Why choose a limited company
A private limited company is its own legal person, separate from you. That limits your personal liability, makes you more credible to banks, suppliers and tender committees, and makes it easier to bring in shareholders or investors later.
A sole proprietorship is simpler and cheaper to register, but it does not separate you from the business. Many founders start as sole proprietors and convert to a company as they grow.
What you need before you start
Have these ready so the application goes smoothly:
- Two or three proposed company names for the name search
- Details and identification of every director and shareholder, with their KRA PINs
- A registered office address in Kenya
- The share split between shareholders and the nominal capital
- Contact details for the company
Step by step on eCitizen
Registration runs through the Business Registration Service on eCitizen:
- Access eCitizen and open the Business Registration Service
- Reserve a unique company name (the search rejects names that clash with existing ones)
- Complete the company registration application with the company, director and shareholder details and the share allocation
- Review the documents the system generates
- Pay the registration fee
- Receive the certificate of incorporation once approved
After incorporation: KRA and eTIMS
The company is not fully set up until it can transact and stay compliant:
- Get the company KRA PIN on iTax
- Register for VAT and PAYE if they will apply to you
- Register for eTIMS so the company can issue KRA-compliant invoices from the first sale
- Open a corporate bank account with the certificate, KRA PIN and director identification
Common mistakes to avoid
A few errors slow new companies down:
- Choosing a name that is already taken, so do the name search first
- Incomplete or mismatched director details
- Forgetting the KRA PIN and eTIMS step, then hitting compliance problems on the first sale
- Using a registered office address you do not have consent to use