So, you’re thinking about starting a business in Kenya?
That’s an exciting step, and we’re here to walk you through registering a business in Kenya online.
Whether launching a small shop in Nairobi or planning something bigger, registering your business is the first legal step to make it official.
Don’t worry if it sounds overwhelming. We will share the requirements to register a business in Kenya, what you need to get started, and explain the costs involved.
Why Register a Business in Kenya?
Before we get into the how-to, let’s discuss why you should register a business in Kenya.
Registering your business gives it legal recognition, which means you can open a business bank account, apply for loans, and bid for contracts or tenders.
It also protects your business name so no one else can use it.
Plus, it makes your business look professional and trustworthy to customers and partners.
Whether you’re starting a business in Nairobi or elsewhere, registering is a must to operate legally and avoid trouble down the road.
Thanks to Kenya’s government, registering a business online in Kenya is now straightforward and fully digital.
You can do almost everything from your phone or computer, which saves time and effort.
Ready to get started? Here’s how to register a business in Kenya online, step by step.
Step By Step: How to Register a Business in Kenya Online
Step 1: Choose Your Business Structure
The first thing you need to do when you want to register a business in Kenya is decide what type of business you’re setting up.
This affects the business requirements and the cost of starting a company in Kenya. Here are the standard options:
- Sole Proprietorship: This is a business owned by one person. It’s simple and great for small businesses, but you’re personally responsible for any debts or losses.
- Partnership: This is for two or more people who share ownership, profits, and losses. It’s a bit more complex but still affordable.
- Limited Liability Company (LLC): This is popular for bigger businesses. It protects your assets if the business runs into trouble and is a separate legal entity.
- Branch of a Foreign Company: If you’re a foreigner or have a company abroad, you can register a branch to operate in Kenya.
A sole proprietorship or LLC is the way to go for most people starting a business in Nairobi or other parts of Kenya. If unsure, talk to a business consultant to pick the best structure.
Step 2: Pick and Reserve Your Business Name
Next, you need to choose a unique name for your business. This is a big deal because it’s how customers will know you.
To register a business name in Kenya, you must check if your preferred name is available. Here’s how:
- Go to the eCitizen Portal: Visit the e-citizen portal and create an account if you don’t have one. This is the official platform for registering a business online in Kenya.
- Access the Business Registration Service (BRS): Find the Business Registration Service section once logged in.
- Submit Three Name Suggestions: You must provide three unique business names in order of preference. The system checks if they’re available. Avoid names with words like “Kenya” (reserved for government entities) or anything offensive.
- Pay the Name Search Fee: Registering a business name in Kenya starts with a KES 150 fee for the name search. You can pay using M-Pesa, a debit/credit card, or bank transfer.
- Wait for Approval: Getting approval usually takes 1–2 days. Once approved, your name is reserved for 30 days, giving you time to complete the registration.
NB: Make sure your name reflects your brand and is easily remembered. If you’re starting a business in Nairobi, maybe include something local to connect with your community.
Step 3: Gather the Requirements to Register a Business in Kenya
To register a business in Kenya online, you must prepare some documents and information.
The requirements to register a business depend on the business structure, but here’s what you generally need:
For Sole Proprietorship or Partnership:
- Your full name, ID number (or passport number for foreigners), and date of birth.
- A passport-sized photo.
- Your residential address, phone number, and email.
- The business’s physical address (county, street, etc.).
- Describe what your business does (e.g., retail, consultancy, food services).
For a Limited Liability Company:
- Copies of national IDs or passports for all directors and shareholders.
- KRA PIN certificates for directors and shareholders.
- A Memorandum and Articles of Association (these outline your company’s objectives and rules; you can use model documents from the BRS portal or hire a professional to draft them).
- Details of your company’s share capital (how much money the business is starting with).
- A CR1 form (company registration form) and CR8 form (directors’ addresses).
- A BN6 form (statement of nominal capital).
