Starting a business with a partner can be a great way to share responsibilities, pool resources, and leverage each other's strengths. In Kenya, setting up a partnership is a fairly straightforward process, but there are important legal and regulatory steps you must follow to ensure everything is done correctly.
In this guide, I'll walk you through everything you need to know about forming a partnership in Kenya—from choosing a name to registering your business and understanding your tax obligations. Let's dive in!
A partnership is a business structure where two or more individuals come together to operate a business jointly, sharing profits, losses, and responsibilities. In Kenya, partnerships are governed by the Partnership Act, 2012, which outlines the legal framework for their formation, operation, and dissolution.
Choosing the right type of partnership depends on your business goals, risk appetite, and how much control each partner wants in decision-making.
Now that you understand what a partnership is and its benefits, let’s get into the step-by-step process of setting up a partnership in Kenya. Follow these steps to ensure your business is legally registered and compliant with Kenyan regulations.
Selecting an appropriate and unique business name is a crucial initial step in establishing a partnership.
A distinctive name not only differentiates your partnership from others but also prevents legal issues related to trademark infringement.
To ensure the desired name is available:
Once your name is approved, it will be reserved for 30 days, giving you enough time to proceed with registration. It's advisable to act promptly to avoid the expiration of the reservation.
A partnership deed is a legal document that outlines the terms and conditions governing the partnership.
Although it’s possible to draft the deed yourself, it's always a good idea to involve a lawyer to ensure it's legally binding and protects everyone’s interests.
Once the partnership deed is prepared, the next step is formal registration. Business registration in Kenya is done through the Business Registration Service (BRS) on the eCitizen Portal.
This form captures essential details about the partnership, including:
Pay the applicable registration fee, which is Ksh. 800. Payment can be made through various methods available on the eCitizen portal.
After submitting the application:
The processing time is typically 3-5 business days. Once approved, the Certificate of Registration will be available for download on the eCitizen portal, which you should print and keep safe. This certificate is proof that your business is legally registered in Kenya.
Ensure the certificate is genuine by checking for official stamps and signatures. You can also verify its authenticity through the BRS.
A Kenya Revenue Authority (KRA) Personal Identification Number (PIN) is mandatory for tax compliance.
The KRA PIN is essential for:
A business bank account keeps your finances organized and makes it easier to manage transactions. Most banks in Kenya require the following documents to open an account:
✔ Partnership Certificate of Registration
✔ Partnership Deed
✔ KRA PIN for the business
✔ Copies of partners’ IDs
✔ Passport photos of partners
Different banks have different requirements, so it’s a good idea to compare banking options and choose one that suits your business needs.
Depending on the type of business you're running, you may need additional licenses. For example:
You can check the exact requirements on the eCitizen Portal or visit your local county office.
As a partnership, you are required to file tax returns, but the partnership itself is not taxed directly—instead, each partner is taxed individually on their share of the profits.
Here’s what you need to keep in mind:
✔ Income Tax – Partners must declare business income on their personal tax returns.
✔ VAT Registration – If your business has an annual turnover of Ksh. 5 million or more, you must register for VAT.
✔ PAYE (Pay As You Earn) – If you have employees, you must deduct and remit PAYE to KRA.
It's advisable to hire an accountant or tax consultant to ensure compliance and avoid penalties.
Not all partnerships last forever, and if you ever need to dissolve your partnership, follow these steps:
If things get complicated, it’s always best to seek legal guidance.
The total cost is around Ksh. 950 (Ksh. 150 for name search + Ksh. 800 for registration).
On average, it takes 3–5 business days.
Yes, but they must have valid immigration documents and a KRA PIN.
Not necessarily, but it's advisable to consult one for drafting the partnership deed.
Setting up a partnership in Kenya is an excellent way to start a business with shared responsibilities and resources. The process may seem straightforward, but ensuring full compliance with legal, tax, and regulatory requirements can be challenging, especially for first-time business owners.
That’s where Spondoo Kenya comes in!
At Spondoo Kenya, we specialize in seamless business registration, tax compliance, and accounting services tailored to Kenyan entrepreneurs. Our team of experts will handle every step of your partnership setup
✅ Fast & Stress-Free Registration – We handle everything for you, so you don’t waste time navigating bureaucracy.
✅ Affordable Pricing – Get professional services at competitive rates.
✅ Expert Guidance – Our accountants and business consultants provide personalized support.
✅ Comprehensive Business Support – From registration to bookkeeping and tax filing, we’ve got you covered!
🚀 Ready to Start Your Partnership the Right Way? 🚀
📞 Call us today at 0117313555 or visit our website Spondoo Kenya to get started! Let us take care of the paperwork while you focus on growing your business.