Uganda, the Pearl of Africa, is a landlocked country nestled in the heart of East Africa. It is known for its stunning landscapes, which include the Nile River, Lake Victoria, and diverse wildlife. Uganda offers a unique blend of natural beauty, a vibrant culture, and a rapidly growing economy.
As a strategic hub for business in East Africa, Uganda presents a compelling opportunity for investors seeking to expand their reach and capitalize on the region’s expanding markets. Its economy is primarily based on agriculture due to its good climate, but increasingly complemented by growth in manufacturing, services, and tourism. The country is endowed with a wide selection of minerals including precious metals like gold, silver, and platinum. Uganda also has renewable energy resources which are still untapped, especially solar, wind, and mini hydropower resources.
Uganda has recently enacted numerous laws and regulatory amendments in various sectors, including financial services, pensions, retirement benefits, competition, fisheries, aquaculture, and mineral resources. These changes aim to promote financial inclusion, boost agriculture and natural resource sectors, and strengthen regulatory oversight.
The premier investment opportunities in Uganda are:
- Natural Resources: Mining and Oil & Gas
- Tourism: International and Domestic
- Agribusiness
- Manufacturing and Value Addition
- Renewable Energy
- Infrastructure and Real Estate Development
- Information and Communications Technology (ICT) and Telecommunications
Why choose Uganda for your business?
- Strategic Location: Situated at the heart of East Africa, Uganda provides excellent connectivity to neighboring countries, including Kenya, Tanzania, Rwanda, and South Sudan. This strategic position offers access to a vast market of over 160 million consumers.
- Favorable Investment Climate: Uganda has implemented a business-friendly environment with a range of incentives for investors. These include tax holidays, customs duty exemptions, and repatriation of profits. The government is also actively working to improve infrastructure and streamline administrative processes.
- Abundant Natural Resources: Uganda is rich in natural resources, including fertile land, minerals, and hydroelectric power. This abundance provides a solid foundation for agriculture, mining, and renewable energy industries.
- Growing Domestic Market: Uganda’s growing population and rising incomes are driving increased consumer demand for goods and services. This presents significant opportunities for businesses in sectors such as retail, consumer goods, and services.
- Skilled Workforce: Uganda boasts a young and relatively well-educated workforce, which is a key asset for businesses seeking to establish operations in the country. The government is also investing in education and skills development to meet the needs of the growing economy.
Advantages of opening a company in Uganda
- Low Cost of Operation: Uganda offers a relatively low cost of doing business compared to other countries in the region. This includes affordable labor, rent, and utilities.
- Supportive Government: The Ugandan government is committed to supporting foreign investment and has established various agencies and programs to assist businesses.
- Access to Regional Markets: Uganda’s strategic location provides easy access to the wider East African market, allowing businesses to expand their operations and customer base.
- Growth Potential: Uganda’s economy is experiencing rapid growth, driven by increased investment and consumer spending. This presents significant opportunities for businesses to capitalize on the country’s development.
Doing business in Uganda as a foreigner
Non-citizens in Uganda
Any person in Uganda who is not a citizen by birth, registration, or naturalization is considered a foreigner. This includes individuals born outside Uganda or those whose parents/grandparents were not Ugandan citizens at the time of their birth.
Foreign Companies in Uganda
A company incorporated in Uganda is considered foreign if over 50% of its shares are owned by non-citizens. Such companies must comply with Ugandan investment laws.
Are you a foreigner thinking of doing business in Uganda?
Welcome to your ideal guide to sailing through Uganda’s dynamic business landscape. A foreigner looking to start a business in Uganda must first register a company. The company registration process is mandated under the Uganda Registration Services Bureau Act Cap 217 to register all business entities in Uganda which are required by law to be registered.
The Uganda Registration Services Bureau (URSB) is the regulatory body in charge of business registrations in Uganda. There are two business forms open to foreigners for their Uganda Business registration. These are for registering a local company or registering a foreign branch. Most individuals and groups prefer to register a local company for obvious reasons – including limitation of liability and tax purposes.
Local Company
The incorporation of a local company by a foreigner with a Ugandan citizen by birth as a director is similar to the registration of a local company by a citizen. There are different types of companies, but most foreign individuals or entities opt for a private entity by shares.
Branch Offices
This is open for companies with a reduced level of activity. These don’t generally require incorporation in Uganda, but to register one, certain financial disclosures are required by the parent company.
Requirements for registering a company in Uganda
The requirements for Registering a Company in Uganda are as follows;
- Proposed Company/ Business name
The three proposed business name searches are done online under the URSB to ensure are not similar to an existing registered business. The first name reserved, if approved, is reserved for 30 days. - Objectives of the Business
This is essentially the business that the company is being set up to carry out. This business must be entirely legal and not against public policy. - Nature of business
This is the type of operation it carries out. This is largely determined by the industry the business operates in eg manufacturing, transporting, production, etc. - Names of the Directors, contact details and email
In the interest of transparency and accountability, URA stipulates that the director’s information must be provided on the registration application. - Proof of Identification
A valid, unexpired government-issued identification document must be submitted for each director during the registration process. Foreign residents must provide a Foreign National Registration Certificate (Alien Card), while non-resident aliens must submit an international passport - Copy of shareholder and Directors
Passport Photo, ID copies, individual, phone numbers, email addresses, postal addresses, residential details & occupation. - For a company shareholder – Copy of Company Incorporation certificate, phone number, email address, postal address, & registered office details.
- Number of shares to be assigned to each shareholder
URA TIN
All directors, whether resident or non-resident, are required to provide a Uganda Revenue Authority (URA) Tax Identification Number (TIN) certificate copy to prove registration with the tax authority.
In addition, the relevant forms must be signed by all directors and submitted during registration. The Certificate of Incorporation is received from the Ugandan Registrar of Companies after submitting all required documents. If a branch was registered; a certificate of registration will be issued.
Investment License for Foreigners in Uganda
A foreigner must obtain an investment license to be allowed to run a company in Uganda. There are also some requirements for trade licenses to further ease doing business.
Requirements for foreign company registration in Uganda
To establish a foreign company in Uganda, the following steps need to completed:
- Certified Documents from Country of Origin:
- Memorandum and Articles of Association/Charter/Constitution
- Certificate of Incorporation
- Beneficial Ownership Information:
- Names, IDs/BRNs, nationalities, and shareholdings of beneficial owners
- Company Details:
- Official email and phone number
- Details of directors and company secretary (name, nationality, ID/, passport copy, date of birth, physical and postal address, phone number & email address)
- Details of at least one local representative residing in Uganda
- Complete Registration Forms:
- Form 24: Director and Secretary Details
- Form 25: Authorized Persons for Service of Process
- Form 26: Physical and Principal Office Address
- Form 13: Statement of Charges
- Submission Documents to the Uganda Registration Services Bureau (URSB):
- Certified copies of Memorandum/Constitution and Certificate of Incorporation
- Completed Forms 24, 25, 26, and 13
- Beneficial ownership information
- Company contacts details
- ID copies of directors, authorized persons, and company secretary
