How to Register a Company in Kenya in 2024

Registering a company in Kenya has become more streamlined thanks to the introduction of digital platforms by the Kenyan government. Here’s a step-by-step guide to help you set up your business legally and efficiently.

1. Choose a Company Name

• Research & Reserve Your Name: Start by selecting a unique name for your company. Avoid names similar to existing companies.
• Check Name Availability: Use the eCitizen platform to check if your desired name is available.
• Reserve Your Company Name: Once you find an available name, you can reserve it on eCitizen for KES 150.

2. Set Up an eCitizen Account

• Register on eCitizen: Create an eCitizen account at www.ecitizen.go.ke.
• Select Business Registration: After logging in, go to the Business Registration Service (BRS) section to access company registration services.

3. Choose Your Company Structure

The type of business structure determines factors like tax obligations and management requirements. Options include:

• Private Limited Company: A common choice for small and medium enterprises.
• Public Limited Company: Typically for larger companies and allows for public shareholding.
• Sole Proprietorship: A simpler option for small businesses or single-owner ventures.
• Partnership: Suitable for two or more people working together in business.

Most people in Kenya register a Private Limited Company, as it’s ideal for startups and SMEs.

4. Prepare Required Documents

• Identification: Scanned copies of national ID cards or passports for Kenyan directors and foreign directors.
• KRA PINs: All directors must have a Kenya Revenue Authority (KRA) PIN.
• Passport Photos: Digital passport photos for each director.
• Residential Address: Proof of address and contact details for each director.

5. File Your Application on eCitizen

• Access the Company Registration Section: On eCitizen, under the BRS tab, select the “Business Registration” option.
• Fill Out the Application Form (CR1): Include details about the company, such as the business name, location, and objectives.
• Additional Forms:
  • CR2: Memorandum of Nominee Shareholder, if applicable.
  • CR8: Notice of Residential Address of directors.
  • Memorandum and Articles of Association: Outlines the company structure, objectives, and rules.
• Upload Documents: Attach scanned copies of the required documents.

6. Pay Registration Fees

• Company Registration Fees: Typically ranges from KES 10,500, depending on the type of company and share capital.
• Payment on eCitizen: You can pay via mobile money, debit/credit card, or bank transfer directly through the eCitizen platform.

7. Obtain Your Certificate of Incorporation

• Approval Process: After submitting the application, the BRS reviews it. If everything is in order, you will receive a Certificate of Incorporation within a few days.
• Download Your Certificate: Once approved, you can download the digital Certificate of Incorporation from your eCitizen account.

8. Register for a KRA PIN for the Company

• KRA Portal: After incorporation, register for a KRA PIN for your company on the Kenya Revenue Authority website (www.kra.go.ke).
• Tax Compliance: This KRA PIN is essential for opening a bank account, filing taxes, and securing business contracts.

9. Open a Bank Account

With your Certificate of Incorporation, KRA PIN, and company documents, you can open a business bank account. Most banks in Kenya require:

• Certificate of Incorporation
• KRA PIN certificate
• Identification documents of the directors

10. Apply for Necessary Business Permits

• Depending on your business, you may need specific licenses. Common licenses include:
  • County Trade License: Issued by the county government where your business operates.
  • Special Permits: Required for businesses in industries like health, transport, or food services.

Final Thoughts

Setting up a company in Kenya is now more accessible than ever, thanks to the eCitizen portal. By following these steps, you’ll be able to start your business legally and avoid potential legal challenges. Good luck on your entrepreneurial journey