In this article, we will go through the legal requirements and the process of compliance for the purpose of registering a transport business in Kenya. To request for company registration for your transport business, you’ll need to fill the order form that can be found at the end of this article.
Naming Your Company
The first step you need to make is to come up with your company name suggestion. Please note that if you use abbreviations on your company name, then you will need to also give an explanation on what it stands for.
Company name search is performed via eCitizen and it usually takes up to 2 working days or less. Once your name search is successful, it will be reserved for 30 days. You will need to register your company within that period to avoid losing your company name.
Company Requirements
To register a transport limited company, you will need to collect your requirements that can be used to prepare Form CR1, Form CR2, Form CR8 and Nominal Share Capital documentation.
To register a limited company for your transport business, you will need at least 1 person (director/shareholder) to register and must be above 18 years of age. You will also need to collect the following information and documents;
- Company Name – you will need to come up with up-to 2 company name suggestions that we can help you to check its availability. If you have already performed your own name search, all you will need to provide us is the company name reservation letter that you were issued upon completion of your name search.
- Nature of Business – list your primary and secondary business activities that you would like your transport business to do – for example; public/private transportation, general supplies, medical transport, transport consultancy etc.
- Director(s) details – we will require the following details from each of the directors;
- Full names of directors (As shown on ID or Passport)
- Occupation – for example, consultant, businessman, businesswoman
- Postal address – you will need to provide a postal address for each of the company director(s).
- Residential address – you will need to give us your house number or LR number, house name or building name, street/road name, town.
- Shares allocation – you will need to decide on how to allocate the shares. If your company will have only a sole director, then you can allocate 100% share ownership. But if you have additional directors, then you can split the share ownership such as Director 1 – 60%, Director 2 – 20%, Director 3 – 20%. Remember that the total number of shares available by default is 1,000 shares.
- Proof of Identity documents – Company Registry has introduced a new rule that requires all company director(s)/shareholder(s) who are registering a new company to provide the following documentation as proof of their identity;
- Copy of KRA PIN Certificate (iTax Version) – for Kenyan citizens, if you are a foreigner, you won’t be required to provide this document. Please note that company PIN registration will require at least 1 director to have their personal KRA PIN.
- Copy of ID/Passport – make sure you scan both the front and back side of the ID.
- Photo – coloured photo of each director/shareholder with a clear background.
Duration
It usually takes around 2 weeks to process a company registration and also this depends on company registry workload and working times. To avoid any delays, you will need to make sure that you have prepared all requested requirements including proof of identity documents.
Company PIN
It is one of the most important document that you will need to obtain. Without it, your transportation business won’t be able to open a business bank account, make tax returns, import vehicles and many others. This document can only be obtained once the company registration process is complete. We only offer company PIN registration for Premium Plan customers.
Bank Account
If you are looking to open a business bank account for your company, you will need to simply provide your certificate of incorporation, memorandum (Form CR2), Form CR1, Form CR8, Company PIN, personal KRA PIN, ID/Passport, passport photos and personal details for each of the director(s)/shareholder(s). Some banks might request for board resolution, trading license, a copy of VAT certificate etc.
Cost of Company Registration
We understand everyone has different needs when it comes to setting up their company. So we offer two company registration packages that you can select from;
1. Lite Plan Package – Ksh. 20,000 – Includes Name Search, Certificate of Incorporation and Memorandum.
2. Premium Plan Package – Ksh. 40,000 – Includes Name Search, Certificate of Incorporation, Memorandum, Company KRA PIN, Logo Design, Business Card Design, Website Design (Includes Tablet & Smartphone Designs), 1 Year Domain name (.COM or .CO.KE), 1 Year Web Hosting (250MB Diskspace, 2500MB Monthly Bandwidth), Up-to 25 Company Email Accounts, 1 Month Free Access to Online Business Coaching Program.
Register Your Transport Company Today!
Are you ready to start trading with your transport company? Let’s get you registered today!
FAQs
After registering my company, how can I apply for Business Permit?
To operate your transport business in Kenya, you will need to acquire a business permit from the respective county of operations. The rates varies from county to county and also it’s determined by the number of employees you have and the size of your business premises.
Currently, we do not offer business permit registration service at the moment. If you are looking to register for business permit in Nairobi County, you will find this article useful.
For those looking to operate their companies in other counties, we recommend that you visit your local county office to apply for your business permit.
How can I open my business bank account once I have registered my company?
Once you have registered your company, you’ll obtain certificate of incorporation, memorandum (Form CR2), Form CR1, Form CR8, Company PIN. These documents will assist you to open a business bank account.
Can I upgrade my existing transport business to limited company?
Yes you can. All you need to provide us is your business certificate for your sole proprietor or partnership business.
How can I register a foreign transport company?
If you are looking to register a transport foreign company, please refer to ‘how to register a foreign company‘ article that will contain more information that you might find useful.