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Company Registration In Uganda

This article will cover the process for company registration in Uganda. It will explain the documents, criteria, and advantages of Uganda company registration.

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Company Registration In Uganda

Uganda is a popular nation located in East Africa for its agricultural output. Many beautiful mountains and lakes may be found throughout the nation. Uganda’s economy has seen significant expansion in the last few years due to its development in the infrastructure, petroleum, and telecommunication sectors.

company registration in uganda

With a bright and increasing population, incredibly efficient agricultural regions, a developing oil industry, and an advantageous location in Africa, Uganda have an immense economic opportunity for businesses which promotes the growth of enterprises in the country. The Uganda Registration Services Bureau (URSB), is an independent organization in charge of company registration in Uganda. Any entrepreneur who wishes to register a company in Uganda has to register with the URSB.

This article will cover the process for Uganda company registration. It will explain the documents, criteria, and advantages of company registration in Uganda.

Process of Company Registration in Uganda

process of company registration in uganda

The process to register a company in Uganda is discussed below:

Decide and reserve a business name

The first step to registering a company in Uganda is to decide on the company name. Choose at least three potential names. Utilize the company registration form to perform a business name search at the Uganda Registration Service Bureau. The business registry database will be searched for similarities to your proposed corporation name. You can reserve the business name with the appropriate authorities if the name is accessible.

Choose the legal form of your business

Choose the legal form of your business such as a sole proprietorship firm. 

Gather the relevant documents

Gather the relevant documents such as the article of association, corporate forms, corporate resolution, etc to register a company in Uganda.

Apply for company registration in Uganda

Fill up the business registration form (s.18) and submit it along with the appropriate documentation to the Uganda Registration Services Bureau

Acquire the certificate of incorporation

Once the forms and the documents are examined, the certificate of incorporation will be provided.

Acquire the Tax Identification Number (TIN)

A TIN can be acquired by enrolling with the Uganda Revenue Authority. The application form can be either filled out online on the URA portal or by visiting a URA office.

Apply for the business license

The local authorities where the enterprise is located are the ones who can issue you a license.

Enroll with the National Social Security Fund (NSSF)

It is necessary to enroll with the National Social Security Fund because all firms with more than five workers are required to make a 10% NSSF payment to their workers’ benefits.

Obtain a business seal

Every corporation that wants to conduct commercial operations in Uganda must have a corporate seal with the name of the corporation imprinted on it.

Documents Needed for Uganda Company Registration

The following papers must be submitted during the application procedure in order to register a Local Company in Uganda:

  • Business incorporation form (s.18)
  • Memorandum and Articles of Association
  • Nominal Capital Statement

The following papers must be submitted during the application procedure in order to register a foreign corporation in Uganda:

  • Verified copies of the Articles of Association are required.
  • Constitution and documents from the nation of origin.
  • Form 24, which has details on the directors and secretaries.
  • Form 13 where details of all subsidizing charges are presented.
  • Form 25 lists the names and addresses of residents of Uganda responsible for receiving service on the firm’s behalf.
  • The address and Principal Office Information are listed on Form 26.

Business Structure for Company Registration in Uganda

business structure for uganda company registration

For company registration in Uganda, there are various business structures, which are described below:

Sole Proprietorship: A sole proprietorship is a type of business structure where a person operates a company individually and as such the owner is the only one to benefit financially from the business. A sole proprietorship is simple to incorporate, however, the owner is not separate from the firm and is personally liable for all debts incurred by the company.

Partnership Firm: Partnerships are a common organizational structure choice for professional services organizations. Partnerships are regulated by a partnership document that outlines the partners’ privileges and responsibilities. General and limited liability partnerships are the two types of partnerships.

In LLPs, the limited partners’ responsibility for the company’s liabilities and responsibilities is restricted to the value of their capital investment.

A general partnership has each partner representing the company and connecting the other partners. As a result, each partner is jointly responsible for the partnership’s liabilities.

Private Companies limited by shares: Private corporations limited by shares are those organizations whose membership is restricted to 100 individuals under the legislation. Members’ responsibilities to the organization are restricted to their shareholdings.

Private Companies limited by guarantee: The majority of non-profit institutions are private companies limited by guarantee.

Public Limited Company: Publicly traded companies have limited liability and can sell stock to the general public. At least two directors and five stockholders are needed to incorporate a public limited company in Uganda.

