Take a stroll through Nairobi’s Kilimani district or scroll through Twitter on a Tuesday morning, and you’ll feel it—Kenya’s startup energy is palpable. Founders are launching apps, freelancers are selling services globally, and SaaS businesses are quietly going international. It’s not hype. It’s a wave—and if you’re reading this, there’s a good chance you’re ready to ride it.

But before you start invoicing clients or launching a website, there's one not-so-glamorous but critical step: business registration. It’s your entry ticket into the formal economy, and it comes with real perks—legal recognition, tax compliance, access to financing, and even the ability to scale globally.

In this guide, we’ll walk you through the practical steps to register a business in Kenya—and then explore a faster, leaner alternative that’s helping digital businesses scale without drowning in paperwork: using a Merchant of Record like Startbutton.

Let’s get into it.

Step 1: Choose the Right Business Structure

Before you do anything else, figure out what type of business entity you want to register. This decision will impact your tax obligations, liability, and day-to-day operations. The most common types in Kenya are:

• Sole Proprietorship – Simple to register and great for freelancers or solo entrepreneurs. But keep in mind: you and your business are legally the same.

• Partnership – Shared ownership between two or more individuals. Useful for small teams but still carries shared liability.

• Private Limited Company (LLC) – Ideal for startups planning to scale or raise capital. It offers limited liability and a more professional perception, especially with foreign clients or investors.

If you’re just testing the waters, a sole proprietorship might do. But if you have serious growth plans, consider going straight for an LLC.

Step 2: Create an Account on eCitizen

Kenya’s eCitizen platform has made it relatively painless to handle most of the bureaucracy online. You’ll need to sign up at ecitizen.go.ke and verify your identity with a Kenyan national ID or passport.

For foreigners, valid immigration documentation (like a work permit or investor certificate) is required. You might need a local representative or company secretary to support the process—there are firms that specialize in this.

Once you’re signed in, you’ll use the Business Registration Service to handle all the steps that follow.

Step 3: Reserve Your Business Name

Now comes the fun part—branding. You’ll need to conduct a name search on eCitizen to check that your chosen name isn’t already taken.

• Use simple, unique names that aren’t too close to existing companies.

• Avoid symbols, abbreviations, or anything flagged as sensitive or misleading.

• If your name is approved, it’s reserved for 30 days (and extendable once).

It’s smart to brainstorm 2–3 backup names just in case your first choice is rejected.

Step 4: Upload the Required Documents

Depending on your business type, the paperwork will vary slightly. For a Private Limited Company, be prepared to upload:

• Copies of director(s) ID/passport

• Passport-sized photos

• KRA PIN certificates

• Statement of nominal capital

• Memorandum & Articles of Association

• CR1, CR2, and CR8 forms (these will be auto-generated on the portal)

Take your time here. I’ve seen people rush and submit the wrong version of a document, which can delay the process by days.

Step 5: Pay the Registration Fees

Fees vary based on your capital and business type:

• Sole Proprietorship: around KES 1,000–2,000

• LLC: typically KES 10,750–25,000, depending on your declared capital

You’ll pay through eCitizen using mobile money (M-PESA is the standard) or a debit/credit card. Once paid, the processing takes about 3–5 business days, and you’ll receive your Certificate of Incorporation via email.

Step 6: Handle Local Permits and Tax Compliance

After registration, you’ll still need a few more things to be fully operational:

• County Business Permit – This is issued by the county government where your business operates. Costs vary by county and business type.

• KRA Compliance – You'll need to start filing taxes regularly (monthly VAT, PAYE if you hire employees, and annual returns).

If you’re offering services online or working remotely, it’s tempting to skip this part. Don’t. Being tax-compliant protects you from surprise penalties down the line.

A Smarter Shortcut: Let Startbutton Handle It All

If this feels like a lot—you're not wrong. For founders selling digital products, SaaS, or online services, especially to global customers, there’s a faster way to go live: use a Merchant of Record (MoR) like Startbutton.

A Merchant of Record is a third-party company that takes care of the heavy lifting—handling payment processing, tax remittance, compliance, invoicing, and more.

With Startbutton, you can:

• Sell in Kenya (and 14 other African countries) without immediate business registration

• Accept payments in local currencies while receiving payouts in your preferred currency

• Avoid the mess of calculating and remitting VAT in each jurisdiction

It’s ideal for businesses testing a new market, working with remote teams, or scaling across borders without hiring an in-house legal and finance department.

Startbutton is part of a growing wave of MoRs focused on Africa’s digital economy, making it easier for businesses around the world to sell here—compliantly and efficiently.

Start Smart, Scale Smarter

Registering a business in Kenya opens doors—to legitimacy, funding, and long-term growth. If you're in it for the long haul, it's absolutely worth doing right.

But if your focus right now is speed, simplicity, or global reach, Startbutton could be the move that helps you get there faster.

Either way, the most important step is the first one. Whether that’s filing paperwork or partnering with a MoR, get started. Kenya’s digital future is unfolding, and there’s still plenty of room at the table.

Got questions about business registration or how Startbutton works? Talk to sales@startbutton.africa or sign up here.