A business name is the simplest form under which an individual can operate a business. It is important to note that a business name is not a legal entity. It is essentially refers to an individual that owns and is personally responsible for the debts of a business.
Before the approval for the registration process of any business in Kenya the company registry requires that a name search be conducted and approved. This process is known as the business name reservation. Business name reservations are done online through the e citizen portal. The registration of business name costs Kshs. 950 and it is lodged through a document known as BN2 and a certificate of incorporation is issued by the Registrar of Companies.
STEPS FOR THE APPLICATION OF A BUSINESS NAME
- Log into e-Citizen (www.ecitizen.go.ke).
- Click on get service under Business Registration Service.
- Log into your personal eCitizen account and click on “Make Application”.
- Thereafter, a list of all Business Registration Services (BRS) is displayed. Click on the link Name Search and Reservation.
- Peruse the details and pay the requisite fee displayed. This services costs Kshs. 150.
- Enter the details required and any errors detected are flagged by the system which asks the user to correct. This is you provide a brief description of your proposed business name.
- Select the checkbox confirming that you have provided all information required by the registrar in order for your business name to be reserved and click.
- Select your preferred payment option from the list provided thereafter follow the payment instructions as listed.
- Once you complete the payment click on Complete and your payment is processed and confirmed.
- A receipt is then generated which contains a reference number beginning with NS e.g. NSTR8OP.
CIRCUMSTANCES IN WHICH A COMPANY NAME WILL NOT BE REGISTERED
The circumstances in which a company name will not be registered are illustrated under Companies (General) Regulations, 2015. A company name may not be registered if:
- It has a similar name appearing in the Registrar’s Index of Company Names, Business Names, Limited Liability Partnerships or Partnerships.
- It contains a phonetic resemblance to the name of company, business name, limited liability partnership or partnership that is already registered.
- It differs from the name of another company, business name, limited liability partnership or partnership that is already registered only by the addition of the name of a place, locality or region within Kenya.
- It resembles or is identical to a name that has been reserved by the Registrar for use in connection with a proposed company, business name, limited liability partnership or partnership.
- It resembles or is identical to the name of a company or limited liability partnership that has been dissolved, or has been struck off the register of companies or register of limited liability partnerships, or the entry of a business in the register of business names or partnerships kept under the Registration of Business Names Act 2015 has been cancelled.
- It is similar as a body corporate or established under a written law.
- The Registrar believes on reasonable grounds that its use involves the commission of a criminal offence.
- The Registrar believes on reasonable grounds that it is offensive or undesirable or contrary to public interest.
KEY POINTS TO NOTE BEFORE INTIATING A NAME SEARCH AND RESERVATION
- Business names with the word “Enterprises” at the end cannot use initials e.g. J.M and Wabebe Enterprises.
- Business names with the word “Foundation” are to be registered as companies limited by guarantee.
- Business names with “Groups”, “projects” and “Holdings” are to be limited i.e. Jimmy Group Limited.
- Business names with “Universities” are to be limited e.g. Nanyuki University Limited.
- Business names with single words are not accepted e.g. Amali.
- Business names with offensive or abusive words cannot be registered in the company registry. Moreover offensive words in vernacular/mother tongue are prohibited.
- Business names with political names e.g. Nakuru Youth Alliance are prohibited.
- Business names with numerics are not allowed unless it is the current year e.g. (2015).
- Names starting with the word “Kenya” are only reserved for the government.
- Names with ‘Church’ and ‘Ministry or Ministries’ are prohibited.
- Names with “Trust”, “Foundation”, “Programmes” are prohibited.
- The Registrar of Names does not register clubs.
- Names with “Relief” are prohibited.
- Names with “welfare”, Organization, Association, are prohibited.
REFERENCES
Companies (General) Regulations, 2015
