Many companies are started daily in Kenya, and many of them operate without a permit. It may be taken that obtaining a business permit before entering into a venture should be common sense, but many people do not know that they require one. Some may think that their company is too small to require a permit, or the location does not warrant one, but that is just one of the many ways to get into trouble with the government. Getting a business permit Kenya is a simple process, so why not get started?
Starting a new company is all rosy and exciting until you realize you need a work permit. It is a requirement by law, and failure to comply will cause unwanted interruption of business operations. The license is mandatory for several reasons.
First, once you have it, the government can follow up on your tax compliance and secondly it is used to verify that you are running a legitimate enterprise and not just another conman in town. With a business permit Kenya you are also able to insure your work against unforeseen disasters.
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Importance of a business permit Kenya
- It is a legal and mandatory requirement for all occupations.
- Through your work permit, the government can collect taxes that are used in service delivery to the citizenry you included.
- Without the work permit document, you will not be able to apply for government tenders hence cannot do transactions with government.
- The company can act as security when a business owner needs a loan to run the business. Also. when looking for sponsors or donors for your company, a permit will be a very welcome document to show them how serious you are about your venture.
- A work permit allows you to expand your enterprise, especially if you intend to merge with another company. The document will be vital in ensuring you get a better deal and that your partners won’t attempt to shortchange you or even take over your company.
- A business permit for foreigners in Kenya can prove that they are in the country legally, and they registered the company as per the law.
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How much do business permits cost?
Using Nairobi County business permit rates, a single company permit for a company with up to 5 employees costs Ksh. 15,000. The amount is paid at the cash office within the county headquarters.
Categories of permits required for a business
There are many types of licences one should have to comply fully with both national and county bylaws. The good news is that you do not have to apply for each of these licenses in isolation. The government introduced what is called a unified work permit to ensure ease of doing business. This document is all you require, but you have to renew it annually. These licenses include:
- Trading license
- Advertising signage license
- Health certificate
- Fire clearance license
- Food hygiene certificate
Essentials of applying for a business permit
- Registered company name
- Physical address of the company
- Company identification number
- Company pin certificate
- A copy of the certificate of incorporation
- A national ID/passport number or asylum pass or alien ID
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Procedure for obtaining a business permit Kenya
There are two routes available for you to apply for a single business permit Kenya. The first is going to relevant county offices to apply, and the second is by applying online.
Manual application
The procedure for applying for a business license in person is as follows:
1. Reserve a business name
- Go to the department of the registrar of companies within the office of the attorney general and apply for a name search and reservation.
- Provide a list of proposed company names in order of preference to enable a name search.
- When the name search is completed, the company name is reserved for not more than 60 days.
- Before those 60 days are over, you should register the company name.
2. Registration of business name
- The registrar of companies will provide you with Form BN/2 Statement of Particulars Registration which you have to fill.
- Submit the filled form and pay the required application fee.
- A company registration certificate is issued upon verification and satisfaction of details is provided.
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3. Application for a single business permit
- Visit the nearest county ward office for a business permit application.
- Ask for application form BR-1 Form from the ward licensing officer after which you will fill and submit.
Ensure you have the following information with you before you fill the form:
- A registered company name
- Physical address of the company
- Company identification number
- A copy of the certificate of incorporation
- A copy of your national identification card/passport/ alien ID
- Wait for the ward licensing officer to visit the company premise to conduct an inspection.
- The inspection officer then determines the amount to be paid as a license fee. He or she will stamp the BR-1 form and refer you to the central licensing office at the county headquarters.
- The licensing office approves the work permit and enters the business permit number into the single company authorization database.
- An invoice bill is generated after which payment is done at the cash office.
- Upon payment, the work license is signed, and you are required to collect it from a dispatch office.
- You are good to go once you display the license on the company premises as per law requirements.
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Online application
The alternative way of applying for a company license is online and is more efficient. Ensure you know how to print a business permit before starting the process. The procedure for getting an online business permit in Kenya is straight forward and can be done by following the steps below:
1. Online reservation of business name
- Go to the E-citizen portal and register an account to facilitate your company name search and reservation.
- Pay a fee of Ksh. 150 for the company name search and reservation service.
- Obtain name approval through the portal.
2. Register the business name
- The company name will be assessed online through the E-Citizen portal.
- Pay the company name registration fee as instructed.
- Obtain a certificate of registration through the Self Service Portal.
3. Apply online
- Go to your respective county and click on add company
- Fill relevant information such as company identification, physical address and contact details.
- Generate an invoice for your work license
- Confirm details and make the payment determined.
- Print the payment invoice and work license.
- Display the license on the company premises.
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Business permit renewal
Work license renewal is simple and is done annually. Follow the procedure below when renewing your single business permit Nairobi:
- Provide a copy of the previous license to the licensing officer.
- County officials at the cash office will inform you of the cost for renewal then you will pay the amount.
- Take the stamped Br-1 form to the main office for approval.
- The main office fills the information in the work authorization database.
- You will be given an invoice and a signed authorization.
- Display the renewed license at your premises.
Using the E-Citizen platform, you can easily renew your work license. Just click on renew and head to the check status link. You will be able to see the status of your company and the amount to be paid for business permit Nairobi county renewal. Follow the procedure to pay and renew after which you will print your license.
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If you did not know how to get a business permit Kenya now you can rest easy and follow the simple steps provided above. You can complete the procedure from the comfort of your office by applying online or visit the relevant offices for manual application. Ensure that you comply with all the regulations to avoid unnecessary circumstances that may derail and frustrate your business.
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Source: TUKO.co.ke
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