1.COMPANY SET UP IN KENYA
There are various options for an individual /foreign company has with regards to establishing a presence here in Kenya. These are:
-Registration of a new company/resident company
-Registration of a subsidiary company of the main foreign company
-Opening a registered branch of the parent company
We apply for your company registration with the registrar of companies, get cr 12 certificate, Kenya revenue authority tax number, and tax compliance certificate.
We make sure that your new company meets the required statutory legal compliance before you start trading.
subsidiary companies are taxable in Kenya on income accrued or derived from Kenya. subsidiary companies with business activities outside Kenya are also taxed on income derived from business activities outside Kenya.
branch companies are subject to Kenya corporate income tax(CIT) only on the trading profits attributable to a permanent establishment in Kenya hence no taxation on the parent income abroad.
The rate of corporate income tax for subsidiary companies is 30%. The rate for branches of foreign companies is 37.5%
A branch company will be required to file with the registrar of companies ‘the parent’s company’s audited financial statements at the end of very year. Losses incurred by the branch office are included in the parent company income statement.
When filling for corporation tax returns, you are only allowed to claim expenses that have been wholly and exclusively incurred in the production of your income.
A company is allowed to carry forward its losses that will be offset against future taxable income.
In your case, there will be no proof of any income being derived in Kenya as all payments will be made in china hence advisable to register a branch of the parent company. No taxation of the parent foreign income.
branches are required to file a Self-Assessment Return (SAR) no later than the last day of the sixth month following the end of a taxation year. Where there is no tax due in a given year, a nil return must still be filed.
Branches must have a local representative resident in Kenya. The local representative is answerable for all acts, matters and things that the company is required to do by or under the Companies Act and is personally liable for any penalties imposed on the company for a contravention of, or failure to comply with, the Companies Act.
REQUIREMENTS FOR BRANCH COMPANY REGISTRATION IN KENYA
- Scanned certified copy of certificate of incorporation of company from country of registration.
- Scanned certified copy of the Memorandums and Articles of Association of the company. (If in a Foreign language, interpreted and certified copy)
- Registered office in country of origin (Plot / House number, road, City, country)
- Names of the Directors / shareholders and share structure.
- Contact information of the directors / shareholders – Email address, Telephone number, postal address and residential addresses.
- Scans of Passport bio data and passport photo of directors / shareholders.
- Appointment of local representative
See the attached quotation for branch company registration in Kenya attached below.
2.RENT WAREHOUSE IN KENYA
A logistics/parcel distribution company will require a warehouse for storage and office space. The warehouse should be in central place and with the required facilities for cargo handling and storage.
For company registration, office location is required. You can use the warehouse as the office and for storage purposes.
We have partnership with warehouse leasing companies in Kenya who can provide that services to you. Provide the following information so that we can give a quote for warehouse leasing costs
- Size of the warehouse you require
- Type of goods to be stored.
- Facilities you require to be in the warehouse
- preferred locations
We can provide a quotation for warehouse renting in Kenya after having the above information.
3.Logistics/parcel/courier distribution services license in Kenya
It’s my understanding that by logistics you mean a parcel/cargo distribution company that does not deal with forwarding and clearing services.
Parcel distribution company are regulated in Kenya by the communication authority of Kenya. You need the communication authority license for you to operate in that form of business.
Courier license are categorized under two categories;
Local operators operate only in Kenya and international operates internationally. The categories have different license fees and requirements.
Note that companies wishing to be considered for a license in the parcel /courier sector must allot a minimum of 20% of their total shares to individual Kenyan citizens by the 3rd year of operation.
Requirements for registration of a parcel/Courier license in Kenya.
- Copy of certificate of registration.
- Copy of Memorandums of a company or constitution
- If a limited company – a current CR12. (List of directors) NB, Foreign owned companies must have a minimum of 20% Kenyan shareholding.
- Company Kenya revenue authority pin number certificate.
- Tax compliance certificate.
- Registered office of the company. Details of physical office. – Name of Building, name of road, general location, town, county.
- Passport copies in case of Foreign directors
- Contact information of the company. – Postal address, email address telephone number.
- Contact information of the directors, officials. – Postal addresses, email address, telephone numbers.
- A Business plan of the company or Business. The Business plan should highlight the Service network, market to be services, business expansion proposals for at least 3 years and a general guideline of the Business.
See the attached quotation for international operator license.
4.works permits application in Kenya
We apply for our clients work permit so that then can be able to work and live in Kenya comfortably. We make the applications and do follow up for the work permits approval and issuance in timely manner.
All applications for Permits are made and submitted online accompanied by all the necessary requirements which should be uploaded into the ministry of migration website before issuance.
For the directors, we will apply for class G work permits.
REQUIREMENTS FOR CLASS G WORK PERMIT APPLICATION
- A Copy of national passport
- Two recent colored passport size photos
- Current Immigration status if in the country
- Valid organization Tax Compliance Certificate for new cases, plus individual Tax Compliance Certificates for renewal cases
- Documentary proof of capital to be invested of at least USD 100,000
- Certificate of incorporation of the company
- Memorandum of understanding
- Articles of association
- Copy of PIN certificate
For the employees, we should apply for class D work permits. Kindly provide more information on the 10 employees so that I know which route to follow for the work permit processing. Work permits application in Kenya is quite expensive and requires proper planning and facilitation so that it can be approved and takes shorter time.
See the attached quotation for class G work permit application.