Companies may be formed by individuals, corporate entities or trusts who wish to operate a trade or business in or from Kenya. Companies are incorporated either by registration or by Private Act. Most Kenyan companies are incorporated by registration which takes approximately 4 business days. Private Act companies are established when a specific exemption from the Companies Act or some other piece of general legislation is sought. Under Kenyan law, a company may have all the powers of a natural person. Kenyan company law differentiates between a local company (which carries on business domestically in Kenya) and an exempted company (which conducts business internationally from Kenya). The Companies Act specifically permits the formation of the following types of Companies:

• Companies limited by shares
• Companies without limited liability
• Companies of Limited Duration
• Companies incorporated by Private Act (when an exemption from some provision of statute is specifically required)
• Mutual funds
• Companies limited by guarantee (formed for a charitable or other socially useful purpose)