1. Understanding a Consultancy Firm

A consultancy firm is a business entity that provides expert advice in a particular field, such as finance, IT, human resources, legal, management, or marketing. Setting up a consultancy firm in Kenya allows professionals to offer specialized services to businesses, government institutions, and individuals.

2. Business Structure for a Consultancy Firm in Kenya

Before registering your consultancy, you need to decide on the appropriate business structure:

• Sole Proprietorship – Best for individual consultants running a small business.
• Partnership – Suitable if two or more professionals are starting the business together.
• Limited Liability Company (LLC) – Ideal for firms looking for legal separation between the business and the owners.
• Foreign Branch – A foreign company establishing a consultancy presence in Kenya.

Each structure has different registration processes and tax obligations.

3. Steps to Register a Consultancy Firm in Kenya

Step 1: Reserve a Business Name

• Visit the eCitizen portal (eCitizen) and log in.
• Conduct a business name search through the Business Registration Service (BRS).
• Reserve the name by paying a small fee (approximately KES 150).
• Once approved, the name is reserved for 30 days.

Step 2: Register the Business

The registration process varies based on the business structure:

• Sole Proprietorship & Partnership – Register under the Business Names Act.
• Limited Liability Company (LLC) – Submit the following documents to the Registrar of Companies:
  • Memorandum and Articles of Association
  • CR1 (Company Registration Form)
  • CR2 (Statement of Nominal Capital)
  • CR8 (Notice of Registered Office)
  • Copies of IDs and PIN certificates for directors/shareholders
  • Registration fees (approximately KES 10,000, depending on share capital)

Registration is processed via eCitizen, and a Certificate of Incorporation is issued within 7-14 days.

Step 3: Obtain a Kenya Revenue Authority (KRA) PIN

• Register for a business KRA PIN via iTax.
• This is required for tax compliance, including VAT, Pay As You Earn (PAYE), and corporate tax.

Step 4: Apply for Business Licenses & Permits

• Obtain a Single Business Permit from the county government where your firm will operate. Fees range from KES 5,000 – 15,000 depending on location and business size.
• If offering legal, accounting, or engineering consultancy, you may need additional professional licenses from respective regulatory bodies such as:
  • Law Society of Kenya (LSK)
  • Institute of Certified Public Accountants of Kenya (ICPAK)
  • Engineers Board of Kenya (EBK)

Step 5: Open a Business Bank Account

• Provide your Certificate of Incorporation, KRA PIN, and ID copies to open a corporate bank account.
• Some banks may require a business registration certificate for sole proprietorships or partnerships.

Step 6: Register with NSSF and NHIF (if hiring employees)

• National Social Security Fund (NSSF) for pension contributions.
• National Hospital Insurance Fund (NHIF) for employee health insurance.

Step 7: Maintain Compliance & File Annual Returns

• Submit annual returns to the Registrar of Companies to maintain good standing.
• File tax returns with KRA to avoid penalties.

4. Costs of Registering a Consultancy Firm in Kenya

The total cost depends on the business structure, location, and licenses required. Estimated costs include:

• Business name search: KES 150
• Company registration: KES 10,000+ (varies by capital)
• Single business permit: KES 5,000 – 15,000
• KRA PIN registration: Free
• Professional licenses: Varies by industry

5. Benefits of Registering a Consultancy Firm in Kenya

• Legal recognition – Allows you to operate lawfully.
• Access to contracts – Government and corporate clients prefer registered firms.
• Tax benefits – Ability to claim business expenses and apply for tenders.
• Business growth – Easier to secure financing from banks and investors.

6. Need Assistance with Registration?

Registering a consultancy firm in Kenya requires attention to legal, tax, and compliance matters. NileEdge can help you with seamless registration, licensing, and compliance services.

📞 Call us at: +254 714 644 442
📧 Email: info@nileedge.com