How to register a business in Uganda - Uganda

Business Registration in Uganda

I. Definition

A Company is a legal person which has capacity and powers to act on its own - the law sees a company in the same light as a natural person.

It is created by the Companies Act No.1 of 2012 which provides the legal framework under which companies can be formed for legal purposes not harmful to society. The Uganda Registration of Services Bureau (URSB) is mandated under the Uganda Registration Services Bureau Act Cap 210 to register all business entities in Uganda which are required by law to be registered.

Within URSB, the Directorate of Business Registration is responsible for the registration of:

• Public/Private companies,
• Foreign companies,
• Legal documents (e.g Constitutions, agreements, deeds, powers of attorney, etc), and
• Security documents (e.g mortgages, chattels, debentures, etc).
   

II. Registration & certification

1. Benefits of registering a company:

• Obtain legal Identity/status
• Safeguard your business name by acquiring a trade name
• Access opportunities like loans, tenders, financing etc
• Business formalization creates more employment opportunities through business expansion
• Enables registration for licenses e.g Investment, trading and taxation licenses
• Better marketing and advertising opportunities for increased clientele
• Improved competitiveness in the regional market

2. Benefits of registering a document:

• Registered documents are admissible in the court of law since they have evidential value in the eyes of the law. This means that un-registered documents are not readily acceptable and admissible in a court of law.
• Registered documents safeguard the interest of a buyer since they take effect against every un-registered documents relating to the same property. In other words, the registration of documents preserves the title of the buyer.
• Registering your document puts it on the government record which renders credibility to the document and makes it a notice to the public at large in respect to the subject matter of the document.

3. Registering a document

1. All major features of the document should be clearly and properly represented on each copy of the document.
2. The document should be presented in triplicate (3 copies) and duly witnessed.

4. Certifying a document

1. Present copies of the document to be certified;
2. Pay the certification fees; and
3. Hand in the documents and payment receipt at the Business Registry.

All transactions are with the Uganda Registration Services Burureau (URSB) at any their listed branches.
 

III. Business phase out

Should your company face financial problems and cannot pay its bills (insolvency), contact the office of the official receiver in URSB and get guidance on any of these options:

1. Winding up - dissolving your business by selling off its assets and satisfying the creditors from the proceeds of the sale,
2. Administration – appointing an administrator for your insolvent company so as to facilitate its recovery, and
3. Receivership – enabling a secured creditor to recover amounts outstanding under a secured loan in the event that your company defaults on the loan.

When closing your company for any reason, wind it up legally so as to avoid unnecessary costs.