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[ESTABLISHING A BUSINESS ENTITY IN UGANDA]
under the Companies Act Cap 106. However, companies’ operation in certain sectors (for example financial institutions, insurance companies and companies operating in the lotteries, gaming and betting industry) may require minimum share capital before a regulatory license is granted. i) Minimum capital requirements for Banks Financial Institutions are required to have a minimum capital requirements of UGX 140 billion shillings By June 2024, by virtue of the new Financial Institutions (Revision of Minimum Capital Requirements) Instrument 2022. The minimum capital funds unimpaired by losses has at all times, not to be less than seven million five hundred thousand currency points i. e UGX 150,000,000,000/= (Uganda Shillings One Hundred and Fifty Billion). ii) Minimum capital requirements for non-bank financial institutions Non-bank institutions include a credit institution, a building society, an acceptance house, a discount house and a finance house and any other institution classified by the Central Bank as a non-bank financial institution. 53 The Financial Institutions (Revision of Minimum Capital Requirements) Instrument 2022 prescribes a paid-up capital of not less than UGX 20,000,000,000/= (Uganda Shillings Twenty Billion Only) invested initially in such liquid assets in Uganda for one to start up
a non-bank financial institution. Such a venture is also required to have minimum capital funds unimpaired by losses at all times of not less than UGX 20,000,000,000/= (Uganda Shillings Twenty Billion Only). A person proposing to transact business as a non-bank financial institution must have a minimum paid up cash capital of not less than One Million Two Hundred and Fifty Thousand currency points i.e. UGX 25,000,000,000/= (Uganda Shillings Twenty-Five Billion), by 30 th June 2024 invested initially in such liquid assets in Uganda as the Central Bank may approve. The minimum capital funds unimpaired by losses must at all times not be less than One Million Two Hundred and Fifty Thousand currency points i.e. UGX 25,000,000,000/= (Uganda Shillings Twenty-Five Billion). iii) Micro Finance Deposit-Taking Institutions Define a Micro Finance Deposit Taking Institution. According to the Micro Finance Deposit-Tsking Institutions (Capital Adequacy) Regulations, 2004, such institutions are obligated to maintain at all times, core capital, equal to the minimum paid-up capital requirements of UGX 500,000,000/= (Uganda Shillings five hundred million).
53 Section 3 of the Financial Institutions Act Cap 57
ILN Corporate Group – Establishing a Business Entity Series
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