Following our call for help, we can finally report on how to register a simple business in Kenya. It is our hope that this post will help demystify business registration in Kenya and make it simpler and more accessible to more people.
How To Register A Sole Proprietorship/Partnership In Kenya
The procedure here is pretty easy and should not cost more than Kshs 900/-. Here is what you need to do:
- Pick out a business name that you wish to register. Write a simple letter addressed to the “Registrar General”. This letter need only ask the registrar to confirm if your chosen business name is available for registration.
- Make your way over to Sheria House, and to the Registrar of Companies within the Sheria House compound.
- Go over to counter No 1 and hand in your letter(s). You will need to pay Kshs 100 for every name that you wish to register. This is what is called “business name search”. The process takes three days to a week, max (usually). You will receive a blue receipt.
- Three days after handing in your letter, go back to Sheria House and show the attendant your receipt. If your chosen name is available for registration, you will receive a letter from the registrar of companies that, basically, tells you your name search was successful. You will also receive a form, Form BN/2.
- What you need to do is fill out Form BN/2 as completely as possible. If you are registering a sole proprietorship, the part where it says “Particulars of proprietor or partners” will bear only one name, otherwise you can put in up to 20 partners (for a partnership).
- Go back to Sheria House and hand in your completed Form BN/2. You will need to pay Kshs 800/-. After a week or so, you will have to go back to Sheria House to collect your business registration certificate. Congratulations, you shall then have registered a new business!
Concerning Partnerships
The process of registering a sole-proprietorship and partnership is the same at Sheria house.
However, because of the unique nature of partnerships (the fact that one partner’s actions can make other partners equally liable) it is recommended that one also registers a partnership deed that clearly defines rights, duties and obligations of all partners.
A partnership deed once drawn up is supposed to be registered as a public document at the Ministry of Lands.
We hope that someone, somewhere, finds this article useful. We shall publish one on limited companies shortly.
The map below shows the location of Sheria House in Nairobi. You can also use this link to view the map.
View Larger Map
Please do note that we have no lawyers on the Like Chapaa team. If any of the above is erroneous, kindly help us correct it. If you live outside of Nairobi and you know what the procedure is like in your town/city, please help us incorporate that information in this post.
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hey thanks for so such a timely and helpful post.I hope kenyans-youth watachukua hatua this new year and transform their lives through entrepreneurship.keep it up guys.I always come to your site for inspiration.
Thank you so much for your comment – it is comments like yours that keep us going.
Is there anything in particular that you would like us to write about? We’d be happy to!
Yeah man.Tell Kenyan youths to stop looking for work.There are limitless opportunities out there.Must we look for jobs.?I think getting into the world of self employment is what this country needs.Guess what i have in mind?
Something that motivates and challenges the youth mentality could be a good pointer.What do you think.
Hmm, something that motivates…and challenges. A good example of a Kenyan youth who made it as an entrepreneur would work well for this, ama?
sure.
i would love to contribute to your blog on topics ranging from internet marketing,seo,sem,ppc, cpa,affiliate marketing and making money .What do i need to do?
kihatto
Wow! really? Check your inbox, friend
Quite nice stuff here guys,i think am falling in love with the work you are doing.Can i copy this info to my website http://www.bertandrich.com and thus spread the word?
Of course you can! Feel free to do so. Please mention us somewhere, though.
And thanks for the kind words, they are MUCH appreciated.
Thanks very much i have been wondering how i can register my new business but you have given me the answer
You are VERY welcome! IS there anything in particular that you’d like us to write about?
A nice job guys the youth of this country deserve a better life
Thank you Kiptoo!
Thanks for the time timely article. i find it helpful though i have another question and would appreciate help. HOW CAN YOU START AND REGITER A MAGAZINE/NEQWSPAPER IN KENYA? Thanks.
I really do not know. I’ll try and find out for you.
Thanks for the article, it has really helped.
You’re welcome Esther! Visit us again soon
Thanks so much. some guys were just about to take 4k for that from me.
You’re welcome sana!!
hi , nice information. but you need to separate sole proprietorships from partnerships , these are two very diifferent things from what i can remember, and their registration procedures should be too.
Thank you! Could you please provide me with info as regards to registering a partnership? The guys at Sheria House told me it was identical to a Sole Proprietorship.
Please help me make this info accurate.
The process of registering a sole-proprietorship and partnership is the same atSheria house.
However, because of the unique nature of partnerships (the fact that one partner’s actions can make other partners equally liable) it is recommended that one also registers a partnership deed that clearly defines rights, duties and obligations of all partners.
A partnership deed once drawn up is supposed to be registered as a public document at the Ministry of Lands.
the dropshipping business is also great as long as you can find a great supplier.;”.
thanks 4 this.was really confused by other sites,they are vague and dont break down the procedure down to each type of company.keep up the good work.
