Officially registering your Private Limited company in Kenya is the first step towards a successful business life. Private limited companies, abbreviated as LTDs, represent a prevalent business structure in Kenya.
These companies are held by a select group of shareholders who enjoy limited liability protection, shielding them from personal responsibility for the company’s debts. Private limited companies are mandated to submit annual financial statements to the Kenyan government.
Residents and aliens alike can start a private limited company if they operate within the Kenyan laws that govern limited companies. While it seems like a big thing that a single individual could start, private limited companies can be owned by even a single person.
If you want to start a private limited company in Kenya, the simplest way is to register through a government service portal called eCitizen. You must sign up for an account there, or if you already have one, you can proceed with your registration of the private limited company.
If you do not have an eCitizen account, navigate to accounts.ecitizen.go.ke/en/register with just your ID number and passport photo for Kenyan citizens. To ensure a seamless registration process, all individuals are required to present their valid identification documents.
Aliens must provide their Alien IDs, diplomats their diplomat IDs, foreigners to have their foreigner IDs and visitors their passports.
Businesses in Kenya fall under various categories as explained below. If you want to start your private limited company in Kenya, you should know this before starting the process. Otherwise, you may face repercussions such as cancellation of your application or even delay to get your company registered.
RELATED: How to Register a Foreign Company in Kenya
Table of Contents
How to Register a Private Limited Company In Kenya
Step 1: Identify your ideal Business Structure
Understanding the business category that your company falls under is the first and most crucial aspect that the business owner should know before going ahead with the company registration process.
Choose from the following business structures:
- Limited Liability Partnership (LLP)
- Private Limited Company
- Company Limited by Guarantee
1. Limited Liability Partnership (LLP)
A limited liability partnership (LLP) is a business structure that combines the benefits of a company and a partnership for its owners. This means that partners are not personally responsible for the debts or liabilities of the LLP beyond their investment, shielding their personal assets.
The personal assets of the shareholders of a private limited company in Kenya are protected in case banks and creditors owe the company.
This kind of business structure also enjoy tax benefits and losses. Given that they are passed through all the partners and then taxed at each individual’s income tax rate.
It’s a popular choice for professionals like lawyers and accountants due to its liability protection and organizational flexibility.
2. Private Limited Company
A Private Limited Company (LTD) is a type of business entity where ownership is divided into shares held by a small group of individuals or companies.
Unlike a public company, a LTD cannot sell shares to the general public. Owners enjoy limited liability, separating personal assets from the company’s debts. LTDs are known for their structure, allowing for easier transfer of ownership through buying or selling shares.
They are flexible in operations, often seen as more credible and stable, attracting investors due to their potential for growth and profitability.
Other features include having a board of directors, a minimum of 2 and a maximum of 50 shareholders, and a separate legal identity. This means it is distinct to its owners, and their assets are not subject to the company’s debts and liabilities when things go south.
3. Public Limited Company
A public limited company is a business structure allowed by the law to sell its shares publicly. They can choose when and how to offer their shares, and they can also choose not to offer their shares for sale.
Shareholders or a public limited company enjoy limited liability; hence, its shareholders’ assets are not at risk if the company has debts. All money that a public limited company invests is its risks and the risk should not bother the shareholders or directors.
Again, this is a separate legal entity; its directors and shareholders have their own responsibilities and legal rights. The debts of such a company are not personal debts of its directors and shareholders.
If you want to open a company focusing on expanding your operations and raising capital for investors, this is the kind of business you should eye. Public limited company has utmost transparency, making it an attractive choice for investors and other large-scale businesses alike.
4. Company Limited by Guarantee
A Company Limited by Guarantee (CLG) is a type of organization usually used by non-profits, charities, or clubs. Unlike other companies, it doesn’t have shareholders or share capital.
Instead, it operates based on a guarantee provided by its members, who commit to pay a specific amount if the company faces financial trouble. Members aren’t liable for debts beyond this agreed amount, safeguarding their personal assets.
CLGs focus on their social or charitable goals rather than profit-making, relying on memberships and donations for funding their activities. Now that you know the different business structures available in Kenya, lets dive deep into the step by step process of registering a Private Limited Company in Kenya.
Step 2: Prepare the Requirements for Registration
- Proposed Company Names- The proposed business name should have the following attributes:
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- Uniqueness and Originality– At least three unique and previously unused business names are essential.
- Name Search Convenience- While not mandatory, a name search through the eCitizen platform is recommended to avoid potential name conflicts.
