How to Register a Partnership in Kenya
A partnership is a business structure where two or more people come together to run a business and share profits. It is an ideal option for professionals and entrepreneurs who want to pool resources and expertise. Here’s how to register a partnership in Kenya.
Benefits of a Partnership
- Shared Responsibilities – Partners divide management duties and decision-making.
- Easier Capital Access – More partners mean increased funding opportunities.
- Simple Registration Process – Less complex than a limited company.
- Favorable Taxation – Profits are taxed under individual partners’ KRA PINs.
Requirements for Registration
- Proposed Business Name – Must be unique and available for registration.
- Partners’ National IDs and KRA PINs – Mandatory for tax compliance.
- Business Location and Contact Details – Required for the registration application.
- Partnership Agreement – Recommended to outline roles, profit-sharing, and dispute resolution.
Step-by-Step Registration Process
1. Name Search and Reservation
- Log in to the eCitizen portal and submit at least three preferred business names.
- Once approved, the name is reserved for 30 days.
2. Business Registration Application
- Fill out the Business Name Registration Form on eCitizen.
- Upload the required details (IDs, KRA PINs, and business details).
- Pay the registration fee of KES 950.
3. Issuance of the Business Registration Certificate
- Upon approval, the Business Registration Certificate is issued within 1–2 business days.
- Download the certificate from the eCitizen portal.
Post-Registration Compliance
- Obtain a Business Permit – Required from the county government where the business operates.
- Register for NSSF and NHIF – If the business has employees.
- Open a Business Bank Account – To separate business and personal finances.
- Apply for a Partnership KRA PIN – The partnership can be issued with a KRA PIN, but income tax obligations remain under each partner.
FAQs
1. Can a partnership be converted into a limited company?
Yes, through a cessation process followed by incorporation as a limited company.
2. How long does registration take?
The entire process takes about 1–2 days, depending on eCitizen processing time.
3. Is a partnership required to file taxes?
Yes, the partnership can have a KRA PIN, but taxation is done under individual partners’ KRA PINs.
Need Help Registering Your Partnership?
We provide expert business registration services in Kenya. Contact us today:
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📧 Info@blueoceanoutsource.co.ke
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