How To Start A Business in Uganda

Starting a Business in Uganda: Step-by-Step Guide

Uganda offers a structured and investor-friendly environment for both nationals and foreigners looking to establish a business. The process involves several key steps, each with associated fees and timelines. Below is a comprehensive guide to assist you through the registration process.

1. Reserve a Business Name

Begin by reserving your desired business name through the Uganda Registration Services Bureau (URSB) online portal.

• Fee: UGX 35,000
• Validity: 30 days
• Processing Time: Within 1 hour

Reserve a name via URSB

2. Prepare and Submit Incorporation Documents

Prepare the necessary documents for incorporation:

• Memorandum and Articles of Association
• Identification documents for directors and shareholders
• Proof of registered office address in Uganda
• Completed company registration forms

Submit these documents through the URSB portal or in person.

• Fee:
  • UGX 105,000 for companies with nominal share capital ≤ UGX 5,000,000
  • 1.5% of nominal share capital for companies with share capital > UGX 5,000,000
• Processing Time: 3–5 working days

3. Obtain a Tax Identification Number (TIN)

Register with the Uganda Revenue Authority (URA) to obtain a TIN, which is mandatory for all businesses.

• Fee: Free
• Processing Time: 1–2 working days

Register for a TIN via URA

4. Register for Value Added Tax (VAT) and Other Taxes

Depending on your business activities and turnover, you may need to register for VAT and other applicable taxes.

• VAT Registration Threshold: Annual turnover exceeding UGX 150 million
• VAT Rate: 18%
• Corporate Income Tax Rate: 30% of chargeable income
• Withholding Tax:
  • 6% on goods and services supplied in Uganda
  • 15% on most other payments to non-residents

5. Obtain Necessary Licenses and Permits

Depending on your business sector, you may need to acquire specific licenses or permits.

• Trading License: Issued by Kampala Capital City Authority (KCCA) or local authorities
• Sector-Specific Licenses: May be required for industries like finance, education, health, etc.
• Fees: Vary based on business type and location
• Processing Time: 1–2 weeks

Apply for a Trading License via KCCA

6. Open a Corporate Bank Account

Open a corporate bank account in Uganda using your Certificate of Incorporation and TIN.

• Requirements: Company documents, TIN, directors' identification
• Processing Time: 1–2 weeks

7. Register with the National Social Security Fund (NSSF)

If your business employs staff, registration with the NSSF is mandatory.

• Contribution Rate: 15% of the employee's gross salary (5% employee, 10% employer)
• Processing Time: 1–2 weeks

Register with NSSF

8. For Foreign Investors: Additional Requirements

Foreign investors must comply with additional regulations:

• Investment License: Obtain from the Uganda Investment Authority (UIA)
• Work Permits: Apply for appropriate work permits for foreign staff
• Fees: Vary based on investment size and sector
• Processing Time: 2–4 weeks

Apply for an Investment License via UIA

Estimated Total Duration and Costs

• Total Estimated Duration: 3–6 weeks
• Estimated Costs:
  • UGX 200,000 – UGX 1,000,000+ (excluding sector-specific licenses and professional fees)

Useful Resources

• Uganda Registration Services Bureau (URSB)
• Uganda Revenue Authority (URA)
• National Social Security Fund (NSSF)
• Uganda Investment Authority (UIA)
• Kampala Capital City Authority (KCCA)