Setting up a Business in Kenya

The Registrar of Companies is responsible for business registrations in Kenya. He/she issues certificates of compliance for foreign companies, certificates of incorporation for local companies and certificates of registration for sole proprietorships and partnerships. Firms must then obtain registration with National Social Security Fund (NSSF), National Hospital Insurance Fund (NHIF) and the Kenya Revenue Authority (KRA) . A business permit should also be obtained from the County Government depending on the business type.

• Starting a local company

  A local company is a company incorporated in Kenya. It may take the form of:

  1. A company limited by shares
  2. A company limited by guarantee
  3. Unlimited company

  The registration process for the various forms of local company is the same though the requirements and costs vary. 

  • Start a local company (online)

• Registering a branch of a foreign company
  Companies incorporated outside of Kenya can do business in Kenya by registering a branch. The registrar of companies issues a certificate of compliance once all the requirements have been met.

    
  • Register a branch of a foreign company (Online)

• Registering a business name (sole proprietor)
   Business name (sole proprietorship) is a business structure operated and owned by one person. The owner is the sole decision maker in the business and is liable for all the losses and returns of the business. In most cases it is usually a business structure for small and medium sized enterprises (SMEs).
  • Register a business name

• Partnership
  A partnership is a form of business structure between two or more people who have a common view of making profit. The level of financial risk in partnerships is less when compared to sole proprietors as any loss incurred is shared between all the partners. Since it also involves more than one person’s expertise, the chances of the business failing is also reduced. In addition, the formalities of registration (cost, requirements, duration) are minimal making it an attractive business structure.
  • Register a partnership

• Registering a limited liability partnership – LLP
  A limited liability partnership (LLP) is a unique business association provided for in the Limited Liability Partnership Act which combines the characteristics of both a company and partnership. Once it is registered, it gains a corporate legal entity different from its members and is able to own property in its own name. In addition, it is effective from a tax perspective as the partnership income is taxed in the hands of each partner.
  • Register a limited liability partnership
  • Conversion from a partnership to a LLP
  • Conversion from a limited company to a LLP

• Business name reservation

  The Company Registry requires that a name search be conducted and approved before the registration process of any local business. Business name reservations are done online through the e citizen portal.

  • Reserve a business name

• Business permit
  The various county governments in Kenya are responsible for issuing single business permits to the various business types operating within the counties.The type of business permit to be issued depends on factors such as the geographical location of the business, the number of employees,business type, activities of the business among others.
  • Unified business permit (Nairobi County)
    The unified business permit (previously known as the single business permit) is a permit which consolidates all the licences required for running a business within the county. It includes : a trading licence, a fire clearance certificate, an advertising signage licence, health certificate, and a food hygiene licence. All business entities ought to have a trading licence and a fire clearance certificate. Entities dealing with consumables must in addition have a health certificate and a food hygiene licence. An advertising signage licence is applicable for all entities with advertising signages (300mm by 600 mm or less). The unified business permit makes it possible for business people to apply for the different licences in one application without going to the different institutions to obtain them. The permit is valid for one year upon which an applicant ought to apply for renewal.
  • Renew business permit (Nairobi County)
  • Renew business permit online (Nairobi County)
  • Single business permit (Kisumu county)
  • Single business permit (Mombasa County)

• Access to Governmment Procurement Opportunities (AGPO)
  Access to Government Procurement Opportunities (AGPO) is a government initiative to ensure that youth, women and persons living with disabilities owned enterprises gain access to government tenders and contracts. Before the enterprises can access the government opportunities, they must register with the National Treasury.
  • AGPO for people with disabilities
  • AGPO for women and youth