Cost of Registering a Company in Kenya

URL Magazine

Regardless of where you are from, there is a good chance that you have heard of or have some knowledge of Kenya. With more than 60 different languages spoken by over 40 ethnic groups; the nation of Kenya is one that fascinates a lot of fun and adventure seekers.

Ethiopia, Somalia, Uganda, Tanzania, and South Sudan are all neighbors of Kenya in East Africa. It is a varied nation with a wide range of environments and civilizations. Kenya is renowned for its wildlife and safaris, beautiful beaches, and energetic towns.

Grassy savannas, little lakes, snow-capped mountains, the Great Rift Valley, and golden coastlines are just some of Kenya's innumerable scenery variations that come together in one exhilarating, warm package. Nairobi, the vibrant capital of the country, and the location of the gorgeous Nairobi National Park is a common site to begin.

Kenya has long been regarded as a desirable travel location. With over 2 million visitors each year, the nation has long ago made accommodations for international visitors and can now provide not just magnificent natural beauty but also all other conveniences. These beautiful attractions have also made the country a viable option for business development.

But if you're curious about what it costs to launch a business in Kenya, this article will give you some crucial information on what you'll need and how much it'll probably cost.


What Does It Take to Register a Company in Kenya?

The procedure of registering a company name in Kenya is a vital one if you want to fulfill the entrepreneurial dreams of many Kenyans.

It's crucial to complete this step correctly since you'll be joining some of the 100,000 small enterprises that are formed each year in Kenya. Surprisingly, more than 60% of SMEs in Kenya are not registered, according to statistics.

About registering their firms, people continue to have misconceptions. They assume that only already successful business owners are able to afford the pricey, time-consuming process.

If you don't know where to begin, company registration in Kenya can be a scary experience as well as one that is exciting and gratifying. Here is a summary of the procedures involved in Kenyan company registration to assist make the process simpler for potential investors.

The rules and laws regulating business registration in Kenya have changed during the last few years. They have reduced the cost and eased the process. This suggests that there is no longer a requirement for at least two directors and that anyone in Kenya can create a firm.

Prior to now, you had to physically provide documents to the registrar of businesses after going through lawyers. But now you can do it online through the government's eCitizen portal or by going to any Huduma center nationwide.


The Various Business Types in Kenya

When trying to conduct our company registration in Kenya, you have the following possibilities: a sole proprietorship, a partnership, an LLC, a branch company, or a corporation limited by guarantee.


1. Single-Ownership Businesses

Kenyans who want to run a small business under a name other than their own frequently register sole proprietorships or business names.  There is a significant risk of losing personal assets in the event of an accident because there is no legal separation between the owner and the firm. As a result, all duties fall on the owner.


2. Partnerships

In a partnership, two or more people pool their resources to manage a business. Since all obligations are borne by individual partners, partnerships are identical to sole proprietorships when it comes to business registration.


3. Limited Liability Partnerships

Limited liability partnerships may be registered under the new companies act. The general partnership's design is identical; the only distinction is that the partners' liability is restricted, lowering their exposure.


4. Private limited company registration in Kenya for limited liability firms

A limited liability corporation (LLC) is the most common kind of business entity in Kenya since it is simple to set up, compliant, and protects the owners from personal liability. The New Firms Act permits limited liability firms to have sole owners. An LLC may have either natural or legal owners who are Kenyan or international citizens.


5. Foreign company registration in Kenya through branch companies

By registering a branch of their international company in Kenya, foreigners seeking to conduct business in Kenya can do so. A branch business will be viewed as a foreign entity and will therefore face different taxes and regulations than an LLC created by foreign owners in Kenya.


6. Limited Liability Companies

These are formal organizations that are often put up to act in a nonprofit capacity.  The organization benefits from all of a legal person's rights in Kenya.


Registering a Company Name in Kenya:


Step 1: Select An Original Company Name.

The public will learn about your business through its name, thus it is crucial. It is essential to choose a name that is simple, pronounceable, and memorable for this reason.

