How to form a C-Corp in Kenya: Requirements and cost
Starting a business in Kenya can be a complex process, but with proper planning and guidance, it can be a rewarding experience. One popular business structure in Kenya is the C-Corp. Here is a detailed guide on how to form a C-Corp in Kenya, including the requirements and cost.
Related: How to form a US LLC with Doola
How to form a C-Corp in Kenya
Step 1: Choose a Unique Business Name
The first step in forming a C-Corp in Kenya is choosing a unique business name. Your business name should be distinctive and easy to remember. It is important to note that the name of your business must not be similar to an existing company or trademark.
Step 2: Obtain Approval for Your Business Name
Once you have chosen a business name, you must obtain approval from the Companies Registry. To do this, you will need to submit an application form along with the required fee. The Companies Registry will review your application and either approve or reject it based on whether the name is available and meets the required standards.
Step 3: Register Your Business
Once your business name has been approved, you can proceed with the registration process. To register your C-Corp in Kenya, you will need to file the appropriate forms with the Companies Registry. You will also need to provide information about your business, including the names and addresses of the directors, the company’s articles of association, and the memorandum of association.
Step 4: Obtain a Business License
After registering your business, you will need to obtain a business license. This is a legal requirement for all businesses in Kenya. You can apply for a business license at your local county government office. The cost of a business license will depend on the type of business you are operating and the location of your business.
Step 5: Register for Taxes
Once your business is registered and licensed, you will need to register for taxes. This includes registering for VAT (Value Added Tax) and paying corporate tax. You can register for VAT at the Kenya Revenue Authority (KRA) office.
The corporate tax rate in Kenya for resident companies, including subsidiary companies of foreign parent companies, is 30%. While the corporate tax rate for branches of foreign companies is 37.5% on profit.
Step 6: Comply with Other Legal Requirements
There are several other legal requirements that you must comply with when operating a business in Kenya. These include obtaining any necessary permits and licenses, such as a liquor license if you are selling alcohol, and complying with labor laws, such as paying employees on time and providing a safe working environment.
Related: How to form an LLC in Kenya: Requirements and cost