Kenya is one of the most promising investment destinations in East Africa. Foreigners can legally register companies, own shares, and run operations—provided they meet regulatory requirements.
The process begins at the eCitizen portal, where business names, companies, or branches are registered. Foreign-owned companies must declare foreign shareholders and obtain a KRA PIN for tax compliance. Additional requirements may include obtaining a work permit or investor permit and, in some industries, approval from sector regulators.
BMA Advocates offers foreign investors a full suite of business setup services, including company incorporation, immigration support, and post-registration compliance. We help structure operations to align with Kenyan law while protecting international investments.
FAQs with Proper Legal Answers
Can a foreigner fully own a business in Kenya?
Yes, foreigners can own 100% of a business in Kenya, especially in sectors not restricted to Kenyan citizens. Some sectors—like telecommunications or banking—have shareholding caps requiring local ownership.
What are the most common legal structures for foreigners?
The most common structure is a Private Limited Company. Foreigners can also register a branch of a foreign company or enter a partnership, depending on the nature of the business.
Do I need a work permit to operate my company?
Yes. Foreign directors or shareholders who intend to work in Kenya must apply for a Class G (Investor) or Class D (Employee) permit.
What are the investment capital requirements?
For a Class G Investor Permit, a minimum investment of USD 100,000 (or its equivalent in Kenya Shillings) must be demonstrated, often through bank statements or audited projections.
Can I open a bank account before the business is active?
No. You must first register the company, obtain a KRA PIN, and present company documents to the bank to open a corporate account.
Is VAT registration mandatory?
If the business expects to generate over KES 5 million annually, VAT registration is mandatory. Other taxes may apply based on your business activities.
How long does company registration take?
If documents are in order, registration through eCitizen typically takes 7–14 working days. Work permits and licenses may extend the timeline.
Can I run an online business from Kenya as a foreigner?
Yes, provided the business is registered and you hold the necessary permits. The same tax obligations apply regardless of physical or digital nature.
Are there any compliance obligations after registration?
Yes. You must file annual returns, maintain accounting records, renew business permits, and comply with tax obligations such as PAYE, VAT, and income tax.
Can BMA Advocates help me start and run my business legally?
Absolutely. We assist with incorporation, permit acquisition, KRA compliance, legal drafting, and post-registration support.
This article is for general informational purposes only and does not constitute legal advice. For tailored assistance, please consult BMA Advocates directly.
