Running a business in Uganda is easy and possible when you follow the necessary legislation.
The Uganda Registration Services Bureau (URSB) handles business registration in Uganda. In Kampala, the registration centre is located at the Uganda Business Facilitation Centre, Plot 1, Baskerville Avenue, Kololo.
Why you should register your company or business
- Registration gives you a business name and a trademark logo/ brand.
- Registering your business equips you with legal documents like a certificate of incorporation that might help when obtaining financial loans from any financial institution.
- Business formalization creates more employment opportunities through business expansion.
- When your business is registered, you get better marketing strategies and advertising opportunities for increased customers through domestic and foreign markets.
- It also boosts your level of competitiveness in the regional market with your foreign competitors in the same race.
Consequences of running a business without registration
- Limited access to capital and investment. Unregistered businesses often struggle to secure capital from formal financial service providers, who are generally safer and more affordable than informal lenders. Investors, especially large or international ones, are hesitant to invest in unregistered companies due to the lack of a formal structure to handle their investments.
- Increased personal liability. Operating an unregistered business means you are personally responsible for all aspects of the business, including debts and losses. This also extends to liabilities from selling defective products or providing poor services, which can risk your personal reputation and assets. Registering your business creates a separate legal entity, protecting your personal assets from business-related liabilities.
- Damaged business reputation. Clients, especially corporate ones, prefer dealing with legally recognized entities. A registered business is perceived as more reliable and trustworthy, which can positively impact your bottom line over time.
- Exclusion from bidding opportunities. Unregistered businesses are ineligible to participate in many bidding processes, both public and private. This exclusion limits your opportunities to compete for tenders and contracts that can drive business growth.
Process of registering a business in Uganda
The whole business registration process can be conducted online through the Uganda Online Business Registry.
- Step 1
Conduct a name check to ensure that the name you are selecting is not taken by another business. You can conduct the name check on the URSB website. It may take up to 30 minutes to receive a notification or confirmation. Once you have made a successful name check, proceed to step 2. Search fees for a business name are Uganda Shillings UGX. 5,000. This can be paid through the URA domestic taxes portal.
- Step 2
Name reservation: After selecting the business name, proceed to reserve the name. The process may take up to 1 hour. And reserved name takes 30 days to expire or before starting the registration process. Name reservation costs Uganda Shillings 24,000. This can be paid through the URA domestic taxes portal.
- Step 3
Business or company registration: The registration process requires one to have the following documents;[MR2]
- Copies of national identity cards (for nationals) or Refugee ID or copies of original refugee family attestation cards (for refugees)
- Passport photos and signatures for directors and secretaries.
- Email address and contacts for your business or company.
- Memorandum Of Understanding (a nonbinding agreement that states each party's intentions to take action, conduct a business transaction, or form a new partnership)
- Articles of Association (rules that govern the company, and which shareholders and directors have agreed on)
- Board resolution (its purpose) signed on by a lawyer,
- Company forms (which you can pick from URSB or download online and postal address). The cost for this depends on your business’s share capital.
Step 5
You will be issued a certificate of incorporation. This is a legal document that shows the establishment of a business, company or corporation. It serves as proof that the company or business has been formed. When you submit relevant documents, the process may take up to 3-7 days to pick up your certified copies and certificate of incorporation.
Applicable Fees
Every step of business registration may require certain fees to be paid. Find a list of fees to be paid at every stage here.
All fees and taxes are paid through the URA domestic taxes portal. Do not pay any money to individuals posing as URSB or URA staff.
What to do after getting the certificate of incorporation
Obtain a Tax Identification Number for your business. This can be done online via the Uganda Revenue Authority portal.
A TIN is a 10- digit unique number allocated and issued by Uganda Revenue Authority to identify a person as a duly registered taxpayer. Registration for tax purposes is a legal and civil obligation for any person or individual and non-individual who is earning income above the set tax threshold. Read this detailed article on how to apply for a TIN on our website.
Apply for a trading license from Kampala Capital City Authority (KCCA) or from the local municipal or town council. Note this one expires on 31st December of every year. And the charges may depend on your type or nature of business.
A trading license is permission from the state government to conduct a specific business or trade, governed by state laws and municipal regulations. Its purpose is to prevent unethical business practices. Read this comprehensive article on how to apply for a training license.
Register with the National Social Security Fund (NSSF). Here, you need to take employer forms and employee forms for registration. This may take up to 1-7 days and cost free of charge. Note that NSSF is for all companies registered as private or limited by share capital. NSSF is mandated by the government of Uganda through the NSSF Act as amended, to provide social security to all eligible employees in Uganda.
Register with Posta Uganda to obtain a postal address. You can register for a postal address online using www.eposta.ug or by visiting a nearby Post Office. While registering, the system will ask you to provide a phone number on which you will receive notifications and to select your preferred post office. Once you have completed the registration process, you will receive a prompt on your phone to enter your mobile money PIN for payment to finalize your postal address acquisition.
The following annual fees apply to postal address acquisition
- Company: UGX 90,000
- Upcountry (Company) UGX 60,000
- Individuals: UGX 20,000
- Business Names: UGX 20,000
- Shops: UGX 20,000
Make a seal or stamp for your company. The company seal, sometimes called a corporate seal, is a tool used to stamp or emboss your Company’s essential documents to show the document is certified by and agreed upon by the Company’s Board of Directors.
Contact information
Uganda Registration Service Bureau, Uganda Business
Head Office: Facilitation Centre Plot 1, Baskerville Avenue, Kololo
Toll-free: 0800 100 006
Call centre: +256 417 338 100
Phone: +256 414 233 219/0417338000
Whistleblower Hotline: 0414673200/0417338520
WhatsApp: 0712448448
ursb@ursb.go.ug (General correspondences)
helpdesk@ursb.go.ug (for inquiries)
Uganda Revenue Authority: Head Office URA Tower,
Plot M 193/4 Nakawa Industrial Area, P.O. Box 7279, Kampala.
Contact: +256323443610
Katwe Branch: finance Trust Bank, plot No 115& 121.
Contact: +256323444626
Bwaise Branch: Diamond Trust Bank, Bombo Road
Contacts: +256 323444635
National Social Security Fund (NSSF)
Plot 1 Pilkington Road, Workers House 14th Floor, Kampala
customerservice@ nssfug.org
Toll-Free 0800286773 (call centre)
+256312234400.
Kampala Capital City Authority (KCCA)
City Hall, Plot 1-3, Apollo Kaggwa
PO BOX 7010 Kampala Uganda.