If you’re a foreigner starting a business in Nairobi or elsewhere, you may also need a work permit or an endorsement letter from the Kenya Investment Authority.
Don’t worry if this sounds like a lot. We will explain how to submit these next.
Step 4: Register Your Business on the eCitizen Portal
Now that you have your name reserved and documents ready, officially register a business in Kenya online. Here’s how to do it:
- Log Back into eCitizen: Go to the BRS section again.
- Start the Application: Choose the type of business (sole proprietorship, partnership, or LLC) and fill in the details. This includes your approved business name, business address, and the nature of your business.
- Upload Documents: Upload scanned copies of the required documents, like IDs, KRA PINs, and photos. You’ll also upload the CR1, CR8, BN6, and Memorandum and Articles of Association for an LLC.
- Pay the Registration Fee: The cost to register a business in Kenya varies.
- Sole Proprietorship or Partnership: KES 950.
- Limited Liability Company: KES 10,650 to KES 25,000, depending on your share capital (the amount of money your company starts with).
For example, a company with KES 2,000 in capital pays a stamp duty of KES 2,140.
- Submit and Wait: The Registrar of Companies reviews your application once you submit. This takes about 3–7 days. If everything is correct, you’ll get a Certificate of Registration (for sole proprietorships/partnerships) or a Certificate of Incorporation (for LLCs) and a CR12 (list of directors/shareholders) via the eCitizen portal.
If you’re starting a business in Nairobi, you can download these documents and move on to the next steps. If your application has an issue, the BRS will let you know what to fix.
Step 5: Get a Kenya Business License (Single Business Permit)
After registering a business in Kenya, you need a Kenya business license, also called a Single Business Permit, from the county where your business operates.
This is mandatory to run your business legally. If you’re starting a business in Nairobi, you’ll apply through the Nairobi County e-services portal. Here’s what to do:
1. Visit the County Portal: For Nairobi, visit [nairobi.go.ke](https://www.nairobi.go.ke/) or the county’s self-service portal for other counties like Mombasa or Kisumu.
2. Submit Documents: Provide your Certificate of Registration/Incorporation, KRA PIN, and details about your business location and activities.
3. Pay the Permit Fee: The cost of a Kenya business license varies by county and business size.
- Nairobi: KES 5,000–50,000.
- Mombasa: KES 7,000–60,000.
- Kisumu: KES 4,500–40,000.
- Rural Counties: KES 2,000–15,000.
4. Receive Your Permit: You’ll get a digital permit to print and display at your business premises after payment. Processing takes 5–10 days.
You may also need a health certificate or food hygiene license if your business handles food or health-related products. Check with your county for specific rules.
Step 6: Register with the Kenya Revenue Authority (KRA)
To comply with tax laws, you must register a business in Kenya with the Kenya Revenue Authority (KRA). This gives your business a KRA PIN for tax purposes. Here’s how:
1. Visit the iTax Portal: Go to the KRA website and log in or create an account.
2. Apply for a KRA PIN: Enter your business details, including the Certificate of Registration/Incorporation. For sole proprietorships, your personal KRA PIN is used.
3. Register for Taxes: Depending on your business, you may need to register for:
- Value Added Tax (VAT): Mandatory if your annual turnover exceeds KES 5 million.
- Pay As You Earn (PAYE): If you have employees, you’ll deduct taxes from their salaries.
- Income Tax: This is for all businesses to report profits.
4. Submit and Save: You’ll get a KRA PIN certificate once approved.
Whether starting a business in Nairobi or a rural area, this step is crucial. It ensures you’re tax-compliant and avoids penalties.
Step 7: Register with NSSF and SHIF
You must register with the National Social Security Fund (NSSF) and Social Health Insurance Fund (SHIF) to hire employees.
These provide retirement benefits and health insurance for your workers. Here’s how:
NSSF Registration:
- Visit the NSSF website, and click “Employer Registration.”
- Submit your Certificate of Registration/Incorporation, KRA PIN, and company details.
