Why You Should Register a Business in Kenya

Starting a business in Kenya offers many benefits, including financial independence, breaking away from formal employment to follow your passions and possibly higher earnings than being employed. Therefore, many people dream of starting various businesses, from small enterprises, partnerships, and limited liability companies to corporations.

Before you can start operating a business in Kenya, you’re required by the law to follow some legal procedures. One of these procedures is registering your business. This administrative process can be draining and time-consuming, especially for beginners. At Begabi, we handle all your business registration affairs so that you can focus on other aspects of laying a good foundation and growing your business.

Benefits of Registering Your Business

Establishing your business legally provides many advantages that can’t be overlooked. These include:

• Legal Protection: When you register a business as a separate legal entity, the law protects you from potential liability related to the business. This is especially true for limited liability companies (LLCs). You can enter into contracts, purchase property, and face legal charges without affecting your assets, savings, and reputation.
• Credibility: A registered company is more credible than an unknown enterprise. When you legally establish your business within the provisions of the law, you gain the trust of potential clients.
• Access to opportunities: Legal compliance gives you access to government and private sector opportunities such as funding, contracts, insurance, and banking services.
• Tax Compliance: Business registration goes hand-in-hand with tax compliance, which ensures your entity operates according to the law.

Types of Business Entities in Kenya

Kenya’s Business Registration Service (BRS) recognises at least seven legal business entities. These are:

Sole Proprietorship : This is a small business owned by one individual. It’s the simplest form of entity recognized under BRS and refers to the person who owns the business. This person is responsible for the debts of this business.

• Private Limited Company (LTD) : A company with 2 to 50 members whose ownership is divided into shares held by the members. Members of the public can’t subscribe to the shares of a private company, which provides limited liability to the owners.
• Public Limited Company (PLC) : This type of business is ideal for large corporations who wish to offer shares to the public and in turn raise capital publicly. It is owned by shareholders and managed by directors. The shares of such an entity can be traded publicly on a stock exchange.
• Limited Liability Partnership (LLP) or Company (LLC) : Both LLPs and LLCs offer personal liability protection to owners and members. However, the Articles of Association for LLCs are available to the public, while LLPs are completely private. LLPs are ideal for professional firms like law practices and consultancies, while LLCs are suitable for small and large ventures seeking flexibility and tax advantages.
• Limited Partnership : A partnership is formed by two or more individuals who share the profits and liabilities of that business. When a partnership is limited, it has one general partner with unlimited liability and a limited partner whose liability is limited to the extent of their capital contribution.
• Company Limited by Guarantee (CLG) : If you are a non-profit organization seeking to be identified as a legal entity, a company limited by guarantee (CLG) is ideal for you. Members are guarantors instead of shareholders, and their liability is limited to the amount they agree to contribute to the company’s assets.
• Foreign Company : As the name suggests, this entity is for foreign companies with branches or places of business in Kenya. Ready to start your business? Let us handle all the details as you focus on laying a solid foundation for your company.

How to Register a Business in Kenya

Business registration in Kenya involves several steps. These are:

1. Name Search and Reservation: The first step in starting a business is choosing a business name. You must conduct a name search to ensure that your desired name is available. The name should be compliant with relevant regulations. If the name meets these requirements, the next step is to reserve it so that you can carry on with the business registration.
2. Choosing a business structure: The type of documents you present for registration varies from one entity to another. Therefore, you must choose your business structure such as sole proprietorship, partnership, or limited liability company.
3. Document Preparation: Prepare the relevant documents based on your business structure, such as memorandums of associations (MOAs), partnership agreements, articles of association, KRA PIN certificate, and business name reservation certificate.
4. Submit Application via e-Citizen: After preparing all the necessary documents, the next step is to submit your application to the Registrar of Companies. This is also the part where you pay the required registration fees.
5. Issuance of Business Registration Certificate: The Registrar of Companies will review your documents to verify legal compliance. Once verified, a certificate will be issued to officially recognise your business entity.

Simplify Business Registration in Kenya 

While it’s possible to register your business in Kenya yourself, it can be a daunting affair, especially for larger business entities like private limited companies, limited liability partnerships and companies, public limited companies, and foreign companies. The paperwork alone can be time-consuming, taking up precious time better used to lay a solid foundation for your business operations.

If you’re looking to simplify the business registration process in Kenya, Begabi is your trusted partner in business registration services. We are a leading business consultancy firm in Kenya, offering expert guidance and support to navigate corporate and commercial legislation.

We provide a wide range of business services to get your business off the ground. Our goal is to empower you so that you can embark on your entrepreneurial journey with confidence and peace of mind.

With us, you have a team of professionals with in-depth knowledge of Kenya’s business regulatory landscape. We are your best bet for expert guidance and support, from comprehensive name searches and drafting compliance documents meticulously, to navigating e-Citizen.

Our streamlined business registration services will save you time, effort, and money. Wise business people leverage our expertise and extensive network with regulatory bodies to expedite company registration and compliance. With the business registration headache out of the way, you can focus on what matters, such as building and growing your business.

The best part? We don’t stop there. Begabi consultants provide ongoing compliance support to ensure your business stays on the right side of the law. These include tax compliance and regulatory updates.