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Business Registration & Business Name Registration
Business registration and business name registration in Kenya are crucial steps for entrepreneurs looking to establish their ventures legally. This comprehensive guide covers the process of registering various business types, including sole proprietorships, partnerships, and limited liability partnerships (LLPs) in Kenya. Learn about the requirements, steps, and legal considerations for business name registration and overall business registration processes.
Business Name Registration for Sole Proprietorships in Kenya
A sole proprietorship, also known as a business name, is a business entity owned by a single individual. These businesses are typically small to medium-sized enterprises. Below is a detailed guide on business registration and business name registration for sole proprietorships in Kenya.
Online Business Registration in Kenya: Step-by-Step Guide
Create an eCitizen account
To begin the online business registration and business name registration process in Kenya, you need to create an eCitizen account. Ensure you meet the following requirements:
- Be above 18 years of age
- Possess a valid ID number
- Have a mobile number and a working email
- Maintain a stable internet connection
Ensure all required information is readily available before proceeding with your business registration.
Conducting a Business Name Registration Search in Kenya
To register a business name, propose three potential names for your business. These names will be reserved during the business name registration process. Submit a written application for the reservation of a business name and pay the prescribed fee.
Application Form BN 2
After name search approval is complete, the applicant should fill out the BN 2 Form and lodge it with the Registrar of Companies Kenya. Subsequently, the registration process can proceed smoothly.
Business Name Registration Certificate
Requirements for Business Name Registration in Kenya
- Proposed Business name for name search approval. We conduct a thorough Business name search Kenya
- The nature of Business / activities the business will undertake.
- Names of the Proprietor/s in Full.
- Postal address for the Business Name.
- Proposed Physical address of the Business. Address includes road, plot number, town, county.
- Copy of ID / Passport of the Proprietor or Partners.
- Passport photo of the Proprietor/s.
- Copy of PIN certificate of the Proprietor/s or partner/s.
- Send us an email including the above requirements to info@companysecretariesafrica.com
Other Business Services offered:
- Change of Business Name
- Change of Business particular and details
- Removal or appointment of partners and members
- Cessation of Business Name registration
- Foreign NON Governmental Organization (NGO) Registration
- NON Governmental Organization (NGO) Registration – Local
- How to Register a Partnership Business Name in Kenya Online
In a partnership business, two or more people share ownership, and each partner contributes to all aspects of the business. Furthermore, the partners share profits and losses according to the agreement in the partnership deed. Additionally, the registration process for a partnership business is similar to that of a sole proprietorship, except that the partners provide a partnership deed.
Partnership business name registration in Kenya:
- The partnership deed contains the following particular
- The name of the firm or partnership
- The names and addresses of partners
- The nature or type of the business
- The duration of partnership.
- The amount of capital to be contributed by each partner determines the initial investment. Additionally, the agreement may specify the amount and nature of drawings that can be made by each partner.
- Rights and responsibilities of partners.
- Duties of partners.
- payment to partners.
- The ratio of the profits or losses shared among the partners.
- The basis and rationale for the calculation of goodwill during the Admission. Retirement, and death of a partner.
- The keeping of proper books of accounts and the preparation of Balance Sheet.
- Settlement of amount upon the dissolution of the firm.
The advantage of partnership business name registration, compared to sole proprietorship, is that in a partnership, you can apply for any tender without much restrictions, as your business has a KRA pin. Additionally, the cost of registering a partnership is minimal. In contrast, sole proprietorship does not have a business KRA pin but uses the personal KRA PIN of the owner.
Registration of Limited Liability Partnership in Kenya (LLP)
Section 2 of the Limited Liability Partnership Act, Chapter 30A, stipulates a Limited Liability Partnership (LLP) as one registered under the Act. Whereas, the Partnership Act No. 16 of 2012 defines a partnership as the relationship which exists between persons who carry on business in common with a view of making a profit.
This relationship is termed as LLP registration Kenya. Moreover, currently, there are three forms of partnerships in Kenya: a general partnership, a limited partnership, and a limited liability partnership.
Legal Structure and Liabilities in Partnerships
A general partnership is governed by the Partnership Act, Act No. 16 of 2012, while being registered under the Registration of Business Names Act. Consequently, upon registration, a general partnership does not become a body corporate.
Under section 7(2) of the LLP Act, the limited liability partnership must maintain and use a common seal that bears its name, which it will use to execute all documents that the law requires it to seal.
Under section 22 of the Partnership Act, the liability of a partner in a general partnership is unlimited. Consequently, the partnership holds each partner liable for the entire amount of any obligation it incurs.
While he is a partner. Their personal assets could settle business debts if /when becomes necessary.
In a Limited Liability Partnership (LLP), partners are not liable for the partnership’s obligations or for another partner’s wrongful act. LLP liabilities are from the property and personal assets of partners, while general partners have the entitlement to participate in the partnership’s management.