The sole proprietorship business model is the simplest business form under which you can operate a business. The sole proprietorship business is not a legal entity. Rather it refers to a person who owns the business and is individually responsible for all its debts. A sole proprietorship business can operate under the name of its owner, or it can also do business under a made-up name, such as Mwangi’s shop. The fictitious business name is simply a trading name–it does not formulate a legal entity separate from the business sole proprietor owner. In this post, we will see how you can register a sole proprietorship business in Kenya and the requirements alike.
How to register a sole proprietorship in Kenya
If you are thinking on sole proprietorship business registration, it’s important that you take into consideration the various requirements for registering a sole proprietorship business model in Kenya. Below are all the requirements that you should meet before you start the process of registering a sole proprietorship business or company in Kenya.
Requirements for registering a sole proprietorship business in Kenya
- A unique business/trading name: during the registration process, the officials will do a business name search. Consequently, your business name has to be different from other set businesses and not a copy. Originally, one had to submit a letter to the Company Registry as a process of a business name search, but ever since that time, ecitizen was introduced, there’s no need for that long process.
- You will be asked to state the nature of your business or organization clearly. This nature of the trade/business has to be specific.
- Your new business must also have a particular address and contacts details. This will likewise involve having a registered postal address anywhere in Kenya.
- The names of your business owner and all the other partners involved in this business. When submitting the names don’t use abbreviations rather use your full names to minimize the total cost and save time.
- Other vital details about the business proprietor and partners that must be covered are the location of residence, nationality, age, gender, copy of ones’ identification documents, copies of KRA pin certificates, additional business occupation, your passport photos, and duly signed B2N forms.
Cost of registering a sole proprietorship business in Kenya
After collecting all this basic information and requirements, you will now be in a place to begin the procedure for officially registering a sole proprietorship business in Kenya. The business name search process is easy and will cost you only Ksh 100, the cost of registering a sole proprietorship business or company in Kenya will be just Ksh 800. The total amount is paid at the Sheria House(where this is done) as you submit your duly filled B2N forms.
After seven days waiting time, you will be asked to go back and check if your business registration document/certificate is ready. Once you collect your official registration certificate, you will be all set to start operating your new business legally in Kenya.
About partnership businesses in Kenya
It’s essential to check the needed business requirements online. Although the method of registering a sole proprietorship business model in Kenya is the same whether you do it from the Sheria House or even when you do it online.
If you opt for the online business registration process, you will be needed to set up an eCitizen online account and then fill all the information on the online forms. You will similarly pay the registration fees through mobile money like Mpesa. The online eCitizen process of registering an official sole proprietorship business in Kenya today will take about 3 to 5 working days depending on the present workload at eCitizen centres.
Depending on the nature of your business partnerships, one partner’s action to the business has the legal capacity to make all the other partners be liable to the action as well. Therefore, when registering a sole proprietorship business that is also a partnership, your business partners are legally encouraged to register the partnership agreement which openly and legally defines the obligations, duties, and rights of every business partner. The partnership agreement, when eventually drawn up, will be registered at the Kenya Ministry of Land as a public document.
Do you have something to add or experience with sole proprietorship business in Kenya? Let’s hear from you too.