UGANDA TRADE AND INVESTMENT INFORMATION PORTAL




INTRODUCTION

Uganda, aptly nicknamed "The Pearl of Africa," is a landlocked country in East Africa, brimming with natural beauty, diverse cultures, and promising economic potential. This section explores Uganda's landscape for trade and investment, equipping you with the necessary knowledge to navigate this dynamic nation.


Country Profile

  • Geography: Uganda borders South Sudan to the north, Kenya to the east, Tanzania and Rwanda to the south, and the Democratic Republic of Congo to the west. A substantial portion of Lake Victoria, Africa's largest freshwater ,.lake, lies within its southeastern borders.

  • DemographicsWith a population exceeding 49 million, Uganda boasts a young and growing workforce.

  • Economy: Agriculture is the backbone of the economy, with coffee being a major export. However, sectors like tourism, mining, and services are also gaining traction.

  • Political System: Uganda is a republic with a multi-party democracy.



    • Major Trading Partners

    Exports:

  • United Arab Emirates (UAE): The UAE has emerged as Uganda's largest export partner in recent years, with a significant share focused on gold exports. WITS

  • Kenya: Kenya remains a vital trade partner for Uganda, particularly for agricultural products like coffee and fish.

  • South Sudan: Due to its geographical proximity, South Sudan is a key export market for Ugandan goods.

  • Democratic Republic of the Congo (DRC): The DRC is another significant export destination for Ugandan products.

  • Italy: Italy is a major importer of Ugandan coffee, contributing to a strong export partnership.

    • Imports:

  • China: China is Uganda's leading import partner, supplying a wide range of goods like machinery, electronics, and textiles.

  • India: India is another important import source for Uganda, particularly for pharmaceuticals and vehicles.

  • Kenya: Similar to exports, Kenya remains a crucial import partner, supplying essential goods to Uganda.

  • Saudi Arabia:Saudi Arabia is a significant source of fuel imports for Uganda.

  • Japan: Japan is a major supplier of used vehicles and machinery to Uganda.

    • Additional Points:

    The East African Community (EAC) plays a significant role in Ugandan trade, facilitating duty-free movement of goods with other member nations like Kenya, Rwanda, Tanzania, Burundi, and South Sudan.

    Uganda also benefits from preferential trade agreements with the United States and the European Union, opening doors for specific exports.


    Trade and Investment Regulations Uganda offers a dynamic trade and investment environment for foreign businesses. Here's a breakdown of key regulations and opportunities:


    Border Control Regulations:

  • Uganda Revenue Authority (URA): The URA is responsible for border control and customs regulations. Up-to-date information on import and export procedures, duty rates, and prohibited goods can be found on the URA website .

  • EAC Common Market Protocol: As part of the East African Community (EAC), Uganda adheres to the EAC Common Market Protocol, facilitating duty-free movement of goods with other member states.

  • Import/Export Documentation: Ensure you have the necessary documentation for imports and exports, including invoices, packing lists, certificates of origin, and any required permits.

  • Biosecurity and Sanitary Measures: Uganda has regulations to protect agriculture and public health. Be prepared to present any necessary biosecurity or sanitary certificates for specific products.



    Foreign Direct Investment (FDI) Policy:

  • Liberalized Investment Environment: Uganda welcomes foreign direct investment and offers a generally open and transparent investment climate.

  • Uganda Investment Authority (UIA): The UIA is the government agency responsible for promoting and facilitating foreign investment. They provide guidance and support to foreign investors throughout the process.

  • No Mandatory Screening: There's no general mandatory screening process for FDI. However, some sectors may require specific licenses or approvals.

  • Investment Incentives: The government offers various incentives to attract foreign investment, including tax breaks, duty exemptions, and infrastructure support.



    Sectors restricted for locals: Compared to some African countries, Uganda has relatively few sectors with restrictions on foreign ownership.

  • Key Protected Areas: However, foreign ownership limitations exist in specific sectors.

  • Banking: The Bank of Uganda Act restricts foreign ownership in commercial banks to a maximum of 75%.

  • Insurance: The Insurance Act also limits foreign ownership in insurance companies.

  • Media: The Uganda Communications Commission Act prioritizes local ownership in the media sector.



    • Attractive Sectors for Foreign Investors:

  • Government Focus: The Ugandan government prioritizes investment in several sectors, offering incentives and support for foreign investors:

  • Manufacturing: The government aims to develop a vibrant manufacturing sector, particularly for export-oriented goods. Incentives like tax breaks and industrial parks are available.

  • Information and Communication Technology (ICT): Investment in ICT infrastructure and development is a government focus, positioning Uganda as a regional ICT hub.

