INVESTMENT LICENCE FAQs
An individual or a legal entity duly engaged in the business of value adding, manufacturing and like activities which create jobs, introduce new technology and pay due taxes when s/he makes a profit.
No. It is not a requirement to have a local partner’s participation before foreign firms carry out business in Uganda. The investment and trade environment in Uganda is liberalised where 100% foreign holding is permissible.
UIA is a neutral party which cannot directly recommend individual machinery suppliers. However UIA can in a generic manner point investors to possible suppliers of machinery.
On the other hand, UIA holds government that it can lease to investors. Additionally, UIA has an active Land Registry comprising of vetted privately owned land and frequently guides investors to negotiate with the landlords.
UIA does not have any investment funds for investors to borrow from to implement their projects. However UIA has a network of partners local and international where prospective investors can seek finance information from. Additionally government and other partners provide funds for UIA to provide professional support to investors particularly those in the SME sector.
The license gives added confidence to the holder to engage third parties when making arrangements necessary for establishing the business enterprise in the license.
- It assists in getting the secondary licenses.
- It assists in recommending the investor for various services ie Commercial Banks, Development Partners, Equity Funders etc.
- Assists by recommending and following up acquisition of work permits.
- It is a requirement for allocation of land in Government Industrial Parks and serves as added advantage for approval of leases and linking to private land owners
- Acts as reference when match making domestic investors with inward investor missions for possible Joint Venture Partnerships, raw material suppliers or markets for finished products
- Holder enjoys the benefits of UIA investors’ One Stop Centre by getting first hand information.
- Holder gets priority aftercare services when faced with specific challenges such as tax disagreement, closure due to non compliance that needs negotiations with other parties i.e. Government Departments and Agencies etc.
Foreign Investors require a minimum of US$ 100,000 for their investment project to qualify for an Investment License. For local investors the minimum requirement is US $ 50,000.