Uganda in China
|Embassy of the Republic|
|of Uganda, Beijing, China|
Institutional and Legal Framework
Uganda Government's economic strategy is to mordernise the economy through relying on markets and the efforts of entrepreneurs as the basis for efficient and productive economic activity. Government's role in the private sector is to provide the necessary legal policy and physical infrastructure.
Investment Code, 1991
Investment in Uganda is governed by the Investment Code. The code requires foreign investors to have an investment license before operating a business in Uganda. It makes a distinction between foreign and domestic investors.
Limitations on foreign investment
The Code allows foreign investors to invest in all fields except those, which compromise national security and ownership of Land. Regarding land, foreigners may lease land for up to 99 years. Foreign investors can participate in joint ventures involving the outright purchase of agricultural land. For such cases, Uganda must hold the majority stake. Foreign investors are also free to bring in to take their capital out of Uganda with no restrictions.
Uganda Investment Authority
This agency was set up to promote investment in Uganda, to market Uganda's investment opportunities to targeted investors all over the world, to coordinate the national investment marketing program, to monitor international investment flows and to serve as the point of contact for investors interested in Uganda.
"One Stop Facilitator" for Investors
UIA offers the following services to investors:
1. Providing first-hand information on investment opportunities in Uganda.
2. Promoting Uganda as an investment location for investors.
3. Helping investors to implement their project ideas through professional advice and assistance in locating relevant project support services.
4. Helping investors to secure secondary licences and approvals.
5. Arranging contacts for investors and organizing itineraries for visiting foreign missions within the country.
6. Assisting investors in seeking joint venture partners and funding.
7. Ensuring protection for intellectual property and trade secrets when technology transfer is involved.
8. Reviewing and making policy recommendations to government about investment.
Procedures for Investment
Foreign investors require a minimum investment of US$ 100,000 in order to secure an investment licence, while local investors require US$ 50,000.
Steps to be followed by new investors
Step 1 - Register company/business entity in Uganda
The investor may register at the Registrar General's office and obtain the following documents:
- Memorandum and Articles of Association.
- Certificate of Incorporation
Step 2 - Get Investment Licence
The investor then applies for an investment licence from Uganda Investment Authority using UIA Form 1 (available on the UIA Website or at the UIA offices). The investors application must be supported by the following documents.
- Memorandum and Articles of Association
- Certificate of Incorporation (for limited liability companies)
- Business Plan
Step 3 - Secure necessary secondary approvals/clearances.
These may include work permits for expatriate staff, trading licences from local authorities, permits for special sectors such as pharmaceuticals and manufacturing. UIA is able to assist the investor to obtain these secondary permits/approvals.
Uganda's Competitive Advantage
1. A predictable environment
2. A fully liberalised economy
3. Market access
4. Abundant opportunities and natural resource base
5. Trainable, English speaking labour force
6. Heavy investment in infrastructure
7. Government commitment to private sector
8. Safe and pleasant environment
Investment Opportunities abound in the following sectors;
Printing and Publishing
Information Technology / Electronics
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