If you are thinking of establishing a business in the African continent, Uganda is officially the Republic of Uganda, a landlocked country in the east of the African continent, whose capital is Kampala. Uganda shares borders with South Sudan to the north, Democratic Republic of the Congo to the west, Kenya to the east, Tanzania to the south, and Rwanda to the southwest. The largest lake in the African continent is Lake Victoria, which is located in a part of the lake in the southeast of Uganda. The population of this country is 45,741,000 people. The first official language in Uganda is English and the second official language is Swahili. The currency of this country is the Ugandan shilling. 85% of the people of this country are Christians and 12% are Muslims. In order to reach middle income status, get rid of poverty, and create enough jobs for one of the fastest growing populations in the world, it needs to grow rapidly, sustainably and widely, and can also have access to a wider range of production inputs from abroad, and with the increase in population, households will have more access to food and agricultural products. Uganda’s latest Economic Update (UEU) notes that one way to do this is to deepen international trade through regional arrangements, such as the African Continental Free Trade Area (AfCFTA). It is wise to follow the correct company registration procedure during business formation. I have written this article to guide you on the corporate procedures and processes that may be involved in business registration, company formation and incorporation in Uganda so that you don’t miss anything.
Doing business in Uganda is very easy, especially if you follow the rules of the land from day one when you start the process of opening a business in Uganda, whether as a local investor or a foreign investor or entrepreneur. You need to be a little patient while doing some procedures or steps as some of them may take a few days. Registering a company or business at the Uganda Registration Service Bureau (URSB) The process of registering a company or trade name starts with a “trademark search” at the Uganda Registration Service Bureau (URSB).
With a growing middle class, growing economy, growing product demand, low labor costs and developed infrastructure, Uganda is a region for entrepreneurs with high potential for successful business. And in it, warm and friendly people smile at you with hope for the future. Doing business in Uganda Today, Uganda is one of the countries that has the most to contribute to the enormous potential of Africa. Uganda is a member of the East African Union along with Kenya, Tanzania, Rwanda and Burundi. Uganda had a growth rate of 6.41% in 2009 and is expected to have the highest GDP worldwide by 2020. With its newly discovered underground wealth, Uganda is a candidate to become one of the most attractive countries in the world. The point of investing in the future of poverty and shortages is still seen in this country, but Europe is already starting to invest and research in the region.
Investment opportunities in Uganda with its rich natural resources, dynamic economy and unique strategic location, Uganda offers investors significant opportunities in the heart of Africa. As one of the fastest growing African countries in recent years, Uganda has provided a suitable environment and various incentives to attract national and foreign capital. In addition, macroeconomic successes, political stability, and global promotional efforts led to a sustained increase in foreign direct investment. The benefits of investing in Uganda include:
When we look at the trade relations between Turkey and Uganda, we see that this country is a potential market for Turkey because almost any product can be exported to Uganda. Turkish products have a market advantage in Uganda with their quality and affordable prices.
Uganda has a market-based economy and is generally regarded as one of the fastest growing economies in East Africa, this may be partly due to its young population. Annual growth of 3% while nearly half of the population is under 15 years of age. With the most extensive and dynamic industrial base in East Africa. Uganda has been successful in attracting venture capital investments. In fact, in 2021 a very notable search engine (hey, we won’t name names) launched a $50 million “African investment fund” to target early-stage startups. Their first point of contact is the Ugandan startup SafeBoda.
More and more foreign companies and investors are setting up local and regional operations to take advantage of Uganda’s strategic location, comprehensive air routes, and status as a fast-growing consumer market. Our major exports to Uganda include iron and steel products, rubber and rubber products, machinery and electrical appliances. Our imports from Uganda include oilseeds and fruits, textile fibers, tobacco and tobacco products. Since 2011, Uganda’s Ministry of Investment has listed the meat sector, pharmaceutical sector, cement, cotton mills, station and energy sector, fruit and vegetable sector, agriculture and livestock sector as sectors have listed where Turkish investors are expected to participate. Fishing Although Uganda is landlocked, it is rich in fresh water resources. Half of Lake Victoria, the second largest lake in the world, lies within Uganda’s borders.
60 small lakes and many rivers are also located within the borders of Uganda. About 800,000 people live directly or indirectly with fishing. Fish is one of the most important domestic consumption items because it is the main source of food for 17 million people. It is possible to establish fish farms in Uganda’s vast fresh water resources and sell the fish raised here to domestic and foreign markets. Horticulture; Uganda’s horticulture industry was established only 15 years ago, but has now reached a trade volume of $30 million with an annual growth rate of 14%. In 2006, 6,500 tons of cut flowers were exported to foreign countries, the European market being the main one. The total investment in the horticulture sector reached 60 million dollars. Cultivation of fruits and vegetables Fruits and vegetables are cultivated on less than one hundredth of the 19 million hectares of land suitable for agriculture. However, exports to Western European and American markets are increasing rapidly. Thanks to the fertile land, sufficient rainfall and mild climate, it is possible to grow all kinds of (non-tropical) fruits. The conditions of the country are very suitable for the production of organic fruits and vegetables and the export of these products to advanced countries such as Western Europe and America. Forestry and wood products, especially the western part of the country is rich in tropical forests. Although the forests are small compared to the total area of the country, the productivity is very high (16 tons per hectare per year).
The country’s forests can be used to make quality furniture, produce palm oil, make lumber, candles, and packaging materials. Uganda’s energy sector has great potential in terms of hydropower and other renewable energy investments with abundant water resources (rivers and lakes). And the Ugandan state provides incentives for reliable and sufficient energy supply to cover the country’s growing energy demand. Mining sector; in the 50s and 60s, the mining sector covered 30% of the country’s exports. In 1986 and after, private sector companies were granted prospecting and mining licenses after creating a favorable business and investment environment, although still not enough. The mining sector has reached an annual growth rate of 11% which limestone and lime used in the production of cement are consumed in the domestic market. Gravel, stone chips, gold mines, tin and tungsten are the most exported. On the other hand, there is a possibility that mineral deposits such as platinum, nickel and diamond deposits mined in neighboring countries with similar geological properties are also found in Uganda. And these mineral reserves are waiting to be discovered and extracted. Large oil reserves have been found in the west of the country.
Of course, a foreigner looking to start a business in Uganda must first register a company and follow the legal procedures.
There are two business forms for foreigners to register a Ugandan business name. These are the registration of a domestic company or the registration of a foreign branch.
The requirements for registering a company in Uganda include: Proposed Company/Business Name, a search of the proposed business name is carried out to ensure that it is not similar to an existing registered business.
The original cost is $20,000
To conduct an official search for company records in Uganda is conducted in the URSB registry. Documents required for company registration: passport or foreigner’s ID.
For more information, you can contact the legal unit of the Iran and Africa Business Club every day and consult with our experienced lawyers. You can also fill out our legal advice request form and through that our advisors will check all your conditions and contact you to tell you the necessary solutions.