- Clearly Defined Business Objectives. These involves:
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- Articulating Your Business Purpose- Clearly outline the nature of your company’s intended business activities.
- Identifying Key Goods and Services- Specify the major goods and services your company plans to trade or offer.
- Identity Documents for Directors, Shareholders, and Beneficial Owners. These include National Identification or Passport Copies. Provide copies of valid National Identification cards or Passports for all directors, shareholders, and beneficial owners.
- Passport-Size Photos for Identification Purposes- Submit passport-size photos for all directors, shareholders, or beneficial owners.
- Kenya Revenue Authority (KRA) PINs- Obtain and provide the KRA PINs for all directors, shareholders, and beneficial owners.
- Detailed Contact Details- Furnish accurate postal addresses, physical addresses, phone numbers, and email addresses for all directors, shareholders, and beneficial owners.
- Occupations of Key Personnel- Indicate the occupations of all directors, shareholders, and beneficial owners.
- Professional Certification (if Applicable).
- Demonstration of Expertise- For companies intending to provide professional services such as healthcare, engineering, or architecture, relevant professional certifications are required.
Step 3: Register your Company with eCitizen
- Access the eCitizen Portal- Log into your eCitizen account at http//:accounts.ecitizen.go.ke/en/login.
- Navigate to Business Registration Services- Once logged in, locate and click on the “Business Registration Services (BRS)” option. Within the BRS section, select “Private Limited Company.”
- Complete the Application Form- Carefully fill out the comprehensive application form, which includes the following details:
- Proposed Names- List at least three unique company names in descending order of preference, as the Registry will consider them in this order.
- Articles of Association- Provide the details of the applicant(s) and their roles, confirm the adoption of standard articles of association, outline the nature of the business, specify primary activities, indicate the start date, mention the accounting period, and provide an estimated turnover figure.
- Registered Address- Clearly state the registered address of the company. If you have any branches, include their addresses as well. Specify the county, district, locality, building name, road/street, postal address and code, mobile number, and company email address.
- Share Information- Indicate the share category, the total number of shares, and the Value of each share. The minimum share capital is KES 100,000, with no maximum limit.
- Shareholders, Beneficial Owners, and Directors- Provide comprehensive information for each individual, including their profession/occupation, KRA PIN, designation, National ID/Passport, date of birth, telephone contacts, email address, residential address, passport-size photograph, and the number of shares owned.
- Beneficial Owners- If you have additional owners who do not fall into the category of directors/shareholders, include them as beneficial owners. Beneficial owners are individuals who directly or indirectly hold at least 10% of the issued shares or can exercise at least 10% of the voting rights in the company.
Step 4: Complete the Registration Process
- Download and Print Registration Documents: Once you’ve completed the online application, you’ll need to download and print the following registration documents:
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- CR1: Form for signatories of the company
- CR2: Memorandum of Association
- CR8: Form for residential and company addresses
- BOF1: Register of Beneficial Owners
- Statement of Nominal Capital
- Sign, Scan, and Upload Registration Documents: Carefully sign each printed registration document. Scan them into high-quality PDF files and upload them to the eCitizen platform.
- Review, Submit, and Pay: Before applying, thoroughly review all the information you’ve entered to ensure no errors, omissions, or unanswered questions. Once you’re confident everything is correct, submit the application. You’ll be redirected to the payment platform, where you can choose from various payment options, including MPESA, Airtel Money, T-Kash, and multiple banks.
- Fee Schedule: The prescribed fee for registering a private limited company (PVT) is KES 10,650. However, different fees apply to different business registration services. You can view the complete fee schedule at brs.go.ke/fee-schedule-companies-registry.
- Approval and Issuance of Certificate: The BRS team will thoroughly review your application to verify that all details are accurate and that the required fee has been paid. Upon successful verification, you’ll be issued with a Certificate of Incorporation, which you can access through your eCitizen account.
How to Convert a Business name into to a company
Step 1: Have the Essential Requirements for Company Registration
- The business name.
- Clearly Defined Business Objectives.
- Clearly outline the nature of your company’s intended business activities.
- Specify the major goods and services your company plans to trade or offer.
- Identity Documents for Directors, Shareholders, and Beneficial Owners.
- Submit passport-size photos for all directors, shareholders, or beneficial owners.
- Comprehensive Contact Information.
- Obtain and provide the KRA PINs for all directors, shareholders, and beneficial owners.
- Furnish accurate postal addresses, physical addresses, phone numbers, and email addresses for all directors, shareholders, and beneficial owners.