Eligibility Criteria for Uganda Company Registration

eligible criteria for uganda company registration

Here are the several criteria for Uganda company registration:

  • Director- A public limited corporation must have a minimum of two directors in order to be established in Uganda.
  • Shareholder- A public limited corporation must have a minimum of five shareholders in order to be established in Uganda.
  • Business secretary- All businesses in Uganda are required to have a business secretary.

Taxation in Uganda

There are several taxes that entrepreneurs have to pay if they register a company in Uganda such as:

  • Income Tax: Every individual who has earnings in Uganda for a given income year is subject to income tax under the Income Tax Act. The corporate tax rate is 30%.
  • Withholding Taxes: Dividend and interest payments are subject to withholding taxes. It applies only to interest payments given to a resident individual. Interest payments to residents are subject to 18% withholding taxes, except interest on governmental instruments. If a resident stockholder receives a dividend from a resident corporation, 18% of that income must be withheld as tax.
  • Value-added Tax: Value-added tax (VAT) is charged on products and services at a normal rate of 18%.
  • Customs Duty: Based on their estimated customs worth, Ugandan imports are subject to customs duty.
  • Pay As You Earn (PAYE): The system of deducting income tax from wages and salary is known as PAYE. It covers all earnings and compensation from any employment.
  • National Social Security Fund: In accordance with the present NSSF system, workers are required to pay 15% of their monthly wages to the Social Security Fund.

Cost of Uganda Company Registration

The various fees that an entrepreneur has to pay for Uganda company registration are listed below:

  • The cost to register a business is 24,000 UGX, while the cost to reserve a name is 20.000 UGX.
  • Registration of legal documents may cost 80,000 Ugandan shillings.

Why register a company in Uganda?

  • With abundant supplies of gold, diamonds, iron ore, and several precious metals, Uganda is endowed with a wealth of natural resources.
  • As a result of significant investments from both domestic and international sources, the Ugandan mining sector is anticipated to expand during the coming years.
  • Since joining the World Trade Organization in 1995, Uganda has reaped several advantages of being a member of the organization. 
  • Since 2014, Uganda’s economy has been growing quickly, with growth rates ranging from 4.5% to 6.1%.
  • Tourism is a significant component of Uganda’s economy and is placed third in terms of generating foreign exchange. 

Advantages of Company Registration in Uganda

advantages of company registration in uganda

If you register a company in Uganda, you can enjoy the following benefits:

  • Helps to acquire a legal presence.
  • Get a trading name to protect the identity of your company.
  • Gain access to services such as lending, bids, finance, etc.
  • Business expansion help increase job prospects.
  • Allows the acquisition of licenses, such as those for investing, trade, and paying taxes.
  • Improved marketing and promotional opportunities to draw in additional clients.
  • Increased ability to compete in the regional marketplace.

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Conclusion

Uganda is a developing economy with plentiful resources, a free-market framework, and no industry-specific barriers to foreign direct investment. As such, there are numerous advantageous investment prospects in the nation. Since the country mainly thrives on agriculture and manpower management, these sectors could be two prima faces of expansion in this particular region. The Ugandan Populus also thrives on low labor expenses which could be taken as an advantage for foreign manufacturing companies setting up their units in Uganda. With the rebates and benefits from multiple international financial institutions, the country has been able to present itself to the world market.

If you wish to register a company in Uganda, you can get in touch with our company formation experts at Odint Consultancy. Our experts will assist you in the incorporation process.

 

FAQ’s

It is essential to have a corporate secretary, and a tax identification number, to register a company in Uganda.

  • The cost to register a business is 24,000 UGX, while the cost to reserve a name is 20.000 UGX.
  • Registration of legal documents may cost 80,000 Ugandan shillings.

A business can be registered by filing an application and providing the appropriate documentation to the Uganda Registration Services Bureau. 

  • Uganda’s economy has seen significant expansion in the last few years due to its development in the infrastructure, petroleum, and telecommunication sectors.
  • With a bright and increasing population, incredibly efficient agricultural regions, a developing oil industry, and an advantageous location in Africa, Uganda has an immense economic opportunity for businesses which promotes the growth of enterprises in the country.
  • Business incorporation form (s.18)
  • Memorandum and Articles of Association
  • Nominal Capital Statement
  • Sole Proprietorship
  • Partnership firm
  • Private Companies limited by shares
  • Private Companies limited by guarantee
  • Public Limited Company
  • Income tax
  • Withholding taxes
  • Value-added tax
  • Customs duty
  • Pay As You Earn (PAYE)
  • National Social Security Fund

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