Uganda is one of the countries in East Africa that has a rapidly growing economy thanks to previously conducted reforms. It is also rich in natural resources and open to investments. If you are considering this jurisdiction as a target one, your business presence may be established here in one of these forms.
Major Forms of Legal and Business Presence
If you wish to start doing business in Uganda, your business presence may be arranged here in one of these forms:
- Private Limited Company – an entity that is flexible and easy to start. It requires at least one shareholder. The maximum number of shareholders is 100 in this case. The liability of shareholders is restricted to the invested sums only. It requires at least one director. But, this entity is not entitled to offer its shares to the public. There are no requirements for minimum paid-up share capital.
- Public Limited Company – an entity that can offer and transfer its shares to the public. At least five shareholders and two directors are required for this entity. The liability of shareholders is limited to the amount invested only. There are no requirements for minimum paid-up capital but such capital should be adequate to the types of activities a public entity is going to conduct.
- Branch Office – a foreign company may establish in Uganda its branch to carry out those types of transactions it is authorized to do abroad.
Registration Requirements and Steps
If you intend to form a company in Uganda, it may be required to pass the following registration steps:
- Defining clearly business priorities you intend to realize through the local entity.
- Choosing and checking a business name with its possible reservation.
- Collecting details about shareholders and beneficiaries as a local company should keep a respective register.
- Arranging a future registered business address for a company.
- Choosing the company’s directors and a secretary.
- Drafting constituent documents and registration forms.
- Submitting the entire package of required documents to the registrar.
- Registration for tax and social security purposes.
- Opening a corporate bank account.
- Obtaining additional licenses and permits that may be required for certain types of regulated activities.
Legal and Regulatory Framework
The local legal framework is rather flexible for founding a business and operating further. There are no applicable nationality and capital requirements as well as restrictions for carrying out commercial transactions both locally and worldwide.
The principal legal act in the area of doing business is the Companies Act. Major state authorities foreign investors may deal with are the Uganda Registration Services Bureau, the Uganda Revenue Authority, and the Capital Markets Authority.
Tax System of Uganda
If you wish to create a company in Uganda, the next tax highlights should be also taken into account:
- Corporate income tax (CIT) rate – 30%
- Personal income tax rate – 40%
- Value-added tax rate – 18%
- Withholding tax rates (for non-residents) – () dividends – 15% (ii) interest – 15% (iii) royalties – 15%
- Capital gains tax rates – (i) corporate – subject to the basic CIT rate (ii) personal – 40%
Advantages of the Jurisdiction
Company registration in Uganda may be a promising and easy-to-realize option taking into account the following advantages of the jurisdiction:
- Uganda is a member of the World Trade Organization.
- The country has a rapidly growing economy and modernizes its regulations.
- It introduces flexible conditions for starting a local business and involving investments.
- Zero restrictions are imposed on capital transfers.
How Prifinance Specialists May Help You
We offer prompt company registration and bank account opening services in Uganda and worldwide. New registration and ready-made options. Call the Prifinance Company.