In a good measure to ensure Kenya is the most attractive business destination for investors, the President signed into law The Business Registration Services Act on 11th September 2015. The legislation is among other business laws aimed at easing the operation of businesses in Kenya.

The Purpose of the Act

The Act seeks to establish the Business Registration Service (BRS) to ensure effective administration of the laws relating to the incorporation, registration, operation and management of companies, partnerships and firms. The Service is established as a state corporation under the general supervision of the Attorney-General in order to improve efficiency. The BRS will take over the functions of the State Law Office which is a semi-autonomous institution fraught with inefficiencies and delays hampering effective service delivery.

When will it be operational?

The Act will become effective upon notice by the Attorney General in the Kenya Gazette

Where will the BRS operate?

The BRS will have its headquarters in the Capital City,(Nairobi) but will have established its branches in every counties for easy access of services. This in essence means that the services such as incorporation of companies, registration of business names and partnerships will be devolved to the counties promoting local business ideas/legal entities, reduce costs of registration and operations which are currently being offered in Nairobi only.

What are the functions of BRS?

The BRS is mandated to perform the following functions including but not limited to:

  • carry out all registrations required under this Act;
  • maintain registers, data and records on registrations carried out by the Service;
  • implement relevant policies and guidelines and provide the Cabinet Secretary with the necessary information to guide the formulation of policy and amendment of existing policy and guidelines;
  • carry out research and disseminate research findings in the fields covered by the relevant laws through seminars, workshops, publications or other means and to recommend to the Government any improvements in the relevant laws;
  • collaborate with other state agencies for the effective discharge of its functions; charge fees for any service performed by the Service; and
  • perform such other functions as may be necessary

The BRS would be headed by the Registrar-General who shall be responsible for the overall operations of the Service and its staff.

Take care- It is an offence…..

Once the Act is operational, it will be an offence to prohibit, obstruct or hinder a member of the Service acting under this law; submit false information to a member of staff of the Service or misleading a member of staff of the service. If found guilty upon conviction, one is liable to a fine not exceeding five hundred thousand shillings or imprisonment for a term not exceeding three(3) years or both. This was aimed at curbing brief-case companies, fraudulent reports, falsified records and non-existent officials/shareholders when dealing with BRS.

If you would like to register a limited liability company in Kenya or require company secretarial services in Kenya, please contact us on info@capitaregistrars.co.ke or by phone on +254709747555

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