Header Ads

Guide to Start a Business in Uganda

Formal registration of companies has many immediate benefits for the companies and for business owners and employees. Legal entities can outlive their founders. Resources are pooled as several shareholders join forces to start a company. Formally registered companies have access to services and institutions from courts to banks as well as to new markets. And their employees can benefit from protections provided by the law. An additional benefit comes with limited liability companies. These limit the financial liability of company owners to their investments, so personal assets of the owners are not put at risk. Where governments make registration easy, more entrepreneurs start businesses in the formal sector, creating more good jobs and generating more revenue for the government.

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Uganda. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected from World Bank: Doing Business 
No.ProcedureTime to CompleteAssociated Costs
1Reservation of a name at the Office of the Registrar2 daysUSH 25,000 + USH 2,000 bank fee
2Pay fees at the bank1 dayincluded in previous procedure
3Obtain five necessary forms from the Uganda Bookshop1 dayUSH 5,600 (USH 500-700 for each form, 5 forms for incorporation, and 3 for tax registration)
4Sign the declaration of compliance before a Commissioner for Oaths1 dayUSH 2,000 -10,000
5Obtain requisition for bank pay-in slip and bank payment advice forms from the Uganda Registration Services Bureau1 dayno charge
6Make payment of registration fees at a given bank1 dayno charge
7File with the Registrar General1 daysee comments
8File with the local office of the Uganda Revenue Authority a personal inquiry form for each director, and a corporate preliminary inquiry form; receive a uniform tax identification number (TIN) and apply for VAT5 daysno charge
9An inspector from URA inspects the business premises1 dayno charge
10Obtain application forms for trading license1 dayno charge
11The licensing officer arranges an inspection of the premises and fills out an assessment form.1 dayno charge
12Pay the license fee at the bank.1 daysee the following procedure
13Obtain the trading license10 daysUSH 400,000
14File a form with the National Social Security Fund (NSSF).4 daysno charge
15Make a company seal2 daysUSH 225,000
Powered by Blogger.