If you’re looking to upgrade your business structure from a simple registered business name to a Private Limited Company, this guide is for you. Converting your business name into a Private Limited Company has several benefits, including limited liability, easier access to funding, and enhanced credibility.
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In Kenya, this process can be done through the Business Registration Service (BRS) via the eCitizen platform. Here’s a complete, easy-to-follow guide to help you through each step.
How to Convert a Business Name to a Private Limited Company
Step 1: Login to eCitizen
Visit the eCitizen website and log in with your credentials. This is the portal where you’ll access the BRS services. If you don’t already have an eCitizen account, you’ll need to create one before proceeding.
Step 2: Select BRS (Business Registration Service)
Once logged in, find and click on the “Business Registration Service” (BRS) option. This service handles all business-related processes, including business name registration, conversions, and company maintenance.
Step 3: Go to “My Businesses” and Select Your Business Name
Under the BRS section, navigate to “My Businesses.” Here, you’ll see a list of all registered businesses under your name. Locate the business name you want to convert to a Private Limited Company and select it.
Step 4: Click on “Maintain a Company”
Next, click on “Maintain a Company” for the selected business name. This action will open a set of options for your business maintenance activities.
Step 5: Choose “Cessation to Convert”
In this step, select the “Cessation to Convert” option. This selection indicates that you intend to convert the business name to a Private Limited Company. It essentially means you are ceasing the old business structure to transition to a new one.
Step 6: Upload the Business Name Certificate
You’ll need to upload a scanned copy of your original business name certificate. This document verifies your ownership of the business and is essential for the conversion process.
Step 7: Select the Conversion Type
Choose the appropriate conversion type. In this case, you’re selecting the option to convert a business name to a Private Limited Company. This step initiates the formal transition from one business structure to another.
Step 8: Download, Sign, Scan, and Upload the BN6 Form
Once you have chosen the conversion type, the system will generate a BN6 form. Download this form, sign it, scan the signed document, and upload it back into the system. This form is a crucial part of the official records for your business’s structural change.
Step 9: Pay Ksh 250 and Submit the Application for Review and Approval
You’ll need to pay a processing fee of Ksh 250. Make the payment through the available options on eCitizen. After payment, submit the application for review and approval by the Business Registration Service.
Step 10: Status Update – “Converting”
Once your application has been reviewed and is in process, the status of your business will change from “Active” to “Converting.” This status change indicates that your application is being processed, and you’re close to finalizing the conversion.
Step 11: Download and Submit Auto-Generated Forms
After your application moves forward, the system will generate additional forms. Download these forms, sign them, scan, and re-upload them to complete the process. You will also need to pay a final fee of Ksh 10,650 at this stage. Once this is done, submit the application for final review and approval.
Conclusion
Once all documents are submitted and the fees are paid, your application will be reviewed by the BRS. If everything is in order, you’ll receive confirmation of the conversion. You will be issued a certificate for your new Private Limited Company, officially marking the completion of the process.
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Converting a business name to a Private Limited Company in Kenya can provide a solid foundation for growth, access to investment, and a professional reputation. With these clear steps, you can complete this conversion smoothly through the eCitizen portal, strengthening your business’s legal and operational framework.
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