To register a business in Kenya you have to weave through a set of procedures that are, unfortunately, not in ‘one-stop shop’ arrangement. Her business simplifies and lists 10 steps so you can get your business registered and running.
Reserve Company Name
You can reserve a name for your private company at Huduma Center. The reservation lasts 30 days but can be extended on application. This step takes only 1 day to complete and will set you back only sh.100.
Memorandum and Articles of Association Assessment
Kenya Revenue Authority (KRA), through Stamp Duty Office, will assess the memorandum of association and articles of association documents. When this is completed, you will make payment to a bank designated by KRA. This service is also available at Huduma Center. You will be required to pay 1% of nominal capital and sh.2000 on stamp duty on the documents.
Pay for Stamp Duty
You will make a sh.110 payment at Huduma Center or a KRA designated bank as Stamp Duty fee. The service is available at Huduma Centre if your stamp duty amounts to a figure below sh.80,000.
Receive Stamped Documents
You will set aside another 1 day to go to Huduma Center to receive the memorandum and articles of association stamped. There is no charge for this service.
Sign Declaration of Compliance
An advocate involved in formation of the company will sign the Declaration of Compliance before a commissioner of oaths. Alternatively, the company director or secretary can sign this. This form is submitted to the Registrar of Companies along with the prior documents. It’s a 1 day process and will cost sh.200.
Register with Registrar of Companies
This procedure takes 12 days to see through. You will be required to submit the following documents:
- Incorporation deed
- Stamped memorandum and articles of association
- Statement of capital
- Notice of Situation of Registered Office
- Particulars of Directors and Secretary
- Declaration of Compliance with Company’s Act
- Copy of company name approval
Expect your bill to total out to sh.9280.
Register for Taxes
PIN and company tax identification number are required to register for VAT, local service tax and PAYE. You can do this online but only after submission of certificate of incorporation and reception of log-in details. It’s a 1 day process under KRA’s jurisdiction. There is no charge.
Application for Business Permit
Register for a permit through the Municipal authorities. The charge will depend on the size of premises and location of the business. The more favourable things are the more you should expect to pay. It takes 5 days to complete.
Register with NSSF and NHIF
Your company must register with both the National Social Security Fund (NSSF) and the National Health Insurance Fund (NHIF). They are both free of charge and take only 1 day respectively to complete.
Company Seal
Heavy breathing, your company is almost set to go. You can have the company seal made even as you go ahead with the previous step. Just make sure to avail a copy of the certificate of incorporation to the seal makers. You will wait only 2 days and pay something ranging from sh.2500 to sh.3500.
Now go ahead and register a business in Kenya.