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Starting a business in Kenya needs you to find the procedures and processes needed to start. Most people find these processes are hectic as there are many risks and uncertainty involved. Not forgetting con men, targeting you as an opportunity to rip you off with exorbitant fees . These conmen often claim to help you with the company registration but you can do it yourself.

We've put together a list for you with the procedures, average costs and expected time required to follow and complete to fully own a legally operating business in Kenya. We've also added the required documentation from the relevant authorities that you may need.

Reserve a business name through the eCitizen Portal.

Government Agency: Business Registration Service (eCitizen Portal)

Here, the name reservation is regulated by the Companies Act 2015 (Part V, Section 48). The Business Registration Service as of December 2016,has made it is easier to reserve company names . How you may ask? Through making it mandatory to use the online name reservation system on eCitizen.

A unique name ensures when starting a business in Kenya that you are singly identifiable. Why do you need to be uniquely identifiable? Because several other near-same business names in exact same niche may have the name.

You can search and reserve company names online. After you submit the name search and reservation application, making payment via mobile money is the next step. After which you receive a confirmation of the name reservation within the same day.

The name is reserved for 30 days and can be extended to a maximum period of 60 days from the time of reservation. It takes about 2 days on average and costs about KShs. 100 (for name reservation) and KShs. 50 (convenience fee).

Apply for Company Registration, PIN, NSSF and SHIF

You are required to submit the application for registration of a company on the eCitizen platform. Entering the details of required information completes the process on the platform.

You have an option of adopting the model Articles of Association provided under the Companies Act 2015. You may also supplement or modify the model Articles of Association and provide these for purposes of registering the company.

What are the Payment and Forms Generated for a Business in Kenya

Once the payment for the registration of the company is made, which is done online using the stipulated payment methods, the following forms are generated. These are the payments methods allowed; mobile money payment, debit/credit/prepaid cards, local bank transfer and E-citizen agents.

The following forms are generated by the online system:
a. Details of the First Directors, Secretary and Authorized Signatory of the Company-This needs to be signed by all the first directors, secretary and authorized signatory of the company
b. Form CR 2 (Memorandum and Articles of Association)-To be signed by all the subscribers to the shares of the company
c. Form CR 8 (Notice of Residential Address/Change of Address of Director of a Company)-This form is to be signed by the applicant
d. Statement of Nominal Capital-This is to be signed by any of the first directors of the company.

Forms should be downloaded and signed as required and scans of the signed forms uploaded into the system.

Note that application for registration of a company will be considered complete when all the above mentioned forms are scanned back into the system.

The application will then be reviewed by the Registry officials and if it is in order. A Certificate of Incorporation together with an Official Search shall be generated online.

According to the Official Gazette Notice Legal 61 published April 2016, there is a flat fee of KSh10,000 for registering a new company.

The fee for using the online system is currently KSh50 and the fee for completing the check/search fee at the end of the incorporation process is KSh600.

This whole process on average can take 14 working days.

How to Register for VAT and Pay As You Earn (PAYE) Income Tax

Government Agency: Kenya Revenue Authority (KRA)

Registration is conducted online through KRA online services portal. Once the company is registered, you are required by the VAT Law to display the registration certificate in a clearly visible place within the business premises.

Companies must register for VAT and the Pay As You Earn (PAYE) Income Tax.
According to Section 34 of the VAT Act 2013, any person who in the course of a business has made or is expecting to make taxable supplies the value of which is Ksh5,000,000 or more in any period of twelve months must be registered for VAT.

Failure to do so will result in a default penalty of KSh20,000. In addition the company shall be guilty of an offence and liable to a fine not exceeding KSh200,000 or imprisonment for a term not exceeding two years, or both.

Under the Income Tax Act Cap 470, where a person has employees, they are required to deduct tax due from any remuneration paid to their employees (PAYE tax) and remit this.

All employers are thus required to register for PAYE once they have employees. The applications for VAT and PAYE can be both completed at the same time.

This process can take an average of two days and is FREE of charge.

Apply for a Unified Business Permit in Nairobi County

Government Agency: Nairobi City County

The Nairobi City County introduced a new unified business permit(UBP) online in order to make it easier and simpler for applicants to obtain a business permit. The unified business permit consolidates 5 permits i.e., the single business permit, fire clearance certificate, advertising signage, health certificate and food hygiene into one permit.

Applicants apply for a unified business permit online, with an option to make payments online. They can also access it from Nairobi eservices app from playstore.

An assessment of the payable fee for the trading license can only be done at the agency (Nairobi County). Only after the assessment has been done can an invoice be generated and paid online. You can also go in person to submit the application for the unified permit. You then obtain the provisional unified business permit and can display it at your business premises.

The costs associated with the unified permit are: KSh15,000 single business permit fees (though it can be varied based on the size, type of business and number of employees), KShs200 application fee and KSh4,500 for the inter alia- a Fire Clearance Certificate. Time needed is based on applicant’s zeal to meet all the set application requirements at an average of 5.

Register With the National Industrial Training Authority (NITA)

Government Agency: National Industrial Training Authority (NITA)

The Legal Notice No. 113 of 2007 made it a mandatory requirement for all employers to register and contribute to the industrial training levy (charged at KShs. 50 per employee per month).

You must complete the application form and attach the necessary documents. These supporting documents are as follows:

1. Employer’s KRA PIN Certificate
2. The Employer’s Certificate of Incorporation.

There is no application fee for registration with NITA. The application and supporting documents are submitted to NITA physically at the NITA headquarters in Nairobi.

All documents submitted along with the application form shall be certified by NITA as true copies of originals.

Make A Company Seal

Agency: Find Your Own Sealer Maker

The requirement for companies to obtain a company seal has been made optional as a result of passing the Companies Act, 2015. However, in practice companies still get seals made. Seal makers request a copy of the certificate of incorporation in order to make a company seal.

Costs range between KShs. 2,500 and KShs. 3,500. It can take an average of 2 days; sometimes same day deliveries are possible.

Register the Workplace with the Directorate of Occupational Safety and Health Services

Government Agency: Directorate of Occupational Safety and Health Services (DOSHS)

The purpose of the Occupational Safety and Health Act 2007 is to provide a legal framework to promote, stimulate and encourage high standards of safety and health in the workplace.

As such employers must:
• Prepare and, revise a written safety and health policy statement for the workplace giving consideration to the organization and arrangements for carrying out that policy;
• Notify employees any revision of the policy statement;
• To establish a safety and health committee in the workplace where there are twenty or more persons employed in the workplace;
• Not to penalize an employee who is a member of a work place safety and health committee for doing anything in pursuit of safety and health;

A company must obtain a Certificate of Registration of a Workplace from the Directorate of Occupational Health and Safety Services in respect of each of the premises used by the company as a workplace.

This process can get done within 1 day and the fees paid is KSh5,000.

Read Also: Fees of services offered depending on company registration type

With all the above documents, one can now be assured of starting a business in Kenya. This should kick start your business with no issues with the legal officers in Kenya.

We have compiled some business Ideas and detailed description on how to start one that might interest you. See:

1. How to Start a Cyber Business in Kenya
2. Starting Agency Banking Business in Kenya
3. How To Start a Chemist in Kenya
4. Starting a Bookshop in Kenya