In Kenya’s dynamic economic climate, registering a business name is often tied to firm startup dreams. Unexpectedly, over 60% of Kenyan SMEs don’t register because they think it’s expensive and time-consuming. For that sake let’s dive in and see what process is involved in business name registration in Kenya.
Why Register a Business Name in Kenya?
Venturing into the world of registered businesses brings forth a plethora of benefits:
- Credibility: A company that is registered gives off legitimacy, which encourages suppliers and customers to trust it. It opens doors to profitable commercial deals and tender eligibility.
- Bank Account: A registered business allows you to open a business bank account, streamlining financial transactions and facilitating efficient bookkeeping.
- Borrowing Power: Registering increases your ability to borrow money and wins the confidence of banks and other financial organisations. It allows SMEs to get better financing rates and credit extensions..
- Legal Protection: Registered firms insulate business owners from financial downturns by separating personal funds from corporate obligations.
- M-Pesa Business Till Number: Registration grants access to an M-Pesa Business Till Number, making payments and bill payments easy.
Steps to Register a Business Name in Kenya
Step 1 – Choose a Unique Business Name
Choose an original, distinctive, and extendable company name that matches your brand. Aim for availability and avoid acronyms or names that resemble competitors.
Step 2 – Log in to the eCitizen Portal
Register on eCitizen and complete the required information. Account activation, email verification, and login. After clicking “Make Application,” select “Business Name Registration” from the “Business Registration Service” page.”
Cost of Registering a Business Name in Kenya for 2024
Ksh 950 is the filing price for registering a business name, and it may be paid through the online portal or certain banks. Get the required paperwork ready, such as passport pictures, ID copies, and KRA PIN certificates, and submit them.
Step 3 – Download Your Certificate of Incorporation
Get notified when it’s finished, then log in to obtain your certificate of incorporation. This document is required for formal actions such as signing contracts, creating bank accounts, and submitting tender applications. It works as evidence of business registration.
Step 4 – Protect Your Business Name in Kenya
Safeguard your registered business name by:
- Buying a Domain Name: Secure an online address to enhance visibility and prevent others from using your name.
- Creating Social Media Accounts: Establish business accounts on relevant social channels to further fortify your brand.
- Setting Up a Google My Business Profile: Boost online visibility, improve local SEO, and enhance customer trust through a comprehensive Google My Business profile.
Step 5 – Open a Business Bank Account
Create a corporate bank account to keep your personal and business funds apart. Bring the necessary paperwork, such as your ID, the business certificate of formation, and the completed application, to your selected bank.
Step 6 – Apply for an M-Pesa Business Till
Make it easier for customers to pay you by requesting an M-Pesa Business Till. Pick among banks, independent companies like Kopokopo, or Safaricom. For a quick setup, complete the necessary paperwork and adhere to the application process.
Step 7 – Set Up an Accounting System
Establish a reliable accounting system to monitor cash flow, income, obligations, and assets. For easy money management, use online invoicing systems like Zoho Books.
Step 8 – Branding & Marketing
Make your company stand out by using smart branding and marketing. Create a brand identity that resonates with your audience and a marketing plan for your target customer.
Cost of Registering a Business in Kenya
The cost varies based on the business type:
- Business Name: Ksh. 950
- Private Limited Company: Ksh. 10,650
- Public Limited Company: Ksh. 10,650
- Unlimited Companies: Ksh. 20,050
- Company Limited by Guarantee: Ksh. 10,000
- Limited Liability Partnership: Ksh. 25,000
Final Thoughts
In Kenya, the procedure of registering a company name has become more accessible and simplified. Take advantage of the chance to create a brand for your company, build reputation, and confidently traverse the entrepreneurial terrain. Not only registering, but beginning your business with a solid basis. Start your entrepreneurial journey now!
Also check: how to register an organization in Kenya
