Setting Up a Company in Kenya as a Foreigner: Legal Steps Explained by WKA Advocates

Setting Up a Company in Kenya as a Foreigner can be an exciting and rewarding venture, given the country’s dynamic economy and strategic position in East Africa. Kenya offers a skilled workforce, a rapidly expanding middle class, and a favorable business environment for foreign investors. However, navigating the legal and regulatory landscape can be challenging without local expertise. At WKA Advocates, we are committed to guiding foreign investors through every step of the company registration process, providing tailored legal support to ensure smooth, compliant, and successful business setup in Kenya.

In this article, we walk you through the key legal steps involved in setting up a company in Kenya as a foreign national or foreign entity.

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1. Choosing the Right Structure When Setting Up a Company in Kenya as a Foreigner

The first step in registering a company in Kenya as a foreigner is selecting the most appropriate business structure. In Kenya, foreigners can register any of the following entities:

• Private Limited Company (Ltd) – The most common form for foreign investors.

• Branch Office – Suitable for foreign companies seeking to operate in Kenya without incorporating a local entity.

• Subsidiary Company – A Kenyan company fully or partially owned by a foreign parent company.

• Limited Liability Partnership (LLP) – A hybrid model combining partnership flexibility and corporate protection.

At WKA Advocates, we assess your business goals and recommend the best structure to optimize operations, tax exposure, and compliance.

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2. Reserving a Business Name When Setting Up a Foreign Company in Kenya

Once the structure is chosen, the next step in starting a business in Kenya as a foreign investor is to reserve your company name via the eCitizen portal. The name must be unique and must not conflict with existing trademarks or company names.

WKA Advocates Tip: We assist clients by conducting preliminary name searches and submitting up to three preferred names to ensure faster approvals.

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3. Drafting Company Documents for Foreign Business Registration in Kenya

As part of setting up a company in Kenya as a foreigner, you will need to prepare several essential documents, including:

• Form CR1 – Application for company registration

• Memorandum and Articles of Association – The company’s constitution

• Form CR2 – Details of directors and shareholders

• Form CR8 – Registered office address

• Identification documents for foreign directors and shareholders

WKA Advocates helps prepare and tailor these documents to comply with Kenyan law and your business’s unique requirements.

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4. Registering Your Foreign Company with the Registrar of Companies

In this step of forming a company in Kenya as a foreign national, your documents are submitted via the eCitizen portal. Upon approval, you will receive:

• Certificate of Incorporation

• Company PIN from the Kenya Revenue Authority (KRA)

• CR12 Document – Listing all directors and shareholders

Our team ensures your registration is fast, smooth, and professionally handled.

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5. Opening a Business Bank Account for a Foreign-Owned Company in Kenya

To continue the process of establishing a business in Kenya as a foreigner, you must open a corporate bank account. Required documents include:

• Certificate of Incorporation

• CR12 and KRA PIN

• Board resolution to open the account

• Proof of business premises

We liaise with local banks and guide you through the entire account setup.

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6. Meeting Statutory Compliance Obligations as a Foreign Business Owner in Kenya

Compliance is a critical aspect of starting a company in Kenya as a foreigner. You’ll need to register with:

• Kenya Revenue Authority (KRA) – For tax and VAT compliance

• NSSF and NHIF – If employing staff

• NITA – For training levy registration

WKA Advocates ensures you meet all regulatory requirements from day one.

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7. Obtaining Business Permits for Foreign Investors in Kenya

Depending on your business type and location, you may require additional licenses, such as:

• Single Business Permit from the county government

• Sector-specific licenses (e.g., tourism, communications, or finance)

We identify and secure all necessary licenses so your company is fully operational.

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8. Special Requirements When Setting Up a Company in Kenya as a Foreign National

Foreign investors may face additional rules, such as:

• Minimum Capital Requirements – Often required in certain sectors

• Work Permits – A Class D work permit is mandatory if you intend to be employed by your company

WKA Advocates supports you in obtaining all relevant immigration and investment approvals.

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9. Post-Incorporation Legal Services for Foreign-Owned Companies in Kenya

After forming a company in Kenya, ongoing legal compliance is vital. We provide long-term support in:

• Filing annual returns

• Drafting shareholder agreements

• Registering intellectual property

• Drafting and reviewing contracts

• Advising on employment law

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Why WKA Advocates Is Your Trusted Partner for Setting Up a Company in Kenya as a Foreigner

With deep expertise in Kenya’s commercial laws and a strong understanding of international investor needs, WKA Advocates is the legal partner of choice for foreign entrepreneurs.

Our services are tailored to simplify bureaucracy, minimize risk, and accelerate your business launch. From incorporation to expansion, we’re with you at every stage of your business journey in Kenya.