Cost of Registering a Business in Kenya

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Before there is money, there is business.

To create all the beautiful things you want in life, like…

A beautiful, spacious home, a domestic support team, and an excellent education for your children…

Plus, a 57-acre horse ranch where you can live with no intrusions aside from the gentle sound of birds and ponies whinnying in the distance…

Before you can have any of that, you must do some business.

All these things start first with a vision and business calculations that help you determine exactly how to get there. Here is how to register with the Kenya Registrar of Companies

The Registrar of Companies in Kenya maintains a registry of records concerning new and old companies registered with them. It allows the public to access services to register and preserve businesses through the BRS System.

Ecitizen Business Registration in Kenya

To Access the BRS, you need an Ecitizen profile. Kenyans and non-residents use the Ecitizen platform to access most online government services, including Business Registration.

Once you log in to the Ecitizen Business Registration Service, you have the option of registering either of the entities below;

A Business Name
A Limited Liability Partnership (LLP)
A Private Limited Company (LTD)
A Public Limited Company (PLC)
An Unlimited Organization
A Company Limited by guarantee

This article will discuss Kenya’s two primary business forms: a business name and a Private Limited Company.

Registration of a Business Name in Kenya

This is usually registered by tiny business owners looking to trade under a different name. This type of business is known for its simplicity and ease of setup. It is the most accessible form of operation.

Registration of a Private Limited Company in Kenya

This type of entity is preferred because shareholders’ liability is limited to the extent of their contribution. It is a separate entity from its owners and is registered for tax as such.

So, What are the Costs of Registering a Company in Kenya?

The government of Kenya imposes different costs for registering a company in Kenya based on the type of entity one is interested in.

Here are the costs of Company Registration Kenya (Statutory Costs)

Registration of Business name – KES 950
Private Limited Company – KES 10750
Public Limited Company KES – 10650
Unlimited Companies – KES 20050
Company Limited by guarantee – KES 10000
Limited Liability Partnership- KES 25000

Here is How to Register a Company in Kenya

As discussed earlier, the whole company registration process is carried out online, and the sequence is as follows;

Enter your proposed company names
Enter the Articles of Association Details
Enter the Registered Office Address
Add the Share Information
Add the Details of all the Directors and shareholders
Declare the Beneficial owners of the Company
Upload Signed application Forms
Make Payment

Essential Facts about Company Registration in Kenya

Now that you know the sequence for registering a company in Kenya, we shall look at the primary things you need to know.

Business Name Search in Kenya

Before we register a company in Kenya, it is essential to understand how the business name search works. Name reservation is part of the registration process, and you must submit at least three and a maximum of five unique names in order of priority. The first available name will be automatically assigned to you.

If the names you submitted are similar to those of an existing company or business, you will be requested to provide other unique names. Kindly note that the words “Kenya”, “East Africa”, or “Africa” are not considered differentiating words.

Company Registration Requirements in Kenya

The requirements to register a company in Kenya vary depending on the entity you want to register. In other articles, we will examine the criteria for a branch company (foreign company), a subsidiary (whose main shareholder is a foreign company), and a new independent company.

Documents Needed to Register a Company in Kenya | Company Registration Forms in Kenya

Each entity type in Kenya has a set of unique forms completed by the subscribers, as shown below.

Business name – form BN 2
Limited Liability Partnership – New Registration LLP 1
Private Limited Company – CR 1, CR 2, Cr 8, Statement of Nominal Capital
Public Limited Company – CR 1, CR 2, CR8, CR 10, CR 12 and the Nominal Capital Statement
Unlimited Companies – Cr 1, CR 4, Cr 8 Statement of Nominal Capital
Company Limited by guarantee – CR1, CR 3 and CR 8

Memorandum and Articles of Association in Kenya

The Companies Act allows you to adopt the model articles of association in the Companies Act, reducing the time and cost of registering a company in Kenya. This also makes the process easier because you can remotely register a company without travelling to Kenya.

