Most Start Ups in Kenya start as a Business Name and then Later on convert the Business Name into a limited Company. The process to convert a Business Name into a Company in Kenya is usually undertaken so that the Business can enjoy the Benefits of a Limited company that include but are not limited to the Following;
- A Limited Company in Kenya is regarded as an Independent legal Entity, so as a shareholder your liability is limited to the extent of your share Contribution in the company.
- They outlive the life of the Shareholders in case of death of a shareholder because the shares can be transferred to another entity.
- A Limited Company has a strong competitive advantage that allows for larger profits.
- A Limited Company provides a more professional image. In some instances, certain sectors, contractors or agencies will prefer to work with a Limited Company because of the legal protection it provides.
The Procedure to Convert a Business Name into a Limited company in Kenya is as Follows
- The First step will be to link the business on the ecitizen potal so as to verify information details and Business ownership.
- The next step will be to cease the Business Name by Filling form BN 6.
- Upon successful cessation, the business will cease operations, and then you will be free to register a Company as per the requirements for Company Registration in Kenya under the Company’s Act.
We hope that you found the Information helpful, Feel free to Contact Us for any clarification on how to Convert a Business Name into a Limited Company in Kenya.