How to incorporate a Limited Liability business in Kenya: Everything You Need to Know
In the midst of an ongoing pandemic, entrepreneurship continues to be a key option according to data released. With the pandemic having adverse effects on employees, retrenchments, furloughing and even redundancies can be frustrating. Hence, with more time on their hands, a majority of people are forced to venture into business, either to supplement their income or a new path. The first step one can take involves incorporating a limited liability business in Kenya.
Incorporating a business in Kenya can be done easily through the ecitizen platform. As such, incorporating a business is much faster, with no need for lawyers or specialized knowledge, just following all the requirements.
There are various ways you can incorporate your business. This includes as a proprietorship, partnership or a limited liability company. These are the most common and are not cumbersome to register.
As you take the brave step of starting your business, highlighted below are the advantages and disadvantages of incorporating a limited liability business:
Advantages of incorporating a limited liability business
- A limited liability company is a separate legal entity from you the owner and the directors. As such, this eliminates the risk to your personal assets that legal proceedings or credit issues could bring.
- A limited liability business can be able to issue and transfer shares in order to raise funds.
- A limited liability business can foster business continuity even with the exit of the founder. With that, this can give the business longevity to operate as a going concern.
- A limited liability business in Kenya can be easily dissolved. There are clear guidelines and procedures when the owners want to dissolve the business as a result of adverse effects to the business impacting the ability to continue as a going concern.
Disadvantages of incorporating a limited liability business
- It can be costlier to incorporate compared to other structures such as proprietorship or a partnership.
- You are required to comply with the structure of a limited liability such as a board of directors.
- There is more complexity in managing this structure. This is from annual reports to careful accounting records.
How myNGOVO can help
With so many other business concerns in your quest to build a successful venture, every minute counts. You can’t afford manual time-tracking to impact your business productivity nor financial stress to your employees. TruAttendance can deliver significant benefits in automating your time and attendance management processes ensuring your employees get the correct pay and streamlining your HR processes. Also, myNGOVO Advance offers employer-sponsored salary advance benefits to employees through an easy-to-use mobile app so they can match they income with their needs.And, if you are looking for additional software tools and services or suggestions on how we can offer you the best solutions to facilitate your digital transformation, reach out to us and we’ll gladly take you up on your offer.