COMPANY FORMATION
1. You must have a company name. Carry out a search of the company’s name with the
URSB and this is done online. Submit a name reservation application online with URSB.
2. Decide whether your business will be a private company, public company, or other legal
form
3. Pay the legal fees/ the required fees
4. Register it with the Uganda registration services Bureau (URSB)
5. Draft the necessary documents such as the memorandum and articles of association and
register.1 This having the statutory declaration of compliance, must outline the company's
objectives, share capital, and governance structure.2 Or fill in particulars contained in the
registration form which is provided in the company amendment Act, as a mandatory
requirement for a person who intends to incorporate their company. The memorandum
shall be dated and signed by each subscriber in the presence of at least one attesting
witness who shall write their full name, state his or her occupation and postal address.3
The subscribers to the memorandum of a company, shall be taken to have agreed to
become members of the company, and on its registration shall be entered as members in
its register of members.4 And person who agrees to become a member of a company, and
whose name is entered in its register of members shall be a member of the company.5
6. Obtain photo copies of the national identification cards, passport copies and photographs
of all directors and shareholders.
7. Carry out a board meeting and prepare a resolution from the board of directors
authorizing the incorporation of the company. (attest to it so that no one says they were
forced, influenced, didn’t understand what exactly was happening etc.), so they must sign
to prove.
1
Section 11 of the Companies Act Cap 106 laws of Uganda
2
Section 7 of the Companies Act Cap 106 laws of Uganda
3
Section 8 of the Companies Act Cap 106 laws of Uganda
4
Section 45 (1) of the Companies Act Cap 106 laws of Uganda
5
Section 45 (2) of the Companies Act Cap 106 laws of Uganda
8. Fill out the necessary registration forms.
9. Submit the required documents to URSB online, pay the registration fees to get the
company registered and be given a certificate of incorporation.
10. The URSB reviews the submitted documents for compliance with the Companies Act.
11. If approved, the URSB issues a Certificate of Incorporation, as a conclusive evidence for
the legal existence of a company.6
12. Cross check with the URSB to prove the approval of incorporation.
13. Register for a TIN with the Uganda Revenue Authority (URA).
14. Open a bank account for the company.
15. Register for value-added tax (VAT) if applicable.
16. Obtain the necessary licenses from the local authorities to operate your business legally.
17. Register your employees with the NSSF for social security benefits.
18. Obtain a business seal to authenticate official documents. This is used as a symbol of
authority of a corporation/ legal identity.7
19. Note, from the day of commencement to carry on business, a company must have a
registered office and a registered postal address to which all communications and notices
may be addressed.8 Failure to comply, the company and every officer of the company
who is in default is liable to a default fine of twenty- five currency points.9
6
Section 20 of the Companies Act Cap 106 laws of Uganda
7
Section 56 of the Companies Act Cap 106 laws of Uganda
8
Section 111 of the Companies Act Cap 106 laws of Uganda
9
Ibid - Section 111 (5) of the Companies Act Cap 106 laws of Uganda
