The government through the Business Registration Service (BRS) unveiled new charges expected to affect foreign companies seeking to enter the Kenyan market.
In the Companies (Foreign Companies) Regulations 2024 drafted by Attorney General Justin Muturi, all foreign companies will be required to register in Kenya before commencing operations.
Per the regulations, the companies will be required to share a notarized copy of their certificate of registration and a copy of their constitution. If the document is not in English, the companies will also be required to hand in a translated version.
The companies will also be expected to provide a list of the directors and shareholders, postal address, residential dress, email and telephone number and other personal documents of the various shareholders.
Each company will be required to pay the prescribed fines as below;
For registrations, the company should pay Ksh7,550
The foreign companies will pay Ksh500 for filling out financial statements
Notice of dissolution or deregistration will cost Ksh500
Notice of cessation of business in Kenya will cost Ksh500
Notice of closure of place of business will be charged at Ksh500
These foreign companies will be charged Ksh600 for an official search
Notice of appointment or cessation of local representative will be charged at Ksh500
If the company changes the physical address or hours of operation they will need to pay Ksh500
Notice of change of particulars of local representative will cost Ksh500
Notice of appointment or cessation of directors will cost Ksh500
Conclusively a notice of change of particulars of directors will cost the foreign company Ksh500
For all the above, a foreign company will be required to lodge a notice with the Registrar of Companies to formalise the changes and pay the fee.
"A foreign company shall lodge with the Registrar a notice of cessation of a local representative in accordance with 980(3) in Form FC-5 set out in the First Schedule of the Rules and pay the prescribed fees," reads part of the regulations.
Suppose a foreign company is dissolved or ceases operations in Kenya, in that case, any local representative will after a month write to the registrar with a notice of cessation and pay the set fee.
BRS asked the public to offer feedback, comments or suggestions to the proposed regulations. This will help the entity address some gaps in the industry.
"The feedback, input, and comments may be sent to the Registrar of Companies, P.O. Box 30404- 00100. Nairobi; hand-delivered to the Business Registration Service, 16th floor, 316 Upper Hill Chambers, 2nd Ngong Avenue, or emailed to blrc@brs.go.ke to be received on or before Monday, May 27 2024 at 5:00 pm," read part of the notice.
