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When registering a limited company in Kenya, the minimum nominal share capital is Ksh. 100,000 (1,000 shares). Legally the law (The Company Act) allows a minimum of 1,000 shares with a nominal share capital of Ksh. 100,000 (Value of Ksh. 100 per share) in all Limited Liability Company being registered in Kenya.
The Kenyan Government has a standard fee charged for Stamp duty at Ksh. 2,000, then 1% is charged towards the total nominal share capital of the company, in this case 1% of Ksh. 100,000 which comes to Ksh. 1,000. Since the transaction is done to the bank, there is a cost of Ksh. 150 that the bank charges to perform the transaction.
Total Cost: Ksh. 2,000 Plus 1% of Nominal Share Capital equals to Ksh. Ksh. 3,000 plus Ksh. 150 (Bank charge). The total comes to Ksh. 3,150.
The more you increase the nominal share capital, the more expensive the stamp duty becomes. Remember, you are not expected to pay the Nominal Share Capital value, but the stamp duty cost instead.
Apart from the cost breakdown above, you will require to allocate the shares to each company directors (minimum 2 people) depending on what you have agreed. For example 60%-40% or 70%-30% etc.
Here is to your success in setting up your company!
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Hallo Enock. Is it possible to register a company but instead of having the nominal share capital fully subscribed (e.g. 50:50, 70:30, etc) have it subscribed with less than 100%? (e.g. 60:20 with twenty unsubscribed, or 81%, that is 50:30:1 with the remaining 19 unsubscribed).
Can such a limited company be registered?
yes its possible