Frequently Asked Questions
Investment License
Incentives
SME
Industrial Parks
Industrial Parks FAQs
Does UIA help Investors get Machinery and Land ?
UIA is a neutral party which cannot directly recommend an individual machinery suppliers. However, UIA can in a generic manner point investors to possible suppliers of machinery.
Can I get free or subsidized land from the Government ?
No. Government does not give free land to investors whether domestic or foreign. However, fully subsidized land can be leased to investors in some pre-determined critical areas of the Ugandan economy.
On the other hand, UIA oversees government land in the Industrial parks that is leased to value adding investment projects. Additionally, UIA maintains a land registry comprising of privately owned land and frequently guides investors to negotiate with the landlords.
Can I as a foreign Investor buy or own land for self or company ?
The laws of Uganda don’t allow foreigners (self or company) to buy land outright but can lease land up to 99 years. UIA can help licensed investors to obtain leasehold tenure
Investment License FAQs
1. Does UIA cater for Ugandans ?
Yes. UIA encourages Ugandans at home and in the Diaspora to invest in Uganda. In 2010, UIA’s mandate was extended to include Domestic Direct Investment (DDI).
2. How much is an investment license?
The Investment Licenses in Uganda are free of charge.
3. What are the benefits of having an Investment license?
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 is a requirement and beneficial for acquiring some secondary licenses.
- Licensed investors benefit from support services i.e Recommendations to commercial banks, development partners, Private Equity funders etc.
- The UIA license helps in acquisition of work permits.
- It is a requirement for allocation of land in UIA run 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.
4. How long does it take to obtain the investment license?
If all the required information is submitted for the Investment License, UIA’s service charter mandates that a licence be issued in 48 hours.
5. How much should one invest to obtain the approval for the Investment Licence ?
Foreign Investors require a minimum of US$ 250,000 for their investment project to qualify for an Investment License. For domestic investors the minimum requirement is US $50,000.
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.
7. How can I become a member of UIA ?
UIA is a parastatal that doesn’t require membership.
8. Do I need a local partner to setup an Investment ?
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.
9. Does UIA help Investors get Machinery and Land ?
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.
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10. Does UIA have funds from which investors with Investment license can benefit ?
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.
Investment Incentives FAQ’s
1. As an Investor am Eligible to any tax and duty incentive ?
Yes. All investors (domestic and foreign) are eligible to tax duty incentives, provided they meet the requirements under the respective incentive packages. See incentive regime
2. What type of Investment Incentives does UIA Offer ?
Investment Incentives given in Uganda are categorized into two:
i. General Incentives
The general incentives are grouped into (5) five areas as
a) Import based incentives
b) Export based incentive
c) Investment Capital Allowances
d) Deductible Capital Allowances
e) Special Deductions
ii. Sector Specific incentives
Sector Specific incentives are given to investment projects in priority sectors. These vary according to the prevailing National Development Plan and other Government policies.
For more details visit Uganda Revenue Authority
3. Should SMEs be subjected to requirements for business standards and taxation ?
It is an obligation by all enterprises to pay tax as stipulated in the Tax Act. Businesses are encouraged to consult URA officer at the One Stop Centre for guidance on whether the business is within the tax bracket and the type (s) tax to be paid.
Small & Medium Enterprises FAQs
1. What is a Small & Medium Enterprise ?
SMEs are categorized as;
i. Micro Enterprise is an enterprise that employs up to 4 people, with annual sales turnover and/or total assets of maximum U.shs 12 million.
ii. Small Enterprise employs from 5 to 50 people, with annual sales turnover and/or total assets of up to U.shs 360 million.
iii. Medium Enterprise employs from 51 to 100 persons, with annual sales turnover and/or total assets of over U.shs 360 million but not more than U.shs 30 billion.
2. What type of SMEs does UIA Promote ?
It is an obligation by all enterprises to pay tax as stipulated in the Tax Act. Businesses are encouraged to consult URA officer at the One Stop Centre for guidance on whether the business is within the tax bracket and the type (s) tax to be paid.
3. Which services does UIA offer to SMEs ?
UIA offers various services to SMEs which include among others ;
- Enterprise development programs
- Cluster development
- Support for regional exhibitions
- SPX,
- B2B,
- National Content in Oil and Gas advocacy ( refer to the SME brochure either on the UIA website or pick a free hard copy at the front office).
- These can be availed on request or incorporated in the divisional work plan.
- To access UIA services you may send an email to [email protected], with your request or walk in for a face to face to discussion with one of the officers.You may also choose to make a specific request addressed to the Executive Director, Uganda Investment Authority. Please note that the training are done in groups of at least 40-70
4. Do SMEs have to register their businesses ?
Business registration is highly recommended. Owners and employees of small and medium enterprises may register their businesses at district level or at national level with Uganda Business Registration services Bureau. Registration at national level gives a SMEs access to national markets in Uganda and across borders while registration at district level may restrict market access to the district of registration only.
UIA assists SMEs to register their businesses by providing platforms where registration services can be accessed through the One Stop Center at UIA offices or through mobile registration clinics during workshops or through partnership with member based Associations.
5. Does UIA help SMEs to Draft Project Proposals ?
No, UIA links SMEs to Business Development Service Providers who help them to write project proposals.
6. Are foreigners allowed to Invest in SMEs in Uganda ?
Yes, foreigners may invest in and own Small and Medium Enterprises. They however may not own Micro enterprises since the capital requirement are below the minimum threshold for foreign Investors.
7. How can UIA assist SMEs to increase productivity ?
UIA assists SMEs to increase their productivity through;
i. Capacity building, for example; Technical Skills training for value addition, Entrepreneurship Training
ii. Enterprise to Enterprise visits, and
iii. By organizing into production clusters through which they are able to access professional advice from government agencies, Private sector and Academia/Universities and other research centers.
8. Are there some enterprises that are restricted to SMEs ?
Uganda’s economy is fully liberalised, so there are no restrictions in sectors of Investment except for those that pose a threat to national security.
9. Is there a special criterion for land allocation to SMEs ?
No, all businesses applying for land allocation are evaluated based on the same criteria.
10. Does UIA help SMEs Improve the Quality of their products ?
Yes, UIA encourages SMEs to ensure that their products are tested and certified by the Uganda National Bureau of Standards (UNBS) before they go to any market, both domestic and foreign. In the event that products are not up to the standards set by UNBS, UIA recommends that the SMEs contact the Uganda Industrial Research Institute (UIRI) for incubation services to improve their products.
11. How can UIA assist SMEs to access market both within Uganda and EAC ?
UIA organizes domestic regional exhibitions through which, SMEs are able to showcase their products at minimal cost. In some cases UIA facilitates outward missions to enable SMEs to tap into regional mark
12.Should SMEs be subjected to requirements for business standards and taxation ?
Uganda’s economy is fully liberalised, so there are no restrictions in sectors of Investment except for those that pose a threat to national security.
13.Can UIA provide Shared work spaces and machinery to SMEs ( i.e. Business Incubation Services) ?
There is limited space at the UIA SME Park located in Mbarara. UIA is also in the process of setting up a multi-purpose business incubation centre at Kampala Industrial Business Park (KIBP) in Namanve for SMEs.
14. Can SMEs whose capital is less than US$50,000 be allocated land within the Industrial Parks ?
Yes. UIA encourages Ugandans at home and in the Diaspora to invest in Uganda.
