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Friday, March 19, 2021

Registration of a Foundation as a Company limited by guarantee

 

Registration of  a Foundation as a Company limited by guarantee

A company limited by guarantee or a foundation is the most appropriate entity where the members wish to form a charitable organization and also reserve limited liability against claims from third parties. 

Under the Companies Act, 2015 a group or association of persons can incorporate as a private or public company.  A private company requires at least one (1) and no more than 50 shareholders. A public company requires at least seven members.  

A private charitable foundation as a company limited by guarantee can be registered with at least one (1) director and one (1) member. 

Kindly note that both the guarantee companies and NGOs will usually be vetted by the security agencies (National Intelligence Service) before there are granted registration.  

It generally takes the security authorities up to two months to do their background checks or interview the promoters and principal officers of such companies with the result that it can take between 2 to 6 months to obtain a final decision from NSIS and the Companies Registry as to whether such a company limited by guarantee can proceed to incorporation. 

If you require to register a foundation in Kenya, kindly get in touch with me via mainacy@gmail.com

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