HOW LOCAL AND FOREIGN COMPANIES MAY OPEN A BANK ACCOUNT IN UGANDA

It is common that clients approach law chambers and lawyers seeking guidance on how to incorporate a
company or register their foreign company. Times after the Incorporation process has been achieved
and even sometimes the lawyer's instructions have been accomplished, the client is seen loitering about
the banks with papers, being pushed back and forth for certain requirements and it's about that time they
realize they still needed the lawyer accompanying processes but also,
continuous filling. The tiresomeness of the matter comes with the many documents and requirements
which must be met for the bank to accept opening the account with them. To make it easy for lawyers,
paralegals and clever clients, I have developed in this article, the list of requirements for locally
incorporated companies and foreign companies registered in Uganda.

The law applicable to this process is:

 The 1995 constitution of the Republic of Uganda As amended

 Companies Act, 2012.

 Financial Institutions Act (FIA) and its regulations, among others

A commercial bank according to the FIA, means a company licensed to carry out financial institution
business in Uganda and whose principal business consists mainly in the acceptance of call, demand,
savings and time deposits withdrawable by cheque or otherwise, in the capacity of a bank, provision of
overdrafts and short to medium term loans; provision of foreign exchange, participation in inter-bank
clearing systems and the provision and assumption of guarantees, bonds and other warranties on behalf
of others

Company, being a team of individuals, needs a company bank account to enable it perform cash or
monitory transactions through which the bank effects debit or credit transactions.

A. Local Companies

For a company incorporated in Uganda and intending to open a bank account, it may be required to
present the following:

First of all, the company should convene a company meeting and resolve to open a bank account.
During the meeting The Company should pass;

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a) An ordinary resolution stating:

 The signatories to the company bank account

 The type of account

 Name of the bank(s) in which company account should be opened.

The ordinary resolution should be registered with URSB. The resolution has no particular form but it
should state the law applicable or governing law, else could not meet the requirement for registration by
URSB.

b) The company should present certified copies of:

 The company certificate of incorporation,

 Company form 20

 Company form s 18.

 Certified form 18

 Certified Memorandum and Articles of Association.

(c) Also obtain identities cards of the directors and intended signatories to company account.

d) Most banks require a recommendation letter from a lawyer so you may need to obtain it.

e) Some banks need a tax Identification number or Tax Exemption Certificate, you may need to get it
from URA

f) Some banks need local trading license; you may get it from the local council within which you intend
to trade

B. Foreign Companies

For a foreign company registered in Uganda, present the following:

 Certified Particulars of Directors and Secretaries I.e. Form 24 /Notification of change of

directors and company secretary

 Certified copy of Particulars of Business Address i.e Form 26 (formerly form A22)

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  Trading License. A company licenced under a different law, should submit a copy of the
applicable license.
 Tax Identification Number (TIN), or Tax Exemption Certificate
 Some banks may tend to also require a Company search form.

 Provide identity Documents of related parties and beneficial owner

NB: - A beneficial owner is an individual with shareholding that exceeds 10% of the companies share
Capital

-A related party is a Director and authorized Account Signatories.

If the beneficial owner is an Individual,

 Provide National ID for nationals OR Passport for Foreigners OR Refugee ID for refugees) OR

If the beneficial owners are a company, then provide:

 Proof of address

 Certificate of Incorporation & Memorandum and Articles of Association

Therefore, with all the above documents, approach the intended bank to peruse through your
documents. If you meet all the requirements, you will be provided with account opening forms by the
bank for the directors and signatories to fill in. After filling in account opening forms attach all the above
documents and submit them to the responsible bank officer for review and account opening.

In my next article, I Will share the requirements for other business vehicles to open bank accounts, in
Which I shall discuss SACCO's, Sole proprietorship, community based organisations, NGO's, embassies,
partnerships, political parties, Trusts, banks and financial institutions, schools and education institutions,
ministries among others.

AHIMBISIBWE INNOCENT BENJAMIN

+256784-992-098 / email: innocentahimbisibwe80@gmail.com

The writer is a lawyer at Bakiza & Co. Advocates

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