Registering A Business In Kenya

Registering a business in Kenya can feel daunting, especially when it comes to navigating the registration processes.

As someone who’s gone through it, I can tell you that registering a company in Kenya is manageable with the right guidance.

This guide breaks down the steps, types of business entities, necessary documents, costs, and more, helping you focus on your entrepreneurial journey.

See also our PAYE calculator and loan payment calculator.

Understanding Business Entities

Choosing the right business structure is crucial. Here’s a quick rundown of the most common types:

My Personal Tip:

When deciding on your business structure, consider how much risk you’re willing to take and what fits best with your business goals. For many entrepreneurs, an LLC is a solid choice due to its liability protection.

Steps for Company Registration: Registering A Business in Kenya

Let’s dive into the registration process. Here are the steps I followed:

Step 1: Create an eCitizen Account

I started by visiting the eCitizen portal to create an account. This process was quick and easy—just a few minutes.

Step 2: Choose Your Business Type

Next, I selected the type of company I wanted to register—an LLC, in my case. The choices include private limited companies, public companies, or branches of foreign companies.

Step 3: Name Reservation; Choosing A Business Name.

You’ll need at least three unique names for your business. For this, you can follow the guidelines form the BRS website (government site). The guidelines to business names is as stated in business registration service.

I did a quick preliminary search on eCitizen to check their availability. It was simple and ensured I wouldn’t face any conflicts later.

Step 4: Prepare Required Documents

This step involved gathering several documents. Here’s what I collected:

Where to Get the Required Documents

1. Online Resources:
   • eCitizen Portal: The primary platform for business registration in Kenya. You can access various forms including CR1 and others directly through the eCitizen portal. Here’s how:
     • Visit the eCitizen website.
     • Create an account or log in.
     • Navigate to the business registration section to find and download the necessary forms.
2. Direct Downloads:
   • You can download specific forms directly from various sources:
     • Form CR1: This is the application form for company registration. You can find it here 2.
     • Additional forms like CR2 and CR8 can also be found through similar links or by searching on the eCitizen platform.
3. Consultation Services:
   • Professional Firms: Consider consulting with firms like Junyan and Associates, which provide guidance on filling out these forms and ensuring compliance with registration requirements. They can assist you in preparing and filing your documents correctly. You can contact them at +254702767266 for more information 1.
4. Physical Copies:
   • If you prefer obtaining physical copies of the forms, you can visit the Registrar of Companies office or other designated government offices where these forms are available.

Key Documents Required for Company Registration

Step 5: Complete Registration Forms

I filled out the necessary forms on the eCitizen portal, detailing my business activities, share capital, and information about directors.

Step 6: Submit Application

After filling everything out, I uploaded all required documents on eCitizen. The registration fee was around USD 100, though this can vary based on share capital. Processing typically takes 5 to 7 working days.

Step 7: Obtain Certificate of Incorporation

Once my application was approved, I received my Certificate of Incorporation. This document is crucial as it confirms that my company is legally registered and includes my registration number.

Post-Registration Requirements

Getting your Certificate of Incorporation is just the beginning. Here are the steps I took afterward:

1. KRA – For you taxation and annual tax returns. KRA website

Special Considerations for Foreigners

If you’re a foreign investor, there are additional requirements to keep in mind:

Costs Involved

Understanding the costs associated with registration is crucial. Here’s a breakdown based on my experience:

Final Thoughts

Registering a company in Kenya might seem overwhelming at first, but breaking it down into these steps made the process much more manageable for me. Remember to do your research and consider seeking professional advice if needed. Good luck on your entrepreneurial journey!

Frequently Asked Questions (FAQ) About Company Registration in Kenya

1. What do I need to register a limited company in Kenya?

To register a limited company in Kenya, you must provide the following information and documents:

• Three Proposed Company Names: You must submit at least three unique names for your company.
• Directors’ Information: Full names, occupations, and postal addresses of all directors.
• Share Allocation: The amount of shares allocated to each director.
• Company Address: The physical address of the company’s offices.
• Identification Documents: Each director needs to provide a copy of their national ID or passport, a KRA PIN certificate, and a clear passport photo.

2. How long will it take to get my certificate of incorporation?

After submitting the required documents and payment, the process typically takes about 7 working days:

1. 1 day for name search.
2. 1 day to draft the memorandum and articles of association.
3. 5 working days for the actual registration.

3. How do I make the necessary payment for registration?

You can make the payment through two methods:

• In-Person Payment: Visit the registration office in Nairobi to pay and receive an official receipt.
• Mobile Payment (M-PESA): Use the M-PESA service by selecting “Lipa Na M-PESA,” entering the Till Number (e.g., 177213), and following the prompts.

4. How will I receive my incorporation certificate?

Once your certificate is printed, it will be sent to your specified location using a fast delivery method at no extra cost.

5. How many directors are required to form a private limited company?

A minimum of two directors is required to register a private limited company in Kenya.

6. What are the costs involved in registering a company in Kenya?

The statutory cost for registering a company in Kenya starts at approximately USD 100, but this can vary based on factors such as the type of business and nominal share capital. Additional professional fees may apply if you engage consultants or agents.

7. What are the steps involved in registering a company online?

Here’s a brief overview of the steps:

1. Create an eCitizen Account: Sign up on the eCitizen portal.
2. Select Business Registration Service: Navigate to this section on eCitizen.
3. Choose Business Type: Decide on the type of business entity you want to register.
4. Name Reservation: Submit at least three proposed names for your company.
5. Fill Out Registration Forms: Complete forms detailing your business activities, share capital, and directors’ information.
6. Submit Application and Payment: Upload all required documents and pay the registration fee.
7. Receive Certificate of Incorporation: Download your certificate once approved.

8. Are there special requirements for foreign companies registering in Kenya?

Yes, foreign companies must provide additional documentation, including:

• A notarized copy of the parent company’s certificate of incorporation.
• Copies of travel passports for directors and local representatives.
• Details regarding local representation if registering as a branch.

9. What are the ongoing compliance requirements after registration?

After registering your company, you will need to:

• Register with the Kenya Revenue Authority (KRA) for tax purposes.
• Open a corporate bank account.
• Obtain necessary business permits or licenses based on your business activities.
• Register for social security contributions (NSSF) and health insurance (NHIF).

10. Can I hire a consultant to help with registration?

Yes, hiring a professional consultant can simplify the registration process by ensuring compliance with legal requirements and helping navigate any complexities involved in setting up your business.

Before you go…

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