Most small traders, freelancers, and side-hustle owners in Kenya don’t need a limited company to operate legally – they need a business name. It’s the fastest, cheapest way to register a business name in Kenya, and it’s exactly what most shop owners, consultants, and online sellers actually use.
If you’ve read our guide on how to register a company in Kenya, you already know that route is built for a different kind of business – one with shareholders, share capital, and higher compliance costs. This guide covers the far more common path: registering a business name in Kenya as a sole proprietor or partnership, entirely online through eCitizen.
Business Name vs Limited Company: Which Should You Register?
| Feature | Business Name (Sole Proprietorship/Partnership) | Limited Company |
|---|---|---|
| Cost | KES 950 | KES 10,000–25,000+ |
| Legal entity | Not separate from the owner | Separate legal entity |
| Personal liability | Owner is personally liable for debts | Limited to company assets |
| KRA PIN | Uses your personal KRA PIN | Company gets its own PIN |
| Best for | Small traders, freelancers, side hustles | Businesses seeking investors, contracts, or liability protection |
| Approval time | Often 1 business day | 5–14 working days |
If you’re just starting out – a salon, a boutique, a freelance design or writing business, a small shop – registering a business name in Kenya is almost always the right first step.
Documents You Need to Register a Business Name in Kenya
| Requirement | Notes |
|---|---|
| National ID or passport | Both proprietor and partners, if applicable |
| KRA PIN | Register free at itax.kra.go.ke first if you don’t have one – see our KRA PIN guide |
| Passport-size photo | Recent, clear background |
| Three proposed business names | Ranked by preference, in case your first choice is taken |
| Active eCitizen account | Same login used across all government services |
| Partner details (if applicable) | ID and KRA PIN for each partner in a partnership |
Have all three proposed names ready before you start – a rejected name is the single biggest cause of delay in business name registration in Kenya.
How to Register a Business Name in Kenya: Step-by-Step (eCitizen/BRS)
Step 1: Log in to eCitizen Visit www.ecitizen.go.ke and log in, or create an account if you’re new.
Step 2: Open the Business Registration Service (BRS) From your dashboard, select Business Registration Service or Companies Registry Services.
Step 3: Choose “Business Name” as your structure Select Sole Proprietorship (one owner) or Partnership (two or more owners) rather than the limited company option.
Step 4: Submit your three proposed names Enter your preferred names in order. As of 2026, BRS merged the name search and reservation into the same step as registration, so there’s no separate name-search fee to pay upfront.
Step 5: Fill in proprietor or partner details Enter your (and any partners’) ID number, KRA PIN, and contact details.
Step 6: Upload your documents Attach your ID, KRA PIN certificate, and passport photo.
Step 7: Review, sign, and upload the generated form The system auto-generates your registration form (Form BN2). Download it, sign it, scan it, and upload the signed copy.
Step 8: Pay the registration fee Pay the single KES 950 fee via M-Pesa, card, or bank transfer directly on eCitizen.
Step 9: Submit and wait for approval Review everything carefully, then submit. Approval is often same-day, though it can take longer if BRS is busy or your name needs manual review.
Step 10: Download your Certificate of Registration Once approved, download your certificate directly from your eCitizen dashboard – you’ll need this to open a business bank account and register for other services.
Business Name Registration Fees and Timeline
| Item | Cost / Time |
|---|---|
| Business name registration (sole proprietorship or partnership) | KES 950, single payment (search + registration combined) |
| Typical approval time | About 1 business day |
| Approval time when BRS is busy | 5–10 working days |
| Limited company registration (for comparison) | KES 10,000–25,000+, 5–14 working days |
Always confirm the current fee at checkout on eCitizen, since BRS occasionally revises charges.
What to Do After Registering Your Business Name
- Keep business and personal money separate – open a dedicated business bank account or mobile money till
- Use your personal KRA PIN for tax filing – a business name is not a separate legal entity, so no new PIN is issued
- Apply for a county single business permit where your business operates, if required locally
- Register for NSSF and SHIF once you start hiring employees
When to Upgrade From a Business Name to a Limited Company
A business name works well until your circumstances change. Consider converting to a limited company if:
- A client or contract specifically requires a registered company, not a business name
- You want to bring in a co-founder or investor with an equity stake
- You want to separate your personal assets from business liabilities
- Your annual turnover grows large enough that a company structure becomes more tax-efficient
Converting later is straightforward – you deregister the business name (Form BN6) and register a limited company through the same BRS portal. See our company registration guide when you reach that stage.
Common Mistakes to Avoid
- Submitting only one proposed name – always give three, ranked by preference, to avoid delays
- Mismatched ID and KRA PIN details – names and numbers must match exactly across both documents
- Forgetting to sign the auto-generated BN2 form – an unsigned form will get your application rejected
- Assuming approval is always instant – plan for up to 10 working days during busy periods
- Registering a business name when you actually need a limited company – check the comparison table above before you choose
Need Help Registering Your Business Name?
If you’re unsure which structure fits your business, your proposed names keep getting rejected, or you’d simply rather have someone handle the eCitizen process for you, Divas College offers assisted applications for business name registration and other government services.
📞 Call or WhatsApp us: 0115 690 990 🌐 Visit: Divas Technology College 📍 Or walk into our office in Kilifi for face-to-face support.
Once your business is registered, the next question is usually: how do customers find you? Our Digital Marketing course and Personal & Business Branding course at Divas Technology College are built exactly for that next step.
You may also find these helpful:
- How to Register for a KRA PIN in Kenya (2026 Guide)
- How to Apply for a National ID Card in Kenya
- How to Start Freelancing in Kenya With No Experience
- How to Earn with Digital Marketing Skills in Kenya
Published by Divas Technology College – Practical Digital Skills Training in Kilifi, Kenya. divascollege.co.ke | info@divascollege.co.ke | +254 714 112 247
