Company Name Reservation vs. Registration

Starting a business is an exciting journey, and one of the first critical decisions you will make is choosing a name for your company. But before you can officially operate under that name, there are two essential steps every Kenyan entrepreneur must go through, Name Reservation and Company Registration. While they may sound similar, these are distinct processes with specific purposes in the company incorporation journey.

Below, we will walk you through the difference between name reservation and registration, the key steps in incorporating a business in Kenya, and the crucial role a company secretary plays in ensuring everything is done correctly.

Name Reservation: The First Step

Name reservation is the initial step in forming a company. It involves securing a unique company name through the eCitizen portal, Kenya’s government digital services platform.

Name reservation is important because;

·         It ensures no other company is using the same or a similar name.

·         It helps you avoid legal disputes or delays later in the registration process.

·         It shows you are serious about forming a legitimate business.

How it works:

1.      Log into eCitizen.

2.      Select “Business Registration Service.”

3.      Propose 1–3 company names in order of preference.

4.      Pay the required fee (currently KES 150 per application).

5.      Wait for approval (usually within 3–5 working days).

Once approved, the name is reserved for 30 days, giving you exclusive rights to proceed with the registration under that name. You can renew the reservation if needed.

Importance of Checking Name Availability

Choosing a name isn’t just about branding, it is also about compliance and uniqueness. A proposed name may be rejected if:

·         It’s too similar to an existing company or trademark.

·         It contains restricted or misleading terms (e.g. “Government” or “Kenya”).

·         It’s deemed offensive or inappropriate.

·         Either of these symbols (*; =; #; %) are among the first 3 letters of the company name.

That’s why a thorough name search before applying is essential. It saves time and frustration later in the process.

Company Registration: Making It Official

Once your name is reserved, the next step is company registration, where your business becomes a legal entity.

Company registration involves;

1.      Submitting company details: directors, shareholders, business activities, and address.

2.      Uploading scanned documents such as:

3.      CR1 (Application for registration)

4.      CR2 (Memorandum of the company with share capital)

5.      CR8 (Notice of residential address of directors)

6.      Statement of nominal capital

7.      Paying the registration fees and stamp duty.

8.      Generating the Certificate of Incorporation upon approval.

At this stage, your company becomes a distinct legal entity capable of owning assets, opening bank accounts, entering contracts, and complying with regulatory obligations.

The Role of a Company Secretary in the Process

For private companies with a share capital of KES 5 million or more, a qualified company secretary is mandatory. However, even for smaller startups, engaging a company secretary is highly recommended.

A company secretary enhances efficiency in the name reservation and registration process by helping you:

·         Conduct a name search and advise on name suitability.

·         Handle the application process on eCitizen, ensuring accuracy.

·         Draft compliance documents and manage filings with the Registrar of Companies.

·         Keep your business on track with statutory requirements, such as maintaining company records and filing annual returns.

At Azali, we simplify this process for you, ensuring that your business starts right, from name reservation to full incorporation.

Conclusion

Understanding the difference between name reservation and registration is key for any entrepreneur looking to set up a business in Kenya. Think of it like building a house: name reservation is choosing and securing your plot of land, while registration is laying the foundation and constructing the house.

By working with experienced company secretarial professionals, like those at Azali, you can avoid common pitfalls and focus on growing your new venture with confidence.

Need help reserving a company name or completing your registration?
Contact us at https://www.azali.co.ke and let our experts guide you through every step.