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Registration of a company in Uganda is an excellent option for those who are looking for a promising investment project or want to start a medium or large business in Africa.

  • Uganda is an independent agricultural state located in the east of Africa and washed by the waters of Lake Victoria.
  • Closest neighbors: South Sudan, Kenya, Tanzania, Rwanda, and the South Republic of Congo.
  • Key sectors of the state economy: agriculture (tea, tobacco, cotton), industry (cement, textile, sugar), energy (charcoal), and automotive.
  • The capital of the state is Kampala. Largest cities: Lyra, Gulu, and others.
  • State languages: Swahili and English. The population of the country is over 44.2 million people. The currency is the Ugandan shilling (UGX).
  • The country’s climate is sub-equatorial.
  • Participation in international organizations: IBRD, OIC, Commonwealth of Nations, WTO, Non-Aligned Movement, African Development Bank, East African Community, IMF, and others.

The business climate of the jurisdiction

In 2021, the Republic of Uganda may not have entered the top 100 countries in terms of ease of doing business, but it took 87th place in taxation, 73rd in obtaining loans, and 71st in enforcing contract conditions.

If you are considering such an option as registering a company in Uganda, then we present to your attention this list of the key advantages of doing business in this country:

  • Steadily developing economy;
  • The smooth but steady development of the banking sector;
  • Presence of a Preferential Trade Zone (PTZ), as well as several special economic zones in the country;
  • Broad prospects for creating a startup and expanding business activities;
  • High interest of the state in attracting foreign investments;
  • More than 10 DTA negotiations with European and Arab countries;
  • Loyal tax system;
  • Availability of available labor.

For those who plan to open a company in Uganda remotely, in 2021 we recommend choosing one of the following business areas: medicine, fuel industry, mechanical engineering, chemical industry, food industry, tourism, IT technologies, and transport.

Types of business in Uganda

Those who intend to register a company in Uganda, first of all, will need to choose the optimal form of economic activity.

In the Republic of Uganda, you can open the following types of business:

  • Private limited liability company (Private LLC);
  • Joint Stock Company (PC);
  • Branch (B);
  • Representative Office (RO).

If you are going to register a company in Uganda remotely, we recommend giving preference to such a legal form as a private limited liability company (Private LLC).

Regulator Requirements

Those wishing to register a company in Uganda, first of all, will need to fulfill all of the following requirements of the Regulator:

The unique name of the company with a mandatory indication at the end of the selected OPF (full form or abbreviation);

Number of directors: 2 or more;

The number of shareholders – from 1 or more;

Enterprise management: individuals / legal entities;

Residency requirements: none;

The presence of a secretary: is required;

Authorized capital: none;

Registered office and address: required;

Obtaining a business license: yes;

Reporting: yes.

Tax regime

If you are going to open a company in Uganda, then the next step will be a detailed acquaintance with the state tax system. The following taxes apply to legal entities in the Republic of Uganda:

  1. The corporate tax rate is 30%.
  2. VAT is 18%;
  3. Dividend tax – 0%. Branches of foreign companies pay 15% tax.