How to Do Business In Uganda? – Super Business Manager

This is a comprehensive guide on how to do business in Uganda, covering the main steps for registration, key investment sectors, and tax obligations.

1. Business Registration Process

The Uganda Registration Services Bureau (URSB) is the primary government agency responsible for registering all business entities in Uganda. The process is generally streamlined and can often be initiated online.

Step-by-Step Guide for Registering a Company

Choose Your Business Structure and Name:
- Common Structures: Private Limited Company (most popular for growth-focused businesses), Sole Proprietorship, Partnership, or Foreign Company (Branch).
- Name Reservation: Conduct a name search and reserve your desired business name with URSB. This is typically valid for 30 days.
Prepare Required Documents:
- For a Private Limited Company (PLC):
  - Memorandum and Articles of Association (MAA).
  - Registration forms (e.g., Form A1 – Statement of Nominal Capital, Form 20 – Particulars of Directors and Secretary).
  - Copies of National IDs or Passports for all directors and shareholders.
- For a Foreign Company (Branch):
  - Certified copies of the Memorandum and Articles of Association/Charter from the home country.
  - Certified Certificate of Incorporation from the home country.
  - Forms detailing the local representative, directors, and principal office address in Uganda.
Submit Documents and Pay Fees:
- Submit all documentation to URSB, either online through their eCitizen portal or in person.
- Pay the registration fees and stamp duty, which are calculated based on the company’s nominal share capital.
Obtain the Certificate of Incorporation:
- Upon successful registration, URSB will issue a Certificate of Incorporation, which grants your business a legal identity.
Register for a Tax Identification Number (TIN):
- Register your company with the Uganda Revenue Authority (URA) to obtain a TIN. This is mandatory for all businesses and is required for opening a bank account, importing/exporting, and filing taxes. The application is typically free and done online.
Obtain a Trading License:
- Apply for a Trading License from the local municipal authority or the Kampala Capital City Authority (KCCA) if operating in the capital. The cost depends on the nature and size of the business.
Register with the National Social Security Fund (NSSF):
- If you plan to hire employees, you must register your business as an employer with the NSSF and make mandatory contributions.
Obtain an Investment License (Optional, but Recommended for Incentives):
- The Uganda Investment Authority (UIA) issues investment licenses. While optional, it is required to access certain tax incentives.
- Minimum Investment Thresholds: For a foreign investor to qualify for a UIA license, the minimum investment is generally $250,000. For domestic investors, it is $50,000.

2. Key Investment and Growth Sectors

Uganda offers a dynamic investment environment with numerous opportunities, primarily centered around its natural resources and youthful population.

Sector	Opportunities for Investment
Agriculture and Agro-Processing	Value addition to cash crops (coffee, tea, fruits, oilseeds), commercial irrigation projects, processing facilities, and manufacturing of agricultural inputs (fertilizers, improved seeds).
Oil and Gas	Investment in the development phase, supporting services (e.g., specialized transportation, catering, engineering), petrochemicals, and the planned oil refinery.
Manufacturing	Agro-processing parks, import substitution industries (e.g., cement, textiles, processed foods), pharmaceutical production, and mineral value addition (e.g., gold smelting).
Infrastructure and Energy	Renewable energy (solar mini-grids, mini-hydro), construction materials production, and development of transport networks (roads, rail).
Tourism	Eco-tourism, adventure tourism, hospitality and accommodation (lodges and camps), and cultural heritage development.
ICT and Digital Economy	Fintech, e-commerce, health tech, and expansion of broadband and digital services.

3. Tax Obligations for Businesses

The tax system is administered by the Uganda Revenue Authority (URA).

A. Income Taxes

Corporate Income Tax (CIT): The standard rate is 30% of chargeable income for both resident and non-resident companies.
Presumptive Tax: Applies to resident companies with an annual turnover of less than UGX 150 million (with varying fixed amounts/rates).
Withholding Tax (WHT): Imposed on certain payments, such as:
- Payments to Non-Residents: A rate of 15% is typically withheld on dividends, interest, royalties, and management fees.
- Payments for Goods and Services in Uganda: A WHT of 6% may be levied on payments for the supply of goods and services.

B. Consumption Taxes

Value Added Tax (VAT): The standard VAT rate is 18%. Businesses must register for VAT if their annual turnover exceeds UGX 150 million.
Pay As You Earn (PAYE): Employers must deduct income tax from employees’ salaries and remit it to URA.

C. Tax Incentives

Uganda offers significant tax incentives, particularly for investors operating in priority sectors or designated areas (e.g., industrial parks or free zones). These incentives may include:

10-Year Income Tax Exemption: Available for investors (with minimum capital requirements) who establish and operate a business in agro-processing, manufacturing, or an industrial park/free zone, provided they meet certain criteria for local raw material use and employment of Ugandan citizens.
Zero-Rate Import Duty: On plant, machinery, and equipment used in various sectors.
VAT Exemption: On the supply of locally produced raw materials to manufacturers who meet specific investment and local content thresholds.

Disclaimer: This information is a summary and is subject to change based on new legislation. It is highly recommended to consult with a local legal firm, tax advisor, or the Uganda Investment Authority (UIA) for the most current and specific guidance related to your business structure.