Every company in Kenya comes into operations after being incorporated under the Companies Act 2015.
However, a shell company is created for the purpose of entering into some illegal business operations with an objective of evading taxes. Shell companies also engage in money laundering activities.
Shell companies may or may not engage in any business transactions. However, they create fake financial transactions to validate their existence.
There are consequences of forming a shell company. If found guilty of conducting unlawful activities the company directors are liable for prosecution and the company name will be struck from the register.
Read more on shell companies HERE.
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