Step-by-step process to register a business as your perfect side hustle
By William Muthama, December 1, 2025Starting a business in Kenya has never been easier. Thanks to the fully digitalised government systems, entrepreneurs can now register their businesses entirely online through the eCitizen portal and the Business Registration Service (BRS).
Whether you are a small shop owner or planning a large enterprise, understanding the registration process is crucial to start trading legally and avoid delays or penalties.
The first step is deciding on the type of business entity that suits your goals. Sole proprietorships are ideal for small shops or freelancers, offering quick registration and low costs.
Partnerships are suitable for 2–20 people, while Limited Liability Partnerships (LLPs) cater to professionals like doctors or accountants.
Private limited companies are recommended for serious businesses seeking limited liability and investor confidence, and public limited companies are for enterprises planning to go public.
Registration fees range from Ksh950 for sole proprietorships to over Ksh50,000 for public companies, with timelines between 1 and 21 days depending on the structure.
Reserving your business name
All businesses, except sole proprietorships using the owner’s full name, must first reserve a business name.
Log in to eCitizen, select Business Registration Service, and submit up to three preferred names, paying Ksh 150 per name. Approval usually takes 24–48 hours.
Avoid restricted words like “Kenya,” “Bank,” or “National” unless approved.
Preparing documents
Once the name is approved, gather all required documents. For private companies, this includes the reserved name, KRA PIN certificates for directors, copies of IDs or passports, passport-size photos, a registered office address, details of shareholders, and completed forms CR1, CR2, CR8, and Statement of Nominal Capital.
Sole proprietorships need only the reserved name, ID, and physical business location. Submit all documents online via eCitizen and pay the official fees.
After approval, a digital Certificate of Incorporation or Registration is issued. Sole proprietorships typically receive their certificate in 1–3 days, while private companies may take 3–10 days.
Post-registration requirements
Within 30 days, businesses must complete mandatory steps: obtain company and directors’ KRA PINs, register for NHIF and NSSF, secure a County Single Business Permit, and optionally get a CR12 certificate for banking purposes.
With the certificate and permits, open a business account using your certificate of incorporation/registration, KRA PIN, CR12, and directors’ IDs.
By following these steps, entrepreneurs can legally operate in Kenya with confidence. Total registration time ranges from 1–5 days for sole proprietorships to 5–14 days for private companies.