company suits most trading businesses and is what investors expect. The choice affects liability, tax and how easily you can raise capital, so it is worth deciding deliberately.

  • Private limited company: limited liability, separate legal personality and transferable shares
  • Business name: cheaper and quicker, but no separate legal personality, so the owner is personally liable
  • Company limited by guarantee: for not-for-profit purposes
  • Limited liability partnership: for professional practices
  • Branch of a foreign company: quicker to set up than a subsidiary, but the parent stays directly liable

What incorporation involves

Filing runs through eCitizen. The form-filling is rarely the hard part: the decisions that matter are the share structure, the directors' terms, the articles you adopt and, if there is more than one owner, a shareholders' agreement.

  • A reserved company name
  • At least one director who is a natural person aged 18 or over
  • At least one shareholder
  • A registered office in Kenya with a physical address
  • Forms CR1, CR2 and CR8, with a statement of nominal capital

How long it takes

Timing depends on your documents and on registry requirements, including name approval and Business Registration Service processing. Incomplete identification documents and rejected names are the usual causes of delay.

The realistic timetable is also set by what follows: a KRA PIN, a bank account, which is usually the slowest step, and any sector licence. We give you a timetable once we have reviewed what you have.

Foreign founders and shareholders

Full foreign ownership is permitted in most sectors, though some impose local shareholding or licensing conditions, so the answer depends on the intended activity. Identification documents for foreign directors and shareholders need authentication, which is frequently what delays a foreign incorporation and should start before anything else.

Incorporating a company does not give you the right to work in it. The people running the business may need work permits, so the company and the permits are best planned together.

See work permits

After incorporation

The certificate of incorporation starts a set of obligations, and missed filings are the most common compliance failure we see.

  • A KRA PIN for the company, and registration for the tax heads that apply
  • A register of beneficial owners, filed with the Registrar
  • A county single business permit where you operate
  • Any sector licence your activity needs
  • Annual returns and recurring tax filings

Consultation

Tell us about the company you want to form

Our intake team reviews each enquiry and arranges the appropriate next step.

0705392701 (+254 705 392 701)counsel@gracenlaw.comMon–Fri 8am–6pm · Sat 9am–1pm

Send an enquiry to Gracen Law

Tell us the service you need and any relevant deadline. We will review your enquiry and arrange the appropriate next step.

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Initial enquiries are free. Virtual consultations with a lawyer are USD 50 per hour. In person consultations are USD 100 per hour. We confirm the appointment, duration, scope and fee before booking.

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Questions

Frequently asked questions

How long does it take to register a company in Kenya?

Incorporation itself is comparatively quick once the name is reserved and the documents are in order, but timing depends on your documents and on registry requirements. Bank account opening and any sector licence usually set the real schedule.

Can a foreigner register a company in Kenya?

Yes, and full foreign ownership is permitted in most sectors. The practical questions are the registered office, bank account requirements and whether the people running the business will need work permits. Specific sectors impose local shareholding or licensing conditions.

Which entity should I register?

A private limited company suits most trading businesses. A business name is cheaper and quicker but leaves the owner personally liable. The choice affects liability, tax and how easily you can raise capital.

How do enquiries and consultations work?

Initial enquiries are free. Virtual consultations with a lawyer are USD 50 per hour. In person consultations are USD 100 per hour. We confirm the appointment, duration, scope and fee before booking.

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Corporate Transactions and Corporate Governance

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