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Nessi Naj wrote:

Hi guys,

1. What are the basic requirements for starting up a small company here in Kenya where the owners are two Kenyans and a foreigner?Of course the foreigner cannot work in it but would like to be considered a director,is that possible?

2. My Italian boyfriend and I are considering starting two companies, a transportation business and a restaurant.In terms of the line of business,they are very different but considering the fact that the two companies belong to one person,what are the tax / legal implications?I know the legal documentation needed for example in the food industry is more than in the transport business but regarding tax issues, please enlighten me.

3. We are considering giving the companies the same name, an example is like Q foods and Q transporters, Will that help in matters taxation in that, whereas each entity is regarded separate and distinct and maybe tax is remitted separately for each, we can just remit the total tax as one now that the two companies are owned by the same person?

I had a little more questions but will raise them as they come to mind.

Nessy,
I have just seen your question and would like to assist if you are yet to get any assistance.
Currently the registration of a company is quit easy in Kenya. Application is done online and if done correctly you can get a certificate of incorporation, a CR 12 and a pin within a weeks time.
In regard to the companies having the same name that is acceptable but one will have to be a subsidiary of the other, However note that if registered separately you will be required to file returns separately too as they are different legal entities.
Licences will differ since they seem to be operating on two extremes that is for the restaurant you will be required to get a licence from the relevant county government and sometimes clearance from the ministry of health.

I hope i have answered some of your concerns. Let me know if you need further clarification.

Regards.

Longonot62 wrote:

Hi,聽 The link below gives a good overview of the process of registering a company in Kenya:


To the best of my knowledge you can be listed as a director, as a foreigner without a work permit, but you will need a PIN from Kenya Revenue Authority.

Why would you register two separate companies? You could have one company with articles of association which cover all the business activities you wish to carry out.聽 I think that this would be easier.聽 Of course you need different licences for different sectors of your business, but that shouldn't be a barrier........just look at some large companies who have diversified hugely.聽 Diversifying will allow you to spread your investment, which is always better than concentrating it

Unfortunately, I don't know enough about taxation to properly advise you.

Have you researched the sectors that you want to enter?聽 The transport industry particularly is very crowded and a difficult industry to penetrate, particularly concerning the transport of people.聽 I speak from personal experience.聽 You need a lot of capital, operating vehicles is expensive and so on.聽 You really need to thoroughly research before committing, to avoid losing a lot of money.

I would also say that I would be hesitant to invest heavily in Kenya until the current political turbulence has calmed down and it is clearer which direction the country will take.聽 聽The current situation is bad for business and it's not unlikely that attempts to overthrow the October presidential election could be made, if the opposition loses again, which would put the country into a deeper state of uncertainty.聽 I think that the investability in Kenya in the short to medium term depends upon who eventually wins the presidential election.

Longonot,
The process of company registration has significantly changed in the past years since the passing of the Companies act of 2015.
Some of the above provided information might be misguiding. However, i do appreciate the effort to assist her.
The link provided also shows the old method of registration so might be misguiding.

Regards.

Nessi Naj wrote:

Hi Longonot,

Is a PIN from KRA the only document required from a foreign national?

No the only document required from the foreign national is his Passport. However, if he has a KRA pin that would be great( this can however be procured after the company is registered. Note that he can also be a shareholder and a director even if he doesn't reside in Kenya.