- Clearly indicate the occupations of all directors, shareholders, and beneficial owners.
- Professional Certification (if Applicable).
- For companies intending to provide professional services such as healthcare, engineering, or architecture, relevant professional certifications are required.
Step 2: Convert Business to Company on eCitizen
To successfully register your private limited company in Kenya when you already have a registered business name, follow these steps:
- Go to your eCitizen account.
- Click on Business Registration Services (BRS).
- You will see a list of all your registered business names. Click on view to the right column of the business you want to make a company.
- Here, you will see various details of the company. To the top right, click on Maintain A Company
- Under business details, go to make application which appears on the drop-down menu. Do not click on the one on the menu bar.
- On the list that appears, click on Cessation to Change. Be careful on this lets you close your company by choosing Cessation to Close. Then you will choose the option of changing to PVT (Private Limited Company).
What to Do After Company Registration in Kenya?
1.Buy a Company Domain Name
A domain name is your online address. It helps your audience to find your business easily when they search you online. It is the name that they will type to find your business.
In order to protect your business name, you will need to purchase one. This is because when your domain name is up and running, no one else can use it. A domain name is unique to a business, and no other business can take it.
The best domain name is short, say between 6 to 14 characters. They are easier to read, stick better in the visitor’s memories and take less room on marketing materials.
Make your domain name memorable and avoid numbers and hyphens.
To buy a domain name in Kenya, choose a reliable domain registrar that is authorized by ICANN or Communications Authority of Kenya. Some of these include Creative Kigen Cloud HostPoa, DeepAfrica, KenyawebExperts, Godaddy, Bluehost, etc. Use a domain availability checker tool to check the availability of your domain name.
All you have to do is to type your domain name on the search bar of the too. If your name is available, you will be alerted, so if not, they will give you suggestions of names nearest your chosen name.
You can choose any of these or search for another name. If the extension you want, like .com, is unavailable, you can consider a .net, or .org or whichever you think can work for you.
Once you get your desired domain name, purchase it and complete its registration. You will be required to enter your contact information.
2. Setup Company Emails
A company email is an email address that includes your company’s custom domain name, such as yourname@yoursite.com, rather than a free personal email client such as companyname@gmail.com. Professional email is a must-have for companies of all sizes and it comes with a number of benefits from credibility to security.
Follow along the video below to learn how to create a company email address easily, in just a few minutes.
3. Build a Company Website
Creating a company website is essential in today’s digital landscape. Start by looking a reputable web designer who will help you craft a compelling company website content with design elements that reflect your brand identity and resonate with your audience.
Prioritize mobile responsiveness to ensure accessibility across devices. Implement basic SEO strategies to enhance visibility on search engines, bolster security measures, and regularly update and maintain the website post-launch. A well-designed website serves as a pivotal online presence, offering information about your business and engaging potential clients effectively.
Here’s a breakdown of the total cost for a Corporate Website, including any subscriptions or additional costs:
Corporate Website cost in Kenya
| Corporate Website cost in Kenya | |
|---|---|
Upfront Costs | |
| Design | Ksh 90,000 – Ksh 150,000 |
| Domain | Ksh 1,000 – Ksh 2,000/ year |
| Total Upfront Cost | Ksh 91,000 – Ksh 152,000 |
Ongoing Costs |
|
| Hosting | Ksh 3,500 – Ksh 6,500/ year |
| Content Updates | Ksh 0 – Ksh 20,000 / year |
| Total Ongoing Costs | Ksh 3,500 – Ksh 26,500 / year |
4. Create Social Media Accounts for the Company
Creating social media accounts for your company using your company name is a great way to safeguard it. No one will use your name to create them after you’ve done it.
Company social media accounts help you track users and posts to know what posts people see and the content they like interacting with. You can also use paid and promoted posts and ads, something you cannot get from your personal account.
To create your company social media accounts, you will need a company email address that will keep all your notifications organized in one place.
That also means that if you need to give an assistant, social media manager or employee access to your social media accounts to manage them on your behalf, you will not need to give them your personal email.
You don’t have to set up social media accounts on all social channels. You only need to choose a few that are relevant to your industry.
Each social channel has different rules and requirements, so you must read through the specific requirements. All channels are easy to set up, and you will only need basic business information, a logo and a photo.
5. Create a Google My Business Profile
Google My Business profile is a free business listing from Google which allows you to provide details and photos of your company. It also allows you to include your location, services and products.
