A foreigner can register a company in Kenya in various ways. Whether you are considering building a new business or expanding an existing business into Kenya, in this article we will discuss the various options available to you.

Kenya’s economy is booming, it is a getaway to the vibrant East African market and offers a welcoming environment for foreign investors.

Who is a Foreigner?

Under Kenyan Law, a foreigner or foreign national is a person who is not a citizen of Kenya. This meaning extends to bodies corporate not incorporated in Kenya. It also includes persons who have obtained any of the various types of permits or visas.

Why Register a Company in Kenya as a Foreigner?

Kenya is a regional hub for business. Its strategic location, robust infrastructure, and growing consumer market make it ideal for investment. In addition, the government actively encourages foreign investments with a legislative framework to protect investors through the Foreign Investments Protection Act.

A foreigner whose investments into Kenya reach a certain threshold may also register for and obtain a work permit for themselves and their employees or even gain a temporary and permanent residency provided they meet certain other requirements as provided for in the relevant statutes. Foreign investors also enjoy various tax incentives and easy repatriation of profits.

Types of Companies a Foreigner Can Register in Kenya

Depending on whether you are starting a new business or already have an existing business that you want to expand into Kenya, here are the options available to a foreigner:

1. Companies, Partnerships or Sole Proprietorship

This applies when the entity to be registered does not already exist. A foreigner can register any of the above types of business associations just like a Kenyan national.

We recommend a Limited Liability Partnership (LLP) or Private Limited Liability Company (PLC) as these are not only the most popular types of business associations, but they also limit the liability of their directors or partners. You can of course register one of the other types of companies or types of partnerships if you find them more suitable.

For PLCs, you will need at least one director and one shareholder. There is no requirement to have a Kenyan director or shareholder. The director(s) and shareholders(s) of a company can be the same. Therefore a foreign national. can be the sole director and shareholder of the PLC.

For LLPs, you will need at least two partners. There is no requirement that the second partner be Kenyan.

Once registered, the company is a legally registered corporate body under the ownership and direction of its director(s) and shareholder(s).

As a foreigner, you can be a director or a shareholder in a company or a partner in a partnership without immigration status if you are not a resident in the country. However, if you intend to live and work in Kenya seek some form of immigration status such as a work permit or a Foreign Investor Permit.

2. A Branch Office of the Foreign Company

If you already have a business registered abroad, you can register that entity as a Foreign Company in Kenya. Your foreign company can take on the name of your existing business ensuring immediate visibility or take on a new name if you choose to do so or if the name isn’t available for registration. This allows you to operate as an extension of your parent company.

3. A Representative Office

It is difficult to know how your business will perform in Kenya. Therefore, for those who may want to test the waters first a representative office allows you the flexibility to conduct market research and or promote your brand before officially opening their doors. However, it is important to note that a representative office cannot engage in profit-making activities. For this, it must enter into a partnership with an existing business registered to do business such as a distributor or franchisee.

Key Considerations for A Foreigner Registering A Company in Kenya

• Work Permits: If you plan to live and work in Kenya, ensure that you have a valid work permit. A person who holds a valid work permit is registered by the Kenya Revenue Authority and holds a PIN Certificate. The PIN Certificate is a mandatory document in the registration of companies in Kenya.
• Compliance: Stay compliant with Kenyan laws to avoid penalties and the invalidation of your work permit or residency status.

Choosing the Best Option

Your ideal path depends on your business goals.

• Want to maintain your home base? Register a branch or subsidiary.
• Looking to build something new? Set up a Private Limited Liability Company, Limited Liability Partnership or Sole Proprietorship as a foreign individual.
• Already living in Kenya? Use your resident status to your advantage with flexible registration options.

Need Expert Guidance?

Feeling overwhelmed? Don’t worry. We specialize in helping foreign investors navigate the registration process. From document preparation to compliance, we’ve got you covered.

We know the process inside out. Let us help you choose the best structure for your business and handle the legal details.

Conclusion

Whether you’re an international corporation, a foreign entrepreneur, or a resident foreigner, Kenya welcomes your business. The right structure will depend on your circumstances and vision. Start your journey now, and unlock Kenya’s potential!