Wednesday, June 29, 2022

Straightforward Tips On How To Register A Business In Kenya

Could be you are thinking out loud about the entire process of how you will start your own business and the entire process of registering your business here in Kenya. Then the fact that you do not know how to go about the whole process hits you hard but worry not because this piece of writing will simplify your work by giving you the step to step on how to simply go about it in detail.

Sample of a business registration document

First and foremost congratulations on such a brilliant thought because it is very important to register your business before it even starts its operations. Failure to register your business could result in you being arrested by county government officials as well as prosecution in a court of law. Are you also aware that registering your business comes with a lot of benefits like identity, Continuity, Growth, Trust as well as Safety, and security?

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Business registration in Kenya is commonly known as Sole proprietorship, BN2, or Partnership and is normally registered under the Business Names Act. This is the most common business registration mostly used by small businesses as well as Partnerships. Most types of businesses that are registered in Kenya include the following:

  1. A sole proprietorship business is that which has only one owner. The business person is responsible for making all decisions and responsible for all profits and losses in the business.
  2. A partnership is a business that is owned and managed by two or more people who have a common aim of making a profit that they all share.
  3. Then there is Limited Liability Partnership (LLP) which is basically a special business structure that protects individual partners against the negligence of other partners in the business.
  4. For the company i.e Limited Liability, it is divided into two :
    -Private company which is fully owned and managed by the people who initiated it. With this one, members of the public are not allowed to buy shares of the company.
    -Public company is a company that has sold part or all of its business to members of the public in form of shares. With the public company, it raises its funds through the sale of shares to the public and the buyers become the shareholders who are eligible for the profit as well as a decision-making process.

With all this, here is a detailed process of how you can fully register, own and control a business in Kenya.

Step 1
The initial step is to visit the Kenyan government-citizen portal where you will register for an account. In the case you already have one, you simply log in and go to the services section where you will click on ‘Business Registration Service.’

Step 2
After completing the first step, click on the ‘Make Application’ button. While here, you will be making an application for registering the name you want to give your business. Here you have to indicate the most preferred name of your business, Nature of the business, Ownership information, and Registered office address as well as Application documents. Your business name will be the identity of your business. It takes a maximum of 2 working days and costs Ksh. 150 and can be paid using mobile money or even debit cards. After completing this process, a business name awaiting registration could be reserved for a maximum of about 30 working days. However, this period may be extended for another 30 days where you will once again be required to pay the initial application fee of Ksh. 150. This will give you more time before you complete the entire business registration process.
N/B: During this step, ensure you meet all the requirements needed.
For the preferred name, ensure you provide at least 3 names in the order of your priority. Note that the initial name will automatically be assigned to your business.
Under the nature of business:
-fill in your applicant’s details which include your full name as it appears on your identification Document or Passport.
-Capacity to mean are you applying as the Proprietor or Lawyer. If you are registering your own business select proprietor.
-The other details include your address, postal code, and application details. For the application details select the nature of your business and if it is not available in the list select ‘other’.
Thereafter there is the registered office address where you should provide the details of where your business is located for instance:
-The primary address which includes the county, district, and locality
-Name of building, Plot No, House no, and Estate
-Road and street
-Postal address
-Postal code
-Your mobile number
-The company’s Email address.

Under the ownership information, for the proprietor, you are required to indicate the names of the persons starting the business. Press on ‘Add Proprietor’ button for every individual and provide the details of each proprietor which include the following :
(a) Kenya National Identification number
(b) PIN certificate that was issued by the Kenya Revenue Authority (KRA)
N/B: This is not applicable to the person(s) who are not Kenyan residents.
For the foreigners who are illegally living in Kenya, such as refugees, click on the ‘Foreign Resident’ option and fill in the correct registration details. Thereafter, the system will verify and automatically fill in your personal details such as Date of Birth, Full Name and Gender details.
Proceed and add your place of residence details, County, District, Locality and the actual place of residence. Then attach your passport and click on ‘Submit’.

Once you have already provided and submitted all the necessary details as required, the system will automatically generate a form known as a ‘BN 2 form.’ Download the form, sign it then upload it back to the system

Step 3
This third stage requires you to pay the registration fee of Ksh.950 on the website (eCitizen on business registration). This normally takes a maximum of 3-5 working days to have your application processed. Even though, there are times it can take longer than expected depending on the number of applications.

Step 4
This is the final stage of registration where the government of Kenya will issue you a certificate for all registered businesses. Once your registration is approved, you will be able to download the certificate of your business on the eCitizen platform where you made the application. You will then print it out and use your Kenya Revenue Authority(KRA) PIN certificate to get a bank account that you will specifically be using for your business.

Below is a checklist list required for you to register your company

  1. 3 Passport Photos
  2. 2 copied of application for the Name Reservation (CR14)
  3. Statement of Particulars
  4. 2 Copies of the Name Reservation letter
  5. 4 Copies of Identity Card
  6. PIN certificate
  7. Assessed statement of particulars
  8. Payment receipt
  9. 2 copies of the business Permit Application Form
  10. Approved Business Permit Application Form
  11. Payment invoice for Application Fees
  12. Payment invoice for Business Permit
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