BUSINESS REGISTRATION AND FORMALISATION IN MEETING THE BUYER’S NEEDS

BUSINESS REGISTRATION AND FORMALISATION IN

MEETING THE BUYER’S NEEDS

PRESENTATION MADE AT THE 4TH ANNUAL

AGRICULTURAL MARKET INFORMATION SYMPOSIUM:

12th -13th September 2013

A Presentation made by:

Ms. Agnes Wandera NtendeManager Business RegistrationUganda Registration Services

Bureau

Introduction

• In this presentation I will highlight the business registration procedures and the benefits of business registration.

What is business registration?• In terms of the Uganda Registration

Services Bureau- business registration is the registration of a business entity, to give it legal recognition, by issuance of a certificate and entry into the legal register. A duplicate record of the business registration is retained at the Business Registry, while the registrant takes the original documents of registration.

There are 2 types of registration of business entities:

Registration of a Business Name registered under the Business Names Registration Act Cap 109.This includes sole proprietors.

Registration of a Company registered under Cap 110 (We however note that internationally-business registration has been taken to include registration for taxation and the issuance of license).

Types of companies; are a private company limited by shares, a public company limited by shares or a foreign company.

Why the need for formalization in meeting the buyer? What are the benefits of business registration?• The business entity becomes recognized under the law, as an entity which is eligible : it will be an entity able to trade in its own ,own and transfer property.

• The business entity can borrow money; engage in financing arrangements to finance its activities.

• The business entity becomes a body corporate separate from its owners and it can enter into business partnerships, mergers and takeovers, joint ventures. If it is a company, the liability of the members may be limited and this gives liability protection.

• The business entity can sue or be sued in its own name.

• Registration helps to safeguard the business name and trademark which symbolizes a business’s products. If you don’t register, another business could open using a similar name but with inferior products. This can confuse customers.

• Continuity of the business is a high possibility. Even if the owner of the business dies, the business can be sustained by employees (like directors in a company).

Procedure for the Registration of a Business Name:1. Obtain the form for registration of business name from the

Offices of the Business Registry-URSB or download it from the URSB website.

2. Fill in the form as per the particulars on the form.

3. Hand in the form for name check at the Business Registry Office-Reception on Floor 6.(name check is free of charge.)

4. Obtain an assessment slip for the payment from the URSB assessment unit or make a self assessment on the URA portal.

5. Make payment and hand in the application form on Floor 8-Receiving desk for applications you will be issued a work/job card.(UGX 24,000)

6. After 2 days ,present your work card and collect your registration certificate and registration form from Floor 6.

Procedure for the registration of a company1. Apply for the name reservation, by filling the form The form can be obtained at the URSB office or downloaded from the website.

2. Obtain assessment for the name reservation, either using the self-assessment option or at the Assessment Unit on Floor 4.

3. Make payment in the bank and hand in the form for name approval and reservation on Floor 6.(UGX 20,000).

4. After obtaining the name approval-hand in to the assessment unit at URSB approved name reservation, memorandum and articles of association ,company forms A1 and A2 for further assessment for payment.

5. Make the payments in the bank and hand in all the necessary documents and receipts to the Receiving Desk for applications on Floor 8.You will be issued a work card.

6. After 3 days present the work card at counter 2 Floor 6 and you will be handed back your certificate of incorporation and copies of registered documents.

The differences between a business name and a company

LIMITED COMPANYMinimum number of

members 2 maximum 50 for private companies ,while minimum 7 and unlimited maximum for public companies.

BUSINESS NAME

Can be a sole proprietor

• Registered under the Companies Act Cap 110.

• Limited Liability.

• The company is a separate entity from the members.

• Registered under Business Names Registration Act Cap 109.

• No limited Liability.

• There is no distinction between the partners and the business.

THE END

Thank you for listening