Registering your business name and getting a KRA PIN are the start, not the end. To trade legally you usually need permission from the county and, in many sectors, from a regulator as well. Trading without it risks fines, closure and trouble getting contracts or loans.

The single business permit

Most businesses need a single business permit from the county government where they operate. It replaces the older trade licence and is renewed every year. The fee depends on the county, the type of business and its size or premises. You apply to the county, usually through its online portal or offices, with your business registration, KRA PIN and details of the premises.

Permits and certificates that often go with it

Depending on the business, counties and national agencies may require:

  • Fire safety certificate for premises open to the public
  • Public health certificate for food, hotels, salons and clinics
  • Food handlers' medical certificates for staff who prepare or serve food
  • Signage or advertising permit for outdoor signs
  • Liquor licence for bars and restaurants that serve alcohol
  • Building and occupancy approvals for new premises

Sector licences

Some activities need a licence from a regulator, for example:

  • Financial services, from the central bank or the capital markets regulator
  • Pharmacies and clinics, from the relevant health boards
  • Transport and passenger services, from the transport authority
  • Education institutions, from the education ministry
  • Importers of certain goods, from standards and regulatory bodies

Check with the regulator for your sector before you invest in a location or equipment.

Linking licences to tax

Many permits ask for a tax compliance certificate, and renewals can be refused if your taxes are not up to date. See getting a tax compliance certificate and starting a business: registration and tax steps. Tax obligations also start when you begin trading: check whether turnover tax or VAT applies with the turnover tax calculator and VAT registration checker.

Keep track of renewals

Permits have different expiry dates, and missing one can mean a penalty or a closure notice. Keep a list of each licence, who issues it, the fee, the expiry date and the renewal date. The KRA filing and payment calendar can hold these dates beside your tax dates, and the KRA tax obligations register lists your tax obligations in one place.

Budget for the costs

Permits and certificates are costs that arrive each year. Put them in your budget; the start-up costs and funding calculator lists them with other start-up costs, and budgeting for a small business shows how to plan them. Permit fees are generally deductible business expenses; see expenses small businesses can deduct.

Tips

  1. Ask the county for a list of every fee that applies to your business.
  2. Keep receipts for every payment, and the original permit displayed at the premises.
  3. Renew early; processing can take time.
  4. Update the permit if you change premises or activity.

If you operate in several counties

Each county issues its own permit, so a business with branches needs one for each.

Requirements differ by county and sector and change over time. Confirm them with the county government and the relevant regulator.

Common questions

Do I need a licence for a home business? Most businesses that trade to the public need a single business permit from the county, even from home, and some activities need extra sector licences.

When does the permit need renewing? Annually, usually at the start of the year. Renew before the deadline, as trading without a valid permit can lead to fines.

Is a permit the same as KRA registration? No. The county permit allows you to trade in the area, while KRA registration is for tax. You normally need both.