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
Plot 3 Parliament Avenue, Raja Chambers
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)
FAILURE, REFUSAL OR SUSPENSION OF RENT PAYMENT DUE TO COVID-19 AS FORCE MAJEURE EVENT. IS THE TENANCY AGREEMENT ON YOUR SIDE?
The outbreak of Coronavirus was declared a global pan-demic by the World Health Organization…
Data Protection And Privacy Act, 2019 Of Uganda
[gview file=”https://www.lawyers-uganda.com/wp-content/uploads/2020/05/Article-1-DATA-PROTECTION-AND.pdf” width=”100%” height=”600px”]
ANGUALIA BUSIKU & CO. ADVOCATES QUALIFIED BY PETROLEUM AUTHORITY OF UGANDA FOR PROVISION OF LEGAL SERVICES IN THE OIL AND GAS SECTOR
ANGUALIA BUSIKU & CO. ADVOCATES QUALIFIED BY PETROLEUM AUTHORITY OF UGANDA FOR PROVISION OF LEGAL SERVICES IN THE OIL AND GAS SECTOR
The Petroleum Authority of Uganda (PAU) is mandated to monitor and regulate oil and gas activities in the country. The relevant laws require the Petroleum Authority of Uganda to, among other things, establish and publish a central data base of persons involved in petroleum activities in Uganda. The legislation also prohibits any entity from providing goods, works or services for oil and gas activities in the country unless they are registered on the database.
Angualia Busiku & Co. Advocates is pleased to announce that it is among the few law firms in Uganda qualified by the Petroleum Authority of Uganda and registered in the database for provision of legal services in the oil and gas sector for the year 2018. The law firm congratulates its team that made the qualification possible.
WE JOINED NEXTLAW REFERRAL NETWORK
Angualia Busiku & Co. Advocates today the 3rd January 2013 announced it has joined Nextlaw Referral Network, enabling it to connect its clients to high quality lawyers around the world. Nextlaw Global Referral Network is the largest legal referral network in the world, with more than 550 member firms, 27,000 lawyers covering 200+ countries.
[gview file=”https://www.lawyers-uganda.com//wp-content/uploads/2019/09/we-joined-next-law.docx” width=”100%” height=”600px”]
QUICK GUIDE TO ESTABLISHING AND DOING BUSINESS IN UGANDA
The total area of Uganda is about 241 000 square kilometres of which about…
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…
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
Plot 3 Parliament Avenue, Raja Chambers
www.lawyers-uganda.com
Email: angualia@lawyers-uganda.com
Mobile Telephone: +256774477656
(Trademarks, company and investment law)
Business Law
Businesses of all sizes across all industries share a need for quality professional guidance in navigating legal concerns. Maintaining a competitive edge while balancing innovation, consistency and compliance often requires overcoming legal complications. At Angualia Busiku & Co. Advocates, in Uganda, our business law attorneys understand the everyday challenges businesses face. We provide professional guidance for businesses large and small in a wide range of industries.
Specific types of business matters we handle include:
Our clients range from construction contractors to aviation companies to international businesses with local legal matters. Drawing on several years of legal experience, our legal team strives for excellence in all we do. As a boutique firm, we combine a wide breadth of sophisticated business law experience with personal, attentive client service.
At Angualia Busiku & Co. Advocates, our legal team is well-equipped to navigate complex contract disputes. We take a proactive approach towards resolving conflicts in a favorable and expeditious manner. When litigation arises, we consistently provide quality representation to protect clients’ interests.
Company Law
In Uganda companies are governed by the Companies Act No: 1 of 2012. Our attorneys have lectured company law in almost all Law Schools of Uganda. They also participated in the formulation of the Companies Act 2012 and published articles in the area of company law. Our law firm is also retained as external legal counsel and company secretary to over twenty companies in Uganda. Our law firm is a consistent contributor to the World Bank Doing Business Report and our contributions on doing business in Uganda have always been recognized and acknowledged in every report. The World Bank Doing Business Report 2016 can be accessed from here.
We consistently advise our corporate clients to conduct their affairs in compliance with the regulatory aspects of company law and general practice in Uganda and adhere to the international principles of corporate governance. We have built reputation as the contact point for individuals and multinational companies considering setting up business in Uganda. Access our guide to establishing a business in Uganda can be accessed here.
As company secretary, we are fully aware of the duties and roles of a company secretary as a general requirement and as stipulated by under the Companies Act No: 1 of 2012 and related regulations. The range of legal services that we provide under company law include the following;
HOW DO I HAVE A TRADEMARK RECOGNISED AND PROTECTED IN ONE OR SEVERAL AFRICAN STATES
By Ninsiima Irene: Email: ninsiima@lawyers-uganda.com
Regional protection of trademarks in African states that are member states to the Banjul Protocol on Marks is achieved through registration of a trademark(s) in a member state (s) through ARIPO secretariat offices or directly through the Intellectual Property Office of the member state. The African Regional Intellectual Property Organisation (ARIPO) which is an Intergovernmental Organisation for Cooperation among African States on Matters of Intellectual Property is entrusted with the registration of marks and the administration of such registered marks on behalf of the Contracting States.
The Banjul protocol in line with the ARIPO’s objectives was adopted to promote the harmonisation and development of intellectual property laws and to establish common services necessary for the co-ordination, harmonisation and development of intellectual property activities affecting its members. The protocol was adopted on November 9 1993 at Banjul and entered into force on March 6 1997. As of today, it has been ratified by a number of African States that include; Uganda, Kenya, The United Republic of Tanzania, Botswana, Lesotho, Liberia, Malawi, Namibia, Sao Tome and Principe, Swaziland, Zimbabwe, Gambia, Ghana, Kenya, Mozambique, Sierra Leone, Sudan and Zambia. The protocol provides a centralised trademark registration procedure. Read more