How To Register Your Company In Uganda.
In Uganda today, many people especially the youth are starting their own businesses, with many challenges ahead, the biggest of these being capital and the other registration. Company registration process is a confusing and yet simple task at hand for most beginners in the sector. A business can thrive in the industry without having to formally register, however, it faces many consequences including imprisonment, a fine, and loss of assets by the owner.
I took it upon myself to break down the legal procedure for young people interested in registering their company/business in the shortest time possible.
1. Secure and reserve your interested company name.
The public body responsible for this process is the Uganda Registration Service Bureau (URSB).
- Through this administrative body, company name assessment forms can be acquired at a Fee of just UGX 22,200/- bank charges inclusive and this is payable to the bank, this acts as the application for reservation of a name.
- Upon payment of this fee, the suggested name (by you) of your business is then searched in the registry database and on passing the similarity, defensive, offensive and the desirability test it is then reserved and this reservation acts goes up to 30 days.
2. Membership subscription.
After securing a company name, a company is then required to seek member subscription to the Uganda national chamber of commerce (UNCCI). Under this chamber, there are various categories of membership subscription all subject to different annual payments.
- Associate – UGX 1,100,000/-
- Gold – UGX 510,000/-
- Silver – UGX 260,000/-
The requirements under this stage for one to be fully registered as the certified name reservation form awarded by Uganda Registration Service Bureau, a business case and a passport copy of one of the company directors.
3. Register to obtain a certificate of incorporation.
This is still done through Uganda Registration Service Bureau and the requirements are company books, memorandum of agreement, articles of association, declaration of companies using forms A1, A2, A3, 7 and A9 plus lastly the company resolutions.
On top of those documents a registration fee of UGX 20,000/- , stamp duty totaling to 0.5% of the share capital , stamp duty on memorandum and articles of association UGX 35000/-, plus filling fees of UGX 25,000/- ,for the various forms A2 at UGX 10,000/- , A3, 7 and A9 at UGX 20,000/- are payable.
4. Register for a Tax Identification Number (TIN).
This is done through the Uganda Revenue Authority (URA) and no charges apply here. Application for the TIN can be done online through www.ura.go.ug and additionally personal inquiry firms for each director are required.
5. Register for Value Added Tax (VAT).
After obtaining Tax identification number, registration for value added tax is done if a company has a threshold of over UGX 150,000,000/-. Additionally a statement of nominal capital form that states the share capital, number, and class if shares and value of shares are filled. This is also done at no charge.
6. Register for a trading license with the municipal authorities where the company is located.
Various businesses are located in different areas and likewise, they are supposed to register with the respective municipal authorities, for example, those in Kampala should register with Kampala City Council Authority (KCCA) so as to obtain trading a license.
The charges here also depend on the nature and grade of business one is operating it intends to operate as assessed by the authority and for a company to be Fully registered and qualify for a trading license a memorandum of articles of association, Form 7 showing the names of the directors, a certificate of incorporation and a lease or tenancy agreement are required.
7. Register with National Social Security Fund (NSSF).
Many employers tend to ignore this step, never the less, it is very vital especially if the company employs more than 5 employees it is obliged to pay NSSF of 10% to their employees through their various social security accounts.
If all that is a lot for you to do then, there’s an option of reaching out to any lawyer you can access, turns out they can do all this for you at an affordable rate. All you have to do is avail the relevant data. So with that laid out. I believe you can successfully venture into your business with ease. And in the case of any hardships along the way you can reach out to Uganda Registration Service Bureau via their helpline (+256 414 233 219) or social media platforms.
Note: Prices quoted in this article are subject to change.