If you’re wondering how to start a private limited company in Kenya, it’s important to first take note of the relevant steps and requirements that apply across this jurisdiction. This comprehensive article will guide you through how to legally add that coveted ‘LTD’ suffix to your company name.
And as it turns out, this is more than just a cosmetic addition to one’s business name as private limited companies in Kenya have a wide range of benefits over and above normal, non-limited forms of businesses.
Steps for Registering a Private Company in Kenya (from Scratch)
For the following task to be performed you will require the following:
- A registered eCitizen Account (see how to register for one)
- At least 3 business names that you may use for your business
- Passport photo
- Computer or Phone
- Internet Connection
Here are the steps to follow.
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Step 1: Access your eCitizen Account
If you already have an eCitizen account you will have to log in simply via eCitizen.go.ke.
Step 2: Verification of your One-Time Password(OTP)
For safety purposes, the eCitizen may (optional, 😊) require one to verify their identity. This is done through a PIN or code which is sent either via email or sms. If prompted, be sure to complete this step before proceeding.
Step 3: Progress to the BRS tab on the eCitizen Dashboard
On your eCitizen dashboard, scroll down to the “Agencies” section. Look for the Business Registration Services tab and click or tap on it. Be sure to switch to the right user account accordingly when prompted by the account switcher tool. You will be redirected to the BRS dashboard on eCitizen from where you can commence your Private Limited Company Registration.
Step 4: Click on Make Application
Once you land on the BRS dashboard you’ll see a variety of functions and buttons. Go for the blue one that reads “Make Application”.
Step 5: Proceed to Find Services
The “Make Application” step will lead you onto a window that contains multiple call-to-action boxes. Go for the “Private Limited Company” box and click on the “Apply now” button.
Step 6: Fill in the Proposed Business Names
The next step is to fill in the business names that you would prefer for your business. In most cases when filling in these names you should at least have three of the names that you feel can suit your business.
Make sure you save and continue before proceeding.
Step 7: Fill in the Applicant Details
Under this section you get to fill in the capacity you hold, your address, and the postal code. Double check to ensure all the details are captured correctly before proceeding.
Step 8: Fill in the Articles of Association
This is an extremely important step as it helps define how tasks are carried out in your company.
It is also mandatory to fill other key details such as “Nature of Business”, the accounting period end month, the number of employees at the target start date, and the estimated annual turnover.
Ensure all the details are correct before proceeding to the next step.
Step 9: Fill in the Appropriate Office Addresses
As a legal requirement, each business needs to have some form of address under which it operates. These details comprise (1) Physical address details i.e., where the business is physically located (2) Postal Address (3) Postal code among others.
The details are to be filled in correctly before proceeding.
Ensure to save and continue before going to the next step.
Step 10: Description of Shares
Each limited company is owned through shares. So, be sure to allocate yours accordingly at this stage. Select the “Add” button to start the process.
This will lead you to an interface where you will be able to describe the share category, number of shares, and the value of each share. If you’re a sole entrepreneur and don’t wish to share your company with anyone else at this time, simply allocate yourself 100% of the shares.
Step 11: Fill in the Ownership Information
Here you get to fill in the director/shareholder information respectively. The national identification card, the KRA pin, and the passport are required. The shareholder details are also to be filled in appropriately. You get to describe the percentage of shares they hold and also their voting rights. Shareholding can be direct or Indirect.
Step 12: Fill in the Beneficial Owners
Here you get to fill in the name, ID number, type of control, and action. Who is a beneficial owner? Well, this is simply the person(s) who owns or controls the company. Click “Save and Continue.”
Step 13: Complete the Application Documents
The next task is to download the CR1 form, CR2 form, CR8 form, State of nominal capital, BOF1 form, CR10 form, and CR12 forms respectively.
To do this simply click on the blue buttons labelled ‘ Download,’ obtain the documents, fill them accordingly, re-upload, and finally click “Submit And Review.”
Step 14: Review of Application Details
Here you get to ensure that all the details you have put are correct and in order. You need to go through each of the documents carefully and make the changes where needed.
Step 15: Declaration
Finally, you need to confirm that the information you have provided is true and correctly filled to ensure that there are no mistakes. Once you are sure that everything is true, check the radio box and click “Finish.”
Click on the green button written ‘ FINISH’.
Step 16: Select the method of payment
After completing all the required steps, there is a payment that needs to be made to complete the entire registration. This is a total of Ksh 10,750.
Choose your preferred method of payment as there are numerous ways to make payments on eCitizen. They include Mpesa, Airtel money, Equity, etc.
Once done, the staff at the Government will go through your submitted documents and they will accept it if the details are correct. If they are not correct, they will request you to amend the details accordingly. Once approved you are supposed to receive an email confirming the approval.
How to Convert a Registered Business Name Into a LTD Company
If you’re like most people, chances are that you’ll prefer to start your company as a company name before eventually incorporating it at a later date. If that’s the case for you, the following are the steps that apply when converting a business name into a limited company.
Step 1: Have all the essential requirements for Company Registration.
For example;
- A business name registration certificate
- Identity documents for directors and shareholders
- Passports photos for all directors and shareholders
- KRA PINs and all the other relevant documents.
Step 2: Convert the Business to a Limited Company
To do this, you have to follow the following steps:
1. Login to your eCitizen Account
2. Click on (BRS) Business Registration Services and switch to the account under which the registered business name is domiciled.
3. Click “View” on the relevant business name under the ‘My Businesses’ area.
4. Under the ‘Business Details’ header you’ll will see a menu item on the header that says “Maintain a Company”.
5.Under the Business Details header,you will see a section with a drop-down tool that reads “Make Application”. Tap on it to reveal a list of options.
6. On the list that appears, click on ‘Cessation to Convert’. Here, you will choose the option of changing to a Private Limited Company and upload the relevant business name registration certificate.
Our Do-It-For-You Tax Ltd Company Registration Service
This is a real-time cyber service that enables you to get your private LTD company registration handled fast and securely.
Note! The service is charged upfront. Follow the following procedure to make the payment.
- Go to your M-PESA menu
- Select Lipa na M-PESA
- Select Pay Bill
- Enter Business no 880100
- Enter Account Number 9534700014
- Enter Amount Ksh 17000
- Enter your 4-digit secret pin
- Confirm by selecting OK
- IMPORTANT: Fill in the required details in the form below
Magdalene is a young Kenyan web content author with a deep love for innovation and finding solutions designed to make the world a better place. The BA Marketing & Comms major at Kisii University boasts strong writing skills thanks to her prior training under the Ajira Digital Program by the Government of Kenya.