How to Open a Business in Kenya

Opening your business in Kenya requires planning.

Opening a business requires much planning. In Kenya, staring a business is straightforward. After determining the company that will be created, the next step is to register it with the Registrar General and the Kenya Revenue Authority (KRA). After that, you are open for business and only need to complete a few additional tasks.

Things You'll Need

• Potential business name
• Funds to pay processing fees

Instructions

1. Determine a potential business name and apply for approval. Go to the Registrar General's office, complete the name approval form and pay a processing fee of 100 Kenyan Shillings, or KES, (approximately $1.26 USD). If approved, the name will be reserved for 30 days. The company will also receive a document indicating approval.

2. Pay a stamp duty to begin the registration process. This can be achieved by visiting any Kenyan bank and informing a teller that a stamp duty is needed to register a business with the KRA. This process will take one day and, as of 2010, will cost 2,005 KES (approximately $25.29 USD) plus 100 KES as a bank commission. A document indicating payment of the stamp duty will be issued.

3. Submit all necessary incorporation documents to the KRA. These are the company's Memorandum and Articles of Association and the Statement of Nominal Capital. The Memorandum and Articles of Association is a legal document which is best prepared by a lawyer. Each clause of the document describes elements of the business, such as whether it is a limited liability company, a sole proprietorship or another business structure, in addition to other information.

4. Notarize the Declaration of Compliance (Form 208). The lawyer hired to finalize registration, a company director or the company's secretary must sign it in the presence of either a Commissioner of Oaths or a Notary Public. The fee is 200 KES (approximately $2.52 USD), as of 2010.

5. Register the business with the Registrar General by submitting the stamped Memorandum and Articles of Association, the stamped Statement of Capital, Notice of Situation of Registered Office (Form 201), Particulars of Directors and Secretary (Form 203), Declaration of compliance with the Companies Act (Form 208) and a copy of the company name approval. All forms are available at the Registrar General's website. This costs 5,893 KES (approximately $75.33 USD), as of 2010. The Registrar General will issue a certificate of registration. Use the certificate of registration to make a company seal, which may be used on all formal business documents. The cost will range between 2,500 to 3,500 KES (approximately $31.54 to $44.15 USD) and can be completed within two days by a seal-making company.

6. Register with the KRA's Tax Department for tax purposes by submitting the certificate of registration, and a copy of the Memorandum and Articles of Association. Once completed, the business will receive a company identification number, which is also known as the PIN. Also, apply for a business permit by visiting the local city council. If opening a business in Kenya's capital, Nairobi, then submit your application to the Nairobi City Council, Licensing Department.

References

• doingbusiness.org: Starting a business in Kenya details
• Republic of Kenya The State Law Office: Requirement for Registration of Limited Companies
• Republic of Kenya The State Law Office: All Forms
• Kenya Revenue Authority: Income Tax Department
• Kenya Revenue Authority: Key Stations (Addresses)

Resources

• Kenya Investment Authority: Home
• Republic of Kenya The State Law Office: Business Names