businessBusiness Formalization

Business formalization refers to a process that firms go through when formalizing their business.
  • Obtain legal Identity/status. This implies that a company is capable of enjoying rights and being subject to duties, separately from its members.
  • It Safeguards your business name by acquiring a trade name.
  • Access to credit. Banks don’t lend to unregistered business. Individuals have access to micro-credit, but if you’re looking to expand your enterprise, you’ll need access to more funds with much more favourable terms than most micro-credit institutions can provide.
  • Access to government contracts. The government does not do business with the informal sector. The contracts government offers private businesses go to tax-paying businesses with all their papers in order.
  • Entering the formal sector establishes your credibility. Formalizing your business makes you more trustworthy to other businesses which means that businesses are more likely to trust you with large contracts and delicate projects.
  • Better marketing and advertising opportunities for increased clientele.
  • Formalizing your business shows that you have confidence in your own stability and your willingness to invest in your own future.
  • If additional income generated is greater than registration fees.
  • If additional income generated is greater than potential annual taxes.
  • If additional income generated is greater than revenue lost due to time invested in the formalization process.
  • Then being a formal business would be worth it.

URSB is an autonomous statutory body established by Chapter 210 Laws of Uganda in 1998 to facilitate private sector development. It is one of the key institutions which have to deliver services mandated by laws to businesses and citizens with high quality, minimal burden of regulation and in a very cost efficient manner.

URA’s mandate is to assess and collect specified tax revenue, administer and enforce laws relating to such revenue, and account for all revenue to which those laws apply. This is supported by the implementation of all planned initiatives, programs, tax policies and administrative measures to maximize revenue.

UNBS is a Government Agency established under Cap 327 of the Laws of Uganda. The Bureau is mandated to provide Standardization & Metro-logy services to industry in order to facilitate trade, protect consumers & ensure fair trade practices in the market place.

Formalization Authorities