Until recently it was quite difficult to open even a small business in Kenya. However, now almost every ambitious person can to do it. Are you an ambitious person with lots of ideas and eager to set up business in Kenya? Continue reading the following article and find out how to do it legally and become successful.
Step 1. Getting the official name of the company.
Starting a company process begins with your letter to the registration office to get an official name for your new business. Your name idea might be admitted or denied due to to the following reasons:
a. There is another registered company with an identical/similar name.
b.The regulations of name registration were somehow violated.
The name approval and analysis takes two days. If it is approved, you will get your new company’s name in thirty days.
Step 2. If you still haven’t, hire a lawyer for paperwork.
Even though it might be quite an expensive service, it is better to hire a real professional for the next step. Your lawyer will have to make up a Memorandum and Article of Association and Statement of Nominal Capital. They include business purposes, regulations, contributors, authorized funds of your business.
Step 3. Pay the special tax.
Before starting a new business in Kenya, you will have to pay a special tax – stamp duty. The sum depends on the company’s registered capital, however there is a minimum amount – 2,140 KES, when the registered budget is 2,000 KES.
Step 4. Fill out a special form.
After you have chosen a name and payed the stamp duty tax, you will have to fill out a special form #201. This document includes information about your company’s main office address. If you are a director, you will have to sign it in the end.
Step 5.Register the number of directors.
Another form you will have to fill in is form #203, which is a list of declared directors and managers. Your secretary will have to stamp it in the end.
Step 6. Fill in form #208.
This is a special compliance form #208, which has to be signed by a commissioner of oath. Commissioner of oath is a person, who is authorized to verify written statements, as well as other legal documents. If you want to start up business in Kenya, you will have to get this form.
Step 7. Bring all the documents to the Registrar’s office.
Take all the collected documents and filled out forms and bring them to the registrar’s office. Starting a new business in Kenya also requires the registration tax payment. After this procedure, you will have to wait 21 days and then your incorporation certificate will come.
Step 8. You will receive your corporate stamp.
Corporate stamp is a special device, that allows you to print your registered name on the documents. You can buy one almost in every stationery shop.
Time for some more registrations.
Now you will have to pass some more registrations. This step requires:
- Personal Identity Number, Value Added Tax & Pay-As-You-Earn registration according to the Kenya Revenue Authority.
- National Hospital Insurance Fund registration. This is a compulsory requirement for starting a business.
- National Social Security Fund registration. It is obligatory for your workers, so that they will be able to get retirement pension.
- Business Premises License registration. To get this form, you will have to visit your local district office.
Step 10. In case you will have some problems with starting a new business process,hire a special consultant at a cost.
Of course, starting a business is not an easy process, which requires lots of paper work and time. However, implementing your dreams and becoming a full-fledged company owner is definitely worth all your effort.