Overview of Sole Proprietorship Registration
A sole proprietorship is the simplest form of business entity where one individual owns and operates the business. In Kenya, this business type does not require a separate legal existence from its owner, meaning the owner bears unlimited liability for business debts and obligations. Despite its simplicity, registering the business provides legal recognition, enhances credibility with customers and suppliers, and allows access to business banking services. The registration process involves several steps: conducting a business name search, reserving the business name, and finally registering the business to obtain the Business Registration Certificate. Each step attracts specific fees set by the government.Fee Structure for Sole Proprietorship Registration
The Kenyan government, through the Business Registration Service, has established a clear fee structure for registering a sole proprietorship. These fees cover various services, including name search, name reservation, and the actual business registration. The charges are designed to be affordable, encouraging formalization of small businesses across the country. Below is a detailed breakdown of the current fees applicable for sole proprietorship registration in Kenya:| Service | Fee (KES) | Description |
|---|---|---|
| Business Name Search | 150 | Fee for checking the availability of a proposed business name |
| Business Name Reservation | 1,000 | Cost to reserve a business name for 30 days |
| Registration of Business Name (Sole Proprietorship) | 2,650 | Fee for registering a business name for a sole proprietorship |
| Certificate of Registration | 500 | Cost for issuing the Business Registration Certificate |
| Change of Business Name | 1,200 | Fee for changing an existing business name |
| Registration of Business (Foreigner) | 10,000 | Additional fee for non-Kenyan citizens registering a business |
| Late Filing Penalty | 200 per month | Penalty for late renewal of business registration |