A Google My Business profile will help you increase visibility online, and your information may appear on Google Maps, Google Search and Google Shopping.
When you create this profile, you easily get discovered by people looking for products and services that you sell.
It will show searchers where and how to visit your business. It will improve your local SEO and increase both foot and web traffic.
A Google My Business profile allows you to control and update your company information, such as contact information, business hours, and other details.
You can also post updates like expanded services, offers, temporarily closed or reopened, etc. Customers can leave reviews through your Google My Business profile and help you build trust and credibility.
To create a Google My Business profile, you will need to have a Google account. Go to their website and sign in. Follow the prompts by providing the details requested.
Enter your company name, location, and contact information, and verify your business. Customize your profile by entering your business hours, messaging preferences, business description and photos.
6: Open a Corporate Bank Account
To open a corporate bank account in Kenya, begin by selecting a bank that suits your business needs and arrange a meeting.
Collect all necessary documents such as
- Your Certificate of Incorporation
- Memorandum and Articles of Association
- Tax PIN certificate, company seal
- and identification documents for directors and signatories.
At the bank, submit these documents, fill out the required forms, and comply with any additional requirements or regulations, like a minimum deposit and KYC protocols. Review and agree to the account’s terms and conditions before awaiting approval. Once approved, activate the account by depositing the initial funds required. Remember, each bank might have specific processes, so it’s best to directly communicate with your chosen bank for precise instructions.
7.Set Up an Accounting System
An accounting system will help the business owner keep track of their assets, liabilities, income, and cash flow. It helps them keep track of the financial performance of their business, enabling them to make better-informed decisions.
A good accounting system enables the business owner to plan, spot potential issues, identify strengths, and prove business viability.
Setting up a formalized accounting system early helps you create essential financial reports.
Work with a professional to identify the best tracking system for your needs. I personally use Zoho books to send quotations, invoices, and receipts and record expenses.
If you need help setting Zoho books for your business, feel free to get in touch.
8.Branding & Marketing
Now that your company is set up for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer.
You will need to brand and market your business. Branding helps you distinguish yourself from competitors and clarify what makes you a better choice.
A brand is a true representation of who you are as a business and how you wish to be perceived.
Branding increases your market value, helps your business generate new customers, improves employee satisfaction, and creates trust within the marketplace.
The bottom line of any business is to make money, and marketing helps you to sell your products and services. Marketing drives sales.
By marketing your products and services, the customers will get to know the value of the products, their usage and any additional information that may not be obvious.
To learn more about branding, read my next article on How to Design an Attractive Business Brand Identity in Kenya.
Advantages of a Private Limited Company in Kenya
A Private Limited Company is one of Kenya’s most popular business structures. It offers several advantages and some disadvantages, let us explain.
- Limited Liability: Shareholders’ responsibility is restricted to the extent of their capital contribution, safeguarding personal assets from the company’s financial obligations and liabilities.
- Distinct Legal Identity: A Private Limited Company possesses an independent legal identity distinct from its proprietors. It has the capacity to own assets, engage in contractual agreements, and initiate or defend legal actions under its own name.
- Continuous Existence: The company’s existence persists irrespective of shifts in shareholders or directors. Its existence is not contingent upon the lifespan of its associates.
- Ease of Funding: Raising capital by issuing shares to investors, venture capitalists, or angel investors is easier. This structure attracts external investment.
- Tax Benefits: Private Limited Companies may qualify for various tax benefits and exemptions, making them tax-efficient entities.
- Credibility and Trust: Having “Pvt. Ltd.” in your company name often instills more confidence and trust in customers, suppliers, and partners.
Disadvantages of a Private Limited Company in Kenya
- Compliance Burden: Face regulatory demands, including financial reporting, filings, and audits.
- Complex Setup: Process and cost for managing are higher than more superficial structures.
- Share Limits: Restricted share transfers; max 50 shareholders in Kenya.
- Public Disclosure: Financial info is publicly viewable, impacting privacy.
- Exit Complexity: Selling or leaving is more complicated than with other structures.
- Slower Decisions: The involvement of shareholders and directors may slow choices.
FAQs About Private Limited Company Registration in Kenya
1. What is the cost of registering a private limited company in Kenya?
The cost Registering a private limited company in Kenya is 10,650. Here is a breakdown of charges that you will have to incur:
- Name search – 150/=
- Limited Company in Kenya registration fee – 10, 000/=
- Stamp duty – 1%of the authorized share capital of the company
- Shares certificate – 500/= per certificate
- Annual filing fees – 50000/=
2. How do I start a private limited company in Kenya?
Starting a private limited company in Kenya is simple; follow these steps:
- Come up with a business name which is unique and not registered before. You can check availability of the company name online at the Company Registry website.
