Learn about some of the legal requirements of starting a restaurant business in Kenya which involves getting a license.
If you want to start a restaurant business in Kenya, there are a few things you ought to bear in mind. However, apart from factors such as location, target customers, and the type of cuisines you will be serving, you need to think about the legal requirements.
Below is a look at the legal procedures for operating a restaurant in Kenya.
Register your business (document required
You should come up with a name for your company. Any suggestions you have shall be run on the eCitizen platform where a name search shall be initiated. The search lasts for less than 48 hours. After the name search has been approved, the next step is to register your company.
You will need to provide your basic information, the type of company you are running, and the location, and the size of your company (sole-proprietorship, partnership, or limited company). When your application is approved by the company registry, you will receive a certificate of incorporation, memorandum, and a CR12 letter.
Other documents required to operate a restaurant or hotel in Kenya include County Single Business Permit, Certificate of health and Fire Safety Certificate
Tax Compliance
The next step is to get a KRA pin for your business. This will enable you to open a bank account, perform returns, and get a business permit. After you get a company KRA pin, you need to activate the VAT obligation if you are earning revenue of 5,000,000 per month.
The next step is to get an ETR machine and configure it to help you process your sales, issue clients with receipts, and record VAT transactions. This information will help you file VAT returns. Make sure you file returns on the 20th of every month. Additionally, any sale that is between Kshs 500,000 and 5,000,000 incurs a levy of 2% and should be paid monthly, before the 10th, to KRA.
Other taxes that you might be required to pay include Income Tax, Corporate Tax and Withholding Taxes.
Start your restaurant business
Hours you will be opening and closing will depend on the rules in the county where you are running the business. It will also depend on the license you have secured from the government. For example, the laws in Nairobi County state that bars shall not be located anywhere next to residential houses. The process for applying for a business permit will also depend on the country where you plan on putting up shop. In most counties, there are online platforms where businesses are allowed to apply and renew their permits.
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