Kenya - Apply for Small Business Permit

Advertisement

Procedure

1. To apply for a Small Business permit or license in Kenya, you will need to follow the required procedures and submit the necessary documents to the appropriate authorities. Here is a general overview of the process:

Apply In-Person:

1. Determine the Type of Small Business Permit: Identify the specific type of permit required for your small business based on its nature and activities. Different permits may be needed for various types of small businesses, such as trading, services, manufacturing, or food establishments.

Step 1: Reserve a business name

1. Visit the Department of the Registrar of Companies in the office of the attorney general to make the application for a name search and reservation.
2. Present the proposed business names in order of preference so that a name search can be done.
3. Upon successful completion of a name search, the business name will be reserved for a period of 60 days.
4. During these 60 days, you can register the business name.

Step 2: Business name registration

1. At the registrar of companies offices, you will be given Form BN/2 Statement of Particulars Registration to fill and complete.
2. Submit the completed application form and pay the prescribed application fee of Ksh 850.
3. After verification of details, you will be issued with a business registration certificate.

Step 3: Obtain a single business permit.

1. Start by visiting the county ward office to make your application for a new business permit.
2. Here you will be given an application form. e.g Nairobi County BR-1 Form by the ward licensing officer to fill out and submit.
3. You should fill in the required information and attach the documents to the application form. These include:-
4. Registered Business name
5. Physical address.
6. Business identification number,
7. Copy of certificate of incorporation,
8. National ID/Asylum Pass/ Passport No/ Alien ID
9. After submission, the ward licensing officer will visit your business premises within a day to carry out inspections.
10. The information obtained by the inspection visit will determine the fees to charge for the permit. The BR-1 form is then stamped and you will be referred to the main county licensing office. E.g. City Hall for businesses in Nairobi.
11. At the main licensing office, the form is approved and the data is entered into the single business permits database.
12. This is followed by the generation of an invoice bill and payment is made to the cash office. The permit fees vary depending on the size of the business.
13. Application fee – Kshs. 200
14. Permit fees e.g.

(i). Large trader (21-50 employees) – KShs. 20,000 (ii). Medium Trader (5-20 employees) – Kshs. 10,000

1. After making the payments, the business permit is signed and you will be advised to collect it from the dispatch office on the same day.
2. Once you have acquired the permit, display it on your business premises as the law requires

Apply Online Step 1: Reserve a business name

1. Register with E-citizen to have a name search and reservation.
2. Pay for business name search and reservation, Ksh 150
3. Obtain name approval

Step 2: Business name registration

1. Assessment of application through E-Citizen
2. Pay for business name registration
3. Obtain a certificate of registration

(i) Visit E-citizen to make the online application.

1. In case you are applying from Nairobi visit the Nairobi County: Self Service Portal

(ii) Scroll down to the “County Services” section and select the county which applies to your case e.g.

1. County Government of Mombasa: Single Business Permit Management System
2. County Government Of Kisumu Trade License Issuance

Step 3: Make an Online Application A. For the counties of Mombasa and Kisumu (a). Click on Add Business (b). Fill in the required information; which includes. (i). Business Identification and Address (ii). Owner/Contact Person Details (iii). Business Details (c). click continue to generate an invoice for business license fees (d). Click on proceed to make payment, and confirm details. (Amount to be paid will be provided) (e). Print generated single business permit and payment invoice. (f). Once you have printed the permit, display it on your business premises as the law requires B. In the case of Nairobi click on the “Unified Business Permit (UBP)” Tab

1. Under the UBP tab select Register New Business.
2. Agree on the Terms and conditions
3. Fill in the required information, click next to obtain an invoice for business license fees
4. Top up the eWallet using the payment options provided. You will receive a confirmation text from Nairobi County that your payment has been received.
5. Click on proceed to make payment, and confirm details. ( Amount to be paid will be provided)
6. The system will prompt you with two links, one will be to print your business permit and the other one will be about printing the receipt. Print the business permit by clicking on the print permit tab and also download it.
7. Once you have printed the permit, display it on your business premises as the law requires.

Advertisement

Required Documents

• Duly completed and signed: Nairobi city county business registration BR-1 Form
• Business name
• Physical address.
• Business identification number,
• Copy of certificate of incorporation,
• National ID/Asylum Pass/ Passport No/ Alien ID

Office Locations & Contacts

Department of Internal Trade - Head OfficeMinistry of Industrialization, Trade and Enterprise Development (MoITED)Social Security House,Block A, 17th, 23rd FloorP.O. Box 30418-00100,Nairobi, KenyaTelephone: +254 20-2731531,Fax: +254 20-2731511 Email: [email protected] [email protected]: Link
E-Citizen: Business registration services

Eligibility

To be eligible to apply for a Small Business permit or license in Kenya, you typically need to meet certain criteria set by the local county government or relevant licensing authority. The eligibility requirements may vary based on the specific regulations of the county or municipality where your Small Business is located. Here are some common eligibility factors:

• Business Registration: Your Small Business should be registered as a legal entity in Kenya. This involves registering your business with the Registrar of Companies or the relevant county government.
• Compliance with Zoning Regulations: Ensure that your Small Business location is in compliance with the zoning regulations of the area. Some areas may have specific restrictions on the types of businesses allowed in certain zones.
• Legal Status: You should have legal status in Kenya, which may include being a citizen, permanent resident, or holding a valid work permit if applicable.
• Good Conduct: You may be required to provide a certificate of good conduct from the relevant authorities, demonstrating your good character and adherence to the law.
• Compliance with Health and Safety Standards: Your Small Business should comply with health and safety regulations, including having proper sanitation facilities, fire safety measures, and compliance with health inspection standards.
• Tax Compliance: Ensure that your business is in compliance with tax regulations and has a tax compliance certificate issued by the Kenya Revenue Authority.

