Set Up Your Company

There are different types of legal structures for businesses

Information source: KENYA BUSINESS GUIDE


Limited by Shares (LLC)

A Company Limited by Shares is a separate legal entity to its owners (shareholders), and its directors (management). It has an authorised share capital, and shareholders invest in the company and own its shares.


Limited by Guarantee

A Company Limited by Guarantee does not usually have a share capital or shareholders, but instead has members who act as guarantors.

Forming a Company Limited by Guarantee is most commonly used as the structure for social enterprise organisations such as Clubs, Non-Governmental Organizations (NGO’s), Charities, Cooperatives, and Residential Property Management Companies.


Limited Liability Partnership (LLP)

A Limited Liability Partnership (LLP) is a unique business association provided for in the Partnership Act, No. 6 of 2012.


Sole Proprietorship

Sole Proprietorship (also known as ‘Business Name’) is a trading business owned by a single person.


Branch Entity

A branch is where a new location, division, department, or office is set up; still under the original company’s name, and is still part of that legal entity.  It is a part of a company that is organised so as to conduct business on behalf of a company, as opposed to carrying on business that is merely ancillary or incidental to the company’s business as a whole.


Subsidiary Company

Is where a company sets up a new company and registers the legal entity with the local authority as a stand-alone company. A subsidiary is a separate legal entity from the parent, although owned by the parent corporation. A company may form a subsidiary either by purchasing a controlling interest in an existing company or creating the company itself.

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