How to Start a Limited Company in Kenya: A Simple Step-by-Step Guide

Starting a business is an exciting journey. In Kenya, a Limited Company is one of the most popular ways to set up a business because it protects your personal assets if the business runs into debt.

Today, the process is much faster thanks to the government’s digital platform, eCitizen. Here is a simple, no-nonsense guide on how to get started.

1. What is a Limited Company?

Think of a limited company as its own “person” in the eyes of the law. It can own property, get a bank account, and enter into contracts.

The “Limited” part means that if the company fails, you (the owner) usually only lose the money you put into the company, not your house or personal car.

2. Requirements Before You Start

Before you log in to any portal, make sure you have these things ready:

• Company Name: Have at least 2 or 3 names in mind in case your first choice is already taken.
• Director Details: You need the names, ID copies, and KRA PINs of all directors.
• Shareholders: Decide who owns what percentage of the company.
• Physical Address: You need to know where your office will be (Plot number, building name, and street).
• Email and Phone Number: A dedicated email for the company is recommended.

3. Step-by-Step Process

Step 1: Register on eCitizen

Most government services in Kenya happen on the eCitizen portal. If you don’t have an account, create one using your ID number.

Step 2: Name Search and Reservation

Log in and look for the Business Registration Service (BRS).

1. Apply for a “Name Search.”
2. Enter your proposed name.
3. Pay the fee (usually Ksh 150).
4. If approved, the name will be reserved for 30 days.

Step 3: Fill Out the Application Forms (CR1, CR2, CR8)

Once the name is reserved, you will need to fill out several digital forms on the BRS portal:

• Form CR1: The main registration form.
• Form CR2: The “Memorandum of Association” (this says what the company does and who the shareholders are).
• Form CR8: This is the notice of the residential address of the directors.
• Statement of Nominal Capital: This describes how much the company is worth in shares.

Step 4: Pay the Registration Fee

The standard cost for registering a limited company in Kenya is currently Ksh 10,650. This covers the registration and the official certificate. You can pay via M-Pesa or credit card on the portal.

Step 5: Download Your Certificate

After the Registrar of Companies reviews your application (which usually takes 2 to 5 working days), you will receive a notification. You can then download your Certificate of Incorporation and the CR12 (a document that lists the directors).

4. After Registration: What’s Next?

Getting the certificate is just the beginning. To fully operate, you need:

1. KRA PIN for the Company: Use your certificate to get a PIN on the KRA iTax portal.
2. Business Permit: Visit your County Government office (e.g., Nairobi County) to get a unified business permit.
3. Open a Bank Account: Most banks will require your Certificate of Incorporation and CR12.
4. Register for NHIF and NSSF: This is mandatory if you plan to hire employees.

Sources

• eCitizen Gateway – The starting point for all registrations.
• Business Registration Service (BRS) – Official government site for business laws and forms.
• KRA iTax – For your company PIN and tax compliance.
• Attorney General’s Office – For deeper legal information on the Companies Act.

Starting a company in Kenya is no longer the headache it used to be. By following these steps and using the eCitizen portal, you can have your business legally recognized in less than a week. Good luck with your new venture!

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