Uganda Economy Profile - Doing Business 2019

 
Uganda Economy Profile - Doing Business 2019
Doing Business 2019   Uganda

                               Economy Profile

                               Uganda

                                                 Page 1
Uganda Economy Profile - Doing Business 2019
Doing Business 2019       Uganda

                                             Economy Profile of Uganda

                                          Doing Business 2019 Indicators
                                     (in order of appearance in the document)

Starting a business                 Procedures, time, cost and paid-in minimum capital to start a limited liability company

Dealing with construction permits   Procedures, time and cost to complete all formalities to build a warehouse and the quality
                                    control and safety mechanisms in the construction permitting system

Getting electricity                 Procedures, time and cost to get connected to the electrical grid, and the reliability of the
                                    electricity supply and the transparency of tariffs

Registering property                Procedures, time and cost to transfer a property and the quality of the land administration
                                    system

Getting credit                      Movable collateral laws and credit information systems

Protecting minority investors       Minority shareholders’ rights in related-party transactions and in corporate governance

Paying taxes                        Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
                                    well as post-filing processes

Trading across borders              Time and cost to export the product of comparative advantage and import auto parts

Enforcing contracts                 Time and cost to resolve a commercial dispute and the quality of judicial processes

Resolving insolvency                Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
                                    legal framework for insolvency

Labor market regulation             Flexibility in employment regulation and aspects of job quality

                                                                                                                                       Page 2
Doing Business 2019           Uganda

About Doing Business

The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.

The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.

Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.

By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.

In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.

The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.

More about Doing Business (PDF, 5MB)

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Doing Business 2019                Uganda

         Ease of Doing Business in                                                                                            DB 2019 Rank
                                               Region                 Sub-Saharan Africa
                                                                                                             190                                        1
               Uganda
                                               Income Category        Low income                                               127
                                                                                                                      DB 2019 Ease of doing business score
                                               Population             42,862,958
                                                                                                               0                               100

                                               City Covered           Kampala                                                          57.06

                                                            DB 2019 Ease of Doing Business Score

                       0                                                                                                              100
                                                                                                           77.88: Rwanda (Rank: 29)

                                                                                                    70.31: Kenya (Rank: 61)

                                                                                             66.03: South Africa (Rank: 82)

                                                                                       59.59: Malawi (Rank: 111)

                                                                                     57.06: Uganda (Rank: 127)

                                                                            51.61: Regional Average (Sub-Saharan Africa)

Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.

Rankings on Doing Business topics - Uganda

         1

         28

         55
                                                                                73                                                             71

         82                                                                                                   87
 Rank

                                                                                              110                                                             112
        109                                                                                                                   119
                                                               126

        136                    145

                164
        163                                   175

        190

              Starting       Dealing         Getting        Registering      Getting        Protecting      Paying         Trading          Enforcing        Resolving
                 a            with          Electricity      Property        Credit          Minority       Taxes          across           Contracts       Insolvency
              Business     Construction                                                     Investors                      Borders
                             Permits

Ease of Doing Business Score on Doing Business topics - Uganda

        100

        80
               72.25                                                                                         73.10
                                                                                                                              66.73
                              58.93                                          60.00                                                             60.60
Score

        60                                                    54.99
                                                                                              50.00

                                                                                                                                                              39.89
        40                                    34.09

        20

         0

              Starting       Dealing         Getting        Registering      Getting        Protecting       Paying        Trading          Enforcing        Resolving
                 a            with          Electricity      Property        Credit          Minority        Taxes         across           Contracts       Insolvency
              Business     Construction                                                     Investors                      Borders
                             Permits

                                                                                                                                                                         Page 4
Doing Business 2019           Uganda

     Starting a Business

This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.

To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.

The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.

 What the indicators measure                              Case study assumptions

Procedures to legally start and formally operate        To make the data comparable across economies, several assumptions about the
a company (number)                                      business and the procedures are used. It is assumed that any required information is
                                                        readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
  reservation, notarization)
                                                        The business:
• Registration in the economy’s largest business        - Is a limited liability company (or its legal equivalent). If there is more than one type
  city
                                                        of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security        is chosen. Information on the most common form is obtained from incorporation
  registration, company seal)                           lawyers or the statistical office.
                                                        - Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a
  business or to leave the home to register the         also collected for the second largest business city.
  company                                               - The entire office space is approximately 929 square meters (10,000 square feet).
                                                        - Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for            has a start-up capital of 10 times income per capita and has a turnover of at least
  company registration and operation or national        100 times income per capita.
  identification card
                                                        - Performs general industrial or commercial activities, such as the production or sale
                                                        of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
                                                        activities and does not handle products subject to a special tax regime, for example,
(calendar days)
                                                        liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering                 - Leases the commercial plant or offices and is not a proprietor of real estate and the
  information                                           amount of the annual lease for the office space is equivalent to the income per
                                                        capita.
• Each procedure starts on a separate day (2
  procedures cannot start on the same day)              - Does not qualify for investment incentives or any special benefits.
                                                        - Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded        operations, all of whom are domestic nationals.
  as ½ day                                              - Has a company deed that is 10 pages long.
• Procedure is considered completed once final
  document is received                                  The owners:

