Company formation and registration in Uganda
Entrepreneurs and investors globally are increasingly finding Uganda an attractive destination for business expansion. Its strong incentives, good weather, fast-growing population, quality facilities, and friendly business rules and regulations make Uganda the top destination in East Africa.
If you are a local or foreign investor seeking to register a business in Uganda, this thoroughly researched guide consists of steps to follow when setting up a business in Uganda. It comes in handy as you go through the process, ensuring you get your registration right on the first attempt.
Criteria for company formation and registration in Uganda
It is an exciting prospect to register a company in Uganda, but it also comes with many legal and administrative requirements. To register a company in Uganda, several criteria must be met.
How to register a company or business at the Uganda Registration Services Bureau (URSB)?
The first step to registering a company in Uganda is to choose a unique company name. The name must be different from an existing company name. It must also not contain any sensitive words or expressions, or offensive or illegal terms. A company name must also have a designated ending relevant to its type, such as “Ltd.” for a private limited company.
You need to identify at least three name options that you would like to use to identify your business. Fill in a Name Reservation form online or in hard copy from the One Stop Centre (OSC) at the Uganda Investment Authority (UIA), the Uganda Registration Services Bureau (URSB) offices
Registered Office:
All Ugandan companies must have a registered office and the company’s official address where all legal documents will be sent. The address must be in Uganda as a condition for company formation in Uganda, and can be a physical or virtual office. It is also important to note that the registered office must be a physical address if the company is a Limited Liability Partnership (LLP).
Directors
All companies in Uganda must have at least one director. A director can be a person or a company, but they must be over 18 years old and not be disqualified from holding the position of director.
Get a certificate of incorporation.
The Bureau is mandated under the Uganda Registration Services Bureau Act, Cap 21,0, to register all business entities in Uganda. To register a local company in Uganda, the following are the requirements;
- Name Search and Reservation
- Assessment and payment of statutory fees
- Submit the application form
- Form A22 – Full address of the registered or principal office of the company
- Copies of Articles and Memoranda of Association, if any, may also be filed.
- Passport/ National ID (3 copies)
How to register a foreign company in Uganda
As a foreign entrepreneur looking to set up a business in Uganda, you will need to follow specific legal requirements to register your company. Some companies already exist in other countries and have already been incorporated in the country of origin.
If a company wishes to conduct business in Uganda. They must register with the Uganda Registration Services Bureau (URSB). This process involves submitting the following documents to the Uganda Registration Services Bureau:
1. Memorandum of Association
The Memorandum of Association is a legal document outlining the company’s objectives, name, and number of shares issued. This document is the foundation of the company, and it is essential for company registration.
2. Articles of Association
The Articles of Association define the rules and regulations of the company and the procedures for running the company. This document is vital for the company’s internal management and the rights of shareholders.
3. Completed registration form
This form provides details about the company’s directors, shareholders, and registered office address. This form must be completed and filed with the Registrar of Companies to register your company.
4. Identification proof
Identification proof, such as a passport, is required for all directors and shareholders of the company. This document helps verify the identity of the individuals registering the company.
5. Address proof
Address proof, such as a utility bill or bank statement, is required to prove the address of the individuals registering the company.
6. Certificate of Incorporation
The Registrar of Companies issues this document once the company is registered. The certificate confirms the company’s legal existence and includes details such as the company name, registration number and incorporation date.
Benefits of Business Registration in Uganda
Below, we have given several benefits to entrepreneurs through business registration in Uganda.
Access to a thriving economy
With a GDP consistently ranking among the region’s top economies, Uganda provides a favourable market for companies to expand their operations. Moreover, its proximity offers more access to a more extensive consumer base and allows businesses to tap into the African.
Political stability and investor-friendly policies
Uganda is renowned for its political stability, transparent governance, and investor-friendly policies. A robust legal framework protects intellectual property rights, contracts, and business interests. This stability instils confidence in investors and provides a solid foundation for long-term business planning and growth.
Strong financial and banking system
Registering a company in Uganda provides access to an efficient banking system, facilitating international transactions and easing business operations. Foreign entrepreneurs can benefit from flexible financial solutions available through established financial institutions, such as business loans, credit lines, and investment opportunities.
Skilled workforce and global talent pool
Uganda has a well-educated and diverse workforce. Registering a company in Uganda allows businesses to tap into the skilled talent pool, gaining access to individuals with diverse backgrounds and expertise. Uganda’s reputable educational institutions produce a steady stream of highly qualified professionals, providing a competitive advantage for companies seeking specialized talent across various sectors.
Business-friendly regulations and a supportive environment
The Ugandan government actively supports business growth and innovation. The country offers a simplified and efficient company registration process, allowing entrepreneurs to set up their businesses quickly. Additionally, the Ugandan government encourages entrepreneurship by providing various support programs, including mentoring, business incubators, and access to government-backed initiatives.
Tax benefits and incentives
The Ugandan government offers a competitive tax regime that incentivizes businesses. The corporate tax rate is comparatively low, providing favourable conditions for profitability and reinvestment. Moreover, Uganda has double taxation agreements with several countries, ensuring that businesses are not taxed twice on the same income.
Register your company in Uganda effortlessly with Afrilink
Setting up a company in Uganda can be an excellent opportunity for entrepreneurs looking to expand their business operations overseas. Uganda is known for its robust business ecosystem, ease of business, and favourable tax policies. Afrilink Consultants is a trusted business solutions provider in the region that helps entrepreneurs with the company registration process. Talk to us today at +254707280366 or email us at clientservice@afrilinkconsultants.com to register a company in Uganda.