Your company name needs to reflect your brand or what you sell. It shouldn't be too close to a rival's name because doing so would likely confuse your clients and cause you to lose business with them.

By all means, refrain from bringing up your name, particularly if it doesn't relate to your business and won't signify anything to your clientele.

Your name needs to be adaptable. It ought to be able to help you grow your company. If you sell clothing, you might eventually start selling shoes and other accessories as well. Make sure your name can embrace the development of your company over time.

Make sure the name you select is accessible and not already in use. This is crucial, especially if you intend to have a presence online (which you really should!).

Avoid employing acronyms in the name of your company since you risk confusing potential clients.


Step 2: Access the eCitizen Portal.

You must register your name on the eCitizen site as soon as it is ready. Log in at the eCitizen portal by going there. If you don't already have an account, you must register and adhere to the instructions on the page.

To confirm it, be sure to click the link that was sent to your email address.

The procedure is really easy to understand. Take these actions:

- Please enter your names exactly as they appear on your ID.

- Type in your ID number.

- The address of your email.

- Type your phone number here.

- By clicking the link supplied to your email address, you can activate your account.

- For your eCitizen account, create a password.


What Would It Cost in Kenya in 2023 to Register a Company Name?

A variety of factors including the nominal capital and the sort of business you intend to register, the government fee for company registration in Kenya ranges between $ 10 and $ 250.

You must pay Ksh. 950 for it.

You will receive a receipt for your payment once the cost of filing has been paid. Remember that you have the option of sending payments via the internet gateway or straight to the bank.

They accept payments through M-Pesa. Just adhere to the guidelines.

Prepare the necessary files for uploading. The pre-registration documents must be prepared, signed, and uploaded to the website as a scanned copy for processing. These documents include passport pictures, copies of the business owners' national identification cards, and KRA PIN certificates.

Send in the original copies of all of your paperwork. After registering, you will receive feedback within 1-2 working days.


Step 3: Save A Copy Of Your Certificate Of Incorporation.

A notification will be sent to your registered email once your business registration is complete. Check the status of your company by logging into your eCitizen account.

A certificate of incorporation will be given to you, proving that your company is now officially registered under the name you specified. Information about the registration date is also included.

Save this incorporation certificate to your computer. It serves as confirmation that your company is legitimate.

This certificate is required for all official business transactions, such as signing contracts, creating a business bank account, requesting funds, submitting bids, and more.


Step 4: In Kenya, Safeguard The Name Of Your Company.

Now that it has been registered, your business name is your property, and you must keep it safe. Many ambitious entrepreneurs are searching for a catchy company name for their own ventures, so if yours is not taken, you risk losing it.

Take the following steps to safeguard the name of your company:


- Purchase a Domain Name.

An online address is a domain name. When people search for you online, it makes it easier for them to find your company. They will type it in to search for your company.

You must buy one if you want to safeguard the name of your company. This is so that nobody else can use your domain name once it is active. A domain name belongs to a specific company, and it cannot be taken by another company.

The best domain names are brief—say, 6 to 14 characters long. They take up less space on marketing materials, are simpler to read, and stick in visitors' memories better.

Avoid using hyphens and digits in your domain name, and make it distinctive.

Select a reputable domain registrar that has been approved by the Communications Authority of Kenya or ICANN before purchasing a domain name in Kenya. Some of these include Godaddy, Bluehost, KenyawebExperts, DeepAfrica, Creative Kigen Cloud HostPoa, etc. Check the availability of your domain name using a domain availability checker tool.

Simply enter your domain name into the site's search bar to get started. You will be informed if your name is available and if not, they will propose names that are close to your preferred name.

You can pick one of these or look for a different name. If your preferred extension, such, is not available, you might consider .net, .org, or any other extension you believe will work for you.

Once you find the domain name you like, buy it and finish the registration. It will be necessary for you to input your contact details.


- Create accounts on social media

Using your company name while creating social media profiles for your business is a terrific method to protect it. Once you've done it, no one will use your name to make them.

Utilizing business social media accounts allows you to track users and posts to learn what material users are engaging with. In addition, you can use paid and promoted posts and advertisements, which are unavailable through your personal account.