- You’ll get an NSSF Employer Registration Number. Both you and your employees contribute monthly based on their salaries.
SHIF Registration:
- Go to the Social Health Authority portal or visit a local office.
- Provide your business details and employee information.
- Register to contribute to employee health insurance.
These registrations are mandatory for businesses with employees, so don’t skip them when registering a company in Kenya.
Step 8: Open a BusinessBank Account
You can open a business bank account with your Certificate of Registration/Incorporation and KRA PIN.
This keeps your business finances separate from personal ones, making bookkeeping easier. You’ll need:
- Certificate of Registration/Incorporation.
- KRA PIN certificate.
- ID copies of directors or proprietors.
- A board resolution (for LLCs) to open the account.
Visit a bank like KCB, Equity, or Cooperative Bank, and ask about their business account options. If you’re starting a business in Nairobi, most banks have branches you can visit.
Step 9: Get Additional Licenses (If Needed)
Some businesses need extra licenses depending on the industry. For example:
– Food and Beverage: A food hygiene license from the county health department.
– Telecommunications: Approval from the Communications Authority of Kenya (CAK).
– Construction: A license from the National Construction Authority (NCA).
– Manufacturing: An environmental compliance license from the National Environment Management Authority (NEMA), costing KES 10,000–50,000.
Check with your county or a business consultant to confirm your business needs these when registering a company in Kenya.
Costs to Register a Business in Kenya
Let’s talk about the cost of registering a business in Kenya. Here’s a breakdown:
Name Search and Reservation: KES 150.
Business Name Registration (Sole Proprietorship/Partnership): KES 950.
Company Registration (LLC): KES 10,650–25,000, depending on share capital.
Kenya Business License (Single Business Permit): KES 2,000–50,000, depending on the county and business size.
Additional Licenses: Varies (e.g., NEMA license: KES 10,000–50,000; health permits: KES 3,000–10,000).
Professional Fees: If you hire a consultant, expect KES 5,000–20,000 for extra help.
If starting a business in Nairobi, budget for higher permit fees than in rural counties. Always double-check fees on the eCitizen portal or county website, as they can change.
Tips for Success After You Register a Business in Kenya
Once you register a business in Kenya online, you’re ready to start operating! Here are a few tips to keep things running smoothly:
File Taxes Regularly: Use the KRA iTax portal to submit VAT, PAYE, or income tax returns on time to avoid fines.
Renew Your Business Permit: County permits need annual renewal. Check with your county for deadlines.
Keep Records: Track your income, expenses, and employee contributions to stay compliant.
Market Your Business: Register a domain name and create social media accounts to build your brand. If you’re starting a business in Nairobi, local online marketing can attract customers fast.
Get Help if Needed: If you’re stuck, hire a business consultant or a trusted lawyer in Kenya to guide you through compliance or licensing.
FAQs
How long does it take to register a business in Kenya online?
It usually takes 1–2 days for name approval and 3–7 days for registration, depending on how quickly you submit documents and the BRS processes them.
Can foreigners register a business in Kenya online?
Yes. Foreigners can register a business in Kenya online as a sole proprietorship, LLC, or branch of a foreign company. You may need a work permit or an endorsement from the Kenya Investment Authority.
Do I need a Kenya business license for an online business?
Yes, even online businesses must register in Kenya and get a Single Business Permit from the county where you operate. The exact legal requirements apply.
What if I want to change my business structure later?
You can apply to convert your business (e.g., from sole proprietorship to LLC) through the BRS portal. It’s a simple process but may involve extra fees.
Final Thoughts
Congratulations on taking the first step toward registering a business in Kenya. By following these steps, you can register a business in Kenya online quickly and legally.
From choosing a unique name to getting your Kenya business license, the process is now easier than ever thanks to the eCitizen portal.
Whether starting a business in Nairobi or another county, ensure you meet all the requirements to register a business and budget for the cost to register a business in Kenya.
