How do I apply for a trading licence in Kampala, and what penalties apply if I start operating early?

Hello,

It is advisable to start operating a business only after having obtained all the necessary licenses prescribed under the law. Unfortunately, you have not stated the business location since trading licence fees depend on the location.

For a trading licence if you are in Kampala, you go to any URA outlet with the company incorporation documents, Email, phone numbers, Tax Identification Number and business location. There is a form you fill out and you will be given an assessment to be paid in the bank.

The rates depend on the location or area grading. For instance, for a retailer, if you are in the city center or grade 1 you pay UGX. 210,000/=, grade 2 is UGX. 78,750 or grade 3 at UGX. 84,000 and grade 4 at UGX. 31,500. The grading depends on the location and the distant you are from the city center the less fees you pay.

We hope that this is useful to you and we remain available to assist further.

HOW DO I APPLY FOR A TRADING LICENCE.

There are few steps that need to be followed to legally trade around Kampala and Uganda in particular. I will try to break down a few things for you so that you get some light. Feel free to reach out to us for your guidance and follow the proper channels.

Acquiring a trading licence is through through a formal application to KCCA to do business. However, the following conditions must be taken into consideration.

a) Appropriately located premises

b) Appropriate hygiene and health standard of premises

c) Appropriate building standard of premise.

d) Required personal specifications

e) Payment of appropriate license fees.

What are the requirements for Application?

If you are a national, then you should have these:

a) Identification: passport/ Driving permit/Voter’s card.

b) Original certificate of incorporation of the company for the new business/ certificate of registration.

c)Original rent receipt and tenancy agreement from the land lord for the new business.

d) you have to be of at least 18 yrs of age and if a minor, should be in partnership with a person above 18 years of age.

e) Tax Identification Number and business location from URA

How is assessment and Payment of trading license fees done?

Assessment is done based on the fees schedules issued by the Minister of Trade, Industry and Cooperatives under statutory instrument No 54 of 2011 and The Trade (Licensing) (Grade of Business Areas) Order, 2011

(Under section 30(2) of the Trade (Licensing) Act, Cap. 101).

Based on this, a KCCA Revenue Officer issues a tax payer a KCCA Bank Payment Advice Form to make payment at any designated Banks. A receipt is given which is presented at the Division offices where a trading license certificate is issued.

Grade 1 is 210,000, grade 2 is 78,750, grade 3 is 84,000 and grade 4 is 31,500 and these are varied from time to time.

When is the effective date for payment of a Trading License?

This is a Calendar year based tax payable before commencement of business every 1st day of January of every year and expires on the 31st of December of the same year.

What if I do not pay?

Any person who fails to pay or obstructs or hinders an officer on duty, or knowingly makes a false declaration or gives any false information commits an offence and is liable on conviction to a fine or to a term of imprisonment not exceeding six months or both.

I have tried to give you some hint on how you can be able to get a trading licencece.