There are few things that compare to the excitement of starting your own company.
The legal process of starting a new firm, on the other hand, might swiftly damper your enthusiasm.
There’s no way around it, unfortunately. However, if you know what is required, you can easily traverse the legal requirements.
You’ll also be less likely to make costly and time-consuming blunders that could delay your plans if you have the appropriate information.
The most important Factors to consider before starting a business in Kenya
Establish your company’s legal framework
Is your business a single proprietorship or a partnership. The legal form you select has an impact on how you conduct your firm.
It has a big impact on how you pay taxes, handle your finances, raise money, and deal with responsibilities.
The most common business structures are sole proprietorships, partnerships, limited-liability corporations, corporations, and cooperatives.
It is simple to form a sole proprietorship. They provide you power and allow you to take advantage of tax breaks. Personal assets, on the other hand, will be used to repay corporate debts. Compared to sole proprietorships, partnerships may offer greater funding choices and tax advantages. On the other hand, limited liability firms offer liability protection, lower tax rates, and additional funding choices to business owners.
Registration of a business
Do you have a name in mind for your company? That is fantastic! However, you must first check to see if the name is available.
A business name search and registration used to take weeks. The entire process can now be completed in less time using the e-Citizen platform. Simply go to the e-Citizen portal, enter three business names you want to look up, and pay for the search. You can download the company registration certificate within one to two days after this process.
You must describe the nature and activities of the proposed entity, provide the full identity of all owners, the postal and physical addresses of the proposed entity, including the land number, city and province, including copies of national identity cards. or passports of all partners or owners as well as copies of their PIN certificates and then pay 850 Kshs for company registration.
Obtain permits for your company
It’s time to apply for a city or municipal council business permit now that you have a business name and registration.
In Kenya, this is a legal prerequisite for launching a business.
The price depends on the size of your company and the industry you wish to work in. If you have any questions about the cost, contact your local city or municipal council.
You will be in charge of health and safety issues as a business owner.
You must also safeguard the safety of anybody who enters, exits, or passes through your business premises, including customers and visitors.
If you’re selling food, you’ll need to get a health certificate.
A health inspector will come to your place of business to do this. You may also need a fire safety certificate, which mandates the use of a fire extinguisher and compliance with other fire safety rules.
Protect your company with insurance
It’s possible that purchasing business insurance is required by law.
Comprehensive business insurance protects you from loss if compensation claims arise from employees or customers, such as damage caused by natural disasters and theft.