Fees

• Application fee – Kshs. 200
• Permit fees

(i). Large trader (21-50 employees) – KShs. 20,000 (ii). Medium Trader (5-20 employees) – Kshs. 10,000

• Business permit: Fee schedule

Validity

• The validity of a Small Business permit or license in Kenya can vary depending on the specific regulations and requirements set by the local county government or licensing authority. Generally, Small Business permits or licenses are issued for a specific period of time, typically ranging from one to three years. After the expiry of the initial validity period, the permit or license must be renewed to continue operating the Small Business legally.
• It's important to note that the renewal process and requirements may differ from the initial application process. You will need to follow the renewal procedures and submit the required documents and fees within the designated timeframe to ensure the continuous validity of your Small Business permit or license.

Documents to Use

Nairobi city county business registration BR-1 Form

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• The processing time is one day.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube

width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is dkisplayed.

e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• If you are making the application online. Create the E-Wallet and top it up so as to make the online payment for the application
• Reserve a business name

(i). Register with eCitizen (ii). Pay for business name reservation
(iii). Obtain name approval

• Business name registration

(i). Assessment of application (ii). Pay for business name registration
(iii). Obtain a certificate of registration

• Obtain business permit

(i). Verification of business permit application form (ii). Assessment of business license fee
(iii). Obtain the invoice for business license fees
(iv). Pay for license fees and obtain a business permit

Required Information

• Business Information:
  • Business name and registration number
  • Type of business entity (e.g., sole proprietorship, partnership, company)
  • Business address and contact details
  • Description of the nature of the business activities
• Owner/Proprietor Information:
• Full name of the owner or proprietors
• National ID or passport number
• Contact details (phone number, email address)
• Premises Information:
• Address of the Small Business premises
• Lease agreement or proof of ownership of the premises
• Floor plan/layout of the Small Business
• Financial Information:
• Tax identification number (TIN)
• Tax compliance certificate from the Kenya Revenue Authority
• Employment Information:
• Number of employees (full-time and part-time)
• Details of any work permits or employment contracts, if applicable
• Compliance and Safety Information:
• Fire safety compliance certificate from the relevant fire department
• Health inspection certificate from the relevant health department
• Supporting Documentation:
• Copies of business registration documents
• Identification documents (national ID or passport) of the owner(s)
• Passport-size photographs
• Any additional documents specified by the local county government or licensing authority

Need for the Document

The Small Business permit or license is necessary for various reasons in Kenya. Here are some key reasons why obtaining a Small Business permit or license is important:

• Legal Compliance: Operating a Small Business without a valid permit or license is a violation of the law in Kenya. Obtaining the license ensures that your Small Business is operating legally and in compliance with local regulations and requirements.
• Business Authorization: The Small Business permit or license serves as official authorization from the local county government or licensing authority to conduct business activities in the designated premises. It provides evidence that your Small Business has met the necessary criteria and has been approved to operate.
• Health and Safety: The licensing process often includes inspections to ensure that the Small Business premises meet health and safety standards. This helps protect the well-being of employees, customers, and the general public by ensuring that proper sanitation, ventilation, fire safety measures, and other necessary requirements are in place.
• Consumer Protection: A Small Business permit or license signifies that your Small Business has met certain standards and regulations, which helps build trust with customers. It assures them that they are dealing with a legitimate business that adheres to ethical practices and meets the necessary requirements.
• Business Credibility: Having a valid permit or license adds credibility to your Small Business and can enhance your reputation within the community. It demonstrates that you are a professional business owner committed to following the rules and regulations set by the local authorities.
• Access to Services and Benefits: Some services, such as obtaining wholesale discounts, participating in certain trade events or programs, or accessing specific business incentives or grants, may require a valid Small Business permit or license.

Information which might help

• The procedure for obtaining a business permit is the same but the cost might vary depending on the size, type, and location of the business.
• A separate application form must be completed in respect of each separate business establishment.
• The permit is issued under County Government Act No. 17 of 2012 laws of Kenya.
• Any offense under this act shall be dealt with in accordance with any written laws/acts of this County and all the relevant county rules/regulations.
• A permit is a County property./regulations or any written law of the county is contravened.
• Renewal of this permit shall be done on the expiry date.
• The owner of the business should notify this office once he/she closes the business.
• The advertisement signage included in the unified permit is 600mm x 300mm or less in size, any signage above this size should be paid separately. Please contact the urban planning department.
• All Unified Business Permits applied and paid remain provisional until they are inspected by sub/ward licensing officers for approval by the County. Undercharges if any shall be adjusted through Demand notice to the client.
• Granting this permit does not exempt the business identified above from complying with the current regulations on fire and safety as established by the Government of Kenya and Nairobi City County
• Granting this permit does not exempt the business identified above from complying with the current regulations on health and safety as established by the Government of Kenya and Nairobi City County
• It is a legal requirement that the Trade License be displayed in a conspicuous place. Licensee who fails to display the permit shall be guilty of an offense and liable to a fine not exceeding five hundred shillings.

Other uses of the Document/Certificate

Please explain what other uses are for obtaining this document/certificate.

e.g. Birth Certificate can be used as proof of identity.

External Links

Nairobi City Council Finance Act

Others

More information might help people.