Starting a business is an exciting journey, but the registration process can sometimes feel overwhelming.
This guide breaks down the steps to make registering your business in Kenya straightforward and accessible.
By the end, you’ll have everything you need to launch your business legally and confidently.
Why Register Your Business?
Registering your business not only legitimizes it but also provides several benefits, including:
Legal Protection
As a registered entity, your business has legal recognition, protecting your brand and operations.
Access to Funding
Many financial institutions and investors require proof of registration to offer loans or investments.
Credibility
Registration boosts trust among customers, suppliers, and partners.
Compliance with Tax Laws
A registered business can fulfill tax obligations, avoiding potential penalties.
Types of Business Registration in Kenya
In Kenya, you can register several types of businesses. The main options include:
Sole Proprietorship
Suitable for individuals who want full control of their business.
Partnership
Ideal for businesses with two or more owners sharing profits, liabilities, and responsibilities.
Limited Liability Company (LLC)
A separate legal entity from its owners, providing limited liability protection.
Public Limited Company (PLC)
Often used by larger corporations with multiple shareholders.
Non-Governmental Organization (NGO)
For non-profit organizations with social, environmental, or charitable goals.
Choosing the correct type of business structure depends on your goals, the level of liability you’re willing to take, and your funding needs.
Step 1: Create an eCitizen Account
The Kenyan government has streamlined business registration through the eCitizen portal. This portal allows you to handle various business processes online.
Go to eCitizen.
Search for the ‘e-citizen portal’ and click on the link in SERPs ending with ‘go.ke’
Create an Account
If you’re new to the platform, select “Create an Account” and choose either “Personal” (for individuals) or “Business” (if you’re representing a company).
Complete Registration
Fill in the required personal information, including your ID number, phone number, and email address.
Login to Your eCitizen Account
Once registered, log in to access the portal’s services.
Step 2: Conduct a Business Name Search
Before registering, you need to ensure your business name is unique and not already in use by another entity.
Select the Business Registration Service
Within eCitizen, choose the Business Registration Service (BRS).
Search Business Name
Use the name search tool to see if your desired business name is available.
Reserve the Business Name
If the name is available, reserve it for a small fee (typically around Ksh 150).
This reservation lasts for 30 days, allowing you to proceed with registration.
Step 3: Complete the Business Registration Form
Once your business name is approved, you’ll move on to filling out the business registration form:
Choose the Type of Business Entity
Select whether you’re registering a sole proprietorship, partnership, or limited company.
Fill in Business Details
Provide details, including:
- The registered office physical address.
- Postal address.
- Owners’ and shareholders’ names, identification, and contact details.
Upload Necessary Documents
You may need to upload the following documents:
- Identification documents (National ID or passport) for all owners or directors.
- Passport photos of owners or directors.
- Memorandum and Articles of Association for limited liability companies.
Tip: Double-check that all information is accurate, as errors can delay registration.
Step 4: Pay the Registration Fee
Once you’ve completed the registration form, eCitizen will prompt you to pay the registration fee.
Review Fees
The fees depend on your business type, generally ranging from Ksh 950 for sole proprietorships to several thousand for limited liability companies.
Payment Options
Pay the fees through mobile money (M-Pesa), credit/debit card, or bank transfer.
Confirm Payment
After payment, eCitizen will confirm your transaction and allow you to proceed to the next step.
Step 5: Obtain Your Business Registration Certificate
After payment and form submission, the registration process takes a few business days. The eCitizen portal will notify you once your registration is complete.
Download the Certificate
Once approved, download your Certificate of Registration from eCitizen. This certificate officially recognizes your business as a legal entity in Kenya.
Print and Safeguard Your Certificate
Keep both a digital and printed copy of your certificate for official purposes and to display at your business premises if needed.
Step 6: Register for a KRA PIN for Business (If Applicable)
A Kenya Revenue Authority (KRA) PIN is necessary for tax purposes.
Here’s how to register for one:
Go to the KRA website
Log in to your iTax Account: If you’re new to iTax, register for a personal KRA PIN first on iTax.
Register for a Business PIN
With your personal PIN, log in and select “New PIN Registration” for a business PIN.
Provide Business Details
Fill out the application with your business information, including your Certificate of Registration details.
Submit Application
After submission, KRA will issue a Business PIN, which you’ll use for tax compliance.
Note: A KRA PIN is required for processes like opening a business bank account, applying for government tenders, and filing tax returns.
Additional Tips and Considerations
File Annual Returns
To keep your business active, you’ll need to file annual returns with the Registrar of Companies.
Obtain Necessary Licenses
Depending on your business type, you may need additional licenses or permits from local county offices.
Open a Business Bank Account
Once registered, open a bank account in your business’s name to keep finances separate and build credit.
FAQs: Business Registration in Kenya
How much does it cost to register a business in Kenya?
The fees vary depending on the business type. Sole proprietorships are generally around Ksh 950, while limited liability companies cost more due to additional documentation.
How long does it take to register a business?
The registration process typically takes about 1 to 2 weeks, though this can vary depending on demand and accuracy of submitted documents.
Can I register a business without visiting a physical office?
Yes, the entire process can be completed online through the eCitizen portal, including document uploads and payment.
Do I need a lawyer to register a limited liability company?
While it’s possible to register without legal help, consulting a lawyer can be useful to ensure your Memorandum and Articles of Association meet all legal requirements.
Conclusion: Start Your Business with Confidence
Registering a business in Kenya is a crucial first step toward establishing a credible and legally recognized entity.
By following these steps, you’ll navigate the registration process with ease and be well-prepared to launch your venture.
Once registered, Surfstop can assist with branding and digital solutions to help your business grow and make a positive impact
Need Help?
Do you need to register your business and obtain the necessary licenses? Feel free to reach out to Surfstop. We will help you to register your business, ensure full compliance with county-level licenses and permits, and also file your taxes.