Starting a business in Uganda involves several key legal and administrative steps. Below is a guide to help you navigate the process:
1. Choose a Business Structure
Sole Proprietorship: Suitable for small businesses with a single owner.
Partnership: For businesses with two or more partners sharing responsibilities and profits.
Private Limited Company (Ltd): Common for larger businesses; the liability of shareholders is limited to their shares.
Public Limited Company (PLC): Larger businesses that may trade shares publicly.
Non-Governmental Organizations (NGOs): For charitable organizations.
2. Reserve a Company Name
Visit the Uganda Registration Services Bureau (URSB) website to check for the availability of your desired business name.
If the name is available, reserve it for 30 days.
3. Register the Company
You will need to register your business at the Uganda Registration Services Bureau (URSB). Here’s what’s required:
Incorporation Documents: Submit the following:
Memorandum and Articles of Association
Company registration form (Form 18 or Form 19)
A resolution by the board if the business is a corporate body
Tax Identification Number (TIN): Apply for a TIN through the Uganda Revenue Authority (URA), which is mandatory for conducting business.
4. Obtain Licenses and Permits
Depending on your business activity, you may need specific permits and licenses. Some common permits include:
Trading License: Apply through your local municipality or town council.
Sector-Specific Licenses: For businesses in regulated sectors like health, transport, or telecommunications.
5. Open a Corporate Bank Account
Once the company is incorporated, open a corporate bank account in the business name. This is essential for managing finances.
6. Register for Taxes
Register your business with the Uganda Revenue Authority (URA) to comply with tax laws.
Pay Corporate Income Tax (30% on profits), Value-Added Tax (VAT) (18%), and other applicable taxes.
You’ll also need to file monthly and annual tax returns.
7. Register for Social Security
If you plan to hire employees, you must register them with the National Social Security Fund (NSSF) and comply with labor laws.
8. Comply with Employment Regulations
Prepare employment contracts that meet Uganda’s labor laws.
Ensure proper working conditions, pay minimum wages, and offer leave entitlements as mandated by law.
9. Annual Filings and Compliance
Annual Returns: Every year, you must file annual returns with the URSB to keep the company status active.
Tax Filing: Submit tax returns and meet the required tax obligations.
10. Foreign Investor Requirements
Foreign investors must register with the Uganda Investment Authority (UIA).
A minimum capital requirement of USD 100,000 for foreign-owned businesses.
UIA offers incentives to foreign investors, such as tax holidays and exemptions depending on the industry.
11. Other Considerations
Work Permits for Foreign Investors: If you are a foreigner, you will need a work permit to legally work in Uganda.
Environmental Impact Assessment: Some businesses, especially in industries like mining or manufacturing, require an environmental impact assessment from the National Environment Management Authority (NEMA).
Costs Involved
Name reservation: Approx. UGX 20,000 (depending on the name search)
Company registration fees: UGX 50,000 to UGX 100,000 depending on company type
Trading license fees: Varies based on the business location and size