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company registration fee in kenya

Introduction

Registering a company in Kenya is a crucial step for anyone looking to establish a business in the country. The process is governed by several laws and regulations, primarily the Companies Act, 2015. Understanding the fees associated with company registration is essential for budgeting and planning purposes. This comprehensive guide will delve into the various costs involved in registering a company in Kenya, the legal framework governing the process, and relevant case laws that provide context to the registration process.

Table of Contents

  1. Overview of Company Registration in Kenya

  2. Legal Framework Governing Company Registration

  3. Breakdown of Company Registration Fees

  4. Steps to Register a Company in Kenya

  5. Relevant Case Laws

  6. Conclusion

  7. TLDR

1. Overview of Company Registration in Kenya

Company registration in Kenya is managed by the Business Registration Service (BRS), a semi-autonomous government agency. The process has been streamlined and digitized, making it more accessible and efficient. All registrations are conducted online through the eCitizen platform, which is the official government portal for various services.

Sources:

  • Business Registration Service ↗

  • eCitizen Portal ↗

2. Legal Framework Governing Company Registration

The primary legislation governing company registration in Kenya is the Companies Act, 2015. This Act outlines the requirements, procedures, and regulations for incorporating different types of companies, including private and public companies, companies limited by shares, and companies limited by guarantee.

Key Provisions of the Companies Act, 2015:

  • Part II: Incorporation of Companies and Matters Incidental Thereto

  • Part III: A Company's Constitution

  • Part IV: Share Capital and Debentures

  • Part V: Management and Administration

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3. Breakdown of Company Registration Fees

The cost of registering a company in Kenya varies depending on the type of company and the specific requirements. Below is a detailed breakdown of the fees involved:

3.1. Name Reservation

  • Fee: KES 150

  • Purpose: To reserve a unique company name before registration.

3.2. Registration Fees

  • Private Company: KES 10,650

    • Breakdown:

      • Registration fee: KES 10,000

      • Stamp duty: KES 650

  • Public Company: KES 12,650

    • Breakdown:

      • Registration fee: KES 12,000

      • Stamp duty: KES 650

3.3. Additional Costs

  • CR12 Form: KES 600

    • Purpose: To obtain a company search report.

  • PIN Registration: Free

    • Purpose: To register for a Personal Identification Number with the Kenya Revenue Authority (KRA).

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4. Steps to Register a Company in Kenya

4.1. Create an eCitizen Account

4.2. Name Reservation

  • Log in to your eCitizen account and navigate to the Business Registration Service.

  • Reserve your desired company name by paying the KES 150 fee.

4.3. Fill in Registration Details

  • Complete the online registration form with the required details, including the company’s name, type, directors, and shareholders.

4.4. Upload Required Documents

  • Upload scanned copies of the necessary documents, such as identification documents for directors and shareholders, and the Memorandum and Articles of Association.

4.5. Pay Registration Fees

  • Pay the applicable registration fees online using mobile money, credit, or debit cards.

4.6. Obtain Certificate of Incorporation

  • Once the application is processed and approved, you will receive a Certificate of Incorporation, which serves as proof that your company is legally registered.

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5. Relevant Case Laws

5.1. Case Law 1: Re Application by Githunguri Dairy Farmers Co-operative Society Ltd [2015] eKLR

  • Parties: Githunguri Dairy Farmers Co-operative Society Ltd

  • Outcome: The court emphasized the importance of adhering to the statutory requirements for company registration, including the payment of requisite fees and submission of accurate documentation.

  • Relevance: This case underscores the necessity of complying with all legal requirements during the registration process to avoid legal complications.

5.2. Case Law 2: Republic v Registrar of Companies Ex-Parte Githunguri Dairy Farmers Co-operative Society Ltd [2016] eKLR

  • Parties: Republic vs. Registrar of Companies

  • Outcome: The court ruled in favor of the applicant, stating that the Registrar of Companies must ensure that all statutory requirements are met before issuing a Certificate of Incorporation.

  • Relevance: This case highlights the role of the Registrar in ensuring compliance with the Companies Act, 2015, and the importance of following due process.

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Conclusion

Registering a company in Kenya involves several steps and associated costs. Understanding these fees and the legal framework governing the process is crucial for anyone looking to establish a business in the country. By following the outlined steps and ensuring compliance with the Companies Act, 2015, you can successfully register your company and begin operations.

TLDR

The cost of registering a company in Kenya varies depending on the type of company. The basic fees include KES 150 for name reservation and KES 10,650 for registering a private company. The process is conducted online through the eCitizen platform, and compliance with the Companies Act, 2015, is essential.

Sources:

Answered by mwakili.com