• No prior contact with officials                       - Have reached the legal age of majority. If there is no legal age of majority, they are
                                                        assumed to be 30 years old.
Cost required to complete each procedure (% of          - Are sane, competent, in good health and have no criminal record.
income per capita)                                      - Are married and the marriage is monogamous and registered with the authorities.
                                                        - Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes                        man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by      answer used will be the one that applies to the majority of the population.
  law or commonly used in practice

Paid-in minimum capital (% of income per
capita)

• Funds deposited in a bank or with third party
  before registration or up to 3 months after
  incorporation

                                                                                                                                                     Page 5
Doing Business 2019         Uganda

Starting a Business - Uganda

  Standardized Company

 Legal form                                                             Private Limited Company

 Paid-in minimum capital requirement                                    UGX 0

 City Covered                                                           Kampala

  Indicator                                             Uganda             Sub-Saharan            OECD high         Best Regulatory
                                                                           Africa                 income            Performance

 Procedure – Men (number)                              13                  7.4                   4.9               1 (New Zealand)

 Time – Men (days)                                     24                  23.3                  9.3               0.5 (New Zealand)

 Cost – Men (% of income per capita)                   33.6                44.4                  3.1               0.0 (Slovenia)

 Procedure – Women (number)                            13                  7.6                   4.9               1 (New Zealand)

 Time – Women (days)                                   24                  23.4                  9.3               0.5 (New Zealand)

 Cost – Women (% of income per capita)                 33.6                44.4                  3.1               0.0 (Slovenia)

 Paid-in min. capital (% of income per capita)         0.0                 10.0                  8.6               0.0 (117 Economies)

 Figure – Starting a Business in Uganda and comparator economies – Ranking and Score

                                                    DB 2019 Starting a Business Score

       0                                                                                           100

                                                                                        91.39: Rwanda (Rank: 51)

                                                                                 82.41: Kenya (Rank: 126)

                                                                             81.22: South Africa (Rank: 134)

                                                                           78.52: Regional Average (Sub-Saharan Africa)

                                                                          77.18: Malawi (Rank: 153)

                                                                      72.25: Uganda (Rank: 164)

Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.

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Doing Business 2019   Uganda

  Figure – Starting a Business in Uganda – Procedure, Time and Cost

                                                   Time (days)          Cost (% of income per capita)
                                                                                                                                        14

                                                                                                                                        12

                                                                                                                                             Cost (% of income per capita)
               20

                                                                                                                                        10
 Time (days)

               15
                                                                                                                                        8

               10                                                                                                                       6

                                                                                                                                        4
               5
                                                                                                                                        2

               0                                                                                                                        0
                    1   2      3         4         5         6          7         8        9            10   11        12        13
                                                                 Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                             Page 7
Doing Business 2019         Uganda

Details – Starting a Business in Uganda – Procedure, Time and Cost

No.    Procedures                                                                             Time to Complete   Associated Costs

1     Submit the Name Reservation Form to the assessment window of the                        1 day              USH 20,000 + USH
      Uganda Registration Services Bureau (URSB) and obtain the bank payment                                     2,200 bank fee
      slip
      Agency : Office of the Registrar, Uganda Registration Service Bureau
      To reserve a company name, the entrepreneur submits the name reservation
      form to the assessment window of the Uganda Registration Service Bureau
      (URSB). The clerk returns the application, along with the requisite fee
      assessment payable at the bank. The name reservations forms can be
      downloaded for free at the following: http://ursb.go.ug/services/business-
      registration/forms-for-business-registration/

2     Pay the name reservation fees at the bank                                               1 day              included in previous
      Agency : Bank                                                                                              procedure
      All nontax payments to government agencies must be made at a bank. Upon
      payment of the specified assessment fee, the entrepreneur receives a bank
      receipt that is used to complete the name reservation process. The payable fees
      include: USH 20,000 for name reservation; and USH 2,200 for the bank service
      fee. As of 2017, there are two banks located at URSB, one on the first floor and
      one on the sixth floor.

3     Reserve the company name                                                                1 day              no charge
      Agency : Office of the Registrar, Uganda Registration Service Bureau
      The entrepreneur presents the payment receipt at the name search window of
      URSB. Upon payment of the required fee, the suggested name is subjected to a
      search in the business registry database. If the name passes the similarity,
      defensive, offensive, and desirability tests, it is reserved for a period of 30 days.
      There are name reservations books where the entrepreneur can search and see
      if the name was approved or rejected and for what reasons.

4     Obtain the slip-in for the payment of the registration fee and the stamp duty           1 day              no charge
      from URSB
      Agency : Bank or URSB
      Entrepreneurs can now obtain the bank payment advice forms online without
      having to go the Uganda Registration Services Bureau. This is because the fee
      assessment process can now be done online www.ura.go.ug/payment.do .
      Entrepreneurs can also go to the company registry, or to the bank to obtain the
      bank payment advice forms.

