Do you desire to start an LLC in Kenya? This step-by-step guide will offer you information on how to form an LLC in Kenya.
An LLC, or limited liability company, is a popular business structure in Kenya that combines the liability protection of a corporation with the tax benefits of a partnership.
Related: How to form a US LLC with Doola
Here is an overview of how to form an LLC in Kenya.
Requirements for Forming an LLC in Kenya
Cost of Forming an LLC in Kenya
The cost of forming an LLC in Kenya includes the registration fee, which is currently Ksh 20,000, as well as any legal and professional fees you may incur. It is generally a good idea to work with a lawyer to ensure that the process is done correctly and to avoid any potential problems down the line.
The table below shows the costs of Limited Company registration and formation in Kenya
|Business structure||Formation costs|
|Business name registration||Ksh 11737 ($95)|
|Private Limited Company||Ksh 13,219 ($107)|
|Limited Liability Partnership||Ksh 30887 ($250)|
|Unlimited Companies||Ksh 25327 ($205)|
|Public Limited Company||Ksh 13,219 ($107)|
|Company Limited by guarantee||Ksh 12355 ($100)|
Other factors to consider when forming an LLC in Kenya
Choosing a Business Location
When choosing a location for your LLC in Kenya, there are a few factors to consider:
Obtaining Necessary Licenses and Permits
Depending on your business, you may need to obtain licenses and permits from local, regional, or national authorities in order to operate legally. Some examples of licenses and permits that may be required include:
If you plan to hire employees for your LLC in Kenya, there are a few issues to consider:
Depending on the size and nature of your business, you may need to consider raising capital in order to fund your operations. This could involve seeking investment from venture capital firms, angel investors, or banks, or issuing shares of stock to the public.
When raising capital, it is important to carefully consider your options and choose the right path for your business. Some factors to consider include the amount of control you are willing to give up, the terms of the investment, and the potential return on investment.
By raising the necessary capital, you can ensure that your business has the resources it needs to grow and succeed.
As an LLC in Kenya, it is important to stay up to date with any changes to laws and regulations that may affect your business and to ensure that you are in compliance with all relevant requirements. This could include issues such as:
FAQ about forming an LLC in Kenya
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