To set up social media accounts for your business so that all of your notifications are gathered in one place, you will need a business email address.

This suggests that if you need to provide a personal assistant, social media manager, or employee access to your social media accounts so they can administer them on your behalf, you won't need to give them your personal email address.

You are not required to create accounts on every social networking platform. Selecting only a couple that are pertinent to your industry is sufficient.

You must carefully understand the specific requirements because each social channel has a separate set of guidelines. You only need a logo, a photo, and some basic business information to start up each channel.


- Build your Google My Business profile

A Google My Company profile is a free company listing that enables you to add information and images about your establishment. You can also mention your business's location, services, and goods.

Your internet exposure will improve with a Google My Business page, and your information may show up on Google Maps, Google Search, and Google Shopping.

By creating this profile, you make it simple for people looking for the goods and services you offer to find you.

Searchers will be able to see how and where to find your company. Your local SEO will increase, and there will be more foot traffic and online traffic.


Step 5: Open A Business Bank Account.

You must form a business bank to separate your personal and corporate finances. You may establish your company's credit history and simplify bookkeeping with the aid of a business bank account. Additionally, it makes it simpler for you to obtain a bank lending facility.

Your clients and suppliers will see you more favorably if you have a business bank account.

People might infer that you are just starting out, don't think your business will succeed, or don't want to establish it as a genuine corporation if you use a personal bank account.


Foreign Company Registration In Kenya

An international business that wants to conduct business in Kenya must register with the registrar of companies and receive a compliance certificate. Following the issuance of the Compliance certificate, the company is free to conduct business with the public or with private people.


 What is Required to Register a Foreign Company in Kenya?

- Parent Company Certificate of Incorporation, Notarized Copy

- Copies of the Directors' and Local Reps' national identification cards Directors' and Local Reps' passport-size photos

- The parent company, directors, and local representative's postal, physical, and email addresses; their telephone numbers; and their occupation.

A foreigner must do the following while registering a foreign company in Kenya:

- State the registered address in Kenya

- The company's business hours

- Company's official contacts

The price to register a foreign corporation in Kenya

A number of variables may affect how much it costs to register a foreign corporation in Kenya. For a personalized quote, kindly contact us.


Why Would You Want To Register A Company Name In Kenya?

It is very important for you as a business owner to register your company in Kenya. It offers various advantages that your unregistered firm cannot provide.

The following advantages are yours when you register your business name: 

Credibility: People are more likely to trust a registered firm since it has more credibility. People are happy to give your business contracts since they know you will deliver on your promises and won't steal their cash. Giving your clients and suppliers access to a business bank account gives you a more credible and serious corporate image, which will increase customer trust and encourage repeat business. You can submit a tender application if your company is registered. 

Open a Business Bank Account: You can open a Business Bank Account in your company name once it has been registered. This makes it simple for you to receive payment from other businesses and clients who work with your organization. It also organizes your accounts and saves you time when preparing your taxes and books. You can obtain loans quickly by using your company bank account. 

High Borrowing Capacity: When you register a business name in Kenya, your borrowing capacity rises. Since banks and other financial organizations can trust your company, it will be simpler for them to grant you credit. Additionally, there are fewer credit rates offered to registered enterprises in Kenya, particularly SMEs. 

Legal Protection: In the event that a Kenyan-registered company fails, the owner will receive legal protection. Directors are protected from their personal finances by this protection. 

M-Pesa Business Till Number: In Kenya, you have the option to obtain an M-Pesa Business Till Number when you register a business name. Your consumers will be able to pay your company quickly and effortlessly thanks to this. Both consumers and other businesses can make payments to your till number. You may always withdraw money using the M-Pesa till number, so you always have cash on hand. Additionally, you can pay other companies like your suppliers, reducing the requirement for a branch bank visit.



Anyone wishing to launch a business enterprise in Kenya must register their company. Entrepreneurs may make sure that their enterprises are properly set up to prevent future legal concerns when conducting business in Kenya by taking into account all of these stages throughout the setup process.

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