Many people prefer to register sole proprietorships in Kenya because of the misconception that the process is too long and hectic. But the truth is that the registration process is easy and fast if you have the correct information.
Get Your Documents and Information Ready
Before you begin the company registration process, you must familiarize yourself with the documents you will need. Having everything ready will ease the frustration of being sent back and forth by government officials. It will also enable you to finish everything within a shorter period.
- Kenyan National ID or a Foreigner Certificate of directors/shareholders
- Passport photos of directors/shareholders – measuring 5.5 cm by 5.5 cm and taken within the last six months
- Memorandum of Association – details the nature of the business
- Article of Association – contains the rules and regulations
- The proposed company’s location
- The company’s email address, postal address, and phone number
- Model memorandum
- CR 1 – Company Registration Form
- CR 8 – Company Directors’ Names and Addresses
- BN 6 – Statement of Nominal Capital Holdings
- PIN Certificate of shareholders/directors
Preparing yourself financially ensures that you do not get stuck before you finish registering the company. Knowing exactly how much you need allows one to plan better, start when you’re ready, and keep things rolling to the end.
- Passport photo – approximately Kes. 200
- eCitizen convenience fee – Kes. 50
- Single name search – Kes. 150
- KRA documents approval – Kes. 100 for each document
- Company registration fee – 10, 000
- CR 12 certificate – Kes. 600
It is worth noting that you no longer have to pay stamp duty when registering a company in Kenya. This was abolished in the Companies Act 2015. You can make payments via mobile money or through the bank.
You will need an eCitizen account to conduct a name search.Signing up is easy and fast, with the requirements being your ID number, email address, your name, and passport photo. After logging in, go to the Business Registration Service homepage.
Thereafter, you will pick a business type from the six options presented. You will then enter a business name of choice and wait for approval. Note that the name might be rejected if it is already registered or is too close to an already existing business name in Kenya. Once the name you choose is approved, it is reserved for up to 30 days.
Fill Out the Forms
Filling out the forms is the most tasking part of the process, but you can always ask for help. But here is a breakdown of the documents you need to fill.
Form CR 1
Some of the details you need to fill in this form include:
- The proposed name
- The nature of the company (private/public)
- The liability of members (limited by guarantee or by shares)
Form CR 2/3/4
If liability in the company is limited, its model memorandum is filled out in the CR 4 form. The model memorandum for companies limited by guarantee is filled in the CR 3 form. If your company is limited by shares, download the CR 2 form.
Form CR 8
This form requires information regarding the company’s directors. You will need to provide:
- The director(s) legal name(s)
- The official residential address of the director(s)
Note that the address required is not the P.O. Box type of address, but the home address. Also, the addresses of directors living outside the country are required.
Form BN 6
The Kenya Revenue Authority makes it mandatory for new businesses to indicate their capital holdings. It is simply the amount of capital the business possesses or the number of shares the capital holdings are divided into. You will capture this data in form BN 6.
Submit the Forms
Once you have filled out the applicable forms for the company, it is time to finalize by putting together all other required documents and paying the registration fees. Remember to attach the memorandum of association and the article of association, which a Kenyan lawyer can help you prepare.
The documents should be enveloped and addressed to;
The Chief Registrar of the Judiciary,
Supreme Court Building,
P.O BOX 30041 – 00100,
The process is simple, and your company can be incorporated within 21 days. You can track the progress through your eCitizen account, and once everything is approved, you can download the business certificate and begin your business operations in Kenya.