To start a company in Kenya and run it, it’s crucial to register your company with the Registrar of Companies. This registration makes your company official and legal according to The Companies ACT 2015. This comes with many benefits including legibility and access to government tenders.
Why Registering a Company Matters if you Want To Start A Company in Kenya
To start a company in Kenya, the company officially comes into existence on a particular date, mentioned in the certificate of incorporation. The certificate of incorporation proves company’s existence. After registration, your company becomes a separate entity with rights and responsibilities.
How to Register a Company
To start, you need an e-Citizen account. Here’s how to get one:
- Visit https://www.ecitizen.go.ke/
- Click on “Create an account” in the top-right corner.
- If you’re a foreigner in Kenya, use your Foreigner Certificate number instead of a Kenyan alien number.
- At least one director must be a Kenyan citizen to access and submit forms on eCitizen.
Registering Online
You can now register your company online using the e-Citizen portal, avoiding the need to go to the Registrar’s offices. Payments can be made via mobile money or debit cards.
Requirements for Company Registration
After reserving a name for your company, you’ll need:
- Details about the company’s activities
- Full names, addresses, and contact info of directors and shareholders
- Identification documents like ID cards or passports
- Photos and KRA PIN certificates of directors and shareholders
- The company’s physical and email addresses
- Contact details for the company
The Registration Process
You’ll need specific documents:
- Articles and Memorandum of Association
- Form CR1 for Company Registration
- Form CR2 for Share Capital Company’s Memorandum
- Form CR8 for Director(s) Residential Address
- A Statement of Nominal Capital Shares
- A duly filled beneficial owners form (BOF1)
After Filing the Forms
Once all the forms are filled and submitted through the eCitizen portal, you’ll receive a Name Reservation Certificate and a Certificate of Incorporation after verification by the Registrar. This process usually takes 2 to 3 days.
7 Reason Why Hiring a Lawyer Might Be The Best Decision If you Want To Start a Company in Kenya
Hiring a lawyer when starting a company in Kenya is crucial for navigating the complex legal landscape. Here are seven important reasons to consider:
1. Expertise in Local Laws
Lawyers possess specialized knowledge of Kenyan business laws, regulations, and compliance requirements. This expertise helps ensure that your business operates within the legal framework and avoids penalties or legal disputes.
2. Navigating Legal Procedures
The process of registering a business involves various legal procedures, including filing documents and obtaining licenses. A lawyer can guide you through these intricate processes, ensuring that all paperwork is completed accurately and submitted on time, thus preventing costly mistakes.
3. Due Diligence and Risk Mitigation
A lawyer can conduct thorough due diligence to identify potential legal risks associated with your business venture. This includes reviewing contracts, assessing liabilities, and ensuring that all agreements are legally sound, which helps mitigate future risks.
4. Protection of Rights and Interests
An attorney acts as your advocate, protecting your rights and interests in all business dealings. They can help negotiate terms with partners or clients and represent you in disputes, ensuring that your voice is heard and your interests are safeguarded.
5. Customized Legal Strategies
Every business is unique, and lawyers can provide tailored legal strategies that align with your specific objectives. This personalized approach ensures that your business plan is legally viable and strategically sound.
6. Facilitating Negotiations
Lawyers are skilled negotiators who can help you secure favorable terms in contracts or agreements. Their experience in negotiation can lead to better outcomes for your business, whether dealing with suppliers, clients, or investors.
7. Saving Time and Reducing Stress
Starting a business involves numerous tasks that can be overwhelming. By hiring a lawyer, you can focus on core business activities while they handle the legal complexities, reducing stress and allowing you to concentrate on growth
Conclusion
Registering a company might seem complicated, but with online systems, it’s become simpler and quicker for Kenyan citizens and foreigners to start a company in Kenya.
The content is for general information only. You are at liberty to seek legal advice on the subject matter, Chepchieng & Company Advocates, we are more than simply lawyers; we are your partners in the journey for you to take appropriate steps towards setting up a company in Kenya. Do not hesitate to call us directly or WhatsApp through Phone number +254718724409 or email: info@chepchiengassociates.co.ke , chepchiengassociates@gmail.com
