The LLC also locally known as private limited company is the most common form of corporate structure. Foreign companies can also register a branch in Kenya. However, local regulations do not provide for the registration of a representative office.
Main features of LLC
- Minimum of 2 shareholders, 1 must be Kenyan by birth and two directors of any nationality and who can be living outside of Kenya;
- No minimum share capital requirement when setting up a company in Kenya.
- Foreigners can relocate to Kenya by obtaining an entrepreneur visa as long as they invest/plan to at least US$100,000 in the company;
- Register for tax with the Kenya Revenue Authority and
- Audited financial statements filed annually
- Registered office in Kenya
- Access to double taxation treaties
- Corporate tax 30%
Benefits of LLC
- No minimum share capital requirement.
- Suitable for funds and investment (shares can be issued/transferred to investors),
- Easier to sell the business or pass it on to others as it is a separate entity,
- As a LLC losses are limited to their share of ownership of the company.
