If you’re looking to start a business in Kenya, you’re probably excited but maybe a bit overwhelmed by the company registration process in Kenya.
At Chepchieng and Company Advocates, we’ve helped countless entrepreneurs navigate business registration in Kenya, and we’re happy to share our expertise to make registering a company in Kenya simple and stress-free.
This guide will take you through the step-by-step process of company registration in Kenya, including getting a KRA PIN for your business or company. It will cover the requirements, fees, documents, and the steps. By the end, you’ll know exactly what to do.
Why Register a Company in Kenya?
Before we get into the details, let’s discuss why company registration in Kenya is essential.
Registering your business gives it a legal identity, protects your brand, and allows you to operate formally.
It also makes it easier to:
- Open a company bank account
- Apply for loans
- Comply with tax laws
Plus, having a registered company with a KRA PIN ensures you’re tax-compliant in Kenya, which is crucial for avoiding penalties.
At Chepchieng and Company Advocates, we’ve seen how proper company registration in Kenya sets businesses up for success.
Whether you’re starting a small business, a startup in Kenya, or a private limited company, following the proper steps ensures you’re on solid ground.
What You Need to Know About Company Registration in Kenya
When you register a company in Kenya, you’ll need to follow a clear process. The good news? It’s straightforward if you know what to do.
The process involves registering your business with the Business Registration Service (BRS) and getting a KRA PIN through the Kenya Revenue Authority (KRA).
Below, we will break it down into two main sections: how to register a KRA PIN for a business and how to register a KRA PIN for a company.
How to Register a KRA PIN for a Business in Kenya
If you’re running a sole proprietorship, partnership, or small business, you’ll likely need a KRA PIN for your business.
This differs from a personal KRA PIN, as it’s tied to your business’s tax obligations.
Here’s a step-by-step guide to company registration in Kenya, primarily registering with the KRA in Kenya:
Step 1: Register Your Business Name
Before you can get a KRA PIN, you need to register your business name with the BRS. This applies to sole proprietorships or partnerships. Here’s how:
Visit the eCitizen Portal: Go to Kenya’s company registration online portal at ecitizen.go.ke.
Search for Your Business Name: Check if your desired business name is available. The system will let you know if it’s unique.
Submit Form BN/2: Fill out the business name registration form (Form BN/2) with details like your proposed business name and the nature of your business.
Pay the Registration Fee: The business registration fees in Kenya for a business name are usually KSh 150 for the name search and KSh 800 for registration.
Once approved (usually within 1-2 weeks), you’ll get a Certificate of Registration for your business name.
Step 2: Apply for a KRA PIN
Your business name is registered to apply for a KRA PIN. Here’s how to register a business with KRA in Kenya:
Go to the KRA iTax Portal: Visit itax.kra.go.ke.
Create an Account: If you don’t have an iTax account, sign up using your KRA PIN or create a new one.
Select New PIN Registration: Choose a business PIN (sole proprietorship or partnership).
Fill in the Details: Provide your business name, physical address, and contact details. You’ll also need to state the type of business (e.g., retail, consultancy).
Upload Documents: You must upload a copy of your business name registration certificate and your ID or passport.
Submit the Application: KRA will process your application, and you’ll receive your KRA PIN within 1-3 days.
Step 3: Get Additional Permits
Depending on your business type, you may need business permits and licenses in Kenya during company registration. For example, if you’re opening a shop in Nairobi, you’ll need a county business permit. Contact your county government for details.
How to Register a KRA PIN for a Company in Kenya
If you’re starting a private limited company, the process for company registration in Kenya is slightly different.
A private limited company is a separate legal entity, which means it can own assets, enter into contracts, and be taxed independently.
Here’s a step-by-step guide to company registration in Kenya:
Step 1: Conduct a Name Search
You must check if your company name is available as a business name. Here’s how:
Log in to the eCitizen Portal: Go to the BRS section on ecitizen.go.ke.
Perform a Name Search: Enter three proposed company names. The system will check their availability.
Pay the Name Search Fee: The company registration fees in Kenya for a name search are KSh 150 per name.
Reserve the Name: Once approved, your name is reserved for 30 days.
Step 2: Prepare Company Registration Documents
You’ll need specific documents to complete the company registration process in Kenya. The company registration documents in Kenya include:
- Form CR1: Application for company registration.
- Form CR2: Memorandum of Association, detailing the company’s objectives and structure.
- Form CR8: Details of the company’s registered office.
- Statement of Nominal Capital: This shows the company’s share capital (minimum Ksh 100,000 for a private limited company).
- Copies of IDs or Passports: For all directors and shareholders.
- Passport Photos: For all directors and shareholders.
At Chepchieng and Company Advocates, we can help you prepare these documents to ensure everything is in order.
Missing or incorrect documents are common mistakes when conducting company registration in Kenya, so it’s worth getting professional help.
Step 3: Submit Documents to BRS
Submit your documents through the eCitizen portal or visit the BRS office in Nairobi. The fees for company registration in Kenya depend on your company’s nominal capital but typically range from KSh 10,600 to KSh 30,000. Once approved, you’ll receive a Certificate of Incorporation, usually within 1-2 weeks.
