How to Quickly Register a Business in Kenya [The Right Way]

Are you dreaming of launching your own business in Kenya? Congratulations on taking the first step toward turning your entrepreneurial vision into reality! But wait, before you dive headfirst into the exciting world of business, there’s an essential task you can’t afford to overlook: registering your venture. 

Surprisingly, many aspiring business owners find themselves bewildered by the intricacies of this process. 

In this comprehensive guide, we’ll demystify the registration process and equip you with the knowledge you need to navigate the complexities. From choosing the right business structure to securing the necessary licenses, our step-by-step instructions will empower you to establish your business with confidence

We will also show you how to register your business name in Kenya so that no one else can use it.

Let’s get to it.

How to Register A Business in Kenya the Right Way

Before are the steps you will need to follow when registering a business in Kenya:

Create An eCitizen Account

e-Citizen is the online platform through which you can access most government services. These include registering a company or small business. The platform is free to use and only takes a few seconds to set up an account. 

To create an eCitizen account: 

1. Visit https://www.ecitizen.go.ke/index.html and click on “Create an account” in the top-right corner.
2. You will find four choices here. Depending on what you want to do, you can create an account as:

• A Kenyan citizen
• A foreign resident 
• A visitor looking for a Kenyan VISA
• A business that is already registered in Kenya

3. If you are a Kenyan Citizen just click on the first option. 
4. If you are not a Kenyan resident, you can click on the appropriate option and then use your foreign certificate number instead of the Kenyan ID number. 
5. Otherwise, on the next page, enter your ID number and the first name that appears on your ID. Click on ‘Validate’ to confirm that these details are true. 
6. You will also need to provide a valid email address and a phone number then create a strong password. Don’t forget to agree to the Terms and Conditions by checking the little box.
7. When you are done click on ‘Continue’.
8. Next, you will need to provide a passport-size photo before you can complete your registration. The photo should be ideally 5.5 cm × 5.5 cm in size and must have been taken within 6 months of registering your business.

Note that if your business has directors that are not Kenyan citizens but want to establish a business in Kenya, one of the directors should be a Kenyan citizen so that they can access the eCitizen portal.

STEP 2: Start the Business Registration Process

After creating your eCitizen account, feel free to log in and start the registration process.

On the eCitizen home page, you will see up to 16 services provided by the national government.

One of them is the Business Registration Service. Click on that.

You will be required to log in again and then confirm your details before you can access the business registration service (BRS) page. If you already have other registered businesses, they will be listed under ‘My Businesses’.

Otherwise, you will need to begin a new application by clicking on ‘Make Application’.

Depending on what you are trying to do, you will be presented with several options from which you can choose. Since you are registering your business for the first time, you will have to start with business name registration.

This brings us to the next step…

STEP 3: Register Your Business Name

The first step to applying for a business certificate in Kenya is registering your business name. So go ahead and click on ‘Apply Now’ under ‘Business Name Registration’

The Business Name is the simplest business form under which one can operate a business. The Business Name is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts. 

Next, you will have to provide your preferred business name in the indicated field. If the name is the same as or closely similar to another registered business, it may be rejected. So, you will have to keep trying until you have a unique name.

Note that this only applies if you are applying as a sole proprietor or a partnership. Otherwise, you can choose any of the other options available.

Typically, the name application will be processed within two days if you aren’t applying during a weekend or on a public holiday. During this time, you cannot submit any other application.

You cannot move ahead with the business registration until your business name is approved. Unfortunately, you won’t receive communication of the approval through email or phone number so you will have to frequently check the eCitizen website.

If the name is approved, the registrar of business will reserve it for up to 30 days. You have this much time to complete the business registration failure to which you might have to start afresh.

What is the Cost of Registering a Business Name in Kenya?

A business name in Kenya will cost you around KES 950 to register. 

These include:

• KES 800 for business name registration
• KES 100 for name reservation
• KES 50 eCitizen convenience fee

Here is a sample of the certificate you will get after your business name is approved:

Source: eRegulations Kenya

STEP 3: Fill in Required Legal Documents

If your business name was approved, you are now ready to complete the registration process. This is the last and most important step of registering a business in Kenya.

Basically, in this step, you will be filling in the legal documents needed to fully register your business in Kenya.

The most important of these documents are:

• Form CR1 for company registration
• Form CR8 for shareholder and director details
• Statement of nominal capital form
• Memorandum and Article of Association

How to Fill Form CR1

CR1 is basically a form that you fill in when registering a new company in Kenya. It details the names and other personal information of all of the directors and shareholders of your company. CR stands for ‘Company Registration’.

Here is how to fill out the form.

