Structure of Entrepreneurship in Uganda

BUSINESS INFORMALITY
Twitter:@bkagaba1

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• The Informal business sector in Uganda
• Characteristics
• Causes of business informality
• Challenges and obstacles of informal businesses
• Unlocking the potential of informal businesses

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 The Informal Sector in Uganda
• Informal Businesses are illegal
• Informal businesses are bad for growth
• Informality usually disappears with growth

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 Characteristics of Informality
• None Registration
• No Employment contracts
• No registration fro tax
• No Business bank Account
• No permanent office address (Briefcase Businesses

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 Why Formalize Business
• To get registered as a business
• Access to meaningful markets
• Setting ground for transition & inheritance
• Optimized growth potential
• Access to investment incentives
• Protection from structural risks
• Access to formal Business ecosystem
• Business referrals eg the Uganda Entrepreneurial ecosystem
(Visit: https://www.andeglobal.org/ueei/ )
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 How to get started with formalization
Process of a Business
• Choose the type of company that you want to
register, e.g a partnership, Limited company, etc
• To register a company ltd by shares one needs to
reserve the name using the
https://ursb.go.ug/name-reservation
• File the documents
• Reserve a name. https://ursb.go.ug/name-
reservation.
 Formalization Process Cont’nd
• Forms are accessible on the website for URSB
• Pay for Registration
• Fees http://ursb.go.ug/business-registration-fees-2
• Registering with relevant Business Associations
depending on your sector of business
• Register with Uganda Revenue Authority (URA)
 Why Register with Relevant Business
Association
• Wider market access
• Peer advisory support
• Stronger connections to resources
• Opportunities for joint venturing (Projects &
Partnerships)
• More relevant experience sharing

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 How to make your Business work after
formalization
• Register for prequalification with Public
Procurement Disposal Act (PPDA)
• Join a Business Association
• Build a management Team
• Manage risk appropriately
• Get your business an official brand and Logo
• Secure Tax clearance on time
• Search for Joint Ventures
• Open a Business Bank Account with credible
signatures
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 Success Factors in making your
business work
• Understand sector Regulation
• Join Partnerships with other entities
• Build strong and dependable business
networks
• Master the tax systems and structures.

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 FOREIGN DIRECT INVESTMENT

• Uganda Investment Authority (UIA) set up under the Investment Code

1991 (revised in 2019) is a statutory agency mandated to initiate and
support measures that enhance investment in Uganda and advise
Government on appropriate policies conducive for investment
promotion and growth. The changing investment environment and
Government priorities have necessitated the modification of UIA’s
mandate.

• Uganda Investment Authority is a semi-autonomous government

agency which drives national economic growth and development in
partnership with the private sector. As an Investment Promotion
Agency, UIA mainly: markets investment opportunities; promotes
packaged investment projects; ensures local and foreign investors have
access to information, especially about the business environment so as
to make more informed business decisions; and offers business
support, advisory and advocacy services.

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 Objectives of UIA

• Attract value adding investment that brings

technology, skills and jobs.
• Contribute to the image of Uganda as a leading
African Investment destination.
• Stimulate & lead key stakeholders in creating a
competitive business environment.
• Setup and develop Industrial and Business Parks
• Offer support to SMEs.
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