The Companies’ Act was reviewed in line with vision 2030. The government of Kenya set out to constantly promote establishment and operation of businesses. In addition to other laws and regulations, The Companies’ Act 2015 was put in place to streamline the ease of doing business. It also makes it easier for other entities to operate.
To the ordinary folk, the act might seem quite a huge read, and with complicated legal terms. However, its intention is to boost the ease of doing business. It does this by taking into consideration developments in technology and procedures. In addition, the Act, has systematically recognized and set out the accepted principles of Corporate Governance. Here are some important features of the companies act 2015:
1. Single-Member Private Companies
Unlike the Previous companies act (Cap 486), The Companies Act 2015 no longer requires entrepreneurs to incorporate a business entity with at least 2 members. This means, If you wake up today, with a golden business idea, All you need to do is login to eCitizen Platform and set up your business. In this regard, Private companies can have one director, while Public companies must have at least two.
2. Company Secretary Obligations
Previously, all companies were required to have a registered company secretary. However, thanks to the Companies Act Cap 2015, there’s no obligation to have one so long as your company’s paid-up capital does not exceed Kshs. 5 million.
3. More Freedom to do Business
In the previous act, the minimum age for a director was 21 years. The Companies Act 2015 makes takes it down to 18 years, with no prescribed maximum! Moreover, unlike in the past when your companies’ objectives that were outlined when setting up defined what you would engage in… the Kenya’s new companies act does not restrict your business to its formative objectives. You may transact whatever business you wish to venture into, subject to your own capacities or limitations.
There’s a little less red-tape in doing business in Kenya, and when you get good Corporate Consultants, you will be in an awesome position to meet your ideas. If you’re thinking about going into Business in Kenya, Scribe Registrars is a good place to start as we’ll walk you through every step of your journey.