You Can Register Limited Company As A Single Director (2024)

You Can Register Limited Company As A Single Director (1)

  • Limited Liability Company

Localresidentsand foreigners will soon be able to register a limited company as a single director in Kenya.

Currently, to register a limited company, you require a minimum of 2 directors. But that is about to change based on the current Companies Bill 2014 which is being debated by the parliament.

According to Hon. Samuel Chepkong’a, Chairman – Justice & Legal Affairs Committee, you can now register a company as an individual as single director. You do not need to look for a partner to register the company. The current law inhibit one person to register a limited company.

During the debate that took place on the 9th July 2015, Hon. Tom Kajwang’ – MP, Ruaraka suggested that the new law should also help businesses that have an annual turnover of Ksh. 5 million or less to be not compelled to have a company secretary to perform company returns. You should be able to simply fill the returns as a director rather than hiring a company secretary.

However, if your company is generates more thanKsh. 5 Million annually, you will be required by law to acquire the services of a company secretary in order to make your company returns.

I believe this will attract more people in registering a limited company as it will be much more easy once this Bill sails through in the third reading before it becomes law.

It is commendable that the Kenyan Government is working hard to improve the environment for doing business.

I truly believe that Kenya is heading to the right direction in joining some of the developed countries who have made it very simple and easy for entrepreneurs to register their business within a short period and with less red tapes or bureaucracy.

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You Can Register Limited Company As A Single Director (2)

Founder & Team Leader at Dealpoa.com.

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This Post Has 38 Comments

  1. That is a very good initiative made by the government.

    1. Here is a guide that can help you to register your KRA PIN for your limited company – http://www.dealpoa.com/kra-pin-registration-for-company-in-kenya/

  2. It needed to have been actualized many years ago. It will free some portion of Kenya (economically speaking!) to the poor majority (90%) who for long have been continually strangled by the retrogressive and “exclusivist” legislation.

    1. We agree. This will help so many people to start business at ease.

  3. Hello,
    I’m in the process of initiating a waste collection company. how do I register it as a limited company and how much does it cost

    1. Thanks Linus for your comment. We have sent you an email on the registration process for your company. Our prices starts from Ksh. 20,000.

  4. Messag
    I am planning to register a company that will provide goods and offer services, is it possible to operate under one company name and how much does it cost to register.

    1. Hello Eliud, registration of limited company cost around Ksh. 20,000. We have sent you an email, please check your inbox or spam folder.

  5. I have a serious question:
    If foreigners register a limited company here in Kenya Must they have PIN Numbers? Should they apply for the work permit even if they do not reside in the country?

    1. To register a limited company, foreigners are not required to provide KRA PIN. However, to register KRA PIN for the company, the foreigner director(s) will need to have KRA PIN individually in order to apply for it. This means that they need to have Alien ID, Keninvest certificate and work permit if they are going to be operating their business in Kenya.

  6. Want to register a company that will be dealing with trenching and installation of fibre optic.how much for registering this

    1. Thanks James for your comment, we have sent you an email guideline on how we can assist you with registering your limited company.

  7. Hi? how do i register a company

    1. Emmanuel, we have sent you an email with information that will assist you with company registration.

  8. I so much want to register a Ltd Company, I’ll appreciate if you assist me with information regarding what I require or rather, the guidelines.

    1. Information has been sent to your email Gracita. Please check your inbox or spam folder and confirm to us.

  9. Hi,
    When exactly can we start registering
    a limited company as a single director?

  10. How much does it cost to register a single person company? And does it need MoU and AoA?

    1. Thanks Abbas for the comment. Currently the president has signed the new Company Act but we are awaiting for Company Registry to enact it so that we can help our customers to register limited companies using just one single director. We don’t know how much they will be charging for stamp duty and processing so we don’t know yet the total cost of registeration as a single director. But we will let you know once we have the information.

  11. Thanks for Your Immediate Respond. What do i need to register a company dealing with supply of goods?

    1. We have sent you an email containing all the information you have requested.

  12. Kindly supply me with info on how i can register a company dealing with supply of good. Thanks in advance

  13. how can i get cr12?

  14. Advice me how to start a real estate management company. Thank you.

    1. Azael, we have sent you an email. Please check your inbox or spam folder and let us know. We will await your response.

  15. Can a registered self help group be listed as the sole shareholder of a limited liability company?
    If yes, can the group be listed as the sole director? Or are the group’s elected officials the directors of the company?

  16. i would like to start a business entity dealing with environmental solutions; Solid waste management, piping, trenching, drainage, irrigation, biogas technology (construction n installation) etc. kindly advice me on the type of business entity to register. Kindly let it be affordable am just a beginner and would seriously like one very soon. Thanks

  17. Hello, I have read your article and this is what I have been waiting. Has this bill been passed into law? I need to register a company as a single director as soon as the law is signed.
    Thank you,

    1. Yes the law has been passed and it is now operational. We can be able to register for you a limited company as a single/sole director.

