A partnership business involves two or more people who share ownership where each partner contributes to all aspects of the business. Profits and losses are shared among the partners based on the formula agreed by both parties.
The process to register a partnership company is almost the same as sole proprietor except that in partnership business you must provide a partnership deed.
The following are simple steps on how to register a Partnership in Kenya.
Draft a partnership deed; The partnership deed contains the following particulars.
- The name of the firm.
- The names and addresses of the partners.
- The nature of the business.
- The term or duration of the partnership.
- The amount of capital to be contributed by each partner.
- The drawings that can be made by each partner.
- The interest to be allowed on capital and charged on drawings.
- Rights of partners.
- Duties of partners.
- Remuneration to partners.
- The ratio in which the profits or losses are to be shared among the partners.
- The basis for the calculation of goodwill at the time of admission, retirement, and death of a partner.
- The keeping of proper books of accounts and the preparation of Balance Sheet.
- Settlement of amount on the dissolution of the firm.
- The procedures to be adopted in the case of disputes among the partners.
- Arbitration clause.
Besides a partnership deed you MUST also provide the following documents:
Copy of ID/Passport for each partner
Passport photo for each partner
Copy of College Certificate for one of the partners.
Copy of KRA PIN Certificate for each partner
BN2 form which you will fill in the following details:
- Name of Business
- Nature of Business
- Postal Address
- You and your partner’s full names
- Address of the principal place of business including plot number, name of the building, or street.
Registration And Certificate Of Registration
Once you have drafted the documents, you lodge the same for registration and a certificate of registration would be issued thereafter.
Kindly note that the process to register a Partnerships in Kenya has been revamped and a new online process put in place. Kindly see the new process Below.
The process to register a partnership is now conducted vide the e-Citizen portal and it entails filling the application forms, paying and obtaining receipts, preparation, and submission of signed statements of particulars, obtaining a Certificate of Registration, Submitting the Certificate for authentication among other processes.