Complete Guide to Business, Company, NGO, SACCO & Foundation Registration in Kenya

You have a brilliant idea and the passion to build something great. But the first big hurdle is often the most confusing: What kind of company should you register in Kenya? From Ltd, LLP, NGO, to CBO, the options can be overwhelming. Choosing the right structure from the start affects your personal liability, taxes, and ability to raise funds.

At Luvisia Digital, we’ve guided hundreds of entrepreneurs through this process. In this guide, we’ll break down all the main business structures in simple terms. For each topic, we will also create separate, detailed blog posts soon so stay tuned for in-depth guidance on each type.

When you’re ready, we’re here to handle the paperwork and make registration simple.

Part 1: For-Profit Business Structures

This section is for entrepreneurs looking to build a business that generates revenue and profit.

1. Business Name (Sole Proprietorship & Simple Partnership)

What It Is: The simplest business structure, where the business and owner are legally the same. Register a business name on eCitizen to get started.

How It Works: All activities are linked to your personal KRA PIN. Profits are your income, and debts are your responsibility.

Benefits:

• Easy & Cheap: Fast and affordable setup.
• Full Control: Make decisions without board approvals.
• Simple Taxes: Income filed along with your personal returns.

Limitations:

• Unlimited Liability: Personal assets are at risk if debts arise.
• Harder to Raise Capital: Investors prefer incorporated businesses.
• Lower Credibility: May seem less professional for tenders or large contracts.

Best For: Freelancers, small shop owners, and low-risk ventures.

2. Limited Liability Partnership (LLP)

What It Is: Combines partnership flexibility with limited liability. The LLP is a separate legal entity.

How It Works: Two or more partners own the business. Liability is generally limited to the invested amount.

Benefits:

• Limited Liability: Protects personal assets.
• Flexible Management: Partnership agreements determine profit-sharing and decision-making.
• Separate Entity: Can own property and enter contracts in its own name.

Limitations:

• More Complex: More reporting than a simple partnership.
• Shared Profits: Must distribute profits according to the agreement.

Best For: Law firms, accounting practices, architecture firms, and consulting companies.

3. Private Limited Company (Ltd)

What It Is: A formal structure separate from its shareholders. Most suitable for scalable businesses. Register a limited company on eCitizen.

How It Works: Shareholders own the company; directors manage it. Liability is limited to shares.

Benefits:

• Strong Liability Protection: Personal assets are safe.
• Credibility & Professionalism: Easier to attract clients and investors.
• Easier to Raise Funds: Sell shares to investors or partners.
• Perpetual Succession: Continues despite changes in ownership.

Limitations:

• More Expensive & Complex: Higher setup and compliance costs.
• Less Direct Control: Directors must act in the company’s interest.

Best For: Startups seeking investment, high-risk ventures, and businesses planning to scale.

Part 2: Non-Profit & Member-Focused Organizations

If your goal isn’t profit but purpose, these structures are designed for social impact.

4. Non-Governmental Organization (NGO)

What It Is: A non-profit addressing social, environmental, or political issues. Register with the NGO Coordination Board.

How It Works: Managed by a board, funded through donations and grants. Surpluses reinvested into the mission.

Benefits:

• Access to grants and international funding.
• Tax-exempt status for income.
• Builds public trust.

Limitations:

• Strict regulations and reporting.
• Lengthy, expensive setup.
• No personal profit allowed.

Best For: National or international charities, advocacy groups, and large-scale social projects.

5. Community-Based Organization (CBO)

What It Is: A local non-profit addressing community needs. Register at your county’s Department of Social Development.

Benefits:

• Simple and affordable setup.
• Focused on local impact.

Limitations:

• Restricted to a specific geographic area.
• Harder to access large grants.

Best For: Youth groups, local self-help projects, and neighborhood initiatives.

6. Society

What It Is: Members unite for a common non-profit purpose, like a club or professional association. Register via the Registrar of Societies].

Benefits:

• Formal legal framework for operations.
• Democratic governance.

Limitations:

• Must file annual returns.
• Cannot operate for profit.

Best For: Alumni associations, sports clubs, and religious groups.

7. SACCO (Savings and Credit Cooperative)

What It Is: Member-owned financial institutions pooling savings to offer affordable loans. Register via SASRA.

Benefits:

• Access to loans and savings facilities.
• Member-owned governance.

Limitations:

• Heavily regulated.
• Complex registration process.

Best For: Employees, professional groups, or community savings projects.

8. Trust & 9. Foundation

What They Are: Legal structures to hold assets for specific purposes.

Benefits:

• Asset protection and longevity.
• Funds used only for intended purposes.

Limitations:

• Complex legal setup.
• Difficult to modify once established.

Best For: Philanthropists, families, and charitable organizations.

Quick Comparison

Ready to Start? Don’t Get Lost in the Paperwork

Choosing the right structure is just the first step. Navigating registration can be confusing that’s where Luvisia Digital comes in.

We handle everything:

• Name Search & Reservation
• Document Preparation & Filing
• Compliance Guidance
• Fast, Hassle-Free Service

Let us handle the legal groundwork.

FAQ

Q: Can I change my business structure later?
A: Yes! Many start as a Business Name and later convert to a Ltd. Luvisia Digital can assist with the process.

Q: What’s the main difference between an NGO and a CBO?
A: NGOs are national or international, registered with the NGO Coordination Board. CBOs are local, registered at the county level.

Q: How long does registration take?
A: A Business Name may take a few days, while Ltd or NGO registration can take several weeks. We help expedite the process.