How much do I need to start a company in Uganda?

How much do I need to start a company in Uganda – When registering a company in Uganda, everything starts with knowing your brand/company name. And here you have to think about a very creative and unique name.

URSB Online Company Registration In Uganda | How To Register A Company In Uganda | Process Of Registering A Company In Uganda | Registration of a Company in Uganda

1. Create a Profile on Uganda Registration Services Bureau (URSB) using your ID Number / Passport Number

URSB is the new online platform by the registrar of companies in Uganda to help with all new company registration in Uganda.

2. Conduct a URSB name reservation.

Here you will be required to add at least 3 company names and then make a payment to reserve the company name. Name reservation takes a Maximum of 3 days.

3. Add Particulars of the company

Here you will be required to add the company’s physical address, proposed Sharecapital and shareholders of the company.

4. Enter particulars of the memorandum and articles of association

Now here you will choose whether to adopt the general Memorandum and Articles of association or opt to upload a customized copy

5. Enter the directors’ details

Then here you will be required to add the directors details like Full name, Phone number, ID / Passport number Email and residential Address.

6. Enter the Official company contacts

Here you will be required to Key in the Company email address and phone number

7. Download, Sign and upload the registration forms

At this stage you will be required to append a clear signature against your name and then upload the documents back on URSB.

8. Make Payment and submit he application on URSB

Here you will be required to pay the requisite statutory fees and submit the application. If there are no corrections, the company will be approved in about 7 Days

To have a fully fledged company, you will need to consider the following steps after company registration.

1. Company and Directors Tax Registration
2. Company Bank account opening
3. Business License Application
4. Apply for any other industry specific License

Requirements for Registering a Company in Uganda | Requirements for Company Registration in Uganda

1. Three preferred names of the proposed company
2. A Description of the activities of the Business/ Company
3. Copies of Travel Passport of all the directors and shareholders (An LLC should have at least 2 shareholders)
4. Passport size photographs of all the directors and shareholders
5. Postal, Physical and e-mail address, telephone number and occupation of all shareholders/directors of the proposed company
6. Share apportionment percentage.

Types of Companies in Uganda

All Uganda Registered companies fall under one of these categories

1. Sole Proprietorship:

A Sole Proprietorship is the simplest form of business in Uganda. It involves an individual running a business on their own, with no formal legal structure. This means that the owner is personally liable for the entire operation, including debts and liabilities.

2. Partnership:

A partnership is a business structure in which two or more persons share ownership of a company. Partnership can be either general partnerships or limited partnerships. In a general partnership, all partners share equal responsibility for the business, whereas in a limited partnership, at least one general partner is in charge of day-to-day operations and one or more limited partners contribute capital but have limited role in business management.

3. Limited Liability Company (LLC):

An LLC is a business structure that combines the advantages of a corporation with the flexibility of a partnership. An LLC gives its owners limited liability protection, which means they are only liable for the amount of money they invested in the business. Furthermore, an LLC is not required to pay corporate taxes, and the business’s profits and losses can be passed directly to the owners for tax purposes.

4. Public Limited Company (PLC):

A public limited company is a type of business registration for companies that desire to raise funds from the general public by issuing shares. The owners of a PLC are limited in liability, while the company’s shares are freely traded on a stock exchange. A PLC must have at least seven shareholders and a board of directors.

5. Non-Profit Company:

A non-profit company is a type of business registration meant for groups that do not seek to make a profit. Non-profit organizations are frequently created for charitable or social purposes, and any profits must be reinvested into the organization

URSB company registration fees | Company Registration Fees In Uganda | Cost Of Registering A Company In Uganda | Fees For Registering A Foreign Company In Uganda

Statutory Fees for a Local company with a share capital of up to UGX 5 Million will cost a Minimum of 20 dollars. 

A company with a share capital more than UGX 5 Million is required to pay registration fees equivalent to 1% of the share capital and a stamp duty of 0.5% of the share capital.

Corporate Tax in Uganda | Taxation for Registered Companies in Uganda

Companies in Uganda are subject to the following Taxes in Uganda

• Corporate Tax – 30%
• Value Added Tax – 18%
• Payroll Taxes – A graduated scale of Between 10 and 40%
• Withholding Taxes – Between 6 and 20%

Benefits of registering a company in Uganda

Company Registration comes with the following benefits;

1. Legal recognition:

Registering a company gives your company legal recognition, which aids in the protection of your brand and assets.

2. Access to funding:

Company formation in Uganda makes you eligible for loans and investment from financial institutions and other investors focusing on funding companies registered in Uganda.

3. Reduced personal liability:

By incorporating your company as a separate legal entity, you decrease your personal liability for business debts and obligations.

4. Credibility:

Once a company is registered in Uganda, you gain trust with customers, suppliers. Then partners by demonstrating your dedication to your business..

5. Tax benefits:

Companies registered in Uganda are eligible for certain tax incentives depending on the industry and hence lowering your tax liability and enhancing your bottom line.

6. Opportunities for expansion:

Registering your company in Uganda gives you an opportunity to access both the local and regional markets.

Conclusion

The procedure of setting up a Company in Uganda through URSB is simple and takes a short time to complete. Registering a company in Uganda involves a few basic documents, such as the company’s articles of association and memorandum of understanding, as well as a registration fee. To prevent any delays in the registration process, it is crucial to make sure that all necessary documents are submitted and that the registration fee is paid in full. At Afrisetup, we take the lead to ensure that your company has been registered in Uganda successfully and you start your operation as soon as possible.

Business Registration Fees With URSB In Uganda

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