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[ESTABLISHING A BUSINESS ENTITY IN UGANDA]
The Foreign Exchange Act 2004 prescribes a minimum paid up share capital of UGX 50,000,000/= (Uganda Shillings Fifty Million Only) for one to start a forex bureau business. • 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. 3. By virtue of regulation 3 of the National Social Security Fund (Amendment) Act 2022 all employers are supposed to register as contributing employers. 4. There is also need to secure an investment license from the Uganda Investment Authority. 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 trading licenses and the recommendations for work permits can be issued by local authorities. The investment license is free of charge and is issued in 48 hours if the application meets the criteria. 6. For one to work in Uganda, one must possess a valid work permit issued from the Ministry of Internal
Affairs, under the Immigration Department. The requirements of securing a work permit differ depending on the class of work permit required. i) For class A (Government & Diplomatic services); the requirements are filling in the work permit form, attaching photocopies of the passport, 2 passport size photos, covering letter from the Embassy and supportive letter from the ministry of Foreign Affairs.
ii)
Class (government contractors); the requirements are filling in work permit forms, 2 passport size photos, photocopies of the passport, covering letter from the organization and the line ministry, Interpol letter from home country and academic qualifications for professionals. A2 Class in agriculture); the requirements include filling the work permit form, 2 passport size photos, photocopies of passport, B (investment covering letter from the company, land title, Uganda Investment Authority license, letter from ministry of Agriculture regarding the intended agriculture venture, recommendation from LC’S or RDC’s office, work plan/ Feasibility study of the project undertaken, security bond, and the Interpol letter from home country. Class the requirements include filling C (Mining);
iii)
iv)
ILN Corporate Group – Establishing a Business Entity Series
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