There are essentially four common types of companies provided for under the companies Act in Kenya.
- Company Limited By Shares – A separate legal entity from the shareholders. Has a minimum of two shareholders. Who are issued with shares in the company? Established to make a profit with profits being distributed to the shareholders in
the form of dividends.
- Company Limited By Guarantee – A form of limited company similar to a company limited by shares, does not have shareholders, but instead, its members act as 'guarantors' who agree to contribute a set amount of money on the winding up of the Company. This form of limited company is often used for non-profit reasons as it does not need to involve profit orientated business
- Public Limited Company – This is a limited company which is allowed to offer shars to the public.
-Separate legal entity from shareholders
-Can own property
-Can sue and be sued individually
-Is considered a legal person for all meanings and purposes.
-You can easily transfer a share of the business to others, e.g. Family
-It may be easier to attract people to invest money in your business.
-Obtaining bank loans may be easier.
-There may be lower tax payments.
-In the event of a partner leaving, or somebody dying, it is easier to continue the business.
-It is easier to sell the business.
-You have a better standing in the public eye.
-It can assist in the protection of a name.
-People have more confidence in your business as they can check up on your company, on the public records, at Companies House.
-Subcontractors and agency workers will find it easier to obtain work.
The memorandum and articles of association are legal documents that set out:
The Company Name
The Objectives of the company
The Nominal capital and division of shares
The names and addresses of the subscribers / shareholders ETC
The internal constitution of the company
You will probably be asked for this document when you open a bank account for
your company. All our companies are incorporated using standard 'general
commercial company' memorandum and articles.
The certificate of incorporation is the document issued to confirm that Registrar of Companies has incorporated your company name and states the date of incorporation and the company number. It is the Birth Certificate of the company.
We have most of the prescribed forms for you to download for FREE. However, kindly note that we prepare all company registration documents. Before filling out the forms, the proposed Name has to be reserved and the person presenting the documents has to be the same in all forms.
The Forms are Statement of Nominal capital – Nominal capital form
Form 201 – Registered office form
Form 203 – Directors and secretary of the company
Form 208 – Declaration of compliance with the Companies Act.