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[ESTABLISHING A BUSINESS ENTITY IN UGANDA]
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 to be not less than seven million five hundred thousand currency points i. e UGX 150,000,000,000/= (Uganda Shillings One Hundred and Fifty Billion) at all times. ii) Minimum capital requirements for non- bank financial institutions ; non-bank institutions are institutions that 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 . 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. iii) Micro Finance Deposit-Taking Institutions; Micro Finance Deposit Taking Institution means a company licensed to carry on, engage in or transact in the microfinance business in Uganda. According to the Micro Finance Deposit- Taking 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). iv) Insurance businesses; The minimum paid up capital for an insurer engaged in a) a non-life business is UGX 6,000,000,000/= (Uganda Shillings six billion Only) b) life insurance business is UGX 500,000,000/= (Uganda Shillings Five Hundred Million Only) c) HMO insurance business is UGX 1,000,000,000/= (Uganda Shillings One Billion Only). "HMO” means an organization engaged in the business of undertaking liability in respect of funding health care, by way of membership. v) The minimum paid up capital of a reinsurer engaged in; a) Non-life insurance business is UGX 9,000,000,000/= (Uganda Shillings Nine Billion Only). b) Life insurance business is UGX 6,000,000,000/= (Uganda Shillings Six Billion Only). vi) Forex Bureaus;
ILN Corporate Group – Establishing a Business Entity Series
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