How to Register a Company in Kenya

Starting a new company or business is an exciting venture with potential and possibilities.

However, there are numerous things you have to do before your company is fully operational, and a crucial step in this process is registering your company.

Registering your company is a straightforward process in Kenya, designed to formalize your business operations.

But if you have no idea on the right steps to follow, you might find the process overwhelming.

To help you navigate this important phase, I’ve done thorough research and compiled a set of clear and actionable steps to guide you through the company registration process.

Keep reading to ensure you set up your business successfully in Kenya!

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Easy Steps to Register a Company in Kenya

Registering a company in Kenya can be seamless when you have the right guidance.

Here are practical steps to help you navigate through the easy and essential process of company registration in Kenya.

1. Create an eCitizen Account

eCitizen serves as the online gateway for various official transactions with the Kenyan government. Registration is free and uncomplicated.

To create your account, input your Kenyan ID number (as indicated on government-issued identification), name, and a valid email address.

Initiate the account setup process by visiting https://www.ecitizen.go.ke/index.html and clicking on “Create an account” located in the top-right corner.

To fully set up the account, you have to complete your profile. To complete the profile you must upload a clear passport photo of yourself.

It’s crucial that the photo was taken within the last six months from the date of your company registration.

If you are a foreign citizen residing in Kenya, you can use your Foreigner Certificate number instead of a Kenyan ID.

For Kenyan companies with overseas directors, at least one director must be a Kenyan citizen to access eCitizen and submit requisite forms.

2. Navigate to the Business Registration Service Portal

Upon successful creation of your eCitizen account, navigate to the eCitizen online portal.

Once on the eCitizen home page, you will find three agencies available for login:

The National Safety and Transport Authority
Business Registration Service
Department of Immigration Services

Choose the Business Registration Service from the options provided. This selection will direct you to the dedicated home page for the Business Registration Service.

It’s important to note that access to this page is exclusive to users with an active eCitizen account, and you cannot directly link to the Business Registration Service page without having created an account.

3. Choose a Suitable Business Type

Upon accessing the Business Registration Service, proceed by selecting “Make Application.”

On the subsequent screen, opt for “Business Name Application.” Within this section, you will need to specify the type of business you intend to establish.

Kenya recognizes six primary business entities, each with its distinct structure:

Sole proprietorships
Registered companies (public or private)
Partnership
Limited liability partnership
Branch office of a foreign registered company
Business societies

Choose the business type that aligns with your organizational structure and objectives from the available options.

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4. Enter your Chosen Business Name

In the provided field, input the desired name for your business (e.g., GreenHarbor Eco Venture).

It’s essential to avoid names too similar to those already registered in Kenya, as they may be rejected. Expect a response from the Registration Service within two business days to confirm the acceptability of the chosen name.

Upon approval, the registrar will reserve the name for 30 days, during which you should proceed with the completion of the business registration process.

5. Pay Ksh.150 to Initiate a Name Search

To initiate the business name search, submit the Kes. 150 fee as required by the Kenyan government for this service. Payment can be conveniently made online using a credit card.

Simply input your name and credit card details into the designated text boxes, and proceed to pay the fee to commence the name search.

Please note that the eCitizen site does not send email notifications upon name approval; therefore, it’s advisable to log in daily to your account and verify the status. The Kes. 150 fee is approximately equivalent to $1.50 USD.

6. File the Company Registration Form CR1

Complete the Company Registration Form CR1 by providing essential details such as the company’s name, business office location, and comprehensive information about directors and shareholders, irrespective of their residence, including those living abroad.

Ensure that you scan and attach copies of ID cards and colored passport photos for all directors and shareholders.

In the case of directors residing outside Kenya, include a copy of their government-issued ID from their respective countries.

Obtain a PDF version of Form CR1 for download at: https://kenyabusinessguide.org/downloads/.

After filling out the form, print it and affix the necessary documents before submission.

7. Fill Out the Company’s Directors’ Addresses on Form CR8

Record the residential addresses of the company’s directors on Form CR8. The Kenyan government mandates the inclusion of official residential addresses for all directors, whether residing within or outside Kenya.

Print a copy of Form CR8, input your company’s name and business type, and inscribe each director’s legal names and home addresses (excluding PO boxes).

Conclude the process by signing and dating the form. Access the PDF version of Form CR8 on the Kenya Business Guide website: https://kenyabusinessguide.org/downloads/.

8. Declare your Business’s Nominal Capital Holdings on Form BN6

Declare your company’s nominal capital holdings by completing Form BN6, a requirement set by the Kenya Revenue Authority (KRA) for all new businesses.

Start by entering your business name and your details on the form. In the designated spaces, specify the amount of capital your company holds in Kenyan shillings.

