Company registration in Kenya (2020) Guide & Steps.

african prrice | Guide & step registering company in kenya 2020
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Kenya is one of the prosperous nations in Africa, and one of the most attractive destinations for investors all across the globe due to her environment and nature.

setting up a company in Kenya is simple, all you need to do is to follow the rules of engagement, and by so doing, you are good to go.

Here are the steps you must follow in order to register your company in Kenya:

  • Reserve your Business Name
  • Fill the company registration form.  
  • Get a registered lawyer to prepare the memorandum and articles of association which is modifiable.
  • Once your company name has been reserved, you will need to provide your information that will be used to prepare your company documents.

Here are some of the information that you will give:

  • Director(s) Details
  • Full names – your full names as displayed on your ID/Passport will be used on the application
  • Occupation – you will need to state your occupation e.g. IT Consultant, marketing consultant, finance consultancy, consultant etc. If you don’t have any occupation, don’t worry, you can simply put either a businessman or businesswoman.
  • Postal address – you will need to provide your postal address. If you don’t have one, you can register it with Posta Kenya.
  • Physical Residential address – This information will be used on Form CR8 to comply with the Company Act which requires all directors to provide their residential address. You’ll need to provide LR number or house number, building name (if any), street name, town name, country.
  • Share Allocations – each Director will need to be allocated at least 1 share. Remember that the total number of shares available for allocation is 1,000 shares. You can plan to allocate your 1,000 shares using percentages such as 60%/40%, 50%/50%. However, if you are just the sole director then you can have 100% share ownership.
  • Proof of Identity documents – you will need to provide the following documents for registration, without them your application will be rejected. e.g 

Copy of ID or Passport – you can scan or photocopy your identification document

Copy of KRA PIN certificate – all Kenyan Directors/Shareholders will need to provide KRA PIN, however, foreigners won’t need to provide one for the registration photos – Must have a clear background and show all your facial features, just like a passport photo. Please avoid submitting photos that have someone

How to Register a Business in Kenya

To register a business name in Kenya, you need to meet the following requirements:

  • Submit the proposed name of the business for a name search approval.
  • Explain the nature of the proposed business and the activities that the firm will be undertaking.
  •  Present the names of all the proprietors in full.

The postal address for the proposed business name.

  • Highlight the physical address of the proposed business. This includes the plot number, name of the adjacent road, town, and county.
  • Present copies of the partners’ or proprietor’s national ID or Passport.

Present the proprietors’ passport photos.

  • Present copies of the proprietor’s PIN Certificate.

Cost of Registering a Company in Kenya?

african price | Cost of registering a company in kenya

Upon signing your documents, you will have to submit all the documents and forms to the Registrar of Companies and pay the incorporation fee of Ksh 2800. If the registration is approved, you will receive the Certificate of Incorporation between 2- 3 weeks. The registration fee is Ksh10,000.

Certificate of Incorporation in Kenya

african price | Certificate of incorporation in kenya

Just as it is everywhere worldwide, a certificate of incorporation is a legal document that is proving the legal formation of a company in Kenya. The certificate is required for the smooth operation of any business by a company in Kenya.

Benefits of Registering a Company in Kenya?

The following are the advantages of registering a limited company over a sole proprietorship and a partnership.

 Limited liability 

The liability of company shareholders is limited which implies that their assets cannot be sold to pay liabilities incurred by the company.  However, the corporate veil that protects shareholders can be pierced in case they engage in fraudulent activities. In such a case, the concerned directors are personally liable for liabilities arising from fraudulent transactions.


Registering a company makes a business to appear more legitimate compared to sole proprietors and partnerships. It creates the impression that the business is bigger than its owners thus boosting external stakeholders’ confidence when transacting with the business.

 Access to Credit

Registering a company increases the chances of securing financing.  Financial institutions prefer advancing loans to companies as it is easy to ascertain the company’s worth and its ability to pay.

 Ownership Flexibility

Changing the ownership of a company is easy as shares are easily transferred from one shareholder to the other.  It is also easy to issue shares to a new member which is used for admitting strategic persons and also to raise additional capital.


The life of a company is not pegged on the shareholders. An exit of a shareholder does not terminate a company as it is in the case of partnerships and sole proprietorships.

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