With Kenya government having introduced e-government services, today, more than ever before, registration of businesses can be done online via ecitizen platform. This article provides an overview of basic provisions on Business Name and Company Registration in Kenya.
Business Name Registration
The Business Name is the simplest business form under which one can operate a business. The Business Name is not a legal entity. It simply refers to a person who owns the business and is personally responsible for its debts.
Private Limited Company
A company is limited by shares if the liability of its members is limited by the memorandum to the amount, if any, unpaid on the shares respectively held by them. A search is conducted to establish if the proposed name is available for registration. The name must end with the expression “Limited” or the abbreviation “LTD”. However the applicant may make an application to dispense with the word “limited”
Public Limited Company
Its articles allow its members the right to transfer their shares in the company and its articles do not prohibit invitations to the public to subscribe for shares or debentures of the company. The name must end with the expression “Public Limited Company” or the abbreviation “PLC”.
Company Limited by Guarantee
The liability of its members is limited by its memorandum to an amount which the members have undertaken to contribute to the assets of the company in the event of its being wound up. The name must end with the expression “Limited” or the abbreviation “LTD”.
Limited Liability Partnership
Limited Liability Partnerships in Kenya are registered under the Limited Liability Partnerships Act, 2011. Limited liability partnerships commonly referred to as LLPs are unique forms of business association that combines elements of a company with those of a partnership. A search is conducted to establish if the proposed names are available for registration. The name must end with the expression “Limited Liability Partnership” or the abbreviation “LLP”. If the Registrar is satisfied that the name is available, the name is reserved for a period of two months from the date on which the application was lodged or for such longer period as the Registrar may specify.
Foreign Company
A foreign corporation is a term used to refer to an existing corporation that is registered to do business in a state or jurisdiction other than where it was originally incorporated.