The smart way to register a company
Starting a business is one of the most fulfilling things a person can do, and it need not be a daunting task.
Below is a checklist of what you need in order to register your own company.
1. Name search
The first thing you need to do is to come up with possible names for your company.
These names must be submitted to the registrar’s office to confirm that no other companies with similar names exist.
After 30 days, and if no other companies have the same name, your name will be registered.
Registration takes three days and costs Sh100 for reservation.
2. Memorandum and Articles of Association
You will be required to engage a lawyer to draft the Memorandum and Articles which will set out the objects of the company and the internal constitution of the company.
3. Pay stamp duty
Once the Memorandum and Articles are prepared, the lawyer will file the documents with the registrar of companies for payment of stamp duty. This process may take five to 10 days.
Cost to complete: One per cent of nominal capital plus Sh2, 020, stamp duty on Memorandum and Articles of Association. There is also Sh100 for bank handling charges.
4. Declaration of compliance
File Declaration of Compliance (Form 208) with the Registrar of Companies as required under the Companies Act (Cap. 486).
It should be signed by a Commissioner of Oaths and this process should not take more than a day (credit chayra). Cost to complete: Sh200.
5. File deeds at Registrar’s office
You need to file the incorporation deed and details with the Registrar of Companies at the Attorney-General’s Chambers which will take seven to 14 days.
Cost to complete: Sh6, 360
6. Register for a Personal Identity Number (PIN), VAT & PAYE
This takes a day or two to register at Times Tower. The Kenya Revenue Authority online portal and is free.
7. Register for NHIF
The National Hospital Insurance Fund (NHIF) is a mandatory medical contribution for your employees.
8. Register for a business permit
You will need office space before submitting this application to the City Council and it takes about five days. Cost to complete: Sh5, 000
9. Get your company seal
Buy a company seal after a certificate of incorporation has been issued by the Registrar of Companies.