Uganda: Operating a Business

Setting Up a Company

Limited liability company (LLC): Number of partners: minimum two directors and one shareholder
Capital (max/min): no minimum share capital requirement
Shareholders and liability: liability is limited to the assets of the company
Public limited company (PLC): Number of partners: minimum two directors and five shareholder
Capital (max/min): no minimum share capital requirement
Shareholders and liability: liability is limited to the assets of the company
Private limited company: Number of partners: minimum two, maximum 100
Capital (max/min): no minimum share capital requirement
Shareholders and liability: liability is limited to the assets of the company
Limited Liability Partnership: Number of partners: minimum two, maximum 20
Capital (max/min): no minimum share capital requirement
Shareholders and liability: liability is unlimited for managing partners, whereas it is limited to the extent of their capital contribution for silent partners
General Liability Partnership: Number of partners: minimum two, maximum 20
Capital (max/min): no minimum share capital requirement
Shareholders and liability: all partners are fully liable for the partnership’s debts

The Competent Organisation: Company registration shall be done through the Uganda Registration Service Bureau (URSB).

Setting Up a Company	Uganda	Sub-Saharan Africa
Procedures (number)	13.0	7.5
Time (days)	24.0	21.3

Source: Doing Business.

Business Setup Procedures: Consult Doing Business Website, to know about procedures to start a Business in Uganda.

	2018	2019	2020
Labour Force	15,934,476	16,588,429	16,514,595

Source: International Labour Organization, ILOSTAT database

Source: International Labour Organization, ILOSTAT database

Legal Weekly Duration: Normal working hours are 8 hours per day and 48 hours per week (Employment Act 2006).
Retirement Age: Minimum retirement age in Uganda is 55 years. However, it can be reduced to 50 if employment ceased at least a year before the time of the claim.
Working Contracts: It is a legal requirement in Uganda for the employer to provide an employment contract for each employee. Every contract should clearly state the terms and conditions of employment, such as duration of employment, place and hours of work, wages, termination, etc.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Minimum Wage: The minimum wage was last updated in 1984 and set at UGX 6,000. As it has not been revised thereafter, de facto it is as if Uganda does not have a minimum wage.
Average Wage: UGX 491,000 (ILO-Uganda Bureau of Statistic, 2013).
Social Contributions: Social Security Contributions Paid By Employers: 10%
Social Security Contributions Paid By Employees: The employee contributes 5% (deducted from the monthly salary) and the employer contributes 10%. However, the employer may choose to pay the complete 15%.

Social Dialogue and Involvement of Social Partners: The Constitution of Uganda provides for freedom of association, while the 2006 Labor Unions Act allows workers to establish and join unions. Workers are allowed to participate in union activities outside working hours. Every worker in Uganda has the right to form or join a trade union of his or her choice for the promotion and protection of his or her economic and social interests; for collective bargaining and representation; and to withdraw his or her labour according to law. An employer is not allowed to interfere in the formation or administration of a registered trade union and to support a union that is under the control of the employer or an employer's organization. Employer may deduct union dues from the wages of the members only after their written consent. In any case, discriminatory behaviour is prohibited for the employer on the basis of union affiliation or participation in union activities.
Labour Unions: National Organisation of Trade Unions (NOTU)
Unionisation Rate: The trade union density is estimated at 3.2% of the total labour force and 20% of the wage and salaried workers (data by the Danish Trade Council for International Development and Cooperation).
Labour Regulation Bodies: Ministry of Gender Labour and Social Development

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