Legal

Which legal structure can I choose?

For entrepreneurs in Uganda, there are the following forms of companies:

The common forms of companies are here below explained in more detail:

Owned by the owner itself (1 person)
No distinct existence from owner, so profit regarded as income of owner
Owner is accountable for company’s debts and may affect properties of owner (personal possessions may be used as a guarantee in case of financial difficulty)
Easy to start but difficult to close

Owned by two or more persons
Partnership agreements will determine contributions, liability and entitlement.
All partners (and their spouses) are jointly, personally liable for business debts and obligations, though a marriage contract can protect spousal assets
Easy to start but difficult to close

Can be incorporated by 1 or more persons
Directors and past directors are jointly liable for debts and liabilities arising during their term in the office
After registration, the company is granted Incorporated (Inc) status
A business structure registered by professionals such as Doctors, Lawyers, Engineers, Accountants, etc

Incorporated for public benefit or social activities
Income and property is not distributable
Must must have at least three incorporators and three directors
Need separate registration if the company wishes to receive grants or donor-funding

Below is a quick summary of steps of setting up a company in Uganda, provided by Doing Business of World Bank:

Submit the Name Reservation Form to the assessment window of the Uganda Registration Services Bureau (URSB) and obtain the bank payment slip
Pay the name reservation fees at the bank
Reserve the company name
Sign the declaration of compliance before a Commissioner of Oaths
Obtain the slip-in for the payment of the registration fee and the stamp duty from URSB
Pay the registration fees at a designated bank
File the registration documents at the Office of the Registrar and Obtain the Certificate of Incorporation
Obtain a Tax Identification Number (TIN) and Register for taxes at the Uganda Revenue Authority
Receive inspection of the business premises by the Uganda Revenue Authority (URA)
Obtain the application forms for the trading license
Receive inspection of the business premises by the licensing officer and Obtain the assessment form
Pay the license fee at the bank
Obtain the trading license
Register with the National Social Security Fund (NSSF)
Make a company seal