How to Register a Company in Kenya and Documents Required
There are many ways to invest your money, with starting a company being one of them. When starting a company, there are things you need to consider to ensure that the output matches the set goals. For instance, you need to determine your target market, choose a marketing technique, get funding, and choose the location of your company premises.
Failure to do this may mean starting an enterprise that is doomed for failure. In addition to these requirements, you need to register your company so that you can operate legally.
Some benefits that come with registering your company in Kenya include:
- Unique identity – to register your business, you must come up with a company name and the same applies to other business owners. Therefore, you can be sure that no one will register their enterprise using the same name as yours.
- You can open a business bank account – for the sake of your company’s financial wellness, you need to separate your personal and business expenses. Registering your business will mean that you can use the unique registration number to open a bank account for your enterprise-related transactions.
- Applying for loans – you may not always have the exact amount of money needed for the success of your business. It’s easier to get a business loan if your company is registered than it is if there is no proof that your enterprise exists.
- You’ll earn customers’ trust – potential clients will want to know that your business is legitimate and not a scam so having documentation to prove that the business is recognized by various regulatory bodies is essential.
- Business continuity – a registered business is a legal entity meaning operations can continue, whether you are present or not. Therefore, the earnings from your business can help many generations in the future.
Requirements to register your company name online
Before registering your company name, know that you will need to provide the below listed, as they are mandatory for the registration process to be successful:
- Activities of the company you’re registering.
- A company name that needs to be approved by the Registrar of Companies.
- Names of the partners.
- IDs or passports of the partners or proprietors.
- Passport sized photos of the partners or proprietors.
- KRA pin copies of all the partners or proprietors.
- Physical address of the given name.
- Postal address of the company.
- A registration fee of Ksh 850.
In addition to these requirements, you need to have an eCitizen account. Follow the steps below to set up your account:
- Visit ecitizen.go.ke
- Enter your full names.
- Enter your ID number.
- Add your email address and mobile number.
- You’ll receive a verification link through your email, so ensure it’s a valid address.
- Create a password that you can remember in the future.
- You’ll receive an SMS confirming that your eCitizen account is active.
Provided you meet all these requirement, you can easily search for a business name through the eCitizen portal by following the below steps:
- Log in to the portal using your log-in credentials.
- Select Business registration service.
- Click ‘Make Application’.
- Click ‘Apply now’ under the company type of your choice.
- Enter the name you hope your company will possess and give a short description.
- Submit your application.
- Pay a search fee of Ksh 150 through any of the payment methods provided. For each payment method there are a set of instructions on the accounts to transfer money to.
- Wait for an approval.
Upon approval of the company name, fill in the documentation as explained below:
- CR1 – Fill in the company details, such as name, location, and type. Also, include the date you started the company and the number of employees. It is on this document that you will add the KRA pins, IDs, contact information and passport photos of the company’s directors.
- CR6 – include the details of the company directors.
- CR8 – fill in the company directors’ residential details.
- CR 10 – this is meant for companies with more than Ksh 5 million nominal capital and you should include the details of the company’s secretary.
- BN6 questionnaire – on this document you’ll have to fill in the company’s capital or shares.
- Stamp duty payment form – stamp duty is 1% of the nominal capital. You can get this form from KRA and pay as per the instructions given, provided you give the ID details of the employees and shareholders. Companies with a nominal capital of above Ksh 5 million will pay 1% nominal fee plus Ksh 2,020.
- Memorandum and Articles of association – the former documents the business name and number of shareholders while the latter includes the rules of the company, such as the powers that the directors possess.
After you’ve filled all the forms, seal them in an envelope, addressing them to the Registrar of companies for processing. Also, pay the company registration fee depending on the type of company as below:
- Private Limited Company – Ksh 10,650.
- Public Limited Company – Ksh 10,650.
- Unlimited Companies – Ksh 20,050.
- Company Limited by Guarantee – Ksh 10,000.
- Limited Liability partnership – Ksh 25,000.
You can then download your registration certificate from the eCitizen portal once it’s ready.