Wikiprocedure

Uganda - Apply for Money Lending and Savings Institution Licence

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ProcedureEdit

Apply In-Person

  1. The Money Lending and saving entrepreneur applies for a trade license at the Municipal Authority/Council Authority where the company premises are located.
  2. Receive inspection of the business premises by the licensing officer and obtain the assessment form for the fees payable, which vary with the location of the office.
  3. Fill the form and submit the completed application form to Municipal council Authority/ Division offices where a trading license certificate is issued.
  4. You will then be issued a payment slip to take to the Bank.
  5. Please make sure you have all the documents that are listed under the “Required Documents” section of this page.
  6. After the authorities validate your application and documents that are submitted and the fees are paid, the Municipal Authority issues the Money lending and saving institutional Trading License. This authority also reserves the right to revoke and cancel the trading license, if deemed necessary by municipal inspections (health and building).
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Required DocumentsEdit

Applicant should obtain Clearance from Ministry of Trade, Industry and Cooperatives for non-nationals
Non-Nationals:

  1. Identification: Passport (2 Copies)
  2. Work Permit
  3. Original certificate of incorporation of the company for the new business.
  4. Tax Identification Number (TIN)
  5. Business Registration Number (BRN) from Uganda Registration Services Bureau (URSB)
  6. Original rent receipt and tenancy agreement from the land lord for the new business.

Applicant should obtain clearance from Ministry of Local Government for-nationals
Nationals:

  1. Identification: Passport/ Driving permit/Voter’s card (2 Copies)
  2. Original certificate of incorporation of the company for the new business.
  3. Original rent receipt and tenancy agreement from the land lord for the new business.
  4. The client must be of at least 18 yrs of age and if a minor, should be in partnership with a person above 18 years of age
  5. Tax Identification Number (TIN) from Uganda Revenue Authority (URA).
  6. Business Registration Number (BRN) from Uganda Registration Services Bureau (URSB)

  • For new business - original certificate of registration (Business name)
  • Applicant should obtain clearance from Uganda Registration Services Bureau.
  • Approval from a magistrate court.
  • Original municipality receipt for the previous year indicating existing business.
  • Original trading License for the previous year for already existing business.
  • A photocopy of any relevant document shall be required to be retained by Municipal officers on duty.
  • An Assessment of Trading License will be accompanied by Local service Tax assessment where applicable.
  • No assessments for Trading License shall be issued without formally applying for it on the prescribed form.

Office Locations & ContactsEdit

Uganda Microfinance Regulatory Authority - HEAD OFFICE,
Physical Address: Rwenzori Towers, Block B
Ground Floor, Plot 6 Nakasero Road
Postal Address: P.O Box 11545
Kampala , Uganda
Call: 256 417 799 700
Toll - free: 0800 111 449
Email Us: [email protected] / [email protected]
Website: LInk

Bank of Uganda - HEAD OFFICE,
Physical Address:Plot 37/45
Kampala Road
Kampala, Uganda
Postal Address: P.O Box 7120,
Kampala, Uganda
Telex: 61059
Telephone numbers: +256-414-258-441/6
Fax: + 256-41-4230878 , +256-41-4233818
Email: [email protected]
Website: Link

EligibilityEdit

  1. Money lending and saving institution License shall not be granted unless the applicant holds an eligibility Trading License certificate (hereinafter referred to as the certificate) granted in accordance with the provisions of this section; and a separate certificate shall be required in respect of every separate License any License granted in contravention of this section shall be void.
  2. Any person carrying out business in Municipality/Division/Town/City/Kampala City Council Authority’s jurisdiction except those who are exempted under Section 8(2) of the Trade Licensing Act are eligible to obtain Trading license for Money Lending and Savings institution -Grade I

The exempted businesses include among others the following:

  • Any trade carried on in a market.
  • The trade of a planter, farmer, gardener, dairy person or agriculturist in respect of sale of his or her own dairy or agriculture produce.
  • The trade of a person in respect of goods bonafide made by him or her by his or her handicraft in or any premises where he or she normally resides, or by the handicraft of persons normal: residing with him or her or who are his or employees or members of his or her family

FeesEdit

Municipal Council Grade I
Application Fees: Nil

  • (a) Grade I - - 487,500 Ugsh
  • (b) Grade II - - 262,500 Ugsh
  • (c) Grade III - 195,000 Ugsh
  • (d) Grade IV - 105,000 Ugsh

Municipal Council Renewal Fees:

  • (a) Grade I - 487,500 Ugsh
  • (b) Grade II - 262,500 Ugsh
  • (c) Grade III - 195,000 Ugsh
  • (d) Grade IV - 105,000 Ugsh

ValidityEdit

Validity: 1 Year.

Documents to UseEdit

Please attach documents that can be used by people. e.g. links

Sample DocumentsEdit

Application Form.

Processing TimeEdit

Maximum Processing Time: 2 Day

Related VideosEdit

Videos explaining the procedure or to fill the applications. 
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites. 	
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver, 
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

InstructionsEdit

  • A licence issued to the money lending and saving institution is valid until 31st December in every year and may be renewed annually.
  • The license is not transferable or assignable. Once issued, the license must be displayed at all premises in which the money lending and saving institution transacts money lending business.
  • The Regulations require money lending institution to maintain a physical address and maintain and retain records relating to their business for a period of 10 years. This is the same period required of financial institutions under the Anti-Money Laundering Act.
  • In addition, money lending are required to display interest rate charges at all times in a conspicuous place at their premises and maintain proper books of account, including a register of securities and debtors. This will enhance transparency in the business and promote confidence in money lenders.
  • The regulation requires money lending and saving institution to evaluate the fitness and propriety of the management board of a institution and of any person who will be employed by or associated with the money lender. This is akin to the fit and proper test that is carried out on the board and management of a financial institution.
  • The Regulations seek to curb the hitherto unorthodox practice of money lending and saving institution withholding important documents of a borrower in order to guarantee repayment, essentially holding the borrower hostage.
  • A money lending and saving institution cannot dispose of collateral unless 60 days have lapsed since a demand for payment was made on the borrower.
  • Purpose of this License is to regulate the trade of for Money Lending and Savings institution -Grade I in Uganda.

Required InformationEdit

  1. Names, Physical and Postal Address of Applicant
  2. Legal Status of the Applicant
  3. List and Particulars of Shareholders;
  4. Certificate of Registration,
  5. Certificate of Incorporation,
  6. Memorandum and Articles of Association
  7. Deed of Partnership,
  8. Deed of Trust, as applicable
  9. Information if the shareholder has ever been convicted of a criminal offence in Uganda or in any other country.
  10. List and Particulars of Directors.
  11. information if you have ever acquired a Licence and state the nature of the Licence, date issued and the Licence number


Need for the DocumentEdit

Please provide the need for the procedure. e.g. Birth Certificate - why do we need to have a birth certificate?

Information which might helpEdit

  • Grade I areas to comprise all industrial areas in the Municipality and District.
  • Grade II areas to comprise all areas outside Grade I areas in the Municipality.
  • Grade III areas comprise in the trading centers- in a District.
  • Grade IV areas that comprise outside the trading centers in the District.

The following link comprises of Grading of the Areas in the Division/Municipality/Town/City/District. Grading Link

Other uses of the Document/CertificateEdit

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External LinksEdit

https://businesslicenses.go.ug/index.php/printlicense/id/1410

OthersEdit

More information which might help people.


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