Business Registration in Kenya | Registering a Business in Kenya
If you’re looking to start a business in Kenya, you need to register your business name in Kenya with the registrar of business names Kenya. Having a registered businesses in Kenya is a crucial step that will enable you to operate legally and it make it easy for you to do business from both government and the private sector. In this guide, we will walk you through the Business Name Registration Process in Kenya, Types of Businesses in Kenya, Business Registration Requirements in Kenya and the Advantages of Business name Registration in Kenya.
How to register a business name in Kenya | Business Name Registration in Kenya |Business Registration Process in Kenya | Online Business Registration in Kenya.
The process for business registration in Kenya is very simple and you only need to follow the steps below on the business registration system.
Step 1. Enter Three Unique Business Names: The first step in the business name registration process in Kenya is to add at a least 3 unique business names in the order of priority and the first available name will be assigned to you if at all the name is not among the list of registered businesses in Kenya.
Step 2. Enter the Nature of your Business: Here you will choose the relevant business list from the drop-down menu. Choose others incase you do not find a relevant business activity and then write the exact activity in the description.
Step 3. Enter details of the Registered Address: Here you will enter the County, District, Locality, Street, Postal address & code, Mobile number and business email address
Step 4. Enter Ownership Information: The owner’s information to be added here include ID Number / Passport number, Full Name, Date of Birth, Phone number, Email Address, postal Address & Code, Occupation, Passport size photograph and residential address
Step 5.Sign the BN-2 Form and Make Payment: Here you will download the business name registration form in Kenya, confirm that it is duly completed, append your signature, upload the form and then make payment to complete the Process.
The Approval process takes between 3 and 5 working days and when approved, you will receive a business registration certificate Kenya bearing the business registration number Kenya. This certificate serves as proof that your business is registered and authorized to operate in Kenya
NB After the process for Business registration in Kenya, you might be required to undertake an Industry specific registration. Feel free to reach out to us for advise on registration of a business name in Kenya.
Business Registration Services Kenya
Types of Businesses in Kenya
There are several types of businesses in Kenya. They include:
- Sole Proprietorship: This is a business owned and run by one person. It is the simplest and most common type of business registration in Kenya. The paperwork for Registering a sole proprietorship in Kenya is simple and straightforward and hence making the process fast.
- Partnership: This is a business owned and run by two or more people. Partners share profits and losses according to their shareholding. Here you also have the option of registering a limited Liability Partnership.
- Limited Liability Company (LLC): This is a business structure that provides limited liability protection to its owners. The company is a separate legal entity from its owners, and the liability of the owners is limited to the amount of their investment.
- Public Limited Company (PLC): This is a type of limited liability company that is listed on a stock exchange. The shares of a PLC can be bought and sold by the public.
- Non-Governmental Organizations (NGOs): These are organizations that are established for charitable or non-profit purposes. NGOs are registered under the Non-Governmental Organizations Coordination Act.
- Co-operative Society: This is a business owned and run by a group of people who share a common interest. Members of a cooperative society share profits and losses according to their shareholding.
- Branch Office: This is a business that is registered as a branch of a foreign company. The branch office operates under the laws of Kenya and is required to comply with local regulations.
Business Registration Requirements in Kenya | Requirements for business registration in Kenya
To register your business in Kenya, you need to meet the requirements below:
- At least 3 proposed Business Names
- Passport Size Photographs of the Proprietors
- Proposed Business Location
- Physical Address, Phone number, Email Address of the Proprietors
- National ID / Travel Passport copies of the proprietors
- Description of the business activities
Advantages of Registering a Business Name in Kenya
1. Business registration provides legal recognition to your business – It gives you the right to operate without any legal hindrance. This recognition also enhances the credibility of your business, making it easier to obtain financing from banks and other financial institutions. Additionally, business registration is necessary if you want to apply for government tenders or contracts.
2. Business registration helps to protect your brand identity and intellectual property rights – This means that no one else can use your business name, logo, or other intellectual property without your permission. Furthermore, registration enables you to sue anyone who infringes on your rights, which is not possible if your business is not registered.
3. Registering your business makes it easier to comply with the various legal and regulatory requirements imposed on businesses in Kenya – This includes obtaining licenses and permits required to operate your business legally.
Frequently Asked Questions (FAQs)
How long does business registration in Kenya take? | How many days does it take to register a business in Kenya?
The time it takes to register a business in Kenya varies depending on various factors, including the type of business, the location, and the registration process you choose. Normally, establishing a business in Kenya can take anywhere between 3 to 5 days.
How much does it cost to register a business in Kenya? | Cost of business registration in Kenya | Business registration cost in Kenya
The cost of business registration in Kenya varies depending on the type of business structure you choose to register.
Here are the statutory costs for the various business structures:
- Registration of Business name – KES 950 ($95)
- Private Limited Company – KES 10650 ($107)
- Public Limited Company KES – 10650 ($107)
- Unlimited Companies – KES 20050 ($205)
- Company Limited by guarantee – KES 10000 ($100)
- Limited Liability Partnership- KES 25000 ($250)
The above costs only cover the statutory fees, Contact us today for more details on our professional fees.
How do I register my business for the first time?
To register your business in Kenya for the first time, you must choose a unique name and conduct a name search. Then, reserve the name for 30 days before registering your company on the eCitizen platform by submitting the required information and paying the registration fees. You may need to obtain additional permits and licenses and a business permit from the county government where your business is located. Finally, register for taxes with the Kenya Revenue Authority (KRA) and file your taxes regularly.
How much do I need to earn before registering a business in Kenya?
There is no specific minimum income need to start a business, but it is critical to examine the costs of starting a business and ensuring it is financially viable in the long run. Doing market research and engaging with a financial expert or accountant will help you assess your company’s costs and income potential. It is also critical to follow tax laws and regulations. Consult Afrisetup if you are unsure.
Can a business run without registration in Kenya?
No, it is not permitted in Kenya to operate a business without registering it. All businesses in Kenya must be registered with the Registrar of Companies via the Business Registration Service (BRS). Registering your business gives it legal status and protection, as well as the ability to open a business bank account, access loans and credit facilities, and apply for licenses and permits.
What happens if you don’t register a business in Kenya?
If you fail to register your business in Kenya, you may suffer legal and financial implications. Kenyan law requires you to register your business with the Registrar of Companies via the Business Registration Service (BRS). Running an unregistered business is prohibited and may result in fines, business closure, and asset confiscation.
What is the difference between business registration and company registration?
Business registration and company registration are two different processes with varying legal requirements and implications.
Business registration involves registering a business with the government to obtain legal recognition and protection. On the other hand, company registration is a specific type of business registration that involves registering a company as a legal entity.
The process of company registration involves appointing directors and shareholders, drafting the company’s constitution, and completing the necessary forms. Companies are required to file annual returns, maintain accurate financial records, and comply with tax laws and regulations.
What is a business registration number in Kenya?
A Business Registration Number (BRN) is a unique identifying number provided to registered businesses by the Kenyan government. It is used for various purposes such as taxation, licensing, and regulation. In Kenya, BRNs are issued by the Business Registration Service (BRS). Business Owners must register with the BRS in order to get a BRN, which they will use for government-related operations.
Conclusion on Business Registration Services in Kenya
Business registration in Kenya is a critical step towards achieving your entrepreneurial goals. With the right approach and support, you can navigate the process successfully and enjoy the benefits of owning a legal and recognized business entity in Kenya. Contact us for assistance!