Nssf App Download Uganda
Josefina Yuzn
In 2010, with support from the World Bank, Uganda launched its Uganda Investment Climate Program (UICP) to implement reforms to improve the business environment, streamline its regulatory regime, and develop better investment policies. To this end, in 2011, the Ministry of Finance appointed Business Licensing Reform Committee to make specific recommendations to the Government on ways to reduce bureaucratic burdens to doing business in Uganda. In a March 2012 report, the committee recommended that the government eliminate dozens of licenses and streamline dozens of others, noting that those reforms could reduce the cost of establishing a business in Uganda by 25%. Uganda is currently reviewing or revising a number of commercial laws to reduce the cost of doing business. In 2011, Uganda passed its Bankruptcy Act, and is now drafting regulations to operationalize the law, which will speed up bankruptcy procedures and address cross-border insolvency cases. Especially critical to improving the investment climate in Uganda will be passage of the Anti-Counterfeiting and Anti-Money Laundering bills, which are currently pending in Parliament. According to a 2011 Parliamentary report on the economy, the sale of counterfeit goods accounts for as much as 10% of international trade in Uganda. The prevalence of counterfeit goods deters foreign companies from entering the Ugandan market and results in losses of jobs, business opportunities, and tax revenues.
Under Ugandan law, foreign investors may form 100% foreign-owned limited or unlimited liability companies and majority or minority joint ventures with Ugandan partners without restrictions. The Investment Code allows foreign participation in any industrial sector except those touching on national security or requiring the ownership of land. Licensing from UIA requires a commitment to invest over US$100,000 over three years. (See Performance Requirements and Incentives" below.) Most foreign investors establish themselves as limited liability companies. Ugandan law also permits foreign investors to acquire domestic enterprises or establish greenfield ventures. If passed, the amended Companies Act will allow for the creation of single-person companies, permit the registration of companies incorporated outside of Uganda, and provide new provisions for share capital allotments and transfers. For a full description of the type of companies foreign firms are allowed to establish, visit the UIA website at www.ugandainvest.com, or see the Business in Development Network Guide to Uganda available at www.bidnetwork.org.