Registration & Legal

How to Register a Business in Kenya

Registering your business correctly sets it up to open a bank account, win contracts, and stay on the right side of KRA. This section covers choosing between a sole proprietorship and a limited company, registering on eCitizen, getting the permits your trade needs, and starting clean with tax.

Most registration is now done online. The key decisions are the structure you pick and getting your KRA and eTIMS set up so your first invoice is compliant. Rules and fees change, so confirm the current detail with the official sources before you file.

Guides in this section

Frequently asked questions

How do I register a business in Kenya?
You register online through the eCitizen platform. A sole proprietorship (business name) is the simplest; a limited company is a separate legal person with more protection. You then get a KRA PIN and register for the taxes that apply. Confirm current steps and fees at eCitizen and kra.go.ke.
Should I register a sole proprietorship or a limited company?
A sole proprietorship is cheaper and simpler but offers no separation between you and the business. A limited company protects your personal assets, looks more credible to banks and partners, and is better for growth. Many start as sole proprietors and convert later.
How much does it cost to register a business in Kenya?
Registering a business name is relatively cheap; a limited company costs more. Fees change, so check the current amounts on eCitizen. Budget also for any sector permits and for setting up your KRA and eTIMS.
Do I need to register with KRA when I start a business?
Yes. Your business needs a KRA PIN and should register for the taxes that apply to it, and for eTIMS so it can issue compliant invoices. Getting this right from the start avoids penalties and disallowed expenses later.

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