WHAT YOU SHOULD KNOW ABOUT INVESTING AND INVESTMENT LICENCES IN UGANDA
According to the Investment Code Act 1991, Section 15 (1 and 2), Uganda Investment Authority (UIA) shall issue to the applicant an investment license which shall; Authorize the holder of a license to make all arrangements necessary for establishing the business enterprise described in the license. The Executive Director shall liaise with Government Ministries and departments, local authorities and other bodies as may be necessary in order to assist an investment license holder to comply with any formalities or requirements for obtaining any permission, authorizations, licenses, land and other requirements for implementing the business enterprise.
After a company has been incorporated/ registered (foreign company) in Uganda, it is eligible for an investment license provided its capital investment exceeds US$ 100,000 (Foreign firms) and US $ 50,000 (Local firms).
Application for an investment license is made to Uganda Investment Authority. After all required documentation is submitted along with the filled application form, the investment license is issued within one week.
Documentation required includes:
- Copy of the Certificate of Incorporation
- Copy of the Memorandum and Articles of Association
- A business plan
- Proof of financial ability to implement proposed project i.e. bank statement or letter project support form a bank.
- Proof of proposed physical location of project Secondary Licenses.
There are some sectors that require regulatory approvals from the relevant entities and these include: energy generation, mining, banking, air transport, pharmaceuticals production, education and health. In most cases, the regulatory approvals/permits/or licenses must be acquired before applying for the Investment License.
BENEFITS OF AN INVESTMENT LICENSE
Benefits of an Investment License to the Holder
The benefits that accrue to the holder of an investment license include:
- Assistance in acquiring secondary licenses or approvals except in the following sectors, where a secondary license is mandatory i.e. mining, banking, drugs/ pharmaceutical, as well as the health and education services.
- Assistance in recommendations for various services e.g. loans from commercial banks, project development assistance from Development Partners, and introductions to Equity Funders etc.
- Assistance in recommendations and the follow up on the acquisition of work permits
- Assistance in access to land for investment. Industrial land can be allocated land in the operational and planned Industrial Parks and linkages to private land owners for purchase can be made.
- Possibility of Joint Venture Partnerships through the Match making of the licensed domestic investors with foreign inward missions, as well as the establishment of markets for licensed investors to supply raw material or finished products
- Participation in outward missions and organized international fora, at which licensed investors (domestic and foreign) get exposure, markets and machinery
- Timely access to the one stop centre for all necessary first hand information on any matters regarding their investment
- Provision of aftercare services in relation to specific challenges such as tax disagreements, closures due to non compliance, and support in negotiations with other parties e.g. Government Departments, equity funders, Community Based Organisations etc.
- Participation in free specialized training and workshops for especially domestic investors who need to build their capacity to measure up to best international practices in carrying out business with Transnational Corporations.
Benefits of an investment license to the Government
The licensing of investments in Uganda provides vital information for the Government in the following areas:
- The Monitoring of private sector inflows for purposes of formulating policies that will sustain and increase the current levels of economic growth and development
- The assessment of confidence levels of the private sector in the economy deduced from the trends of inflows
- The provision of timely and reliable data on foreign assets and liabilities to formulate policies that will guard Uganda’s economy from negative external effects experienced by down turns in the international economies. The data enables government to plan for mitigations against any such destabilizing effects.
- Management of the financial sector and planning for aversion of potential economic crises to foster stable growth. It is important in Uganda’s investment promotion, facilitation and retention efforts
- Better decision making and to meet international standards and codes in reporting
- Compilation of Uganda`s Balance of payments and International Investment Position statistics
- Assessment of how foreign investment complements local investment in form of feedback from the private sector, which is critical for policy fine tuning that benefits all stakeholders in the economy
- Assessment of the perceptions of the private sector investors on the investment climate in Uganda in order to evaluate the impact of the existing policies. This can be done from the results of the periodic private sector surveys carried out among licensed companies.
INVESTMENT (TAX) INCENTIVES IN UGANDA
The absolute exemption on plant and machinery only applies to plant and machinery used in the agricultural sector. The plant and machinery items are specified under paragraph 1(s) of the second schedule to the VAT Act.
Other importers of plant and machinery benefit from VAT deferment provided under the statutory instruments provided in the VAT Act.
Other incentives under the Income Tax Act include; Income tax exemption on exporters of finished consumer and capital goods produced in Uganda as provided under Section 21(1)(y) of the Income tax Act; and Income tax exemption on income derived by the person carrying on agro-processing.
In addition, investors also benefit from industrial building deduction as per Section 29, and for those in agricultural sector Section 35 provides for more allowable expenditure.
Other reasons why you should consider investing in Uganda
- Uganda attained and has had political and social stability since 1986.
- Effective macro-economic policies that maintained economic growth at an average of 6.5% and enabled the country to withstand external economic shocks during the global economic downturn from 2008 to 2011 during which the economy still grew by 3%
- Natural resource rich country (Human and Minerals).
- Totally liberalised foreign exchange regime.
- Consistently improving infrastructures.
- Trainable and fast adaptable workforce from over 30 universities.
- Welcoming population.
- No labour tensions.
- Dedicated Commercial and Industrial courts for quick resolution of business disputes
- A unique multi climate varies from winter on the snow capped Mountain Rwenzori in the west, to the temperate highlands of Western Uganda and tropical forests of the Central region as well as the semi arid North Eastern Uganda.
