When it comes to starting and running a business in Kenya as a foreigner, the information available can be scarce and unclear. Most resources on starting a business in Kenya are primarily aimed at Kenyan citizens, leaving foreigners with unanswered questions.
In this guide, we aim to provide comprehensive answers on how foreigners can start and run a business in Kenya.
Choosing the Right Business Entity
The first step in starting a business in Kenya as a foreigner is to determine the type of legal entity that suits your business. Options include a private limited company, a public limited company, a sole proprietorship, or a limited partnership.
Work Permit Requirement
It is important to understand that as a foreigner planning to start and reside in Kenya while running a business, you may need to obtain a work permit. A work permit allows you to legally conduct business activities within the country.
Alien Identity Card
Along with a work permit, you may be required to obtain an Alien Identity Card. This card serves as an official document that proves your status as a foreign resident doing business in Kenya. It is a vital piece of identification required for various transactions and interactions within the country.
Tax Registration
As a business owner operating in Kenya, whether a foreigner or a Kenyan citizen, you must register for tax purposes. This entails obtaining a tax identification number and complying with Kenyan tax laws.