Company Registration in Kenya: Requirements, Costs & Process
Starting a business in Kenya requires proper registration to operate legally. Understanding the process is crucial for compliance and growth, whether you are a local entrepreneur or a foreign investor. The Kenyan government has streamlined company registration in Kenya, making it an efficient online process that takes approximately 5 to 7 working days to complete.
Are you planning to start a company in Kenya? Understanding the steps involved in registering a company in Kenya is essential for a smooth and legal setup. In this video, we’ll guide you through the streamlined registration process, ensuring you meet all legal requirements and set up your business successfully.
Registered Companies in Kenya
Understanding the different business structures available is crucial if you’re looking to register a company in Kenya.
1. Sole Proprietorship: A business owned by one person is ideal for small businesses, as the owner has full control and responsibility.
2. Partnership: A business owned by two or more people who share profits and losses.
3. Private Limited Company (Ltd): This is a typical business type with limited liability for shareholders, meaning personal assets are protected. Shares are not publicly traded.
4. Public Limited Company (PLC): A business that can trade shares on the stock exchange. Larger companies typically use it to raise capital.
5. Foreign Company Registration: International businesses can set up branches or subsidiaries in Kenya.
The Kenya Registrar of Companies is a government entity responsible for overseeing company registration, regulation, and the administration of businesses within the country. Its key functions include registering various business entities such as Private and Public Limited Companies, Business Names, and Limited Liability Partnerships. Additionally, it maintains registration records, issues certificates of incorporation, and ensures compliance with applicable laws.
How to Register a Company in Kenya
The process is now simpler and more accessible through the eCitizen portal.
Step 1: Login to eCitizen
Visit eCitizen and log in to your account. If you don’t have an account, sign up using your email address, Kenyan ID Number, or Travel Passport Number.
Step 2: Navigate to the Business Registration Service
Once logged in, select the Business Registration Service and proceed to initiate an application.
Step 3: Choose the Business Type
Select the type of company you want to register. Business entities in Kenya include:
– Private Limited Companies
– Public Limited Companies
– Business Names
– Limited Liability Partnerships
Step 4: Submit Proposed Company Names
Provide at least three proposed company names (maximum of five) in order of priority. The Registrar will approve the first available name. Avoid names similar to those of existing businesses to reduce rejection chances.
Step 5: Fill in the Articles of Association Details
Provide details such as:
– Applicant’s information and capacity.
– Adoption of general articles of association as per the Companies Act 2015.
– Business nature and primary activity.
– Business start date and accounting period end month.
– Estimated annual turnover.
Step 6: Provide Director, Shareholder, and Beneficial Owner Details
At this stage, you will need to enter the following details for all directors, shareholders, and beneficial owners:
– National ID Card or Travel Passport copies.
– Passport-size photographs.
– Physical addresses, phone numbers, email addresses, and occupations.
– A beneficial owner is any person holding at least 10% of issued shares or controlling 10% of voting rights directly or indirectly.
Step 7: Provide the Registered Address
Specify the registered office address, including:
– County, District, and Locality.
– Name of the building and street.
– Postal Address and Postal Code.
– Mobile number and company email address.
Step 8: Specify Share Information
Define the share capital structure:
– Share category.
– Number of shares.
– Value of each share.
– The minimum share capital is KES 100,000.
– A company secretary must be appointed if the share capital exceeds KES 5 million.
Step 9: Download, Sign, and Upload Registration Documents
– Download the registration documents.
– Review and confirm all details.
– Sign the documents and upload scanned copies.
– Make the necessary payment.
Final Step: Approval and Issuance of Certificate
Once all information is submitted, the Registrar of Companies will review and approve the application within seven days or less. Upon approval, download your Company Registration Certificate and Form CR12, which lists the shareholders and directors.
Following these steps, you can successfully begin operations seamlessly.
Requirements to Register a Company in Kenya
The requirements for registering a limited company in Kenya include the following;
– At least 3 Company Names
– Business Objectives
– National Id Card Copy / Travel Passport copy of all the Directors, Shareholders and Beneficial Owners.
– Passport-size photos of all the Directors, Shareholders and Beneficial Owners.
– Physical Addresses, phone numbers, email addresses, and occupations of all Directors, Shareholders and Beneficial Owners.
Cost of Registering a Company in Kenya
The cost varies based on factors such as business type and share capital. Government fees range from KES 10,750 (about USD 100) to KES 25,000 (about USD 195).
Company Registration in Kenya for Foreigners
Foreigners can register a company in Kenya, and most industries have no ownership restrictions. A Kenyan company can have shareholders who are:
– Local individuals
– Foreign individuals
– Local companies
– Foreign companies
Any of these shareholders can complete the registration process and own 100% of the company. However, some industries, such as Banking, Insurance, and Telecommunications, may require foreign investors to allocate a portion of shares to a local shareholder after registration.
Once registered, the company can hire both local and foreign employees. Foreign employees must obtain a work permit to work legally in Kenya.
