Business Registration

According to the Business Registration Act of Kenya 1995, any firm doing any business activity in the
view to make profit must be registered with a unique name to the government registrar. The name can
either be from the surnames of the partners or completely different. The registration process requires
certain steps to be followed. Depending on the nature of the business, the cost of registration may vary
with the physical location of the business.
1. Apply for business name reservation
In other terms this is known as doing a name search for the business. This can be done from the
comfort of one’s location through the E-Citizen portal or from the Huduma Centers. It is advisable to
make a reservation of three names at a cost of Ksh100 each. The search takes about 3 working days to
be confirmed after which a business name approval letter is issued by the registrar.
With this approval letter the firm can commence its activities under a reservation that only lasts up to
30 days after which a renewal of the same is done. However, after obtaining the name approval letter,
the business name need to be registered.
2. Business name registration
This is done after obtaining the name approval letter, preparation of the business memoranda and
article of association and understanding in case of two firms involved in the same business, the
business constitution and a statement of nominal capital. These are then presented to a magistrate for
a stamp duty at no cost.
These documents together with identification cards of the directors of the company and the directors’
PIN certificates are then presented to a business registrar to apply for the business registration. An
assessment of the particulars is done and an application form is filled. A registration fee of Ksh10,000
is to payed after which a payment receipt is issued.
The application for registration remains with the registration for approval after which a certificate of
incorporation is issued. The is done after a maximum of 21 working days. The certificate of
incorporation indicates the formal formulation of the business and ensures a smooth running of the
business. It is also advisable for the business to obtain a company seal to be used as a signature of the
company.
3. Obtaining a Business Permit
A business permit is an official document that gives license to the firm to conduct any business
activity as described in the article of association. The business permit is binding to all the firms
involved in the business registered.
The certificate of incorporation obtained in the forgoing step, identification cards of the directors, and
the company’s PIN certificate is presented to a registrar. An application for a business permit is done
by filling an application form. This indicates the category of the business and a physical address of
the business. An application fee of Ksh15,200 is payed at the counter in the registrar office. A
business permit which is also the business license is issued after a single working day.
With the memorandum of understanding being binding between the firms in partnership in a single
business for the aim of making profits, a single business permit legalizes the business activities both firms
carry out under the same business name. The activities, however, need to be described in detail in the
article of association before application of a certificate of incorporation.