Turning that bright idea or side hustle into an official business is a big deal. It’s your first step towards earning on your own terms and maybe even leaving something lasting for your family. But let’s be real — all the paperwork and legal bits can feel pretty overwhelming, especially if you’re just getting started in Kenya.
This guide breaks everything down for you. You’ll see how to register your business on the e-Citizen platform, understand exactly what it costs, and learn what to do afterward so you stay out of trouble with the authorities.
Picking the Right Business Structure
Before anything else, you need to figure out what kind of business structure suits you best. It affects how much you pay in taxes, how your personal stuff (like your house or car) is protected, and even how easy it’ll be to get investors later on.
| Feature | Sole Proprietorship | Partnership | Private Limited Company (Ltd) |
|---|---|---|---|
| Legal Identity | You and the business are the same. | Partners and business are the same. | Company is separate from owners. |
| Personal Liability | Unlimited – your stuff is at risk. | Same – partners’ assets at risk. | Limited – your personal property is safe from business debts. |
| Best For | Small shops, freelancers, ‘hustles’. | Law firms, audit firms, joint ventures. | Startups that want investors, or have big contracts. |
| Compliance | Very simple. | Simple but get a partnership deed. | More rules, must file annual returns. |
How to Register on e-Citizen (BRS)
Good news — Kenya moved the whole registration process online through the Business Registration Service (BRS) on e-Citizen. Here’s how you do it:
1. Open an e-Citizen Account
Go to e-Citizen and sign up as a Kenyan Citizen. Have your National ID number and an active phone line nearby.
2. Search for a Business Name
After logging in, head to the BRS section. Do a “Name Search” and give 3-5 name options. They’ll check availability. Pay KES 150 via M-Pesa or similar.
3. Register Your Business
Once your name is approved, return to the BRS site to complete the registration. Fill out details like what your business does, its address, upload copies of your ID and KRA PIN.
How Much Will It Cost?
| Service | Who It’s For | Cost (KES) |
|---|---|---|
| Name Search | All businesses | 150 |
| Registration | Sole Proprietorship / Partnership | 950 |
| Registration | Private Limited Company | About 10,650 (incl. stamp duty) |
What To Do After Registration
Congrats on getting your registration certificate! But hold on — your journey isn’t over yet. There are a few critical steps to take so you stay compliant and avoid hefty fines.
| Priority | What To Do | Why | Where |
|---|---|---|---|
| 1 | Get a Business KRA PIN | It makes your business a taxpayer. Needed for opening a business account. | KRA iTax online |
| 2 | Get a County Business Permit | Operating without it is illegal. | At your county offices or their websites |
| 3 | Open a Business Bank Account | Separates personal from business money. Also needed for loans. | Any major bank |
| 4 | Register with NSSF & NHIF | Required if you hire employees (or yourself in a Ltd). | NSSF/NHIF offices or online |
Common Mistakes New Entrepreneurs Make
- Mixing business and personal cash: Open a business account right after registration.
- Ignoring taxes: Get your business KRA PIN and always file returns, even if it’s a nil return.
- Skipping the county permit: This is a must-have — display it at your place of business.
- Choosing a bad business name: Think long term. Is it easy to brand? Is the domain or social handle free?
FAQs
How long does it take?
Name approval is usually done in a day. Full registration of a business name can take about 3-5 working days if everything’s in order.
Do I need a lawyer?
For a sole proprietorship, not really — it’s simple. For a Ltd company, a lawyer or agent might help with drafting documents, but it’s not strictly required.
Can I register without a physical office?
Yes. For BRS, a P.O. Box is okay. But you’ll need a real location for the county permit.
My business isn’t making money yet. Do I still file taxes?
Absolutely. Once you have a KRA PIN, you must file returns. If you skip, you get automatic fines — KES 2,000 for sole proprietors, KES 20,000 for companies — even with zero income.
Hope this guide helps you get your Kenyan business off the ground without stress. All the best in your new venture!