The Business Name is the simplest business form under which one can operate a business. The Business Name is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
Entities Registered Under BRS in Kenya
Private Limited Company
A company is limited by shares if the liability of its members is limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them. A Private Company is also a company that is restricted from inviting the public to subscribe to its shares. The membership of a Private Company is restricted to a maximum of 50 members.
Public Limited Company
Its Articles allow its members the right to transfer their shares in the company and the articles do not prohibit invitations to the public to subscribe for shares or debentures of the company. The name must end with the expression “Public Limited Company” or the abbreviation “PLC”.
Company Limited by Guarantee
A company limited by guarantee (CLG) is an alternative type of corporation used primarily for non-profit organizations that require legal personality. This type of company does not have share capital and its members are guarantors rather than shareholders. The liability of members is limited to the amount they agree to contribute to the company’s assets if it is liquidated.
Limited Liability Partnership
Limited liability partnerships commonly referred to as LLPs are unique forms of business association that combines elements of a company with those of a partnership. Upon registration, an LLP becomes a body corporate with a legal personality separate from its partners.
This type of a Company is a Branch of a Company registered outside of Kenya, that has established a place of business in Kenya.