Registering a sole proprietorship in Kenya has become significantly easier and faster thanks to the Business Registration Service (BRS) upgrading its system to BRS V2 on the eCitizen platform.

Whether you are formalizing a side hustle, setting up a retail shop, or launching a freelance consulting business, a sole proprietorship is the simplest and most cost-effective legal structure. As of 2026, the entire process is fully digitized, and the notoriously separate "name search" and "registration" steps have been combined into a single seamless application.

Here is a complete, step-by-step guide to registering your business name in Kenya.

1. What You Need Before You Start

Before logging onto the portal, ensure you have crisp, digital scans (PDF or JPEG) of the following documents to prevent your application from bouncing back:

• Preferred Business Names: Prepare at least three to five unique names in order of preference. Avoid generic names to reduce the chances of rejection.
• National Identity Card (ID): For Kenyan citizens, or a valid passport for foreign individuals.
• KRA PIN Certificate: You need your personal Kenya Revenue Authority (KRA) PIN to proceed.
• Passport-Sized Photograph: A clear, recent colored photo of yourself.
• Business Address Details: County, district, exact street, building name, floor/room number, and postal address.
• Nature of Business: A brief, clear description of what your business will actually do (e.g., retail of electronics, graphic design services).

2. The Registration Process

The older system required you to pay for a name search first, wait days for approval, and then pay again to register. Today, it is done in one continuous flow.

1. Log In to eCitizen: Go to the official eCitizen portal and log in to your account. If you do not have one, you will need to create it using your National ID and verify your email and phone number.
2. Navigate to the BRS Portal: On your eCitizen dashboard, locate and click on the Business Registration Service (BRS) tab. Select the "BRS V2" option if prompted.
3. Start a New Application: Click on "Make Application" and select Registration of a Business Name. This will load the business-name dashboard capturing proprietor and business particulars.
4. Enter Proposed Names: Name search and application are now combined. Key in your 3 to 5 preferred business names in order of priority. The system will automatically run a search. If your top name is available, you will proceed directly to the next phase without waiting.
5. Fill in Business & Applicant Details: Provide your exact business physical address, postal address, and a clear description of your business activities. You will also fill in your personal biodata (ID number, date of birth, KRA PIN).
6. Upload Required Documents: Upload your ID/passport and passport-sized photo. The system will auto-generate a BN2 form (Statement of Particulars). Depending on the prompt, you may be required to print, sign, scan, and re-upload this specific form.
7. Make the Payment: Submit the application and pay the standard business name registration fee of KES 950 (plus a small convenience fee) using M-PESA, credit, or debit card.
8. Track and Download Certificate: Approval typically takes 1 to 3 business days. You can track the status on your dashboard. Once approved, download and print your official Certificate of Business Name Registration.

3. Post-Registration: Compliance and Next Steps

Registering your business name is just the first legal step. To operate fully within the law and avoid fines, you must handle the following:

County Business Permits

You cannot open a physical shop or office with just a BRS certificate. You must apply for a Single Business Permit from your respective County Government (e.g., Nairobi City County). The fee varies based on the size of your premises and the nature of your business.

Tax Obligations

For a sole proprietorship, your business taxes are tied directly to your personal KRA PIN.

• Turnover Tax (TOT): If your gross sales fall between KES 1 million and KES 25 million annually, you are eligible for TOT, which is filed and paid monthly at a rate of 1.5%.
• Value Added Tax (VAT): If your annual taxable turnover exceeds KES 5 million, you are required by law to register for VAT and file monthly returns at the standard 16% rate.
• PAYE and Statutory Deductions: If you hire employees, you must deduct and remit Pay As You Earn (PAYE), as well as statutory contributions to the National Social Security Fund (NSSF) and the Social Health Insurance Fund (SHIF).

Key insight: A sole proprietorship does not offer limited liability. This means there is no legal separation between you and your business. If the business incurs debts, your personal assets can legally be used to settle them.

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