In Kenya, several legal entities are available for starting a business. The most common types of legal entities are:

1. Sole Proprietorship: A sole proprietorship is the simplest and most common form of business entity. It is owned and operated by a single individual who has full control and assumes all liabilities.
2. Partnership: A partnership is formed when two or more individuals come together to carry out a business venture. Partnerships can be either general partnerships, where partners share profits and liabilities, or limited partnerships, which consist of general partners and limited partners with different levels of liability.
3. Limited Liability Company (LLC): An LLC is a separate legal entity from its owners (members). It offers limited liability protection to its members and allows for flexible management structures. An LLC must be registered with the Registrar of Companies.
4. Company Limited by Shares: This is a type of business entity commonly referred to as a “limited company.” It is owned by shareholders and managed by directors. The liability of shareholders is limited to their share capital contribution. A company limited by shares must be registered with the Registrar of Companies.
5. Public Company: A public company is a type of limited liability company that can issue shares to the public. It must comply with additional regulatory requirements compared to a private limited company.
6. Cooperative Society: A cooperative society is a voluntary association of individuals who pool their resources and efforts to achieve common economic and social objectives. It operates on the cooperative principles of democratic control and shared benefits.
7. Branch Office: A foreign company can establish a branch office in Kenya to conduct its business activities. The branch office operates as an extension of the foreign company and must be registered with the Registrar of Companies.
8. Non-Governmental Organization (NGO): NGOs are formed for purposes other than making a profit. They operate in areas such as charitable, educational, religious, or social causes. NGOs must be registered with the Non-Governmental Organizations Coordination Board.

The choice of legal entity depends on various factors, including the nature of the business, liability protection, tax implications, ownership structure, and growth plans. It is advisable to consult with a lawyer or business advisor to determine the most suitable legal entity for your specific business needs in Kenya.

The steps for company incorporation in Kenya typically involve the following:

1. Name search and reservation: Submit a proposed name for the business to the Registrar of Companies for approval and reservation. This ensures that the chosen name is unique and available for use.
2. Preparation of documents: Prepare the necessary incorporation documents, including the memorandum and articles of association, Form CR1 (Statement of Nominal Capital), Form CR2 (Declaration of Compliance), and Form CR8 (Particulars of Directors and Secretary). These documents outline the company’s structure, rules, and key personnel.
3. Stamp duty payment: Pay the requisite stamp duty fees for the incorporation documents at a designated bank. The stamped documents will serve as proof of payment. This is especially for LLPs.
4. Company registration: Submit the duly completed incorporation documents, along with the required fees, to the Registrar of Companies. This can be done physically at the Registrar’s office or electronically through the eCitizen online platform.
5. Obtaining a certificate of incorporation: Upon successful review and approval of the incorporation documents, the Registrar of Companies will issue a certificate of incorporation. This certificate confirms the legal existence of the company.
6. Tax registration: Register the company for tax purposes with the Kenya Revenue Authority (KRA). Obtain a Personal Identification Number (PIN) and, if applicable, Value Added Tax (VAT) registration.
7. Obtain other necessary licenses and permits: Depending on the nature of the business, additional licenses, permits, or regulatory approvals may be required. This could include sector-specific licenses or permits from relevant government agencies or professional bodies.
8. Open a bank account: Open a business bank account in the name of the company, using the certificate of incorporation and other relevant documents.
9. Post-incorporation compliance: Comply with ongoing legal requirements, such as filing annual returns, maintaining proper accounting records, and conducting regular meetings as required by law.

It’s important to note that the specific requirements and procedures may vary depending on the type of legal entity being registered and any specific industry regulations. It is advisable to seek guidance from a lawyer or business consultant familiar with the incorporation process in Kenya to ensure compliance with all applicable laws and regulations.