Step 4: Apply for a Company KRA PIN
After receiving your Certificate of Incorporation, you must register your business with KRA in Kenya to get a company KRA PIN. Here’s how:
Visit the KRA iTax Portal: Log in or create an account.
Select New PIN Registration: Choose the option for a limited company.
Enter Company Details: Provide your company’s registration number, Certificate of Incorporation details, and registered office address.
Upload Documents: You must upload your Certificate of Incorporation and CR12 form (a document from BRS confirming your company’s directors).
Submit the Application: KRA will process your application, and you’ll receive your KRA PIN within 1-3 days.
Step 5: Obtain Additional Licenses
Depending on your industry, you may need additional permits, such as a trading license or health permit. For example, registering a company in Nairobi, Kenya, may require a Nairobi County business permit. Check with your county government for specifics.
Benefits of Registering Your Business or Company with the KRA in Kenya
Registering your business or company with the Kenya Revenue Authority (KRA) in Kenya offers numerous benefits that can help your venture thrive:
Legal Protection: Registering your company creates a distinct legal entity, safeguarding your assets from business liabilities.
Access to Funding: Financial institutions and investors prefer to engage with officially registered businesses that are compliant with KRA requirements.
Tax Compliance: Obtaining a KRA PIN ensures your business complies with Kenya’s corporate tax laws, helping you avoid legal issues and enabling access to tax incentives available for startups.
Enhanced Brand Credibility: Having a registered company builds confidence among your customers, suppliers, and business partners, reinforcing your professionalism and trustworthiness.
At Chepchieng and Company Advocates, we have witnessed firsthand how registering with KRA and formal company registration in Kenya empower startups and small businesses to grow sustainably. This essential step is a small investment during company registration in Kenya that delivers substantial long-term benefits.
Common Mistakes When Registering a Company in Kenya
Even with the best intentions, mistakes happen. Here are some common mistakes when registering a company in Kenya and how to avoid them:
Choosing an Unavailable Name: Always conduct a name search to ensure your company name is unique.
Incomplete Documents: Double-check that all company registration documents in Kenya are complete and accurate.
Ignoring Tax Obligations: Registering with KRA is mandatory to avoid penalties.
Not Seeking Professional Help: The process can be complex, so consider working with experts like Chepchieng and Company Advocates to avoid errors.
How Long Does Company Registration in Kenya Take?
The registration fees and timeline for registering a company in Kenya depend on how quickly you submit documents and whether they’re correct. Typically:
- Name Search: 1-3 days.
- Company Registration: 1-2 weeks.
- KRA PIN Application: 1-3 days.
Company registration in Kenya takes about 2-3 weeks if everything goes smoothly. Delays often happen due to missing documents or payment issues, so working with a firm like Chepchieng and Company Advocates can speed things up.
Company Registration for Foreigners in Kenya
If you’re a foreigner looking to register a company in Kenya, the process is similar, but there are additional requirements:
At Least One Local Director: You’ll need a Kenyan citizen or resident as a director.
Work Permits: Foreign directors may need a work permit.
CR12 Form: This confirms the company’s directors and shareholders.
The business registration requirements for foreigners in Kenya can be tricky, so we recommend consulting with Chepchieng and Company Advocates to ensure compliance.
Why Choose Chepchieng and Company Advocates?
Navigating company registration in Kenya can feel overwhelming, but you don’t have to do it alone. At Chepchieng and Company Advocates, we specialize in helping entrepreneurs like you with:
Name Searches and Reservations: We ensure your company name is unique and available.
Document Preparation: We handle all company registration documents in Kenya to save you time.
KRA PIN Applications: We guide you through registering a business with KRA in Kenya.
Ongoing Support: We’re here for the long haul, from tax compliance to business permits.
As one of the best lawyers in company registration in Kenya, we’re committed to making the process smooth and stress-free. Contact us today to get started.
FAQs
How long does it take to get a company KRA PIN?
It takes about 1-3 days to get a KRA PIN for your company after submitting your application on the KRA iTax portal with all required documents.
How much is the KRA registration fee?
There is no fee to apply for a KRA PIN during company registration in Kenya. However, you’ll pay other fees, like Ksh 150 for a name search and Ksh 10,600–30,000 for company registration, depending on your share capital.
What documents are needed for company registration in Kenya?
You need Form CR1, Form CR2, Form CR8, a statement of nominal capital, copies of IDs or passports, and passport photos for directors and shareholders.
Can I register a company in Kenya online?
Yes, you can complete company registration in Kenya through the eCitizen portal (ecitizen.go.ke) by submitting your documents and paying the required fees.
Why should I register my business with KRA?
Registering with KRA during company registration in Kenya
Final Thoughts
Starting a business is exciting, and company registration in Kenya is the first step to turning your dream into reality. Following the steps outlined above, you can register a company in Kenya and get a KRA PIN hassle-free.
Whether starting a small business or a private limited company, the process is manageable with the proper guidance.
At Chepchieng and Company Advocates, we support you every step of the way. From company registration requirements in Kenya to tax compliance for startups in Kenya, we’ve got your back. Ready to register a company in Kenya? Reach out to us, and let’s make it happen.
For more information, visit our website or contact us at info@chepchiengassociates.co.ke.
