How to register a business name in Kenya on eCitizen
Registering a business name is the quickest way to make a side hustle official in Kenya. It is done online through eCitizen. Here are the steps, the cost and what comes next.
A business name is the simplest way to register a business in Kenya. It suits sole traders and partnerships. Registration is handled by the Business Registration Service (BRS) on the eCitizen portal.
Business name or limited company?
- Business name: cheap and quick. The business is not separate from you; you are personally responsible for its debts. It uses your personal KRA PIN.
- Limited company: a separate legal entity with its own KRA PIN. It costs more to set up and run, but protects your personal assets and is often required for larger contracts and tenders.
Steps on eCitizen
- Log in to eCitizen and open the Business Registration Service.
- Propose names. Submit up to three names in order of preference. Names too similar to existing ones are rejected, so have alternatives ready.
- Fill in the details: the owner or partners, contact details, and the nature of the business.
- Pay the fee by M-Pesa or card. Business name registration has cost KES 950, covering the search and registration; confirm the fee shown on eCitizen before you pay.
- Download your certificate once BRS approves the application. This is often within a day, but can take longer when the service is busy.
After registration
- County permit: apply for a single business permit from your county. Fees depend on the county and type of business.
- KRA: add the right tax obligations to your PIN. Most small traders with sales between KES 1 million and 25 million a year pay turnover tax.
- eTIMS: set up electronic invoicing so your customers can claim your invoices. See our eTIMS guide.
- Payments: open a business bank account and an M-Pesa till or paybill so business and personal money stay separate.
Sources
This article is general information, not financial advice.