Uganda - Apply for a Licence to Start a Commercial Bank.

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Procedure

Apply in Person

1. Contact Bank of Uganda at an early stage for a preliminary meeting to discuss Bank of Uganda licensing requirements and related issues
2. Seek Bank of Uganda’s approval for the use of the word “Bank’’ or “Finance” in the proposed name.
3. Book an appropriate name with the Registrar of Companies and write to Bank of Uganda to seek approval for the name.
   • The name a search and reservation takes one day to complete and a fee of UGsh.20,000 is charged for the process.
4. After the name has been approved by the Bank of Uganda, you should proceed to the Registrar of Companies for incorporation of the proposed bank as a limited liability company.
5. Upon incorporation of the Limited Liability Company, apply to Bank of Uganda for a Commercial Bank License.
6. At this stage you should contact the Bank Supervision Department at Bank of Uganda or download and complete the following application forms which can be accessed from the Bank of Uganda Website.Bank of Uganda
7. The duly completed application form, should be forwarded together with the support documentation below:
   • Certified copy of the certificate of incorporation of the institution.
   • Certified copy of the Memorandum and Articles of Association of the proposed institution.
   • Certified copy of the Memorandum and Articles of Association of any corporate body that proposes to have a significant shareholding in the institution.
   • Certified copy of the latest audited financial statements for each of the three years immediately preceding the date of the application if the applicant has been operating in any sector under any name and laws or in cases where any of the shareholders is a corporate body.
   • Where the proposed significant shareholders are natural persons, certified personal statements of affairs for the past three years should be submitted.
8. All applications should be submitted together with a non-refundable application fee,payable by banker’s cheque in favour of the Bank of Uganda or such other mode of payment as the Bank of Uganda may prescribe,as specified under the Fourth Schedule to the Banking Act,the Banking Fees Regulations. The application fee is currently UGshs 2,000.000
9. In case of an institution incorporated outside Uganda, in addition to notarized copies of the documents specified above, the following should also be submitted:
   • A notarized copy of the signed minutes of the board of the institution or other prime oversight body passing the resolution to establish a branch or subsidiary in Uganda,
   • An undertaking by the board or other oversight body to maintain minimum assigned capital in the proposed branch or subsidiary in Uganda as per the Banking Act and that such capital shall be in Uganda shillings,
   • The name and contact details of a designated person(s) from the Head Office authorized to liaise with the Central Bank on the application on behalf of the institution.
   • A letter of no objection from the home supervisory authority recommending the applicant to establish a branch or subsidiary in Uganda should be obtained. The letter should be forwarded directly to the Director, Bank Supervision Department, Bank of Uganda, P.O. Box 7120, Kampala Uganda.
   • There shall be an understanding that the home country supervisor will exchange supervisory information with the Bank of Uganda.
   • Confirmation from the home country supervisor that the promoters of the foreign incorporated bank do not operate a shell bank should be obtained.
   • Where necessary, confirmation from the home supervisor that the supervisor conducts consolidated supervision.
   • Sworn declarations signed by every officer as specified in the application forms.
10. A feasibility study of the future operations and development of the intended business of the bank for a minimum period of three years from the date of the application should also be submitted.
11. The applicant should also provide sources and evidence of availability of capital .Currently a minimum capital of UGshs. 10 billion is required to start a commercial bank company.
12. Every proposed individual and institutional shareholder should submit, as part of the sworn declaration, the statement to the effect that the proposed capital is not from proceeds of crime or illicit activities.
13. Upon meeting all the requirements, the Central Bank will grant the applicant an approval in principle to conduct the business of a Commercial bank.
14. With this approval,the applicants may proceed to obtain premises,Information Technology Systems, put in place other necessary operating facilities and recruit staff for the institution.
15. Once the applicants are ready with their premises and systems, they should then invite the Central Bank to conduct an inspection.
16. If the inspection is satisfactory, and prior to issuance of the license, applicants are required to pay the prescribed annual license fees. The prescribed annual license fees are payable in full for the year during which the license is initially issued, and shall not be prorated for validity periods less than 12 months.
17. Once the requisite license fees have been paid, the Central Bank places a notice in the Uganda Gazette to formally specify the institution.
18. A license is then issued and the newly licensed institution can open its doors to the public.

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Required Documents

1. Duly filled prescribed application forms
2. Certified copy of the certificate of incorporation of the institution.
3. Certified copy of the Memorandum and Articles of Association of the proposed institution.
4. Certified copy of the Memorandum and Articles of Association of any corporate body that proposes to have a significant shareholding in the institution.
5. Certified copy of the latest audited financial statements for each of the three years immediately preceding the date of the application if the applicant has been operating in any sector under any name and laws or in cases where any of the shareholders is a corporate body.
6. Where the proposed significant shareholders are natural persons, certified personal statements of affairs for the past three years should be submitted.

