Registering a Construction Company in Kenya
Learn the essential steps to register a construction company in Kenya, including legal requirements, documentation, and tips for a smooth registration process. By following these steps and seeking professional guidance, you can successfully register your local construction company in Kenya and start your business operations.
1. Begin With Company Registration First
- Decide on the type of company you want to register, such as a
- Private Limited Company (LTD)
- Limited Liability Partnership (LLP),
- Public Limited Company (PLC), or a
- Branch of foreign company .
- Reserve a unique name for your company through the eCitizen portal.
- Gather the necessary documents, including:
- Memorandum of Association and Articles of Association
- Identification documents of directors and shareholders
- Company address details
Submit the completed application forms and required documents to the Business Registration Service
2. Proceed to Register for Tax Registration.
To register for tax purposes, begin by registering your company with the Kenya Revenue Authority (KRA).
This process will enable you to obtain a KRA PIN Certificate and a Tax Compliance Certificate (TCC).
Additionally, if your company's annual turnover surpasses the KES 5,000,000 VAT threshold, it is necessary to register for Value Added Tax (VAT).
3. Register with the National Construction Authority (NCA).
In Kenya, local contractors must register with the National Construction Authority (NCA) to legally engage in construction activities.
The NCA categorizes registrations into eight levels, from NCA 1 to NCA 8, which dictate the scope and complexity of projects a contractor can undertake.
To register as a local contractor with the NCA, several requirements must be met:
- Submit company registration details and a certificate of incorporation.
- For incorporated companies, include CR12 documentation.
- Provide ID copies for all directors.
- Present academic certificates and testimonials for technically qualified directors and staff members.
- Obtain a valid KRA Tax Compliance Certificate (TCC).
- Attach a certified copy of the current business permit license.
- For electrical engineering works applicants, include an Energy and Petroleum Regulatory Authority (EPRA) license.
- For communication engineering works applicants, provide a Communications Authority of Kenya (CAK) license.
- Provide proof of past experience or ongoing projects if available.
- Demonstrate ownership or access to necessary plant equipment and machinery through certified documents.
- Supply three years' audited financial accounts certified by an ICPAK member along with other relevant financial information.
Additionally, contractors may choose to register with an industry association and submit their membership certificate as part of their application.
4. Additional Licenses and Permits
For various types of construction work, obtaining additional licenses and permits from relevant authorities is often necessary. These may include:
- County Government Licenses: Required for building permits and other local authorizations.
- Professional Engineer's Engineers Board of Kenya (EBK): Necessary for providing engineering services.
- National Environment Management Authority (NEMA): Needed for conducting environmental impact assessments.
Was this information helpful ?