How Much Does It Cost to Register a Business in Kenya?

The cost of starting a business in Kenya can vary significantly based on the type of business entity you choose and the specific registration fees set by the Kenyan Government. This guide outlines the general costs involved in registering your business in Kenya, including name reservations, business registration, additional fees, and legal expenses.

Name Reservation

The first step in registering your business in Kenya is to reserve a business name. This is a relatively simple process that comes with a nominal fee.

Name Reservation Fee: Approximately KSh 150.

Business Registration Costs

After reserving your business name, the next step is to register your business. The fees for this vary depending on the type of business entity you choose.

Sole Proprietorship

A sole proprietorship is the simplest form of business entity. The registration fee for a sole proprietorship is relatively low.

Registration Fees: KSh 500 to KSh 1000.

Partnership

A partnership involves multiple individuals who share the responsibilities and profits of the business. The registration fee for a partnership is slightly higher compared to a sole proprietorship.

Registration Fees: Around KSh 1000.

Limited Company

A limited company offers more formal structure and liability protection. The registration fee for a limited company is higher and varies based on the share capital.

Registration Fees: KSh 10000 to KSh 15000.

Additional Costs

Beyond the initial registration fees, there are other costs to consider when registering a business in Kenya.

KRA PIN Registration

KRA PIN (Personal Identification Number) Registration: This is the identification number issued by the Kenya Revenue Authority (KRA) and is typically free.

Licenses and Permits

Depending on the industry, you may need to obtain additional licenses and permits, which can vary widely in cost.

Legal Fees

Engaging a lawyer or consultant to assist with the registration process can add to your overall expenses.

Annual Returns

Businesses are required to file annual returns, which may incur additional fees.

Summary of Total Costs

The total cost of registering a business in Kenya can range from a few hundred to several thousand Kenyan Shillings, depending on the structure and specific requirements of your business. It is advisable to check with the relevant authorities or a business consultant for the most current and detailed information.

Specific Costs for Company Registration

A more detailed breakdown of costs for company registration is as follows:

Name Search

Cost: Ksh. 150.

Certificates of Incorporation

PLC (Private Limited Liability Company): Ksh. 11000/- LLP (Limited Liability Partnership): Ksh. 25000/-

To register as a company, the directors or shareholders must be registered on the Tax platform. The company registration fee is:

Registration Fee: Kshs 10,650

You can register a company with one person as both the shareholder and the director. After registration, a certificate will be available for download through the portal after a week.