Other Business Services offered:
Change of Business Name
Change of Business particulars and details
Removal or appointment of partners and members
Cessation of Business Name registration
- Company Registration in Kenya
- Foreign Company Registration in Kenya
Foreign NON Governmental Organization (NGO) Registration
NON Governmental Organization (NGO) Registration – Local
HOW TO REGISTER A PARTNERSHIP BUSINESS NAME IN KENYA
Partnership business involve two or more people who share ownership on prorated whereby each partner contributes to all aspects of the business. Profits and losses are shared among the partners according to the formula agreed by both parties in the partnership deed.
The procedure of registering a partnership business is almost the same as sole proprietor except that in partnership business a partnership deed is provided.
Partnership business name registration in Kenya:
The following are steps for registering a partnership in Kenya.
The partnership deed normally contains the following particulars
The name of the firm or partnership
The names and addresses of partners
The nature or type of the business
The duration of partnership.
The amount of capital to be contributed by each partner.
The amount and nature drawings that can be made by each partner.
The interest to be allowed on capital and charged on drawings.
Rights and responsibilities of partners.
Duties of partners.
Remuneration to partners.
The ratio of the profits or losses shared among the partners.
The basis and rationale for the calculation of goodwill during 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 upon the dissolution of the firm.
The procedures and processes to be adopted in the case of disputes among the partners.
Arbitration clause in case of dispute or disagreement.
The advantage of Partnership business name registration as compared to sole proprietorship is that in partnership, you can apply for any tender without much restrictions as your business has a KRA pin.
Sole Proprietorship on the other hand does not have a business KRA pin but uses personal KRA PIN of the owner.
Registration of Limited Liability Partnership in Kenya (LLP)
Section 2 of the Limited Liability Partnership Act, Chapter 30A, stipulates a Limited Liability Partnership (LLP) as one registered under the Act, whereas the Partnership Act No. 16 of 2012 defines a partnership as the relationship which exists between persons who carry on business in common with a view of making a profit.
Currently there are three forms of partnerships in Kenya, a general partnership, a limited partnership and a limited liability partnership.
A LLP is formed, section 17 of the Limited Liability Partnership Act by submitting a Statement of Particulars with the Registrar of Limited Liability Partnerships.
Under the LLP Act, that the Registrar of Companies is appointed to act as the Registrar for LLPs. Upon registration, a limited liability partnership becomes a body corporate with perpetual succession and acquires a separate legal entity personality from its partners and therefore any change in its partners does not affect the existence, rights or obligations of the limited liability partnership.
On the other hand, a general partnership is governed by the Partnership Act, Act No. 16 of 2012 while being registered under the Registration of Business Names Act. Upon registration, a general partnership does not become a body corporate.
The limited liability partnership, under section 7(2) of the LLP Act, is required to maintain and use a common seal that bears its name to be utilized to execute all documents that are required by law to be sealed by it.
Under section 22 of the Partnership Act, the liability of a partner in a general partnership is unlimited. Accordingly, a partner is personally liable for the whole amount of any obligation incurred by the partnership while he is a partner. Accordingly, their personal assets could be used to settle business debts if and when becomes necessary.
A limited partnership on the other hand has two types of partners known as general partners; and limited partners. The liability of general partners is unlimited. The liability of a limited partner is limited to the extent of the amount contributed by the partner to the partnership at the time of joining the partnership.
The liability of all partners in a LLP is limited. Therefore a partner is not personally liable, directly or indirectly, for the partnership’s obligations arising in a contract, tort or otherwise. In addition, a partner in a LLP is not personally liable for the wrongful act or omission of another partner of the LLP. The liabilities of a LLP are from the property of the LLP and from the personal assets of the partners.
The liability of partners of a LLP differs immensely from those of the general partnership and the limited partnership. However, the liability of a limited partner in a limited partnership is similar to that of a partner of a LLP. The difference between a LLP and a limited partnership is that the latter is required to have general partners so that the liability of all its partners is not limited like the LLP.
All partners in a general partnership have the entitlement to participate in the management of the partnership business.
In a limited partnership, all general partners can participate in the management of the business of the partnership. However, a limited partner is prohibited under section 58 (1) of the Partnership Act from taking part in the management of the business of the partnership .
On the other hand, a LLP is required to have a manager to manage the day-to-day activities of the business. A LLP is commonly said to be a quasi-partnership.