If your business is publicly traded, include information on the division of the company’s capital into shares. Access the PDF version of Form BN6 at: https://kenyabusinessguide.org/downloads/.

Ensure accurate and comprehensive completion of the form to meet the capital declaration obligations outlined by the KRA.

9. Pay the Stamp Duty Based on the Amount of Capital Your Company Has

Fulfill the Stamp Duty obligation by making a payment corresponding to your company’s capital amount.

The Kenya Revenue Authority (KRA) oversees stamp duty collection and will contact you after your business name registration to provide payment instructions.

During this process, you must furnish the Kenyan ID numbers of all company employees and shareholders.

The payment amount is calculated at 1% of your company’s nominal capital, with a minimum charge of Kes. 2,140 based on a nominal capital minimum of Kes. 2,000.

Additionally, a fee of Kes. 100 per document (e.g., each shareholder’s personal information) subject to KRA approval is applicable as part of the Stamp Duty requirements.

Completing the submission of necessary information and payment for Stamp Duty typically takes between 5 to 10 days to finalize.

10. Draft a Memorandum and Article of Association

Prepare a comprehensive Memorandum and Articles of Association to delineate your business objectives, a mandatory requirement by the Kenyan government for new businesses.

These two documents, drafted before final registration, elucidate your company’s goals, rules, subscribers, and authorized share capital.

Typically crafted by an advocate, an administrative assistant, or the company’s director, the Memorandum of Association specifies essential details such as the business name, location, objectives, share values, and the number of shareholders.

On the other hand, the Articles of Association encompass the company’s rules and regulations, including member liabilities, director powers, member rights, and procedures for director appointment and removal.

For reference, a sample Articles of Association can be accessed online at: https://ag.ecitizen.go.ke/index.php?id=9. Ensure meticulous preparation of these documents to comply with government regulations and facilitate a smooth registration process.

11. File the Completed Forms and Pay the Registration Fee at a Kenyan Registrar’s Office

Submit the finalized CR1, CR8, and BN6 forms, along with the completed Memorandum and Articles of Association, along with all necessary scanned and copied documents, by enclosing them in a sizable envelope.

Dispatch this envelope by mail to the Registrar’s office or personally deliver it to the Business Registration department if residing in Nairobi.

To complete the company registration process, remit the mandatory fee of Kes. 10,650. Payment can be made through the eCitizen portal or by check or credit card at the Registrar’s office.

Ensure that the forms and payment reach:

The Chief Registrar of The Judiciary

Supreme Court Building

P.O. Box 30041 (00100)

Nairobi, Kenya

This step finalizes the registration process, contributing to establishing your company by regulatory requirements.

12. Download your Business Certificate From the eCitizen Platform

Retrieve your business certificate from the eCitizen platform after the Kenyan government completes the approximately one-week review process of the forms you submitted.

During this time, they scan, copy, and register your business with the Kenya Revenue Authority (KRA).

Upon successful approval and official registration of your business, the business certificate will be available for download on your eCitizen portal.

The duration for this process may vary, and you may need to anticipate a waiting period of around 21 days.

Once in possession of the business certificate, you are poised to commence your business operations in Kenya.

6 Vital Things to Do After Registering a Business in Kenya

After completing the registration process, certain crucial steps await your attention to ensure compliance and smooth operations.

Here are key post-registration considerations for your company in Kenya.

1. Company Tax Registration

Mandatory for all companies in Kenya, obtaining a tax registration certificate facilitates tax payments and is often a prerequisite when applying for a bank account and other business licenses.

2. Open a Bank Account

Open a business bank account with any of the 39 privately owned commercial banks in Kenya, enabling seamless financial transactions for your company.

3. Registrar NHIF

Register with the National Hospital Insurance Fund (NHIF) to facilitate the mandatory payment of employee hospital insurance, ensuring comprehensive healthcare coverage.

4. Register NSSF

Enroll in the National Social Security Fund (NSSF) for the effective management of employee social security savings.

Additionally, consider private retirement benefit scheme registration as an optional supplement to NSSF.

5. Apply for Business Premises License

Obtain a business premises license from county governments for companies with physical locations.

The associated cost depends on factors such as total space, employee count, and location.

6. Apply for Sector-Specific Licenses

While general businesses can operate seamlessly after completing steps 1 to 5, certain industries like telecommunications, banking, and insurance require additional licensing from relevant government departments.

Ensure compliance with sector-specific regulations to operate without issues.

Final Thoughts

Registering your business requires meticulous attention to post-registration steps, from tax registration to securing licenses.

These essential measures, such as opening a bank account and obtaining sector-specific licenses, are vital for operational success.

Remember to prioritize NHIF and NSSF registration for employee benefits. Utilize the above steps next time you want to register your company and ensure a seamless and compliant establishment for sustained business growth in Kenya.

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How to Register a Company in Kenya