The Legal Obligations of Starting a Business in Kenya

The Legal Obligations of Doing Business in Kenya

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Doing business in Kenya has been made easier, faster and instant. In Kenya business can either be:

  • A sole proprietorship
  • A partnership

The moment an individual or a group of persons think of starting business, he or she must put in mind the registration process and procedure that comes with the commencement of that business. Registration of businesses is now being done at the GPO and any Huduma Centers. Below is the new registration process

A. Registration Process for Companies in Kenya

  1. For a registration of company, an Individual is required to do a (Name search) that can be done online using the E-Citizen platform or dialing *271# on a Safaricom Mobile line.
  2. Model Memorandum for a Company Limited by Shares (Form CR2) or a Model Memorandum for a Company Limited by guarantee (Form CR3 ) or a Model Memorandum for a Company whose Liability is unlimited ( Form CR4 ).
  3. Articles of Association (if those provided in the Regulations have not be adopted).
  4. A Copy of National Identity Card, KRA PIN Certificate and recent colored passport photograph of each director and company secretary.
  5. Notification of directors’ residential address (Form CR8).
  6. Company email address
  7. Copy of I.D Card of person lodging documents.
  8. Fill the statement of nominal capital form.
  9. Private Companies with a paid up capital of Ksh.5,000,000 are required to have a Company secretary.
  10. Register for both National Social Security fund and National Hospital Insurance fund.
  11. Obtain a company seal.

There after an individual will be required to obtain a business permit.

Name search – Ksh. 100 per name.
Registration fee – Ksh. 10,000

Registration takes 2 to 3 weeks.

When the company registration certificate is ready, you will also be able to pick your new company’s KRA PIN, NSSF and NHIF certificates from Sheria House.

B. Partnerships and Sole Proprietorships Registration in Kenya

The process of registering a sole-proprietorship and partnership is the same and it is as follows:

  1. Copy of Identity Cards of the proprietor/Partners as may be the case
    2. Copy of PIN of the proprietor/Partners as may be the case
    3. Passport size photographs of the proprietor/Partners as may be the case
    4. Name search and reservation.
    5. Duly filled BN2 form .

Costs Implication of Registration

Name search – Ksh. 100 per name
Registration fee – Ksh. 850 .

Registration takes 1week.

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