Office Locations & Contacts

Uganda Registration Services Bureau - Head Office,
Uganda Business Facilitation Centre
Plot 1 Baskerville Avenue,
Kololo,
Kampala
Toll Free: 0800 100 006
Call Center: +256 417 338 100
Phone: +256 414 233 219 / 0417338000
Fax: +256 414 250 712
Email: [email protected] (General Correspondences)
Email: [email protected] (For Enquiries)
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

Eligibility

• Any person is eligible to make an application to run a commercial Bank in Uganda.
• This application allows a person to operate a Commercial Bank in Uganda.
• In Uganda no person shall, operate a Commercial Bank in Uganda unless authorized by Bank of Uganda.

Fees

• Licence Application Fee for New Commercial Bank: 2,000,000 Ugshs Non refundable
• Annual License Fee: 10,000,000 Ugshs

• For More information on the charges visit this link:Bank charges

Validity

• The validity period is one year.
• A licence issued under this section shall, unless earlier revoked, expire on the 31st December next following the date of issue.

Documents to Use

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

Sample Documents

SCHEDULES
SCHEDULE 1
REGULATION 11
APPLICATION FOR A LICENCE TO ESTABLISH A FINANCIAL INSTITUTION
(To be submitted in duplicate)
The Governor,
Bank of Uganda
P.O Box 7120,
KAMPALA

I, the undersigned, acting as principal/promoter/in the capacity of duly authorised agent on behalf of ...................................., a Company incorporated under the Companies Act, CAP. 110 Laws of Uganda ("the principal"), hereby apply for a licence in terms of section 10 of the Financial Institutions Act, 2004 to establish a financial institution to carry on the business(es) specified in class(es)**.................... pursuant to section 10(3) and the Second Schedule to the Financial Institutions Act, 2004.
2.I submit the documentation specified in section 10 of the Act and regulation 12 of the Financial Institutions (Licensing) Regulations, 2005.
......................................................
…………………………
Date
Applicant
Applicant’s address/ Tel.
Principal’s address/Tel..................................
Certification and Undertaking
I, the undersigned, ................................... hereby certify that all information contained in and accompanying this application is complete and accurate to the best of my knowledge and belief.
I undertake to forthwith notify the Bank of Uganda, of any material change in the particulars of this application.
Sworn at ................. this .........day of
.....................200......
_______________________ _______________________
Signature of Deponent
Principal/ Promoter/Agent
Deponent understands the contents of this declaration.
Before me,
___________________________
COMMISSIONER FOR OATHS
Note: **List all the types of business activities in which you propose to engage.

Processing Time

The processing time is 90 days.

Related Videos

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'.

Instructions

• For issuance of a license, please submit the duly completed form, to Central Bank of Uganda
• For purposes of application for a new license, an applicant is required first to seek approval name from the Central Bank of Uganda and thereafter will be advised on the documents to be submitted together with the duly completed form.
• Upon satisfying all the requirements and paying the applicable licensing fees the applicant will be issued with a license.
• All information provided shall be treated as confidential.

Required Information

1. Name of applicant
2. Head/ Main office
3. Physical and postal address of head office/ proposed new outlet
4. Date of incorporation
5. Form of incorporation
6. Description of the applicants business or functions
7. Certificate of incorporation Number
8. Details of subsidiaries and affiliates (Name of Outlet, County, City/Town, Street, Building, Date opened)
9. Particulars of shareholders (Name, Nationality, Date of acquisition, Amount of shareholding, % of shareholding)
10. Particulars of directors (Name, Nationality, Date of appointment, Level of education)
11. Particulars of the officers in the order of seniority (Name, Designation, Nationality, Date of appointment)
12. Ownership profiles
13. Shareholding in any other financial institution
14. Name of applicants external auditors
15. Declaration

Need for the Document

• This license allows the holders to operate a Commercial Bank in Uganda.
• A person who operates a Commercial Bank without a valid license commits an offence and shall, on conviction be liable to a fine not exceeding five hundred thousand shillings, or to imprisonment for term not exceeding three years, or to both.

Information which might help

• The Bank shall be body corporate with perpetual succession and a common seal, with power to acquire, own, possess and dispose of property, to contract, and to sue and to be sued in its own name.

Other uses of the Document/Certificate

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

External Links

• External Link 1
• External Link 2

Others

More information which might help people.