Description

Starting a Business The most common types of business forms adopted in Kenya are private limited companies, public limited companies, general partnerships, limited partnerships and branches of foreign businesses. In Kenya, a registered company is considered a separate entity from its shareholders thus it possesses perpetual succession (meaning it will continue to survive even after its owners/founders/shareholders are no longer a part of it), it has a common seal and can sue or be sued in their own names.

The liability of the members of companies is usually limited either by shares or by guarantee; however unlimited companies can also be registered. Partnerships on the other hand are not separate legal entities distinct from the partners which therefore means that the liability of all the partners is not limited and the partners bear the obligations of the partnership. For limited partnerships, the liability of at least one of the partners must be unlimited.

There are sole proprietorships as well whereby a single individual is solely liable for the debts of the business. NGOs which are non-governmental organizations must be registered with the NGO Coordination Act 1990. Thus, you need to establish what type of business you want to start and its requirements as well as implications. Incorporation of a Company Incorporation basically means registration of a company.

In Kenya, companies are registered with the Registrar of Companies at the State Law office in Nairobi or at huduma centres countywide. Once the name has been approved by the registrar, the following documents must be provided:

• Memorandum and articles of association Statement of nominal capital of the company
• The details of the directors and secretary of the company
• The location of the company, that is, where they will be situated A statutory declaration of compliance with all applicable laws Once the company is registered, a Certificate of Incorporation is issued and this is evidence of its legal existence.
• Other Requirements Every incorporated company must file annual returns at the Registry. These returns provide information on the company