  18. what is the procedure and cost for registering a Ltd company as a single director. please advice.

  19. I have 3 questions please
    1.Is it possible to register a limited company with a single director.
    2.Is secretary a must
    3.How much capital share do I need , because I want to deal with supplies
    Thanks

    1. Here is the response to your questions;
      1. Yes, it is possible to register a limited company as a single/sole director.
      2. You do not need a company secretary unless your company has above Ksh. 5 million Nominal Share Capital
      3. The minimum capital share for limited company is Ksh. 100,000. Please note that it doesn’t mean you need to raise Ksh. 100,000 to register a limited company.
      Hope we have answered your questions.

  20. Hi, I need to start an IT company, as the sole director and the employee for my company. Can you kindly help me out and the estimated cost for the whole process and any requirements that i may need to see me through.
    Good day

  21. Please send me details on how to register a company as a singe director

  22. Helloo there…. Help me with the requirements n cost to register a limited company as single director.

  23. What are the requirements to register a construction company limited as single director.? And the cost?
    Good day

  24. I would like to register to register a construction company ltd by shares. 499,999 nominal share capital.
    What do you require?

Comments are closed.

You Can Register Limited Company As A Single Director (2024)

FAQs

Can a limited company be a director? ›

A company director can be a person or corporate entity (e.g. another company).

What are the benefits of being a director of a limited company? ›

As a limited company director, you have much greater control and choice over how you pay yourself, meaning you can potentially minimise the tax you pay. A sole trader would be required to take a salary and would be taxed accordingly, whereas a director could take a combination of salary and dividends.

Can I start a corporation with one person? ›

A corporation makes your business a distinct entity. In other words, it separates your business assets from your personal assets. Worried because you are the only person in your company? That is just fine; one person or multiple people can own a corporation.

What is the difference between self employed and limited company? ›

If you are a self-employed sole trader , such as a freelancer, you are your business, and the two become one identity. A limited company's identity is separate from those who own and operate it, and the director cannot be held personally liable for the company's financial failings.

What if there is only one director in a company? ›

However, Model Article 7(2) provides that where a company has only one director that sole director may take decisions without regard to any of the other provisions of the Articles relating to directors' decision-making.

Who owns a limited company? ›

Most limited companies are 'limited by shares'. This means they're owned by shareholders, who have certain rights. For example, directors may need shareholders to vote and agree changes to the company.

What happens if a limited company has no directors? ›

If the company does not have a director

You must appoint a new director if your company does not have one, for example if a sole director has died. Companies House will eventually strike off a company that does not have a director but this can make it more difficult to manage any company assets.

What is the point of being a limited company? ›

Limited liability literally means that any liabilities, such as debts, are limited rather than the people in the business being personally responsible for them. As a result there's less risk to the people who own and run the company, and their personal assets are safe if the company fails.

Can there be 1 person in a corporation? ›

The OPC business structure allows a single entrepreneur or individual to form a corporation without needing shareholders or a board of directors.

Can a single-member LLC be as a corp? ›

The default federal tax status for a single-member limited liability company (SMLLC) is disregarded entity. However, the owner of an SMLLC can elect to have the business taxed as either a traditional C corporation or as an S corporation. An S corporation is a special type of small, closely-held corporation.

Which type of company is best for startups? ›

Sole proprietorship

The simplest option for small business owners who are getting started without VC funding is to create a sole proprietorship. A sole proprietorship is an unincorporated business that is owned and operated by one person.

What is better, LLC or self-employed? ›

There are a few reasons to open up an LLC instead of operating as a sole proprietorship: You want to expand the company to more than one owner in the future, which is easy with an LLC. You want to protect your personal assets from potential financial and legal liability.

Is it better to be self-employed or work for a company? ›

It depends on what's most important to you, how much stability and security you have in your life, and your overall personality, values, and business-savvy – a lot goes into it. Working for someone else can be great too, or not so great.

Does self-employed mean you own a business? ›

Being self-employed is often confused with owning a business, but the two concepts aren't necessarily the same. A self-employed person is usually the business itself, whereas a business owner may own the company but not be involved in operating or managing it.

Who cannot be a director of a company? ›

Directors must have legal and mental capacity to fulfil their responsibilities. Certain individuals, such as those with bankruptcy or legal misconduct, are disqualified from being directors. Directors have a duty to act in good faith and in the best interests of the company.

Can a small business have a director? ›

While you may run a small business that doesn't mean you escape the need for a director. Regardless of the size of your company, every company needs at least one director, not necessarily a board of directors.

Does a director have to be a shareholder? ›

Shareholders and directors have two completely different roles in a company. The shareholders (also called members) own the company by owning its shares and the directors manage it. Unless the articles say so (and most do not) a director does not need to be a shareholder and a shareholder has no right to be a director.

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