Thanks Chris, I’m glad you found it helpful.
You are just the best. Straight to the point, I needed this too!
Thanks Naomie. Good luck with your new business.
Thanks for this.its well broken down and since its as early as December I can assume the cost of 800/- is still valid? had errd with the wrong form which we were given of 2,500/- instead of for partnership so yes you save as money as starter entrepreneurs
The cost of 800 is still valid
Thanks. I also udnerstand there may be furtehr registration requried for schools colleges etc by ministry of eductaion. Is this optional for either or mandatory for both? I need to know which one really is relevant thanks in advance
I believe both are madnatory
wacha nianze process…mshahara wetu hautoshi kabisaa bana!
Congratulations!
Thank you for this post, Kelvin. It took barely 5 minutes to hand in the letter and collect the receipt at Sheria house.
Do you have an article on ‘taxation for the small business’? I’m a freelance Graphic Designer, Web Developer, Copywriter and Photographer and have just re-relocated to Nairobi. Trying to figure out the paperwork associated with starting a home-based business for myself. Do you offer consultation services for the same?
Hi Paras, and good luck on your business! Unfortunately, we do not have any info on taxing. Being a trained accountant, I would recommend that you get your KRA PIN for you and your business and keep all your books in order. However, I shall write an article on this.
Unfortunately, we currently do not offer consultation on this
Thanks, Kelvin. An article on bookkeeping/taxation/starting a small business would be much appreciated.
It’s a pity that you do not offer consultations for first-time entrepreneurs starting out in Kenya. Do you know anyone who does though?
Please check your email
Great job! The information you’ve provided is concise and very helpful. I’ve learnt everything I need to know about the registration process. Thanks alot
You’re very welcome, dear Sir
It was so long ago when I read about partnerships and a sole proprietorship form of business.you have really helped me out In getting the light that I really wanted in putting up a business that I have been wanting to do.Once again As-ante!!!!
you’re welcome man. I hope the business goes well. :0
Thanks a million Kelvin you have no idea how timely this is for me. I submitted names for a business name search this past Tuesday (4th) and wasn’t sure what the next step was. I was actually asking around just this evening about they type of registration i needed for what I want to venture into. I really didn’t want to ask all the questions for whose answers you have kindly provided at Sheria house given that the place is so packed and lingering to long at a counter looks inconveniencing for those queuing asante sana tena sana
You are very welcome Harrieta! Good luck on your business.
this will go down in history as a great day for me! likechapaa.com is awesome (don’t ask where i’ve been). am planning to start a business and your site has been the most resourceful to me as far as this goes…you guys are doing an awesome job. this article particularly has been very simple and to the point-just the way me likes it! wishing you guys well na muendelee kutuchanua!!
The bank tells me my certificate aint legit. How do i search my number.
What do you mean they say it is not legit? Have you shown them the piece of paper you got from Sheria House? The number that starts with “BN” on that paper is your business registration number.
yeah sure. the copy of the certificate they have it. They saying after their advocate did a search, the number does not rhyme with the name so the number aint mine
Well, you need to go back to Sheria House with your certificate and confirm that your business registration number is indeed under the name of your business.
k. thanks
good! thankyou
Thanks a lot. Such information may seem simple but I believe it is very valuable. Thanks again for simplifying the application process for starters.
thank u .. thank u .. thank u .. thank u …
I could go on foreeeever,bt am tryn not 2 sound crazy lol. Am tryna start a business, and the paperwork is killing me!!:/ It’s sites like these that kip me sane:)
HELLO! WHAT ABOUT THE PREMISES?IS IT A REQUIREMENT FOR YOU TO HAVE AN OFFICE FOR YOUR SOLE PROPRIETORSHIP? PLEASE SEND ME AN INBOX OF YOUR REPLY AND I WILL APPRECIATE
An office is not required. You can run our business anywhere you want to!
However, you need a “trading licence” – usually from city councils, municipal councils, etc depending on where you have set up. This licence is needed only if you open an office where clients/customers will visit.
Thank you so much , this information really helped me, I swear that I was in total darkness before I read this …. thank you once again.
you’re welcome. Good luck on the new business!
Thank you for the information you have provided. But i have a question similar to the one asked by
Morris Auk Ryan on March 19, 2011 at 12:03 am. On my case i used the so called agents to do the name search and to do the business name registration. I was later provided with a piece of paper in the name of a certificate with the “BN ” number. I have never been sure if it is real. How do you confirm if it is real. Must you visit Sheria House or could there be a different and easier way to confirm if i was conned?
Please visit Sheria house and ascertain if it is original.
Thanks a bunch. You’ve saved me alot.
Karibu