- Appoint shareholders and company directors. Choose at least one director and shareholder for your private limited company in Kenya. Directors of a private limited company manage the company, while shareholders manage the shares of the company.
- Get your documents together. These include Form CR14, Form CR 1, Form CR2, Form 8 and a statement of nominal capital.
- Submit these documents on eCitizen or in person at the Company Registry office, Nairobi.
- Pay the required fees for name search 150/=, Company registration 10.000/= stamp duty 1% of the business share capital.
- Get the certificate of incorporation to proof that your private limited company in Kenya is legally registered.
- Open a bank account for your company to manage your company financials.
- Acquire a KRA PIN certificate for the company. This you can obtain online via the KRA website.
- Get a business license.
3. How do I register a private limited company on eCitizen?
At the eCitizen portal, you will experience a straightforward process of registering your private limited company. First, create your account via this link if you do not have an account yet, https://www.ecitizen.go.ke/.
Prepare company documents for registration, which include the Form CR14, Form CR1, Form CR2, Form 8 and the Statement of nominal capital. You will download all these documents from the portal, fill them out and upload them to the portal.
Now with all your forms ready, navigate to the Business Registration Service and select “Private Limited Company” as the business type. Fill out the form carefully and upload the scanned copies of the documents.
Finally, make payment using your preferred mode of payment out of the several listed there. Counter Check your entries to ensure they are accurate before you submit. After submitting, wait for approval. You will get a notification along with an electronic copy of your certificate of incorporation for your private limited company. Download and print it.
4. What is the minimum share capital for a private limited company in Kenya?
There is currently no minimum share capital required when you want to start a private limited company in Kenya. You can register your private company without a paid-up capital. Nonetheless you should be considerate of the following factors before you open a private limited company in Kenya with zero shares capital.
To start with, the credibility of the company will be at stake because prospective investors and business partners will not take you seriously without share capital for the company. They will think the private limited company is financially incapable or risky to invent or conduct business with.
There are certain fees that one is supposed to pay to start a private limited company in Kenya such as the registration fees, name search fees and duty stamp, which cannot be paid using the authorized share capital.
Also think of the company’s future growth. You need to raise capital if you project for your private limited company to grow in future. For the future growth of the company, you will need to take a loan or issue new shares. Therefore, it is risky to start a private limited company in Kenya without capital share as this is detrimental to the entire business.
5. Can one person be a private limited company in Kenya?
It is possible for a single person to be a private limited company in Kenya as per the Companies Act of 2015. A single individual can act as the director and sole stakeholder of a private limited company in Kenya, also referred to as a single-member company. There are advantages to this as well as disadvantages.
You can easily set up a private limited company in Kenya on your own and take full charge of it. This way, it will be easy for you to make company decisions and also choose your desired strategies to run it.
There are also disadvantages of starting a single-member company because you will be personally liable for all the debts and liabilities of the company. This means that you will have to take the risks of financial obligations of the company. You will also find it hard to raise capital for your company from external investors as they will be reluctant and hesitant to invest in a legal entity that is controlled by one individual. Also, such a company is subject to more scrutiny from KRA due to tax avoidance.
6. How many days does it take to register a private limited company in Kenya?
Registering a private limited company in Kenya takes as little as three days and at most seven working days. Unlike years back when you could do this in person, today you can register your private limited company alone over the internet via your eCitizen account. The BRS has made this process straightforward as name search typically takes a day, company registration application takes 2 days and the issuance of the certificate of corporate takes 1 to 2 days.
However, the process can take up to seven working days based on the complexities of your company structure and the owners. Therefore, to speed up the process, you must ensure you have all the required documents. Also, ensure you complete the registration exercise accurately and only submit correct details. If you submit the documents physically at the BRS office, also ensure you submit all documents. Pay the registration fees and follow up with the office for any questions regarding the registration of a private limited company in Kenya.
7. Can a private limited company have one director in Kenya?
It is possible for a private limited company to have only one director, but a public limited company in Kenya cannot have one director. A private limited company in Kenya with a single director is called a single-member company. One can prefer a single-member company because it is easy to control and manage it. You do not have to coordinate with other directors and you can do all the company decision-making. There is privacy and confidentiality because you do not need to disclose the identity of any director or shareholders to the public. Again since most of these companies are led by a single individual from their early beginnings, it is easy to develop them and grow them to larger entities.
