How to register a partnership in kenya

A comprehensive guide on how to register a Partnership in Kenya

A partnership is a business structure where two or more individuals share equal responsibilities and contributions to the company’s success. While similar to a sole proprietorship in registration, partnerships require a partnership deed. This guide will walk you through the process on how to register a partnership in Kenya.

Steps to Register a Partnership in Kenya

1. Choose a business name

• First, conduct a name search on the eCitizen portal to ensure the desired name is available.
• Select a name that accurately reflects your business and is easy to remember.

2. Draft a partnership deed

A partnership deed is a legal document that outlines the rights, duties, and obligations of each partner. It also details the distribution of profits and losses, methods for resolving disputes, and other important aspects of the partnership. It should include;

• 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.
• The company allows interest on capital and charges interest on drawings.
• 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.

3. Register with the Business registration service ( BRS)

• Access the eCitizen portal and register if you haven’t already.
• Navigate to the “Business Registration Service” section.
• Select the “Partnership” option.
• Provide required information, including partnership name, nature of business, and partner details.
• Upload scanned copies of the partnership deed and other necessary documents.

4. Pay the registration fee

Pay the registration fee using any of the eCitizen payment options. Check the current rate on the eCitizen portal for accurate fees.

5. Obtain your certificate of registration

Upon approval of your application and payment, you will receive a Certificate of Registration for your partnership.

6. Register for tax purposes

• Apply for a Personal Identification Number (PIN) for the partnership through the Kenya Revenue Authority (KRA) online portal.
• Register for relevant taxes, such as Value Added Tax (VAT) and Pay As You Earn (PAYE), based on your business activities.

7. Obtain necessary permits and licenses

Depending on your business type, you may need additional licenses or permits from various authorities, such as the county government or industry regulatory bodies.

8. Open a bank account

With your Certificate of Registration and other relevant documents, you can open a bank account for your partnership. This step is crucial for proper financial management and transparency.

9. Comply with ongoing obligations

Stay informed about current legislation and requirements. This includes submitting annual returns and maintaining proper business records.

Conclusion

To register a partnership in Kenya involves several critical steps, from choosing a unique name to ongoing compliance. By following this guide, you’ll be well-equipped to navigate the registration process and establish a strong foundation for your business partnership.

Remember to consult with legal and financial professionals to ensure you’re meeting all requirements specific to your industry and business type.