Registering a Business Name in Kenya: Requirements and Costs

Business Business Registration New Business Formation
In Kenya

Last Updated: Apr 2, 2025

Are you a foreign entrepreneur looking to establish a business presence in Kenya? Navigating the business registration process can seem daunting, but with the right information, you can successfully register your business name and start your entrepreneurial journey. Our easy-to-follow guide will walk you through everything you need to know about registering a business name in Kenya.

Why Register Your Business Name in Kenya?

Before diving into the process, let's understand why business name registration is crucial:

Establishes a legal identity for your business: This formalizes your operation beyond just an idea.

Provides credibility with clients and stakeholders: Registration signals legitimacy to potential customers, suppliers, and financial institutions, enhancing trust in your venture.

Ensures compliance with Kenyan regulatory requirements: Operating formally requires registration under specific acts governing commerce, avoiding penalties associated with informal trading.

Protects your business name from being used by others: Secures the specific name for your use within the registry, although distinct trademark registration offers broader brand protection.

Opens doors to official business operations and opportunities: A registered name is often a prerequisite for applying for government tenders, securing business bank accounts and loans, and entering into formal partnerships.

Key Government Agency: Business Registration Service (BRS)

The primary government agency responsible for business name registration is the Business Registration Service (BRS), which operates under the Office of the Attorney General. Its mandate extends beyond initial registration to maintaining the official register of businesses and providing public access to essential business information. They've made the process significantly easier by implementing an online registration system through the eCitizen platform.

Description: Business Registration Service website for Kenya

Official Portal Details

Step-by-Step Business Name Registration Process

1. Prepare Your Documentation

Before starting the online registration, gather these essential documents:

  • At least three proposed business names (check uniqueness beforehand).
  • Copy of your passport (for foreign individuals).
  • KRA PIN Certificate (required for tax purposes once trading begins; obtain if available).
  • Passport-size photographs.
  • Detailed business location information (including Land Reference number if available, street, building, and specific floor/room number).
  • Description of business activities.

2. Create an eCitizen Account

3. Navigate to Business Registration

  • Log in to your eCitizen account
  • Go to the "Company Registry" or "Business Registration Service" section
  • Select "Registration of a Business Name"

4. Name Search and Application

  • Enter your three preferred business names, ideally already vetted for uniqueness using the BRS search tool.
  • Fill out the online application form with:
    • Business name details
    • Business activity description
    • Complete registered office address
    • Owner/proprietor details
    • Your position in the business

5. Upload Required Documents

  • Scan and upload all necessary documents (common formats like PDF and JPEG are usually accepted; check the portal for size limits).
  • Review all entered information carefully against your original documents.

6. Pay Registration Fees

  • Current registration fee: KES 950 (approximately USD 7)
  • An additional eCitizen convenience fee of KES 50
  • Payment methods include:
    • Mobile money (M-PESA)
    • Credit/debit cards

7. Submit and Wait

  • Submit your application.
  • Processing typically takes 3-7 business days. If rejected or requiring corrections, notification will arrive via email or your eCitizen account.
  • Receive confirmation via email upon approval.
  • Download and print your Business Registration Certificate.

Understanding Business Structures: Business Name vs. Company

It's vital to distinguish between registering a 'Business Name' and incorporating a 'Company'. Registering a business name typically applies to sole proprietorships and general partnerships. This process grants the right to operate under a specific name but does not create a separate legal entity from the owners. 

Personal liability for business debts remains. Incorporating a Limited Liability Company (LLC) or Partnership (LLP) involves a more complex process, creates a distinct legal entity, and offers liability protection. This article focuses solely on the 'Business Name' registration process.

Special Considerations for Foreign Investors

Identification and Local Representation

  • Use your passport for identification during the registration process.
  • If your company's paid-up capital is below 5 million Kenyan Shillings, you might need one of the following to act as a formal representative for legal and administrative purposes within Kenya:
    • A local director
    • A certified company secretary
    • A local contact person (serving as a point of communication).