Company Registration Stamp Duty in Kenya

Kenya abolished stamp duty, which was previously charged as a percentage of the new company’s nominal capital. This is one of the many deliberate efforts by the Kenyan government to incentivise both foreign and local investors looking to set up new companies.

This means that you can set up the company with the highest possible nominal capital depending on your company’s needs in the short and long run. Any subsequent increase in nominal capital will be subject to a stamp duty of 1% of the rise in the nominal capital.

An Easier Solution to Company Registration in Kenya

While a wealth of information exists on the process and Costs of Registering a Company in Kenya, this process is tedious and time-consuming. Some of the common issues experienced by individuals who take on the process alone include:

Loss of funds. When the registration is not completed due to missing files.
Time spent. Following up with the registry offices without certainty on the conclusion of the process can be very devastating.
You are choosing a non-suitable option. You may find that it would have been better to register as a company rather than a sole proprietorship. Changing this would pose a challenge for business operations.

Seeking assistance with business registration from our business lawyers lets you know which entity suits you and how to proceed. Our Company Registration in Kenya service eliminates the hustle and saves time and money.

Read more about our customised process to guarantee you quality services

What You Get After Company Registration in Kenya

Certificate of Incorporation in Kenya

This official document shows that the company is duly registered in Kenya. The certificate indicates the date of registration, the Unique company registration number and the complete company name.

Shareholders Certificate in Kenya | Form Cr12 Kenya | CR12 Certificate

The form Cr12 is issued upon successful registration in Kenya, and it provides more details as listed below;

The Company’s registered address
A list of the company’s current shareholders, their postal addresses and share apportionment
A list of the company’s current directors and their postal address
Any encumbrances registered against the company

Company KRA PIN Certificate I KRA Pin Registration

A KRA Pin certificate is an official proof of registration with the Kenya Revenue Authority. The registration is essential and a requirement when opening a Bank Account, Paying Taxes, Import and Export of goods

Things to do After You Have Registered a Company in Kenya

Process a Business License in Kenya | Nairobi County Business Permit

A Business License is issued by the county government where your business is located. The costs for this depend on factors like the size of your warehouse and the Number of employees.

VAT Registration in Kenya

Companies must register for VAT if they deal with VAT-taxable goods or services. VAT is charged at 16% and payable on or before the 20th day of the following month.

Work Permit application in Kenya

All foreign employees, directors and shareholders looking to work in Kenya must apply for a Work Permit. A Class D work permit is issued to any foreign employee bringing in a skill that is not readily available in Kenya, and a Class G Work permit is issued to company owners investing more than 100,000 USD into the country.

Our Business Registration Fee.

Business registration plus setup cost, Ksh. 50,000 (Kenyans), Ksh. 1, 600, 000 (Foreigners).

Here’s the package to expect from our legal and business service engagements,

We will help you to unwrap your business goals by:

Identifying the proper business structure for your project, i.e., Business Name or Sole Proprietor, Private Limited Company by Shares, Private Limited Company by Guarantee, Limited Liability Partnership, Branch – Foreign Company, NGOs, Saccos and so on;
Making a business registration application with the Kenyan Government;
Prepare the correct business templates: Business Plan, Legal Agreements, Human Resources, Finance & Accounting, Sales and Marketing, Production & Operations and Administration;
Organize and structure all departments of your business;

Benefits:

Be more efficient by smoothing business processes;
Guide your team tasks with standard operating procedures;
Save a lot of time and boost your productivity;
Save thousands of money in lawyer fees;
Grow your business, close outstanding deals, and
On matters: Negotiation, Mediation, Arbitration and Court Litigation if need be.

Conclusion

We hope this article answers most of your questions about the costs of registering a company in Kenya and all the other vital topics to help you make an informed decision. For your legal and business services, contact us via our online platform on this website. For our other premium legal and business services, order via the ORDER NOW page.