8. What are the advantages of having a private limited company in Kenya?
There are many advantages of starting a private limited company in Kenya including limited liability protection. This shields you and the shareholders against the debts and obligations of the company in case of financial difficulties. Your personal assets are protected.
It is also easier to access company capital and financing opportunities like venture capital, bank loans and crowdfunding. There is reduced risks and perceived stability when your company is working with financial institutions and investors.
9. What are disadvantages of having a private limited company in Kenya?
While a private limited company in Kenya has more benefits, there is no business that lacks demerits. The disadvantages of starting a private limited company in Kenya are far and wide, here are a few.
i) Limited Liability Protection Unlike a partnership business or even a sole proprietorship, a private limited company offers limited liability protection to its directors and shareholders. This means that their personal assets are generally protected from the company’s debts and liabilities. However, there are a few exceptions to this rule. For example, directors or shareholders may be personally liable if they:
- Personally guarantee the company’s debts
- Are personally found to have misappropriated company finances
II ) Taxation Private limited companies in Kenya are subject to corporate income tax at a rate of 30%. This means that the company pays taxes on its profits before any dividends are distributed to shareholders. The amount of tax paid can reduce the amount of money that shareholders receive.
iii) Complex structures and adherence to rules Some of the formalities and procedures when setting up a private limited company in Kenya can be complex. Some include registering the business with the registrar of businesses, getting permits and choosing a local representative if the private limited company is foreign. These companies must also stick to stringent regulations and reporting requirements as needed.
iv) Limited growth potential There is limited transferability of company shares and there are also restrictions in the same. Fundraising for the company can prove to be an uphill task for the company and this can hamper the expansion and growth of the private limited company in Kenya
v) High cost of administration A private limited company in Kenya typically incurs high administrative costs as opposed to other businesses in Kenya. Some of these costs include maintaining company records, legal services, compliance and regulation and high accounting costs.
vi) Potential disputes Disputes in a private limited company mostly occur during the transfer of company shares. Decision making also is a fertile growth for potential disputes.
vii) Exit strategy Exiting such a company is more complex than you may think. It is also time-consuming. When compared to other structures of business.
10. How many directors does a private limited company need in Kenya?
A private limited company in Kenya should have at least one director, with no stipulated number of directors under the Kenyan law. The maximum and minimum number is determined by what is on the Articles of association document.
In the event your private limited company only has one director, then that director is in charge of the board of directors. To be on the safe side however, your private limited company should have at least two directors to ensure the business is run fairly and in a transparency way.
When there is more than one director in a private company in Kenya, there is improved decision making. These decisions will bring to the company more diversity and experience to the management and daily running of the company.
There is also increased accountability to one’s actions and reduced risks of fraud and fraudulent activities in the private limited company. It is more difficult for a single person to control the company than when two or more directors are managing the company’s finances. If you are considering starting a private limited company in Kenya, you should carefully consider the number of directors that your company will have.
11. Who controls a private limited company in Kenya?
The directors and shareholders control a private limited company in Kenya. The powers and voting rights of both are controlled by their shareholding ratios.
- Shareholders : These own the private limited company in Kenya and they can vote on various company matters such as decisions, director appointments, distribution of dividends and much more. They can inspect company records and obtain the financial records and performance of the company. The amount of control that shareholders have over a company depends on various factors including
- i) The number of company shares that each of them has
- ii) The voting agreements between them
iii) Provisions that are clearly stipulated in the Articles of association
- Directors: These are appointed by the company shareholders and they manage the daily running of the company. Directors of a private limited company in Kenya have fiduciary duty to act in the best interest of the business. Directors of a private limited company in Kenya have control of the company depending on the following factors;
- i) The complexity and size of the private limited company in Kenya
- ii) Expertise and experience under their belts
iii) The magnitude of delegation they have been accorded by the shareholders
Final Thoughts
Registering a private limited company in Kenya is without a doubt a complex process. If you feel overwhelmed, engage us to help you through the process. You need to plan well and have all your documents with you. Ensure the documents are factual and also very important is to fill factual and accurate information on the company documents that you will download from eCitizen.
Always, choose the right name, appoint at least two directors, apply for the company registration and obtain a Company PIN. Once you get the certificate for your company ensure you trade carefully observing the law and adhering to all regulations as in the law. Much more importantly, adhere to the Companies Act of 2015 and check the Value added tax and the Income tax and remit them each year.
