Business Name Registration Requirements In Kenya
What is Business Name? A trade name, trading name, or business name, is a pseudonym used by companies that do not operate under their registered company name. The term for this type of alternative name is a “fictitious” business name. Registering the fictitious name with a relevant government body is often required.
In this article Dashboardlogins.com tries to answer the question by publishing the Requirements For Business Name Registration in Kenya
Below are the Requirements For Business Name Registration In Kenya
Kenya’s Business Registering Service has made company registration in Kenya easy for locals via the eCitizen portal. The platform allows individuals to carry out the entire process from name search to actual registration at your convenience. Getting a business formalized is essential to benefit from certain corporate and government protection.
There are four business entity structures Kenyan individuals and groups typically look to register in the country. These companies are categorized as follows
1. Private Company limited by shares: This type of company has a share capital and the liability of each member is limited to the amount, if any, unpaid on their shares. A private company cannot offer its shares for sale to the public and may not have more than fifty (50) members.
2. Public limited company: A public company has share capital and limits the liability of each member to the amount unpaid on their shares. It may offer its shares for sale to the public and may be listed at the securities.
3. Companies limited by guarantee: This type of company does not have share capital and its members are guarantors rather than shareholders. The liability of members is limited to the amount they agree to contribute to the company’s assets if it is liquidated.
4. Unlimited liability companies: This type of company has no limit on the liability of its members.
Company Registration requirements in Kenya
Registration, and by extension incorporation of both private and public companies follow the same procedure in Kenya. The necessary requirements for registration are;
1. Proposed Company/Business name
The proposed business name search is conducted to ensure it is not similar to an existing registered business. If approved, it is reserved for 30 days. BRS requires a minimum of 3 names to be submitted.
2. Objectives of the Business
This is essentially the business that the company is being set up to carry out. This business must be entirely legal and not against public policy.
3. Names of the Directors, contact details and email
For transparency and accountability purposes, KRA requires that the director’s information be indicated on the application for registration.
4. Proof of Identification
A valid and unexpired proof of identification must be provided for each director. A national identity card suffices for Kenyan citizens
5. Passport Photo
A clear and recent passport photograph must be provided for each director and officer of the company.
6. KRA PIN
All directors whether resident or non-resident are required to provide a Kenya Revenue Authority (KRA) Personal Identification Number (PIN) certificate copy to prove registration with the tax authority.
In addition, the following forms must be signed by all directors and submitted during registration
7. Form CR1 – This is the company registration form.
8. Form CR2 – This is the Memorandum of company with share capital
9. Form CR8 – This is the notice of registered address form and
10. Statement of Nominal capital by all Directors.
E-Citizen Kenya
The Kenya Business Registration Services Act 2015 aims to ease the operation of businesses in the country. Company registration processes are now online and must be done on the E-Citizen platform. Payment is made via electronic means such as mobile money, credit, or debit cards.
How much does it cost to register a business name in Kenya?
Kshs 950
| Service Offered | Fees | Time |
|---|---|---|
| Registration of Business name | Kshs 950 | 1 day |
| Limited Liability Partnership | Kshs 25000 | 1 day |
| Private Limited Company | Kshs 10650 | 3-5 days |
| Public Limited Company | Kshs 10650 | 3-5 days |