Business in Uganda

A business can operate as a business name or sole proprietorship, partnership, Limited Liability Partnership, private company limited by shares, company limited by guarantee, public company or foreign company. These forms differ in personal liability, management, capital, filing duties and access to finance. A household or market activity may remain informal, but informal operation often limits access to tenders, formal finance, public procurement and reliable legal proof. A 2026 assessment found that informal activities represented 54.75% of Uganda's activity in financial year 2024/25, with more than 91% of informal businesses operating at micro scale. About 70% started with household savings and about 80% were women-owned. These figures describe the informal economy; they do not create a general exemption from registration, tax or licensing rules. The Uganda Registration Services Bureau, or URSB, handles business-name registration and company incorporation. Its online registration process normally follows name reservation, registration or incorporation and issuance of a certificate. Published fees include UGX 35,000 for name reservation, UGX 55,000 for business-name registration, and UGX 105,000 for a company with nominal share capital up to UGX 5,000,000; the fee for higher nominal share capital is 1.5%. A private company annual return is listed at UGX 55,000, while a foreign company's annual return is listed at USD 70. Fees and processing times should be checked before filing because they can change. A government report recorded approximate processing times of three hours for business registration and 30 minutes for business-name registration, but missing documents or official queries can make the actual process longer. Companies and Limited Liability Partnerships must maintain beneficial-owner information. A notice of creation must reach the Registrar within 14 days, and URSB may block further filings when the required beneficial-owner information is missing. After URSB registration, the business normally obtains a Tax Identification Number, or TIN, from the Uganda Revenue Authority. The current TIN application process is described as immediate, subject to the accuracy and completeness of the application. Tax treatment depends on the legal form and activity. Company income tax is 30% of chargeable income. Individual-business taxation follows a separate framework. Presumptive tax can apply to small businesses with annual sales from UGX 10,000,000 to UGX 150,000,000, although some professional groups are excluded. Value Added Tax, or VAT, becomes compulsory at taxable turnover of UGX 150,000,000 in a year or UGX 37,500,000 in three consecutive months; voluntary registration may also be possible. The business must keep records and meet the applicable deadlines for income-tax, VAT, withholding-tax and Pay As You Earn returns. The Electronic Fiscal Receipting and Invoicing Solution, known as EFRIS, requires electronic invoices or receipts from VAT-registered taxpayers and designated sectors. It requires a TIN and can be used through an app, desktop software, web portal, application programming interface or electronic fiscal device. Offline use is limited to five days. The web portal is intended for businesses with fewer than 100 daily transactions and sales below UGX 2,000,000,000. The taxpayer bears the compliance cost. Non-compliance can result in a penal tax of twice the tax due or ten currency points, whichever is higher. A trading licence is handled by the relevant local government or, in Kampala, by Kampala Capital City Authority. It normally applies before trading begins and covers the calendar year from 1 January to 31 December. Requirements and fees can depend on the premises, hygiene, building standards, medical fitness and the business class. KCCA examples and exemptions, including certain market activities and sales of a person's own agricultural or handmade products, should not be treated as nationwide rules. Products and services may also require sector approvals. Uganda's eBiz One Stop Centre brings together services such as trading licences, environmental impact assessment, industrial water matters and product or service certification. The Uganda National Bureau of Standards requires certification and a Q-Mark for covered products; voluntary standards do not automatically become legal requirements. The Uganda Investment Authority, or UIA, can issue an Investment License for qualifying investment projects. This licence does not replace URSB registration, URA tax registration or a local trading licence. The application is free, and a complete file is typically processed within 24 working hours, but approval is not automatic. The file can require an incorporation certificate, memorandum and articles of association, company TIN, a business proposal of at least five pages, evidence of financing, proof of location and a passport or national identity document. The stated investment thresholds are USD 50,000 for domestic projects and USD 250,000 for international projects. UIA states that a foreign investor does not need a mandatory local partner; company registration, immigration and work-permit matters remain separate questions. Employers add payroll duties. The National Social Security Fund contribution is generally 5% deducted from the employee and 10% paid by the employer, for a combined 15%, with payment due by the 15th of the following month. Self-employed people may make voluntary NSSF contributions. Employment and labour-law requirements apply alongside the business rules and should not be treated as part of company registration. Formalisation can improve access to finance, tenders, markets and business support, but registration does not guarantee funding or commercial success. The National SME Portal offers financing information, capacity building, business advice, market intelligence, business linkages and profiling. Uganda Development Bank programmes target areas such as small and medium enterprises, women- and youth-led enterprises, agriculture, climate, science and technology, and contractors. The Bank of Uganda's INVITE programme provides finance and technical support for eligible micro, small and medium enterprises, manufacturing and export-oriented firms, and businesses connected with refugee-hosting or host communities. The Ministry of Trade, Industry and Cooperatives supports policy, clusters, technology, quality, market access and skills. Each programme has its own conditions. Intellectual property can protect a business name, brand, design or invention. URSB's IP Online service covers trademarks, patents and designs. A trademark application is advertised and normally has a 60-day opposition window. Exporting requires registration with the Uganda Export Promotion Board and may require proof of registration, a TIN, Form 20, a bank statement, product or quality documents and packhouse documents. The Uganda Electronic Single Window and ASYCUDA support trade compliance. Restricted goods need additional permits or licences, and requirements vary by product and shipment method. A temporary pause does not automatically cancel a URA TIN. Outstanding tax matters must be resolved, and the business may need to request written temporary deactivation and later reactivation; NIL returns may still apply. To end a registered business name, a notice of cessation is listed at UGX 35,000. A solvent company can use voluntary winding-up with a special resolution, declaration of solvency and statement of affairs, followed by a public notice for 30 days and the required dissolution process through the Official Receiver. An insolvent company follows insolvency procedures involving the Official Receiver or an insolvency practitioner. Transfers of shares, business assets or commercial buildings can create tax consequences, and a share-transfer filing with URSB is listed at UGX 35,000.