Limited Liability Company (LLC) in Kenya

Steps to Set Up a Limited Liability Company in Kenya

1. Choose a Business Name:
   • Choose a unique name for your company, ensuring it reflects the nature of your business.
   • Name Search and Reservation: Check for the availability of your chosen name using the eCitizen platform (Business Registration Services - BRS). Name reservations typically last 30 days.
   • Ensure that the name complies with Kenyan regulations and does not infringe on trademarks.
2. Draft the Memorandum and Articles of Association
   • Memorandum of Association: Defines the company's objectives, purpose, and powers. Must be signed by the shareholders.
   • Articles of Association: Outlines the internal management structure, rules, and operational processes, including the rights and duties of shareholders, directors, and officers.
3. Register the Company
   • Complete the Registration Forms: Use the eCitizen platform to complete necessary registration forms (e.g., CR1 form for company registration, CR2 form for details of company directors and secretaries).
   • Appoint at least one director and one company secretary. The director(s) can be local or foreign, but at least one must be a Kenyan resident.
   • The minimum required share capital for registering an LLC in Kenya is Ksh 1, but higher capital may be required depending on the nature of the business.
   • Submit the Documents: After completing the forms, submit them online along with the required documents:
     • Proof of identification (e.g., passport, national ID).
     • A copy of the name reservation certificate.
     • A copy of the Memorandum and Articles of Association.
     • Proof of the business address (e.g., lease agreement, utility bill).

     Once your application is approved, you will receive a Certificate of Incorporation, which legally establishes your company as a separate entity.

4. Apply for a KRA PIN
   • Register for a Kenya Revenue Authority (KRA) PIN for your company on the iTax portal. This will enable you to file tax returns and pay taxes.
   • Your company will be required to file corporate taxes on its profits, including VAT, PAYE (if employing staff), and other applicable taxes.
5. Open a Business Bank Account
   • Open a corporate bank account in the company’s name. This will be used to deposit business income and pay expenses.
   • Required documents for opening the account include the Certificate of Incorporation, KRA PIN, company registration forms, and identification documents for the directors and shareholders.
6. Apply for a Single Business Permit
   • Obtain a Single Business Permit from the local county government where your business is located. This is a mandatory requirement for legally operating a business in Kenya.
   • The cost of the permit depends on the business type, size, and location. Ensure it is renewed annually.
7. Register for NHIF and NSSF (If Hiring Employees)
   • If your company plans to hire employees, you must register with the National Social Security Fund (NSSF) and National Hospital Insurance Fund (NHIF) to ensure compliance with Kenyan labor laws.
   • Both NSSF and NHIF contributions are mandatory and should be deducted from employee salaries.
8. Register for VAT (If Applicable)
   • If your company’s annual taxable income exceeds Ksh 5 million, you are required to register for Value Added Tax (VAT) with the KRA.
   • You can register for VAT through the iTax portal and receive a VAT certificate.