WHAT ENTAILS COMPANY REGISTRATION IN KENYA
Government operations of Kenya are highly digitized. Where all business registrations are done online. If you visit the Huduma Centre, you will be asked to do the registration online eg including business registration, are done online through the E-citizen portal. Where all government services are found, you start by creating an e citizen account then log in to government services and click on registration. The set of regulations required by registrar of companies for company incorporation in Kenya or in other words Company formation in Kenya for Public, Private and Foreign Company Registration in Kenya and Sole proprietorship be legally registered are contained in the New Companies Act 2015 of the laws of Kenya. The ACT also provides on how to register a sole proprietor company in Kenya. Steps to follow which al these can be done online through Huduma Centre E-citizen account
1. Business Name Search and E-citizen business registration
The applicant shall be required to search the desired name at the Registrar of Companies in Kenya. The Registrar will issue the applicant with a letter confirming that the name is available for registration. Business registration search in Kenya usually takes about 2 days
2. Memorandum and Articles of Association
The applicant will be required to draft the Memorandum and Articles of Association which will set out the objects of the company and the internal constitution of the company. OCL ASSOCIATES will help you prepare Memorandum and Articles of Association documentation for you
3. Stamp duty Payment
Once the Memorandum & Articles of Association are prepared, we will lodge the documents with the Kenya registrar of companies. There is no payment of stamp duty under the new companies ACT 2015.
4. Online Company Registration in Kenya forms
We will forward the documents to the Registrar of companies in Kenya together with these company registration forms.
- Form CR 1- a signed Company registration form (CR 1). Application to register a company including the proposed name (as reserved), the registered office, liability of members (whether limited by shares or by guarantee), the type of the company (if private or public) and the name, consent of the initial director and secretary of the company. The form combines the application for company registration, KRA PIN, NHIF, and NSSF registration.
- Form CR 2 – Model of Memorandum for Company with share capital.
- Form CR 6 – covers the particulars of the company director
- Form CR 8 –Notice of residential address of Director or change of Address of Director of Company
- Form CR 10 – Notice of appointment of Secretary or Secretary’s particulars. This only applies to Companies with more than 5 million Kenya shilling in Nominal share capital.
- Statement of Nominal Share capital form.
TYPES F COMPANY REGISTRATON IN KENYA
You may be wondering types of companies and which one to choose. There are two types of company’s limited and unlimited companies
Limited company allows an entrepreneur to keep their own assets and finances separate from the business itself. This means that people who have invested in the business (the shareholders) are only responsible for any company debts up-to the amount that they have invested and no more. It is therefore a good way for a business to get investment without risk to a personal wealth. Companies may be limited by shares or guarantee.
Unlimited companies there is no limitation on the liability of members to pay the debts of the company and the members are jointly and personally liable for the debts in case of winding up. However such companies are rarely incorporated nowadays but they may be necessary
- Where the risk of insolvency is small; or
- The company is to operate in a field where limited liability is frowned upon; or secrecy in relation to financial affairs is important; or where it can be foreseen that reductions in capital may become desirable.
The current Companies Act, Cap 486, allows the incorporation of both public and private unlimited companies by virtue definition and also re-registration of an unlimited Company as a limited company.
The new Companies Act, No. 17 of 2015 retains this type of companies although with restrictions on the exemption to file annual returns with the Registrar. Further, only unlimited private companies may be formed under the new Act. There are procedures for conversion of a private limited company to an unlimited private company or vice versa and for conversion of a public company to an unlimited company
Requirements of registering a limited Company in Kenya
Company registration requirements are as follows in Kenya according to Kenya ACT2020:,
- Proposed names for business name search and reservation
- Address of the proposed L.L.C including LR Number
- What the company will be doing and main objectives of the Company.
- If any of the directors are foreigners then a Kenyan director and shareholder is needed.
- Copies of Identification cards of all the Directors or passports in case of foreign directors
- PIN, Certificate copies of all the Directors
- Passport size photographs of all local Directors. This is not applicable to foreign directors
- Percentage of the shareholding for each director
ADVANTAGES OF REGISTERING A COMPANY IN KENYAs
Many businesses in Kenya are not registered. Statistics show that more than 80 percent of businesses in Kenya are Small Medium Enterprises (SME) but more than 60 percent of them are not registered as companies. This is because most people still think that registering a company is a “rich man’s affair.” Registering a company in Kenya is no longer a matter of how much money one has but the interests that one hopes to achieve. Because the rules and regulations governing the registration of a company in Kenya have been made easier, and it is now a more affordable process
- Business will appear credible when bidding for tenders and signing contracts.
- It is less expensive to borrow finances to expand the business due to great borrowing power when one has a registered company.
- Legal protection that separates directors from their individual finances if the company goes under.
- An exit of a shareholder does not terminate a company as is the case in partnerships and sole proprietorships. Hence helps in continuity of the company life’s
- Improves management as a company is governed by directors who are agents of the shareholders. responsibility of ensuring the business is run well lies with the directors
- Ease of staffing during a start up’s initial stages; there is usually no need for staffing. However, as the company grows, the business may need to hire one or more individuals to run the day to day activities. A company, as a legal entity, is able to hire. With its own KRA PIN and bank account, t
Where to register a company in Kenya
Today’s registering a company is digitalized ,where you can register a company online through e citizen account by following and having the documents we specified earlier ,this should not worry you because we help you in all these steps t favorable discounted prices and with a short period of time
contact ocl business associates for company registration in kenya today