1. Click here to download the PDF version of the CR1 form.
2. Next, print the downloaded form
3. Fill in the required information. These include the name of the business, names of directors or shareholders if any, location of the business, objectives of the business, and so on.
4. Attach scanned copies of the national ID cards and color passport photos of the company directors and shareholders. For directors who are not Kenyan residents, you will need to attach copies of their government-issued ID from the country that they reside in

How to Fill Form CR8

Form CR8 is where you provide the official residential addresses of the director or directors (including any directors who live outside of Kenya), according to Section 138 of the Companies Act, 2015.

This is just to legitimize your business and ensure that it is operated by real people. If you are a sole proprietor, just enter your details alone.

Here is how to fill out form CR8:

1. Click here to download the form
2. Print out the form
3. Fill in the required information. These include the name and type of your business, the business registration number, and the names and legal physical addresses (not PO box) of all company directors.
4. At the bottom, provide the information of the person filling in the form, then sign and enter the date.

Note that if you are a sole proprietor, it is totally okay to indicate yourself as both the shareholder and company director.

How to Fill the Statement of Nominal Capital Form

This is the form where you declare your business’s nominal capital holdings, according to the Stamp Duty Act.

It is a requirement by the KRA and is a way to ensure that you are and will be tax-compliant down the road.

To fill out this form:

1. Click here to download it
2. Print the form out
3. Fill in the required information. These include your business name, nominal holding, number of shares, and price per share if the company is publicly traded
4. You will also need to fill in your name and other details
5. At the bottom, sign the form and enter the date you filled it.

How to Pay Stamp Due Based on Company Nominal Capital

As we mentioned above, the Statement of Nominal Capital is based on the Stamp Duty Act (CAP 480, Section 39 and the schedule, article 8).

Stamp Duty is a tax levied on legal instruments such as cheques, receipts, military commissions, marriage licenses, property, and land transactions. It is payable at different rates depending on the nature of the instrument. 

This means that after filing the nominal capital statement, KRA will require you to pay a Stamp Duty based on the amount of capital your company has. So, as soon as your business name is approved, KRA will reach out and instruct you how to pay the Stamp Duty.

To do this, you will need to provide the ID numbers of all your employees and shareholders.

So, how much do you pay in Stamp Duty?

Here is a breakdown:

• The amount of money that you pay will be equal to 1% of your company’s nominal capital, but the minimum is KES 2,140 based on the minimum nominal capital of KES 2,000.
• As part of completing the Stamp Duty requirements, you’ll also be charged KES 100 for each document (i.e., each shareholder’s personal information) that the KRA must approve.
• Sending in the required information and paying the Stamp Duty should take between 5–10 days to complete.

STEP 4: Draft a Memorandum and Article of Association

The next step of the business registration process is filing two important documents:

• Memorandum of Association
• Article of Association

A Memorandum of Association (MOA) is a legal document prepared during the formation and registration process of a limited liability company in Kenya to define its relationship with shareholders.

This document is usually public and contains such information as:

• The physical address of the business
• Names of shareholders and their liabilities
• Distribution of shares

Don’t worry, if your company is not publicly traded, you won’t need to fill in some of these details.

The MOA also describes the objectives of the company.

On the other hand, the Article of Association is a document that specifies the regulations for a company’s operations and defines the company’s purpose.

Some of the information contained in an AOA include:

• Company name
• Objectives of the company
• Process for appointing directors
• Handling of financial records
• Share capital
• Organization structure
• Shareholder meetings and so on

So, in a nutshell, is like a rough constitution or manual for your company or business.

Before you complete your business registration, you will need to file and submit these two with the rest of the documents.

Typically, you might need a lawyer to draft these documents if you don’t understand the legal jargon yourself.

Check out an example of an Article of Association.[ref]eCitizen, Sample Article Of Association[/ref]

STEP 5: Pay and Submit Completed Documents

Whether you are looking to start a private or public limited company, you will need to pay KES 10,650 to finalize the registration process. This will allow you to receive a certificate of incorporation which means that you are legally permitted to operate a business in Kenya.

You make this payment via electronic means such as mobile money, credit or debit cards.

For information purposes, these are the different costs depending on the type of company you are building:

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

After putting your finances in order, collect all your forms together with any scanned or photocopied documents (such as IDs and passport photos) and seal them in a large envelope.

You will then mail the documents to:

The Chief Registrar of The Judiciary
Supreme Court Building
P.O. Box 30041 (00100)
Nairobi, Kenya

STEP 6: Download Your Business Certificate

It will take about a week to review your documents and officially register your business. Of course, the time varies depending on a number of factors but in most cases, it won’t take more than 21 days.

The business certificate you will receive is known as the certificate of incorporation and will show that you are a legal business owner.

You download this certificate from the Citizen portal which is why you need to keep checking the status of your registration.

Here is a sample of how your business certificate will look:

Once you have the certificate, you can now kick off your business and start making some profits.

Don’t have a business idea yet? You can check out some of our top recommendations below:

50 Businesses You Can Start With Little Capital in Kenya [2023 Ideas]