EPZ Service Enterprise License Requirements in Kenya, & Contacts
EPZ Service Enterprise License Requirements in Kenya, Licencing Body & Contacts
Quick Summary
Key Requirements:
- Company must be registered in Kenya as a limited liability company
- Minimum investment capital of USD 50,000 for service enterprises
- Must provide services exclusively to EPZ enterprises or for export
- Business plan and financial projections required
- Valid tax compliance certificates
- Environmental impact assessment (where applicable)
- Office space within designated EPZ zones or approved locations
Licensing Body:
- Export Processing Zones Authority (EPZA)
Contacts:
- Website: www.epzakenya.com
- Email: info@epzakenya.com
- Phone: +254 20 695 2000 / +254 722 208 137
- Physical Address: Viwandani, Mombasa Road, Nairobi
- Postal Address: P.O. Box 50563 - 00200, Nairobi, Kenya
Kenya's Export Processing Zones (EPZ) program has been instrumental in attracting foreign and local investment while promoting export-oriented economic activities. Among the various categories of EPZ enterprises, Service Enterprises play a crucial role in supporting manufacturing operations and facilitating international trade. Understanding the licensing requirements and procedures is essential for businesses seeking to establish EPZ service operations in Kenya.
Understanding EPZ Service Enterprises
EPZ Service Enterprises are companies that provide specialized services to EPZ manufacturing enterprises or offer services for export. These services include data processing, information technology services, call centers, business process outsourcing, consultancy services, accounting, legal services, and other professional services. The service enterprise model allows Kenya to participate in the global services economy while enjoying the benefits of EPZ status.
The Licensing Authority
The Export Processing Zones Authority (EPZA) serves as the sole regulatory and licensing body for all EPZ enterprises in Kenya. Established under the Export Processing Zones Act (Cap 517), EPZA is responsible for promoting, facilitating, and coordinating the development and management of EPZ programs throughout the country. The Authority operates under the Ministry of Industrialization and Enterprise Development and provides a one-stop-shop for investors seeking EPZ licenses.
Core Licensing Requirements
Companies seeking to establish EPZ Service Enterprises must meet several fundamental requirements. First and foremost, the business must be incorporated in Kenya as a limited liability company under the Companies Act. Foreign investors are welcome and can own up to one hundred percent of the enterprise, making Kenya an attractive destination for international service providers.
The minimum investment threshold for service enterprises stands at USD 50,000, which is considerably lower than the requirements for manufacturing enterprises. This lower barrier to entry encourages knowledge-based and service-oriented businesses to participate in the EPZ program. The investment must be verifiable through financial statements and supporting documentation.
A comprehensive business plan is mandatory, detailing the nature of services to be provided, target markets, organizational structure, employment projections, and financial forecasts for at least three years. The business plan should clearly demonstrate how the enterprise will contribute to export earnings or support EPZ manufacturing operations.
Documentation and Compliance
Applicants must submit various documents including a certificate of incorporation, memorandum and articles of association, tax compliance certificates from the Kenya Revenue Authority, and valid business permits. Directors and shareholders must provide identification documents and details of their professional backgrounds.
Environmental compliance is increasingly important. Depending on the nature of services, companies may need to conduct environmental impact assessments and obtain approval from the National Environment Management Authority (NEMA). Service enterprises using significant technological infrastructure must demonstrate adherence to environmental and safety standards.
Operational Requirements
EPZ Service Enterprises must operate from approved locations, either within designated EPZ zones or from approved premises outside the zones, provided they meet EPZA's standards. The premises must have adequate infrastructure including reliable internet connectivity, power backup systems, and appropriate office facilities.
Employment creation is a key consideration. While there's no strict minimum employee requirement for service enterprises, the business plan should demonstrate reasonable job creation potential. Companies must comply with Kenyan labor laws and provide appropriate working conditions.
Benefits of EPZ Service License
Licensed EPZ Service Enterprises enjoy numerous incentives including a ten-year corporate tax holiday followed by a reduced corporate tax rate of twenty-five percent, exemption from customs duties on imported equipment and materials, withholding tax exemptions, and simplified customs procedures. These benefits significantly improve the competitiveness of service operations.
Application Process
The application process begins with submission of completed forms along with required documents to EPZA. The Authority conducts due diligence, site visits, and evaluation of the business plan. Processing typically takes between thirty to sixty days, depending on the completeness of documentation and complexity of the proposed operations.
Obtaining an EPZ Service Enterprise License in Kenya offers businesses an opportunity to participate in export-oriented services while benefiting from attractive fiscal incentives. The Export Processing Zones Authority provides comprehensive support throughout the licensing process, making Kenya an increasingly competitive destination for service enterprises. Prospective investors should ensure they meet all requirements and engage proactively with EPZA to facilitate smooth license acquisition and business establishment.
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