Angualia Daniel
Managing Partner
M/s Angualia Busiku & Co. Advocates
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)
Staffing Of An NGO And Employment Of Non Citizens In Uganda
Staffing of an NGO and employment of non citizens in Uganda
The law requires every organization to;
The process of clearance requires the organization to forward to the Uganda government through the Ugandan Diplomatic Mission in that country the following for consideration of their suitability to work in Uganda;
(For purposes of use across country such documents must be notarized).
The Board of Directors of the National Bureau for Non Governmental Organisations
The Board of Directors of the National Bureau for Non Governmental Organisations
The Bureau has a board of directors as its governing body, appointed by the minister with the approval of cabinet. The board is constituted of a chairperson, vice chair person, two representatives from the Non Governmental Organisations Sector and three other persons who must be citizens of Uganda, and of high moral character with proven integrity. The board has committees and sub committees that may be assigned functions for efficient performance of its functions.
The bureau also has management staff like the executive director, secretary and other staff. The Board members tenure is for only 3 years and are eligible for re election for another term.
Functions of the board include;
Remuneration of the Board members is by Ministry of finance. The board has powers to establish committees and sub committees and delegate them functions for efficient performance of the boards work. Members of these committees may be from within the board itself.
Special Obligations Of An NGO Operating In Uganda
Special obligations of an NGO operating in Uganda
Section 44 outlines the special obligations of NGO that an organization shall;-
Registration of NGOs
Registration of Non-Governmental Organisations in Uganda
Applications are made to the National Bureau of Non-Governmental Organisations.
This application form is addressed to the Secretary of the Bureau and contains the following;
This form must be accompanied by
Upon compliance with the above requirements, the Bureau then registers the Organization and is issued a certificate of registration as NGO with a registration Name, Number, and date.
Once an organization is registered, it remains so registered unless its registration is canceled, voluntarily deregistered, or if it is wound up.
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POLICY CONSIDERATIONS BEHIND THE RULES GOVERNING RAISING OF CAPITAL IN CORPORATE FINANCE
ASSESSMENT OF LIKELIHOOD OF CONFUSION IN TRADEMARK OPPOSITION PROCEEDINGS IN UGANDA
An opposition to the registration of a trademark grounded on existence of a similar mark will be upheld by the Registrar of Trademarks or the court, where the opponent establishes a likelihood of confusion to an average consumer in the territory where the earlier mark is protected.
LEGAL CONSIDERATIONS ON ACQUISITION, OPERATION, MANAGEMENT AND DECOMMISSIONING OF A QUARRY IN UGANDA
What is a Non Governmental Organization (NGO) in Uganda
What is a Non Governmental Organization (NGO) in Uganda?
A Non Governmental Organization (NGO) in Uganda is a legally constituted organization that may be a private voluntary grouping of individuals or associations established to provide voluntary services to the community or any part thereof but not for profit or commercial purposes. An NGO must be registered by the National Bureau for Non Governmental Organisations in accordance with the law. Additionally, an NGO must have a permit issued by the Bureau which mandates it to operate in a given geographical area and to carry out activities specified in the permit. It is illegal for an organization (NGO) to operate in Uganda with out a permit issued to it under the Act.
There are different categories of NGOs recognized in Uganda and these include;
Continuation of operation of organizations existing before the NGO 2016 Act in Uganda
All Non Governmental and community based organizations which existed immediately before the commencement of the 2016 Act, continue to be legally recognized as such. S. 59 of the Act saves these organizations and empowers them to continue operating as such.
Investment Licences In Uganda
WHAT YOU SHOULD KNOW ABOUT INVESTING AND INVESTMENT LICENCES IN UGANDA
According to the Investment Code Act 1991, Section 15 (1 and 2), Uganda Investment Authority (UIA) shall issue to the applicant an investment license which shall; Authorize the holder of a license to make all arrangements necessary for establishing the business enterprise described in the license. The Executive Director shall liaise with Government Ministries and departments, local authorities and other bodies as may be necessary in order to assist an investment license holder to comply with any formalities or requirements for obtaining any permission, authorizations, licenses, land and other requirements for implementing the business enterprise.
After a company has been incorporated/ registered (foreign company) in Uganda, it is eligible for an investment license provided its capital investment exceeds US$ 100,000 (Foreign firms) and US $ 50,000 (Local firms).
Application for an investment license is made to Uganda Investment Authority. After all required documentation is submitted along with the filled application form, the investment license is issued within one week.
Documentation required includes:
There are some sectors that require regulatory approvals from the relevant entities and these include: energy generation, mining, banking, air transport, pharmaceuticals production, education and health. In most cases, the regulatory approvals/permits/or licenses must be acquired before applying for the Investment License.
BENEFITS OF AN INVESTMENT LICENSE
Benefits of an Investment License to the Holder
The benefits that accrue to the holder of an investment license include:
Benefits of an investment license to the Government
The licensing of investments in Uganda provides vital information for the Government in the following areas:
INVESTMENT (TAX) INCENTIVES IN UGANDA
The absolute exemption on plant and machinery only applies to plant and machinery used in the agricultural sector. The plant and machinery items are specified under paragraph 1(s) of the second schedule to the VAT Act.
Other importers of plant and machinery benefit from VAT deferment provided under the statutory instruments provided in the VAT Act.
Other incentives under the Income Tax Act include; Income tax exemption on exporters of finished consumer and capital goods produced in Uganda as provided under Section 21(1)(y) of the Income tax Act; and Income tax exemption on income derived by the person carrying on agro-processing.
In addition, investors also benefit from industrial building deduction as per Section 29, and for those in agricultural sector Section 35 provides for more allowable expenditure.
Other reasons why you should consider investing in Uganda
Angualia Daniel
Managing Partner
M/s Angualia Busiku & Co. Advocates
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)