Business name or company: which to register
The first decision is the structure. A business name (sole proprietorship or partnership) is the simplest, cheapest and fastest to register, and suits most small traders, dukas and service businesses. It is not a separate legal entity from you, so you and the business are legally the same for debts and tax.
A limited company is a separate legal entity, offering limited liability (your personal assets are separate from the company debts) and a more formal structure suited to businesses seeking investment, larger contracts or partners. Incorporating a company is a bit more involved and costs more than a business name.
Both are registered through the Business Registration Service on eCitizen. For most people starting a small business, a business name is the right first step; you can incorporate a company later as the business grows. This guide covers the common route, then notes where the company path differs.
How to register a business on eCitizen, step by step
These steps cover registering a business name; company incorporation follows the same start.
- 1
Step 1: Get a KRA PIN
You need a KRA PIN to register. If you do not have one, get it on iTax first, or the registration cannot complete.
- 2
Step 2: Log in to eCitizen and open BRS
Log in to eCitizen and go to the Business Registration Service. This is where name reservation and registration happen.
- 3
Step 3: Reserve your business name
Do a name search and reserve an available name. Have two or three alternatives ready in case your first choice clashes with an existing name.
- 4
Step 4: Complete the registration application
With the name reserved, fill in the owner details, KRA PIN, nature of business and physical address. For a company, you add directors, shareholding and the company documents.
- 5
Step 5: Pay the fee
Pay the registration fee through eCitizen, usually via M-Pesa or card. A business name costs less than incorporating a company.
- 6
Step 6: Download your certificate
Once approved, download the certificate of registration (business name) or incorporation (company) from eCitizen. This is your proof of registration.
Common business registration mistakes
Not having a KRA PIN ready
Registration needs a KRA PIN. Starting without one stalls the process. Get the PIN on iTax first.
Choosing a name that clashes
A name too similar to an existing one is rejected, restarting the name step. Bring backup names to avoid delay.
Registering the wrong structure
Incorporating a company when a business name would do adds cost and complexity. For most small businesses, a business name is the right start.
Vague nature of business
An unclear description of what the business does can trigger a query. Describe the activity clearly and specifically.
Stopping at registration
A certificate alone does not make you ready to trade. You still need a county business permit, the right tax obligations, and a way to invoice compliantly.
A trader registers a business name
A trader in Nairobi wants to formalise his electronics business. He already has a KRA PIN, so he logs in to eCitizen and opens the Business Registration Service.
He reserves an available business name (his second choice, after the first clashed), then completes the registration with his details, a clear nature of business (retail of electronics), and his address, and pays the modest fee via M-Pesa.
A few days later he downloads his certificate of registration. He then applies for his county single business permit and sets up compliant invoicing, so he moves from registered to fully trading without gaps.
Many new Kenyan businesses stall on avoidable basics: no clean records, no eTIMS set up, and no clear view of what actually sells.
Veira gets you selling, compliant and tracking stock from day one, so the admin does not bury the business.
After registering: set up to sell compliantly
Registration is the legal foundation. To actually run the business you need to trade, take payments and stay compliant with KRA from the first sale, which is where a POS and eTIMS come in.
Veira gives a newly registered business a POS, M-Pesa payments, inventory and KRA eTIMS invoicing in one app with a free terminal, so the step from certificate to compliant selling is short, from KES 2,999 a month.
Frequently asked questions
How do I register a business in Kenya?
What is the difference between a business name and a company?
What do I need to register a business?
How long does business registration take?
Where do I register a business in Kenya?
Do I need to register before I can trade?
Registering a business in Kenya is a quick online process on eCitizen, and for most people a business name is the right first step. Once registered, Veira takes you from certificate to compliant selling with POS, M-Pesa and KRA eTIMS in one app, from KES 2,999 a month. See how Veira works.