  • Tourism: Uganda's natural beauty and diverse wildlife attract tourists worldwide. Opportunities exist for investment in hotels, lodges, and other tourism-related businesses.

  • Agriculture and Agro-Processing: Uganda has a strong agricultural base. Investment in areas like agro-processing, food security, and sustainable farming practices is encouraged.

  • Oil and Gas: Uganda has significant oil and gas reserves. Exploration and development opportunities exist, but adherence to environmental regulations is crucial.

    • It is worth noting that the list are not exhaustive and you can contact us for any specific requirements

    KEY STEPS IN REGISTERING YOUR COMPANY IN UGANDA


    Here's a breakdown of the key steps to register your company in the Uganda:



    Choose a Company Name: Conduct a name search through the Uganda Registration Services Bureau (URSB) website to ensure your chosen name is available.


    Company Formation Documents Once the name is reserved, the next step is to prepare and submit the necessary company formation documents to the URSB. These documents typically include:

    - Application for company registration
    - Memorandum and Articles of Association
    - Identification documents for the shareholders and directors
    - Proof of address for the business location


    Online Registration:

  • Create an Account: Register on the e-Registration portal of the URSB website.

  • Fill Out Application Forms: Complete the online application forms, including:

    • Form A22: Company's registered or principal office address.

    Memorandum of Association (optional for some structures): Outlines the company's objectives and powers.

    Articles of Association (optional for some structures): Defines internal governance rules.

    Form 24 (for LLCs): Provides details of directors and secretary.

    Form 13 (for LLCs): Lists any existing charges on the company.

    Form 25 (for LLCs with foreign directors): Specifies a local resident authorized to accept legal service on behalf of the company.

    Statement of Nominal Capital: Specifies the authorized share capital.

    Register of Beneficial Owners Form: Details anyone who ultimately owns or controls the company.

    Upload Supporting Documents: Scan and upload required documents like: National IDs/Passports for Directors, Shareholders, and Beneficial Owners. (Optional) Passport-sized photos (especially for non-Ugandan citizens, requirements may vary).

    Pay Registration Fees: Make the registration fee payment through the URA (Uganda Revenue Authority) Pay Bill system.

    Document Submission and Verification:

    Print Signed Forms: Download, print, and have all directors and shareholders sign the completed application forms.

    Notarize Signatures: Get the signatures notarized by a Commissioner for Oaths/Advocate.

    Submit Signed Forms: Scan and upload the signed and notarized forms back to the USRB.

    Processing and Approval: Processing Time may take 1-2 business days for the URSB to process your application.

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    POST COMPANY REGISTRATION REQUIREMENTS


    Congratulations on registering your company! Now that your business is officially established, it's essential to stay compliant with regulatory requirements to ensure smooth operation and legal standing. Here are the key post-registration obligations you need to fulfill:



    Register for taxes with the Uganda Revenue Authority URA.

    Open a dedicated business bank account.

    Obtain any necessary business permits or licenses depending on your industry and location.

    • Annual Filings: Ensure compliance by filing annual reports and tax returns with the relevant authorities.


    • Record Keeping: Maintain accurate financial records and company documents as mandated by law.


    • Permits and Licenses: Depending on your industry and location, additional permits or licenses might be necessary to operate legally.


  • Stay Informed and Compliant
    • Contact us in the button below if you need help regarding any business related matter
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    Operating in Regulated Sectors in UGANDA

    Operating in regulated sectors in Uganda requires additional steps and considerations beyond standard company registration. Here's a breakdown of the key requirements

    Identify Regulatory BodyThe first step is to identify the specific regulatory body overseeing your chosen sector. Some examples include

    • Banking: Bank of Uganda(BOU)works to maintain a stable and efficient financial system in Uganda. They monitor risks, identify potential threats, and implement measures to mitigate systemic financial risks.
    • Insurance : The Uganda Insurance Commission (UIC) licenses and regulates all insurance companies and intermediaries operating in Uganda. This ensures solvency, fair pricing, and responsible insurance practices.
    • Telecommunications Sector: The Uganda Communications Commission (UCC) licenses telecommunications operators and manages the allocation of radio frequency spectrum to ensure efficient use and avoid interference.
    • Energy and Minerals The (Ministry of Energy and Minerals Development (MEMD)) MEMD issues licenses for exploration, development, and production of oil, gas, and mineral resources in Uganda.

    Disclaimer: This information is intended for general guidance only. Regulations can change, and specific requirements may vary depending on your business activity. It's advisable to consult us for your specific industry requirements.