How to Register a Business in Kenya

How much does a business license cost in Kenya? Is there any detailed information needed to register a business in Kenya? This segment will highlight factors to consider w

How much does a business license cost in Kenya? Is there any detailed information needed to register a business in Kenya? This segment will highlight factors to consider when registering a business in Kenya and why it’s vital to do it.

It's essential to register your business, especially in Kenya.  However, if you don’t do it, you’ll face arrest by state officials and prosecutions in a court of law. So, you won’t be issued a business license unless it's duly registered. In that case, your business will not be allowed to operate in any county and even be closed for failure to adhere to the rules.

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Why do you need to register your small business in Kenya?

Security and Safety:  Once you register your business in Kenya, your business finances will be separated from your personal account.  As a result, it attracts many investors, insurance and partners.

Identity: Registration of business results in a new identity. A business can’t share an identity with another one.

Continuity: Either way, the owner of the business dies, and the business will continue thriving. Another partner or next of kin can easily take over and continue with the business’s operation.

Trust:  Suppliers, and clients often establish trust with a business registered in Kenya. After registration, your business will be declared legal.  It will also attract more investors who always invest heavily.

Growth:  It's easy to take your business to the next level once you've registered it.  Registration also allows you to have a bank account for your business as well as accessibility to credit unions.  It also allows you to separate your income from your own business finances.

Kenya's government allows its citizens and foreigners to register their businesses successfully. That means a refugee can register a business in Kenya as well as engage income generating activities.

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What are the 4 types of businesses in Kenya?

·         Partnership: A partnership is a type of business managed by two or more individuals who have a common interest.

·         Sole proprietorship: A sole proprietorship is a solely owned business. So, as an owner, you’re responsible for any decisions such as profit and losses.

·         Company (Limited liability)  

Limited Liability Partnership (LLP): These are unique business entities. Its main goal is to protect each partner against any negligence of other individuals in the business.

Public company: A company that sells its shares to the public. These companies raise funds via the sale of shares to the public. Buyers are major shareholders and decision-makers. They can also share the company's profit.

Private company: Always, run by individuals who launched it.  Unfortunately, public members aren’t allowed to buy shares of the company.  Its funds are sourced privately by owners.

How to register a sole proprietorship business in Kenya?

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Step 1: Sign up 

Go to the Kenyan government E-citizen services portal and then register for an account. But if you already have one, login and visit the business section and then click on the “Business Registration Service”.

Step2: Business name registration  

Next, click on the “Make Application” icon.  Then, apply for business name registration. Ensure you indicate Application documents, the Preferred name of your business, Ownership information, the Nature of the business, and the Registered office address.

How long does it take to register a business name in Kenya? A business name is the identity of your business. The process usually takes 2 working days and costs nearly KES150.  You can pay through debit cards or mobile money.

Once done, your business name may be reserved for a month or more.

In this step, ensure you comply with these:

 Preferred Name

Ensure you offer at least 3 names in order of PRIORITY.  Your first name will be automatically assigned to your business.

Nature of business

·         Postal code

·         Address

·         Capacity (Applying as a Lawyer or Proprietor)

·         Applicant’s details (Including Passport or Identification document)

Registered office address: Share your business location, below:

·         Postal code

·         Road

·         Primary address

·         Company email address

·         Mobile number

·         Name of the house and building 

·         Postal address

 Ownership information

Add proprietor: provide names of individuals who will run your business.  Use the "Add Proprietor” icon for every partner and then share details of each, like PIN certificate number, or Kenya national identification card.

How do I register a business in Kenya as a foreigner? As a foreigner, click on the "Foreign Resident “icon and then add your details for verification such as your Full Name, Date of Birth, and Gender. Also, provide a place of residence information like District, County, and Locality. Attach your profile photo and then click “Submit”.

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Step 3: Submission

Now that you’ve completed the above steps, pay for the registration fees of nearly KES 950 on the site.  Typically, the process takes between 3 to 5 working days to mature. However, the period may vary based on the number of applications.

Step 4: Certificate

The Kenyan government always issues a certificate to all registered businesses. Just download your business certificate on the eCitizen platform once done with the application. 

Next, print it out and then use your PIN to get the bank account you’ll be using in case you don’t have one.   

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