Register a branch in Kenya – Are you considering expanding your business into Kenya? Registering a branch in Kenya can open doors to expanding your business reach and tapping into a vibrant market. Expanding your business into Kenya can be a lucrative endeavor, given the country’s growing economy and favorable business environment. However, before you start operations, it’s crucial to understand the legal requirements and procedures for registering a branch in Kenya.
In this article, we will guide you through the step-by-step process of registering a branch in Kenya and help you avoid common mistakes that can cause delays and legal issues. If you need assistance to register a company in Kenya, feel free to contact us today.
How do I register a branch company in Kenya | How do you start a branch of a company | Online branch registration in Kenya
At Afrisetup, we follow these steps to help foreigners register a branch in Kenya:
Step 1: Understand the Legal Framework: Before you start the registration process, it’s important to understand the legal framework that governs foreign companies operating in Kenya. The main laws are the Companies Act 2015 and the Foreign Investment Protection Act of 1994. These laws define the requirements and procedures for registering a foreign branch office, as well as the rights and obligations of foreign investors. It’s also important to note that Kenya has bilateral investment treaties (BITs)with several countries, which provide additional protection for foreign investors. You should check if your country has a BIT with Kenya and how it can benefit your business.
Step 2: Choose a Suitable Name for Your Branch: The next step is to choose a suitable name for your branch office. The name should be unique, not misleading, and not similar to any existing business name in Kenya. You can check the availability of your preferred name on the eCitizen portal, which is an online platform for government services.
Step 3: Prepare the Required Documents:
- A certified copy of the memorandum and articles of association of the parent company.
- A certified copy of the certificate of incorporation of the parent company.
- A power of attorney appointing a local agent to act on behalf of the branch office.
- A certified copy of the board resolution authorizing the establishment of the branch office and the appointment of the local agent.
- The physical address of the branch office.
- Copy of the local agent national ID and address
- The name, nationality, and address of the parent company’s directors and shareholders.
- The nature and scope of the business to be carried out by the branch office.
of your business, you may need to obtain additional licenses and permits from the relevant authorities. For example, if you’re in the banking or insurance sector, you need to obtain a license from the Central Bank of Kenya or the Insurance Regulatory Authority, respectively.
Step 6: Open a Bank Account: Once you register a branch in Kenya, you will need to open a bank account in Kenya to facilitate your business transactions. You can choose any bank that suits your needs, but it’s advisable to consider the following factors:
- The bank’s reputation and stability.
- The availability of online banking services.
- The fees and charges for the account.
You need to provide the following documents to open a bank account:
- A certified copy of the certificate of registration of the branch office.
- A certified copy of the board resolution authorizing the opening of the account and the appointment of signatories.
Step 7: Register for Taxation: All businesses operating in Kenya are required to register for a PIN with the Kenya Revenue Authority (KRA) and thereafter register for the relevant Taxes relating to the specific business they are doing.
Requirements for PIN Registration in Kenya
- Introduction letter from a KRA registered tax agent.
- Copy of pin and tax compliance certificate of the tax agent.
- Clear copy of the passport.
- Acknowledgement receipt from the itax portal.
Common Mistakes to Avoid When you Register a Branch in Kenya
Now that we have highlighted the steps to follow when registering a branch in Kenya, let’s look at some common mistakes to avoid:
I. Failure to appoint a local representative who is a Kenyan.
II. Lack of proper company structure that does not comply with the foreign/ branch
company registration policies.
III. Failure to consult an expert to guide you through the steps to take in setting up the
foreign/ branch company registration process.
FAQS on Branch Registration in Kenya
Q: Who is eligible to register a branch in Kenya?
Any foreign company can register a branch in Kenya as long as they meet the legal requirements outlined in the Companies Act. The requirements involve setting up a registered office in Kenya, appointing a local agent, and submitting the relevant paperwork and fees.
Q: What are the legal requirements for registering a branch in Kenya?
For one to register a branch in Kenya, he or she should meet the following legal requirements:
- Having a registered office in Kenya where legal notices and documents can be served.
- Appointing a local representative who is a resident of Kenya and authorized to accept legal notices on behalf of the branch.
- Providing certified copies of the parent company’s certificate of incorporation, memorandum, and articles of association.
- Paying the necessary registration fees.
- Filing a completed registration form with the Registrar of Companies.
- Obtaining any necessary permits or licenses required for the business activities of the branch.
Q: What is the timeline for registering a branch in Kenya?
The time it takes to register a branch in Kenya depends on a number of factors,
including the completeness of the application, the availability of all required
documents, and the workload of the registrar’s office. However, the process of
registering a branch in Kenya might take anywhere from 2-3 weeks.
Q: Cost of registering a foreign company in Kenya | Branch registration in Kenya cost
The cost of registering a foreign company in Kenya can vary depending on several factors such as the type of business entity and the scope of operations . Generally, the process involves various expenses including government fees, legal consultation fees, and any additional costs related to documentation and compliance
Reach out to us today inorder to get a comprehensive quote
Q: What is the difference between branch and subsidiary in Kenya?
A branch is not a separate legal entity from its parent company, whereas a subsidiary is. This means that a subsidiary possesses its own legal identity, distinct from its parent company.
Conclusion
Registering a branch in Kenya is a necessary step for businesses looking to expand their operations in the country. While the process may seem overwhelming, following the steps outlined in this guide can help you avoid common mistakes that can delay the registration process or result in legal and financial penalties. Contact us today to
register a branch in Kenya at the comfort of your home country.