Entrepreneur's Guide: How to Start a Business in Africa - Uganda
Thinking about starting a business in Africa? While it may seem daunting at first, the process can be quite straightforward with the right guidance and resources. From choosing the right legal structure to obtaining the necessary permits and licenses, opening a business in Africa can be a fulfilling and rewarding venture. So, let's dive in and explore the steps involved in starting your entrepreneurial journey across the continent. Beginning with:
Uganda
1. Choose a business structure: The first step is to decide on the legal structure of your business. The most common structures in Uganda are sole proprietorship, partnership, and limited liability company (LLC).
2. Reserve a business name: You'll need to reserve a unique name for your business through the Uganda Registration Services Bureau (URSB). You can do this online through the URSB website.
3. Register your business: Depending on the type of business structure you choose, you may need to register your business with the Registrar of Companies or the Uganda Revenue Authority (URA). You'll also need to obtain a trading license from the local authority.
4. Obtain necessary permits and licenses: Depending on the nature of your business, you may need to obtain additional permits and licenses from various government agencies. For example, if you plan to import or export goods, you'll need to obtain an import/export license from the URA.
5. Register for taxes: All businesses in Uganda are required to register for taxes with the URA. You'll need to obtain a Tax Identification Number (TIN) and register for VAT (Value Added Tax) if applicable.
6. Open a bank account: To facilitate business transactions, you'll need to open a bank account in the name of your business.
7. Hire employees: If you plan to hire employees, you'll need to register with the National Social Security Fund (NSSF) and obtain a National Identification Number (NIN) for each employee.
Below is a breakdown of the forms and associated fees for registering a business in Uganda with the relevant regulatory bodies:
Regulatory Body | Purpose | Fee | Submission | How to Submit | Form / Steps |
Uganda Registration Services Bureau (URSB) | To perform a name search | Free | Online | Search the “Name to Check” field on URSB's Portal | |
Uganda Registration Services Bureau (URSB) | Application for reservation of a company name | UGX 20,000 | Online or in-person | Submit form and payment online on URSB's Portal | Company Name Reservation .doc Download DOC • 31KB |
Uganda Registration Services Bureau (URSB) | Declaration of compliance with the Companies Act | UGX 20,000 | Online or in-person | Submit form and payment online on URSB's Portal | Declaration of compliance with the Companies Act .pdf Download PDF • 80KB |
Registrar of Companies | Application for registration of a sole proprietorship | UGX 24,000 | Online or in-person | Submit form and payment online on URSB's Portal | Sole Proprietorship Business Registration .pdf Download PDF • 273KB |
Registrar of Companies | Application for registration of a partnership | UGX 100,000 | Online or in-person | Submit form and payment online on URSB's Portal | Company Business Registration .pdf Download PDF • 277KB |
Registrar of Companies | Application for registration of a company | UGX 220,000 | Online or in-person | Submit form and payment online on URSB's Portal | Company Registration .doc Download DOC • 29KB |
Uganda Revenue Authority (URA) | Application for Tax Identification Number (TIN) | Free | Online or in-person | Create account and submit form on URA's Portal | TIN Company Registration .xls Download XLS • 4.25MB |
Uganda Revenue Authority (URA) | Application for VAT registration | Free | Online or in-person | Create account and submit form on URA's Portal | VAT Registration .xls Download XLS • 332KB |
Kampala Capital City Authority (KCCA) | Application for trading license | Varies depending on nature of business | Online or in-person | Create account and apply on KCCA's Portal | Trading License self service step by step guide .pdf Download PDF • 1.53MB |
National Social Security Fund (NSSF) | Registration of employer for social security | Free | Online | Create account and apply on NSSF's website |  |
*Please note that these fees and forms may be subject to change and it's always a good idea to check with the relevant authorities for the most up-to-date information.
In addition to the registration fees, you may also need to pay other fees and taxes, such as stamp duty and annual filing fees. Kindly read our article on tax obligations your business may be subjected to..
In summary, starting a business in Africa is an exciting adventure that requires diligence, research, and patience. With the right guidance and resources, you can turn your entrepreneurial dreams into reality and create a successful and fulfilling business that positively impacts the local community. So take the first step towards your business goals today, and start making your mark in Africa's thriving business landscape!
Coming soon in our Africa series
Nigeria
Kenya
Ghana
Tanzania
South Africa
Zimbabwe