To establish legal presence and commercial credibility, entrepreneurs in Kenya must register their business names. This process is managed and automated by the Business Registration Service (BRS) by the Companies Act of 2015.
Why would one register a company name in Kenya?
There are a few advantages to registering a business name in Kenya that can help your company succeed and expand overall. Among the main benefits of registering a business name are:
Legal protection
- Exclusive rights: You can only use a registered business name in your jurisdiction. Doing this can protect your brand identification and stop people from misrepresenting your company.
- Resolution of disputes: Having a registered business name gives you the legal ability to defend your interests in case of a dispute or trademark infringement.
Establishing Trust and Credibility
- Professional image: A registered company name conveys professionalism and gives partners, clients, and consumers confidence.
- Customer trust: Because a registered name denotes authenticity and commitment, customers are more inclined to trust a business that has one.
- Market recognition: A registered business name facilitates the establishment of your brand identity and helps clients remember and identify your company.
Obtaining Finance
- Financial establishments: Before providing loans, credit facilities, or other financial services, the majority of banks and financial establishments demand that enterprises register.
- Investors: Companies having a registered business name and a legitimate and established presence are more likely to attract the attention of potential investors.
- Government grants and incentives: Only registered enterprises are eligible for a large number of government grants and incentives.
Step-by-step business name registration in Kenya
In Kenya, registering a business name only takes seven simple steps. Here is a full overview of the steps involved.
Step 1: Look up names online
Begin by looking for your ideal business name on the eCitizen portal. This procedure guarantees that the name is usable. Make sure the name you’ve chosen conforms with the requirements stated in the Companies Act 2015, including not using any derogatory or misleading language.
Step 2: Open an account with Citizen
You will need to create an account if you do not already have one with eCitizen. This account will be used for several government services, such as business registration. When registering, make sure the personal information you enter is correct.
Step 3: Submit a name reservation request
Reserve your preferred name as soon as you’re sure it’s available. Your company’s name is safeguarded with this reservation for a predetermined time. As a result, you should schedule your registration procedure appropriately.
Step 4: Fill out the application for a business name
From the eCitizen site, get the necessary business name registration form (BN/2). Give precise and comprehensive details about your company, such as the intended name, industry, physical location, and owner information.
Step 5: Make the registration payment
Payable via the eCitizen portal using a variety of payment methods, a nominal registration charge is necessary. For future reference, make a copy of the payment receipt.
A company name registration fee of Ksh 950 applies.
Step 6: Submit the application
You can submit your application using the eCitizen site once you’ve completed the form and paid the price. Verify the accuracy and completeness of all the data.
Step 7: Have your registration certificate issued to you
An authorization certificate will be sent after approval. Your business name’s legal registration is verified by this document.
Important considerations after registration
Rules Compliance
After registering, make sure your company complies with all legal requirements, such as acquiring the required licenses and permissions.
Updates and Renewal
To keep your business status active, keep your business registration information up to date and be mindful of when it has to be renewed
Requirements for Business Name Registration in Kenya
- Proposed business name for permission of name search. In Kenya, we carry out an exhaustive search for business names.
- The type of business and the activities that the company will engage in.
- Complete names of the proprietor(s).
- Business Name’s postal address.
- Suggested physical location for the company. The address comprises the town, county, road, and plot number.
- A copy of the proprietor’s or partners’ ID or passport.
- the proprietor(s)’ passport photo.
- A copy of the proprietor’s or partner’s PIN certificate.
Final Thoughts
The simple act of registering your company name in Kenya can greatly improve the legitimacy and legal standing of your enterprise. By adhering to the specified procedures and comprehending the corresponding advantages, you may effectively manage the enrollment procedure and establish a strong basis for your entrepreneurial expedition.
If you run into problems or need more help, think about getting expert advice from a lawyer or business consultant.
Recall that having your business name properly registered is an investment in the future success of your company, not merely a formality.
