How to Register a Business Name Online in Kenya

Are You Planning to Start and Operate a Business in Kenya?

Well, one of the steps to start a business in Kenya is to register a business name. And the good thing is, you can register your business name online.

If you have no idea how to register your business name online, don’t worry.

In this article, I will outline 8 important steps to register a business name in Kenya.

Let’s get started.

Why Should You Register a Business Name in Kenya?

Registering your business name in Kenya is a crucial step for any business owner.

It offers numerous benefits that an unregistered business simply cannot enjoy.

Here are the key advantages:

1. Credibility

A registered business commands more credibility and trust. Customers and suppliers are more comfortable doing business with you because they believe you are reliable and accountable. This trust can lead to more contracts and repeat business.

Additionally, having a business bank account enhances your professional image, making it easier for you to secure tenders and other business opportunities.

2. Bank Account

With a registered business name, you can open a business bank account. This makes it convenient for you to receive payments from clients and suppliers, manage your financial transactions efficiently, and simplify your bookkeeping and tax payments.

A business bank account also helps in maintaining clear financial records, which is essential for business growth and compliance.

3. Great Borrowing Power

Registering your business name significantly boosts your borrowing power. Financial institutions are more likely to extend credit to registered businesses, offering you better loan rates and terms.

This is particularly beneficial for small and medium-sized enterprises (SMEs) looking to expand. Registered businesses are seen as more stable and trustworthy, making it easier to secure funding.

4. Legal Protection

As a registered business owner, you enjoy legal protection. This means that in case your business faces financial difficulties, your personal assets are protected from business liabilities.

This separation of personal and business finances is crucial for managing risks and ensuring your personal financial security.

5. M-Pesa Business Till Number

Registering a business name allows you to apply for an M-Pesa business till number. This feature enables your customers to make quick and easy payments directly to your business.

You can also receive payments from other businesses, enhancing your cash flow management. The M-Pesa till number allows for instant withdrawals, giving you access to your funds anytime and facilitating smooth transactions with your suppliers.

8 Steps to Register a Business Name Online in Kenya

In this section, we’ll look at 8 steps to help you easily register your business name in Kenya.

1. Choose a Unique Business Name

The first step in registering your business name is choosing a unique and memorable name. Your business name should be:

Simple
Easy to pronounce
Align with your brand or the products/services you offer.

A unique name not only helps in creating a distinct identity but also avoids confusion with competitors.

Ensure that the name you select is not already in use by another business, especially if you plan to establish an online presence.

You can check the availability of your desired name using online business name search tools or the eCitizen portal.

Avoid using acronyms as they can be confusing to potential customers. Additionally, choose a name that can scale with your business as it grows.

For instance, if you start by selling clothes, your business name should be flexible enough to include shoes or accessories in the future.

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2. Log in to the eCitizen Portal

Registering your business name online requires using the eCitizen portal.

Here’s how to go about it:

Visit the eCitizen portal.
If you don’t have an account, click on the “Create Account” button.
Fill in your full name as it appears on your ID, your ID number, email address, and phone number.
Activate your account by verifying the link sent to your email address.
Create a secure password for your eCitizen account.
Log in and Access Business Registration:
Log in to your eCitizen account.
On the dashboard, select the “Business Registration Service” tab.

Click on the “HERE” link to proceed to the Company Registry Services.

Register Your Business Name:

Click “Make Application” or “Apply” under the Business Registration Option.

Enter your proposed business name, address, and ownership information.

Review your application to ensure all details are accurate.

What is the cost of registering a business name in Kenya for 2024?

The filing fee of KES 950. Payments can be made directly on the website or through M-Pesa.

Document Submission:

Prepare the necessary documents for upload: signed pre-registration documents, copies of national IDs, KRA PIN certificates, and passport photos of the business owners.
Upload the scanned copies to the website for processing.
Submit the original copies if required. You will receive feedback within 1-2 working days.

3. Download Your Certificate of Incorporation

After your business registration is complete, you will be notified via email. Follow these steps:

Upon successful registration, you will receive a notification via email. Log in to your eCitizen account to check the status of your registration.

Once approved, download your certificate of incorporation from the eCitizen portal.

This certificate serves as proof that your business is officially registered and will be essential for official business activities such as signing contracts, opening a business bank account, applying for funding, and tender applications.

4. Protect Your Business Name

Securing your business name involves several important steps to ensure it remains exclusively yours.

Buy a Domain Name

Begin by purchasing a domain name, which will serve as your online address. Choose a short, memorable name that is easy to spell and falls within 6-14 characters. Avoid using numbers and hyphens to maintain simplicity and ease of use.

Purchase your domain from a reliable registrar such as Namecheap or Bluehost to guarantee its exclusivity.

Before buying, use a domain availability checker tool to verify if your desired name is available. If your first choice isn’t available, consider alternative names or different extensions like .net or .org.

Create Social Media Accounts

Next, set up business profiles on relevant social media platforms such as Facebook, Instagram, and Twitter using your business name.

These accounts will help you engage with customers, run promotions, and prevent others from using your business name on these platforms.

Ensure you use a business email address for these accounts to keep notifications organized and separate from your personal email. This not only streamlines communication but also presents a professional image.

Create a Google My Business Profile

Lastly, create a Google My Business profile to increase your visibility on Google Maps, Google Search, and Google Shopping.

Enter your business name, location, and contact information, and verify your business. Customize your profile with business hours, photos, and regular updates.

This profile significantly enhances your local SEO, making it easier for customers to find you and boosting your business’s online presence.

5. Open a Business Bank Account

Separating your personal and business finances is essential for managing your business efficiently.

Visit your preferred bank and inquire about the requirements for opening a business bank account.

Typically, you will need your national ID, certificate of incorporation, KRA PIN, and an application form.

A business bank account makes bookkeeping easier, establishes credit history, and portrays professionalism to clients and suppliers. It also helps you access business loans and financial services tailored for businesses.

6. Apply for an M-PESA Business Till

Safaricom’s Lipa Na Mpesa service allows businesses to receive payments efficiently. To apply for an M-PESA business till, gather the required documents, including a completed application form, business registration documents, KRA PIN (optional), and identification documents (e.g., national ID).

You can apply through your bank, directly with Safaricom, or through Kopokopo. Banks offer free till number applications linked to your business account, while Safaricom allows you to apply online or at their stores.

Once approved, activate the till using the nominated number by dialing *234# and following the prompts.

7. Set Up an Accounting System

An efficient accounting system is essential for tracking your business’s financial health.

Choose an accounting tool like Zoho Books to manage invoices, expenses, and financial reports.

Consult a professional accountant to set up a system tailored to your business needs. A good accounting system helps you plan, spot issues, and make informed decisions, ensuring your business’s financial stability.

8. Branding and Marketing

Promote your business by creating a strong brand and effective marketing strategy. Develop a marketing plan targeting your ideal customers and brand your business to differentiate yourself from competitors.

Your brand includes your business name, logo, colors, and overall identity, and it builds trust with your customers.

Use various marketing channels like social media, email marketing, and online ads to reach your audience and highlight the value and benefits of your products or services.

Cost of Registering a Business Name in Kenya

The cost varies based on the type of business:

Business Name: KES 950
Private Limited Company: KES 10,650
Public Limited Company: KES 10,650
Unlimited Companies: KES 20,050
Company Limited by Guarantee: KES 10,000
Limited Liability Partnership: KES 25,000

Final Thoughts

That’s it.

Follow the above steps next time you need to register your business name and ensure your business is legally recognized and protected.

Good luck!

How to Register a Business Name Online in Kenya