Company registration in Kenya is done online through the e-citizen portal. The company registration services in Kenya is provided by the registrar of companies through the business registration system.
follow the following procedure to register your company in Kenya today.
1.Create an e-citizen account
You must have an e-citizen account to access government services. To create an e-citizen account, you require your national id, email address, passport photo, and your phone number.
2. Reserve a unique company name using e-citizen
The Companies Act, part V, makes provision for company names. Ideally, Applicants can search and reserve company names online on e-citizen.
Upon applying, one makes payment via mobile money and receives 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 is important to note that the application for reservation of a name can be rejected if it is similar to an existing name, is offensive or fails the desirability tests
Important: Always make sure you also conduct a trademark search to ensure that your name does not infringe on an existing trademark.
3. Apply and pay for the registration of the company
In this case, the Applicant should fill in the details in the fields on e-citizen. One is required to supply the following information:
- Articles of association
- Registered office address
- Share information
- Ownership information
The Applicant can either adopt the model articles of association provided under the Companies Act or modify the articles as he deems fit.
Next, the Applicant pays the prescribed fee (usually a KES 10,000 (registration fee) + KES 600 (CR2 or company search fee) + KES 50 (convenience fee). This can be done through mobile money, credit card, or any other stipulated method.
Upon payment, the platform generates the following forms:
- Details of the first directors, Secretary and Authorised Signatory of the Company: This form needs to be signed by all the first directors, secretary and authorized signatory of the company
- Form CR 2 (Memorandum for a company with a share capital): This form is to be signed by all the subscribers to the shares of the company
- Form CR 8 (Notice of Residential Address/Change of Address of Director of a Company)-This form is to be signed by the applicant.
- Statement of Nominal Capital: this is to be signed by any of the first directors of the company
One is required to download the forms, sign them, and re-scan them back to the system. The Registrars at the Company registry will consider your application and if successful, one is issued with a certificate of incorporation.
The certificate of registration/incorporation will be downloaded online on the e-citizen platform after approval by the registrar of companies.
4. Tax Requirements
Income from businesses is taxable under the Income Tax Act. Similarly, the Tax Procedures Act requires companies to register for a company pin. Remember, a pin is required for the filing of returns.
To apply for a pin, a company must have the following documents:
- Copy of Certificate of Incorporation.
- Copy of CR12.
- Copy of Memorandum and Article of Association (optional).
- Copy of PIN Certificate for one of the company’s directors.
- Email ,mobile number and postal address for company
Pin registration is done online via iTax. The procedure is as follows: Visit iTax; Select “New PIN Registration”; Fill the online form appropriately; Submit an online application.
NOTE: Upon completion, you will receive an acknowledgement receipt
A follow-up email will be sent to you with either further instructions on where to present the required documentation for verification or a PIN certificate.
Under the Value Added Tax Act, any person whose business is expected to/makes taxable supplies worth KES 5,000,000 for any period up to twelve months to apply for a VAT.
Under the Income Tax Act Cap 470, an employer is required to deduct Pay As You Earn (PAYE) from an employee’s remuneration.
As such, all employers are thus required to register for PAYE once they have employees.
Note: One can complete the applications for VAT, PAYE and corporate tax at the same time.
6. National Hospital Insurance Fund
Under section 16 of the NHIF Act, an employer has the obligation to make statutory deductions from the employee’s salaries and remit them to the board. However, for this to happen, one must apply for NHIF employer registration.
The employer is required to submit the following documents online:
- The employer’s registration form; (this document is easily accessible from the NHIF’s website.)
- Certificate of registration;
- Pin certificate.
Upon successful registration, one is issued with an employer’s code.
7. Social security registration
Under section 19 of the NSSF Act, every employer, who under a contract of service, employs one employee or more shall register with the Fund as a contributing employer and shall, register his employees as members of the Fund.
To register a company under NSSF, one is required to complete the NSSF employer’s registration form and attach a certificate of incorporation, registration of the business name, and a trading license. After successful registration, one is issued with an NSSF certificate of registration.
contact ocl business associates for company registration in Kenya today