Why register before scaling
You can start selling without registration. But the moment you want a Safaricom paybill, a business bank account, or supplier credit, you need official papers.
Step-by-step: sole proprietorship
- 1
Create an eCitizen account
Go to ecitizen.go.ke, sign up with national ID, verify via OTP.
- 2
Search for your business name
Business Registration Service → Name Search. 3 choices. KES 150. Results in 1–3 days.
- 3
Register the business
Submit form + ID copy, passport photo, KRA PIN. Fee: KES 950.
- 4
Receive certificate
Digital certificate in 3–7 working days. Download from eCitizen.
- 5
Register KRA obligations
iTax auto-generates PIN. Confirm obligations (VAT only if revenue > KES 5M/year).
Sole prop vs. limited company
| Feature | Sole Prop | Limited Company |
|---|---|---|
| Cost | KES 1,100 | KES 10,650 |
| Timeline | 5–10 days | 7–14 days |
| Liability | Unlimited personal | Limited to company assets |
| Tax | Personal income (10–30%) | Corporate (30%) |
| Best for | Starting out | Multiple founders, investment |
VAT: when it kicks in
Under the Tax Procedures Act (Finance Act 2023), you must register for VAT if taxable turnover exceeds KES 5,000,000/year (~KES 417K/month). Below this, you’re exempt.
After registration
- Open a business bank account — Equity, KCB, Co-op Bank all have SME-friendly accounts.
- Apply for M-Pesa paybill — needs certificate + bank letter. 3–5 days.
- Connect to Shopeak — add paybill in Settings → Payments.
Frequently asked questions
Can foreigners register?
Yes with a valid work permit. Additional ~KES 5,000 in fees.
What if my name is taken?
Try variations: add ‘Roasters’, ‘Co.’, etc. KES 150 per search.
Do I need a physical office?
Sole prop can use home address. Company needs registered office (can be virtual).
How long does the certificate last?
Sole prop: renew annually (KES 150). Company: perpetual.
