How to register a partnership company in Kenya: A partnership business involves two or more people who share ownership and contribution to the business. The terms of the business are based according to their agreement.
The process of registration of a partnership in Kenya has been revised into a new one. It resembles that of a sole proprietor except that in the partnership business, you must draft a partnership deed. Below we have put together the required steps for the entire procedure.
How to Register a Partnership Company in Kenya
Here is How to Register a Partnership Company in Kenya
1. Draft a partnership deed
Requirements of a partnership deed
i) The name of the firm.
ii) The names and addresses of the partners.
iii) The nature of the business.
iv) The term or duration of the partnership.
v) The amount of capital to be contributed by each partner.
vi) The drawings that can be made by each partner.
vii) The interest to be allowed on capital and charged on drawings.
viii) Rights of partners.
ix) Duties of partners.
x) Remuneration to partners.
xi) The ratio in which the profits or losses are to be shared among the partners.
xii) The basis for the calculation of goodwill at the time of admission, retirement, and death of a partner.
xiii) The keeping of proper books of accounts and the preparation of Balance Sheet.
xiv) Settlement of amount on the dissolution of the firm.
xv) The procedures to be adopted in the case of disputes among the partners.
Arbitration clause.
Before you begin the process of partnership business registration, you will require to meet the following requirements;
Requirements for Partnership Registration
1. Name of Business – (A name search needs to be performed first as part of the registration process.)
2. Nature of business – you will need to explain what your business will be doing in a very short sentence.
3. Address of the principal place of business – (Plot No., Section, and Name of Street or Road, Name of Building)
4. Postal Address – See more information here
5. Address of any other place of business (Branch Office under the above name)
6. Full Names of you and any other partners – (You can also add more names if you are intending to run your business with more than one person)
- Nationality
- Age
- Gender
- Usual place of residence
- Other business occupation
7. Signature on the document (usually at the back page of the BN2 Form)
8. Copy of ID/Passport for each partner
9. Copy of KRA PIN Certificate for each partner
10. Passport Photo for each partner
Registration and Certificate of Registration
The registration process will take roughly 3-5 working days to complete based on the Company Registry workload and working hours. The registration and certificate will be issued together.
Read Also: Registering a company in Kenya
Something to note in the registering of a Partnership business over sole proprietorship is that in partnership, you can apply for any tender without much restrictions since your business has a KRA Pin.
Sole Proprietorship, on the other hand, does not have a business pin but a personal pin. There are some tenders that you cannot be allowed to apply unless you possess a KRA Pin registered with company name, which is why partnership business is important.