Your Trusted Partner for Non-Profit & NGO Formation
For expert company limited by guarantee legal consultation Nairobi founders trust, Mwenda Njagi & Co. Advocates provides unparalleled guidance. A company limited by guarantee is the primary legal structure in Kenya for non-profit organizations, including charities, community groups, sports clubs, and professional associations. Unlike a company limited by shares, its primary purpose is not to generate profit for owners but to advance public good objectives. Any surplus income is reinvested back into the organization to further its mission. Navigating the registration process under the Companies Act, 2015 requires meticulous attention to legal detail, particularly in drafting the governing documents. Our corporate law team, based on Kiambu Road, Nairobi, specializes in structuring these entities to ensure full compliance and a solid legal foundation for your cause.
The Legal Framework: The Companies Act, 2015 & Your Obligations
The registration and operation of a company limited by guarantee in Kenya is governed principally by the Companies Act, 2015. This statutory framework defines it as a corporate body where the liability of its members is limited to the amount they agree to 'guarantee' in the event of winding up. This amount is often a nominal sum. A key legal distinction is the 'non-profit distribution constraint,' meaning profits cannot be distributed to members as dividends but must be used to promote the company’s objectives. The entire registration process is managed online through the Business Registration Service (BRS) portal on eCitizen. Our legal consultation focuses on ensuring your founding documents, specifically the Memorandum and Articles of Association (MemArts), are expertly drafted. These documents are critical; they define your company’s 'objects' (its purpose), its governance structure, and how it will operate in compliance with Kenyan law. A poorly drafted MemArt can lead to operational hurdles and challenges with regulatory bodies like the Kenya Revenue Authority (KRA).

Step-by-Step Registration Procedure & Documentation
Securing your non-profit status requires a precise, multi-step process. Our firm provides comprehensive legal consultation to manage these requirements seamlessly. The procedure in Nairobi involves:
1. Name Search and Reservation: We conduct a unique name search on the BRS eCitizen portal and reserve your proposed company name. The name must be available and should ideally reflect the nature of your organization.
2. Drafting of Incorporation Documents: This is the most critical phase. We prepare the Memorandum of Association, which outlines the company's objects, and the Articles of Association, which detail the internal governance rules. We also prepare the necessary statutory forms, including:
- Form CR1: Company Registration Application.
- Form CR2: Details of the company’s directors.
- Form CR8: Notice of the registered office address (e.g., your Nairobi office).
3. Document Lodging and Payment: All drafted documents are uploaded to the BRS portal, and the requisite government registration fees are paid.
4. Issuance of Certificate of Incorporation: Once the Registrar of Companies is satisfied with the application, a Certificate of Incorporation is issued electronically. This is the legal proof of your company's existence.
5. Post-Incorporation Compliance: We guide you through essential next steps, including applying for a KRA PIN, NSSF, and NHIF registration, and setting up your annual compliance calendar.
Legal Representation in Nairobi, Kenya
Mwenda Njagi & Co. Advocates provides legal advisory and court representation across Nairobi, Kenya and all 47 counties in Kenya.
Costs & Fees: A Transparent Breakdown for Nairobi Businesses

Understanding the financial commitment is crucial for planning. The cost of registering a company limited by guarantee in Kenya is divided into two parts: statutory fees and professional legal fees.
1. Statutory Government Fees: These are non-negotiable fees paid directly to the government via the eCitizen portal.
- Name Reservation Fee: Approximately KES 150 per name search.
- Company Registration Fee: The government fee for incorporation is typically around KES 10,750, though this is subject to change by the BRS.
2. Professional Legal Fees: This fee covers our expert legal services, including personalized consultation, drafting of bespoke Memorandum and Articles of Association, preparation and filing of all statutory forms, and managing the entire process on your behalf. Our professional fees for a standard registration provide immense value by ensuring compliance and preventing costly future errors. For a detailed and tailored quotation based on your specific needs, please contact our Nairobi office.