Additional Post-Registration Requirements

  • Obtain a company PIN from Kenya Revenue Authority (KRA) for tax purposes.
  • Register for social security (NSSF - National Social Security Fund), a mandatory contribution scheme for employee retirement benefits, if you hire staff.
  • Get a business permit from the relevant county government. This authorizes operation within a specific local jurisdiction; fees vary by business type, size, and location, and annual renewal is typically required.
  • Ensure compliance with work permit regulations for any foreign personnel.

Renewing Your Business Name Certificate

The Business Name Certificate issued upon registration is not permanent. It requires periodic renewal to remain valid, typically on an annual basis. The renewal process is also conducted through the eCitizen portal and involves confirming business details and paying a renewal fee. 

Failure to renew can result in the business name being struck off the register and becoming available for others to use. Check the BRS website or your certificate for the exact renewal frequency and associated fees.

Choosing a Suitable Business Name in Kenya

Selecting the right business name is crucial. Beyond ensuring availability on the BRS register, consider these factors:

  • Relevance: Does the name reflect your business activities?
  • Memorability: Is it easy to recall and pronounce?
  • Trademark Availability: Check the Kenya Industrial Property Institute (KIPI) database to avoid infringing on existing trademarks.
  • Domain Name: Is the corresponding .co.ke or .com domain name available for your website?
  • Cultural Sensitivity: Ensure the name doesn't have unintended negative connotations in Kenya.

Beyond Registration: Essential Tax Compliance 

Once your business name is registered, and you commence operations, tax obligations arise. You must register for a KRA PIN (if not already obtained) specifically for the business entity (even for a sole proprietorship, distinct from your personal PIN). 

Key obligations include filing income tax returns (annually), potentially registering for Value Added Tax (VAT) if turnover exceeds the threshold, and complying with Pay As You Earn (PAYE) requirements if you have employees. Familiarize yourself with the KRA iTax portal for filings and payments.

Sector-Specific Licensing Requirements 

While the Business Name registration and the County Business Permit are foundational, certain industries require additional licenses from national regulatory bodies before commencing operations. Examples include:

Common Challenges and How to Overcome Them

Name Rejection: Conduct thorough searches using the BRS online tool before submitting your preferred names to avoid similarities with existing businesses. Have several unique backups ready.

Documentation Errors: Double-check and proofread all submitted documents and online form entries against your original passport, address details, etc., before uploading and final submission.

Technical Issues: Be patient with the eCitizen portal. Try accessing it during off-peak hours, using a different browser, or save your progress frequently. Have digital copies of documents ready for re-upload if needed.

Compliance: Stay informed about ongoing regulatory requirements. Subscribe to BRS newsletters or periodically check their official website for updates on renewals, filing requirements, or fee changes.

Estimated Costs

  • Business Name Registration: KES 950 (approx. USD 7)
  • eCitizen Convenience Fee: KES 50 (approx. USD 0.50)
  • Additional potential costs for permits (county level) and licenses (sector-specific) vary significantly based on business activity, location, and scale, potentially ranging from a few thousand to tens of thousands of Kenyan Shillings annually.

Important Considerations

  • The online system can experience technical glitches
  • Always have multiple name options prepared
  • Keep digital and physical copies of all documents
  • Consider consulting a local legal professional for guidance

Finding Legal Support on Lawzana

Navigating business registration in a foreign country can be complex. Lawzana connects you with experienced Kenyan lawyers who specialize in business registration and can guide you through the entire process.

Our legal professionals can:

  • Verify your business name availability
  • Assist with documentation
  • Provide insights into local business regulations
  • Help you avoid potential pitfalls

Conclusion

Registering a business name in Kenya is a straightforward process thanks to the digital eCitizen platform. By following these steps and being prepared, you can successfully establish your business presence in this dynamic East African market.

Helpful Resources

Disclaimer: Regulations and fees are subject to change. Always verify the latest information with official sources.

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