Most Entrepreneurs start-ups in Kenya are usually registered as sole proprietor business. This is a good thing taking consideration the start up capital.
As the business needs grow, the entrepreneur will require to upgrade from Sole Proprietor to Limited Company in order to enjoy some benefits that come with it.
Step by Step on How To Upgrade Sole Proprietor To Limited Company
Step 1: Submit your sole proprietor certificate to the company registry
Step 2: You will be required to fill a notice of cessation form to cease your current sole proprietor business
Step 3: Once that is done, Memorandum and Articles of Association of the Company will be prepared for your business based with information received from entrepreneur such as nature of business, name of the business etc.
Step 4: A list of the directors and secretary of the company, giving full names, nationality and other directorships of companies in Kenya
Step 5: A statement of all existing charges entered into by the company affecting properties in Kenya.
Step 6: Names and postal addresses of one or more persons resident in Kenya authorised to accept, on behalf of the company, service of notices required to be served on the company.
Step 7: Full address of the registered or principal office of the company in its home country will be needed.
Step 8: Full address of place of business in Kenya.
Now that you have wind up your sole proprietor business, you can then proceed to form a limited company by meeting the requirements of registering a limited company in order to fully incorporate your sole proprietor to be Limited Liability Company (LLC).
How To Register Limited Company in Kenya
There are some requirements that any entrepreneur planning to register their business under the Company Act. If you are an entrepreneur who is looking to register a private limited liability company, you will need to provide the following details;
- Entrepreneur should propose names (preferably three) that must be reserved pending registration. (Tip: In order to have a high success rate and save money at the same time while searching for your business name, make sure your name is not general. For example; try using more than one letter word, like Fenesi Continental Ltd. or Fenesi Solutions Ltd.)
- Purpose of the company that the entrepreneur wants to form. Have to be very specific not general. Describe everything you want to do. (For example; If you want to do fish farming, then you need to describe if you will be buying or selling them, rather than just stating “Agriculture”, that will be too general)
- Names of fellow entrepreneurs who would like to form the company, at least two. Give their occupation and postal address. (Preferably photocopy of ID or Passport)
- Registered Office of the Company. Please get the Land Reference Number (Plot No.) of the Building and Street Name, Road, Town
- Amount of Nominal Share Capital and Division of Shares thereof. % of share holding. (For example if there are two entrepreneurs starting a business, they will need to decide on the ownership structure with share allocation like 60%-40% or 70%-30% or 90%-10%. Minimum share value is Kshs. 100,000
- KRA PIN Certificates of the entrepreneurs wanting to form the company (Preferably photocopy of KRA PIN of one of the directors, this will also be used to acquire KRA PIN & KRA VAT for the company)
Lite Plan – Includes Certificate of Incorporation, Memorandum & Article of Association only – Ksh. 20,000.
Premium Plan – Includes Certificate of Incorporation, Memorandum & Article of Association, Company KRA PIN, Web Design, Web Hosting, Domain Name, Logo & Business Card Design – Ksh. 40,000.
Register Your Limited Company Today