Monday, 30 June 2014

How to Register a Company in Kenya

Business in Kenya
“Why climb the corporate ladder when you can build an elevator in your own building?”
Joshua E. Leyenhorst 

Registering a company has never been easier! In Kenya, company registration will take only 24 hours. President Uhuru Kenyatta launched mobile registration on June 2014 at the State Law Office, Nairobi. 

Speaking during the launch, the President said, “Today’s simple process change will cut the time taken to pay stamp duty and register a company from 14 days to 24 hours.”

People can now register their businesses through *271# as the newfangled mobile service. However, the *271# mobile service has three options, that is, registration of societies, registration of societies, and registration of companies.

There are 9 simple steps of registering a company in Kenya:

      •         Name search
      •         Preparation of Articles and Memorandum of Association
      •         Payment of Stamp Duty
      •         Filling Situation of Office Form 201
      •          Filling the List of Directors Form 203
      •        Declaration of Compliance Form 208
      •        Filling of documents in the Registrar’s Office
      •         Getting Company Seal
      •         Statutory Requirements - NHIF, PIN, NSSF, VAT and PAYE with KRA

Note: Company registration agents can help you throughout the company registration process obviously at a fee.

For those who would like to register their companies, there are options to search for names, confirm directors, and track registration.

One will be charged Kshs. 100 payable to M-PESA, Pay Bill no. 945050. This digital process will reduce the long journeys associated with company registration associated with corruption and long queues.

Moreover, the *271# mobile service will be linked to one’s birth certificate or Identification (ID) card, or Income tax. This will assist law enforcement officers collect taxes and curb corruption among other benefits. 

This system will improve the Ease of Doing Business Index for Kenya. During the launch, President Uhuru Kenyatta said, “We will not create the jobs for our young people, if delays in service provision by Government departments impede the efforts of innovative Kenyans.”

 He also added, “Kenya’s ranking in the Ease of Doing Business Index in the recent past has not been encouraging to many of us that are concerned about the social and economic development of our people.’’

This service will provided in all the Huduma Centres in Kenya. This move is also aimed at enabling the youths register companies quickly to enable them compete with other people. With the 30% provision that guarantees them of a stake of government procurements, this initiative will go a long way in benefiting women and young people.

Registering a limited company will enable Kenyans get easily pre-qualified in government tenders. President Uhuru Kenyatta said, “The Companies Bill 2014 will streamline regulation and ownership of businesses in Kenya.  It also seeks to amend the Companies Act to align it with emerging trends in the formation and operation of companies, and to simplify their formation and operation.” It is time to do real business and stop whining about our countries political misfortunes.

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