Deciding to expand to Uganda will bring numerous benefits to your company and its employees. However, you won’t receive many of those benefits until you go through the lengthy Uganda subsidiary setup process. Once you spend weeks or months establishing a subsidiary, you’ll still have to handle payroll, manage hiring, and provide the right compensation and benefits.
Globalization Partners makes the entire expansion process fast and simple through Uganda subsidiary outsourcing. Instead of setting up your own entity, you can use our Uganda PEO as the infrastructure for your work in the country. Our team will handle everything from recruiting the right employees to dispersing additional benefits. We’ll also ensure that you meet all Uganda subsidiary laws.
How to Set Up a Uganda Subsidiary
When you’re considering how to set up a Uganda subsidiary, you need to look at all the factors that will impact your incorporation process. Everything from the city where you base your office to the entity you register can affect the Uganda subsidiary laws you need to follow. That’s why we recommend working with an expert or third-party consultant who can find the best place for you to incorporate.
Next, you need to examine your goals for operating in Uganda. Your planned business activities will impact what type of structure you need to succeed. For example, if you want to work like a resident company, it’s best to incorporate as a limited liability company (LLC). If you only need an office in Uganda to perform a few simple tasks, it’ll be better to choose a branch office.
The steps to establish an LLC include:
- Completing certified copies of the Memorandum of Articles of Association
- Completing other registration forms and paying the required fees
- Providing a complete list of all the directors and secretaries of the company as well as their personal information
- Obtaining a Tax Identification Number through the Uganda Revenue Authority
- And more
Uganda Subsidiary Laws
Uganda’s subsidiary laws often vary by entity, location, and other factors, so it’s important to find the laws that apply to your structure. Uganda’s Company Act of 2012 requires LLCs to have a minimum of two directors and one shareholder. There is no minimum share capital requirement, but you must choose a unique company name that also has “Ltd.” or “Limited” at the end of the name.
All Ugandan companies need to appoint a company secretary, but there are no qualification requirements. Although the increased requirement from one to two directors has made it a little more difficult to incorporate, most companies still choose the LLC entity. Keep in mind that as a private LLC, you cannot provide company shares to the public.
Benefits of Setting Up a Uganda Subsidiary
Most companies planning a global expansion expect to establish an entity in the country. Doing so will ensure that you can legally work in the country and receive all the benefits Uganda has to offer. If you establish an LLC, you can also protect your parent company from the subsidiary’s actions and make sure your subsidiary can create its own structure.
Globalization Partners can provide all the benefits of having a subsidiary without you needing to go through the process of creating one. We’ll use our subsidiary structure to help you incorporate fast. You won’t need to worry about compliance or handling tasks you don’t have time for either — we’ll take care of everything so that you can focus on running your business.
Other Important Considerations
If you choose not to work with a global PEO like Globalization Partners, you’ll need to prepare to take on the Uganda subsidiary setup process. If you don’t have anyone in your company who knows Uganda’s subsidiary laws, we recommend employing an expert who will help you avoid fines and delays.
Also, work with your accounting team to figure out how much money you’ll need to budget for the entire expansion. This is also a good time to delegate tasks and create a calendar that shows how long it will take to complete the process if everything is done correctly.
Let Globalization Partners Help With Your Expansion
Globalization Partners will make sure you get your expansion right from the start. Contact us today to learn more about Uganda subsidiary outsourcing.