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[ESTABLISHING A BUSINESS ENTITY IN UGANDA]
iv) Insurance businesses The minimum paid up capital 54 for an insurer engaged in a) a non-life business is Uganda Shillings six billion b) Life insurance business is Uganda Shillings Five Hundred Million c) HMO insurance business is Uganda Shillings One Billion. "HMO” means an organisation engaged in the business of undertaking
ANY SPECIAL BUSINESS OR INVESTMENT VISA ISSUES ; 1. The entity would need to secure a Tax Identification Number for purposes of payment of taxes to the Uganda Revenue Authority. 2. Independent contractors take full responsibility for their taxes and must file a tax return every quarter and make quarterly tax payments. Where an independent Contractor is Ugandan and is employed on a tax in Uganda, they are required to remit a total of 6% withholding tax on any income earned. A foreign Independent Contractor, employed on an assignment in Uganda is required by law to remit a total of 15% on any income earned. 3. Under the National Social Security (Amendment) Act 2022, all entities are required to register and remit social security contributions monthly. Employees are required to remit up to 5%, while the employer contributes 10% for each employee. 4. For those who wish to invest, an investment license from the Uganda Investment Authority should be secured. Companies are required to meet the capital threshold of US$ 50,000 for domestic investors and US $250,000 for foreign investors. 5. According to the Uganda Investment Authority, individuals intending to engage in trade do not require a license from Uganda Investment Authority but must prove that they have access to operating capital of US$ 100,000, before being issued with an investment license. The
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liability in respect of funding health care, by way of membership. 55 d) The minimum paid up capital of a reinsurer engaged in non-life insurance business is Uganda Shillings Nine Billion, while for life insurance business, the amount is UGX 6bn/= (Uganda Shillings Six Billion).
v) Forex Bureaus
These types of entities are required to have a minimum paid up share capital of Uganda Shillings Fifty Million 56 at inception.
54 The Insurance (Capital Adequacy and Prudential requirements) Regulations 2020 regulation 4
55 The Insurance Act Cap 191 section 2
56 Foreign Exchange Act Cap 167. section 3(4)
ILN Corporate Group – Establishing a Business Entity Series
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