5     Pay the registration fees at a designated bank                                          1 day              no charge
      Agency : Bank
      Registration receipts are obtained from the designated bank where the fees are
      paid (within 30-40 minutes). Previously, the founder had to pay the fee at the
      bank and wait for 3 days to pick up the receipts from the Ministry of Justice.

                                                                                                                                        Page 8
Doing Business 2019         Uganda

6    File the registration documents at the Office of the Registrar and Obtain the           between 3-5 days   see comments
     Certificate of Incorporation
     Agency : Office of the Registrar
     Registration is an administrative process conducted by the Uganda Registration
     Services Bureau, which is autonomous from the Ministry of Justice and handles
     company registration-related issues. To register, the entrepreneur must submit
     the following documents as indicated to the Registration window of URSB:

     - A completed application Form.
     - Form A1: Statement of Nominal Capital.
     - Form S18: Registration form.
     - Form A3: Before incorporation, shares are not yet paid for and thus not allotted.
     After incorporation, as soon as a company allots its shares, the returns should be
     registered within 60 days.
     - Form 19: consent to act as a director.
     - Form 20: Particulars of the directors and secretary of the company is required
     to be filed within 14 days of company registration.
     - Form 18: Notice of the situation of the Registered Address of the company. This
     form must be filed with the Registrar of Companies within fourteen days of
     incorporation.
     - Company Resolutions: The Business Registry can register resolutions of the
     Company general meetings and board meeting.

     Fee schedule for company registration:
     - Registration fees: UGX 20,000
     - Stamp duty: 0.5 % of the share capital
     - Stamp Duty on Memorandum & Articles of Association: UGX 35,000
     - Filing Fees: UGX 25,000
     - Filing Form A3: UGX 20,000
     - Filing Form 7: UGX 20,000
     - Filing Form A9: UGX 20,000

     Once the documents are submitted and the fees are paid, the applicant will get a
     receipt to return to retrieve documents.

7    Obtain a Tax Identification Number (TIN) and Register for taxes at the                  between 4-6 days   no charge
     Uganda Revenue Authority
     Agency : Uganda Revenue Authority
     According to section 14 of the Public Finance and Management Act 2015, all
     businesses seeking a trading license or any form of authorization necessary for
     purposes of conducting any business in Uganda are required to have a TIN. The
     company submits a personal inquiry form for each director, and a corporate
     preliminary inquiry form in application for the Tax Identification Number (TIN).
     The TIN application can be completed online on the website of the Uganda
     Revenue Authority (URA): www.ura.go.ug. The company also registers for VAT if
     the company has a threshold of over 50,000,000 shillings according to the Value
     Added Tax Act sect. 7.

     On uploading the application form online, the system will print the applicant to
     print out the online form which has to be signed and submitted it to the nearest
     URA office together with Company Form 20 and a copy of the Certificate of
     Incorporation of the Company. The Corporate Tax file number is internally
     assigned upon approval.

8    Receive inspection of the business premises by the Uganda Revenue                       1 day              no charge
     Authority (URA)
     Agency : Uganda Revenue Authority
     The business premises undergo inspection by the Uganda Revenue Authority
     (URA). Once the applicant calls for an appointment, they will usually come to
     your premise the next day if you are available.

9    Obtain trading license                                                                  4 days             no charge
     Agency : Kampala Capital City Authority
     The entrepreneur applies for a trade license at the Municipal Authority/Council
     Authority where the company premises are located. The trading license is a
     general business license required for all companies, including service
     companies.

     As of January 2015, you can download and print the standard forms online
     through the COIN system:https://ecitie.kcca.go.ug/portal/registration/coin-
     application-non-individual/. Once online, you complete the standard form A,
     which can be accessed online, and submitted to the Municipality or City Council,
     along with the relevant company documents, including the memorandum and
     articles of association, the name of the directors, the certificate of incorporation,
     and the lease agreement. You will then be issued a payment slip to take to the
     Bank.

                                                                                                                               Page 9
Doing Business 2019         Uganda

10    Receive inspection of the business premises by the licensing officer and           1 day    no charge
      obtain the assessment form
      Agency : Kampala Capital City Authority
      The division of Kampala Capital City Authority (KCCA) in the jurisdiction where
      the business premises are located does inspection ensuring you have applied for
      the trading license, then issues the Trading licenses on behalf of KCCA. Upon
      inspection of the company premises, these divisions issue the assessment forms
      for the fees payable, which vary with the location of the office. These fees are
      regulated by the Trade Licensing (Amendment of Schedule) Instrument, 2011.

11    Pay the license fee at the bank                                                    1 day    USH 210,000
      Agency : Bank
      The founder must pay the relevant license fee at the bank, as follows:

      Grade 1
      - Carrying out wholesale business: UGX 498,750
      - Carrying out retail business: UGX 210,000

      Grade 2
      - Carrying out wholesale business: UGX 236,250
      - Carrying out retail business: UGX 78,750

      Once the fees are paid, the Municipal Authority issues the Trading License. This
      authority also reserves the right to revoke and cancel the trading license if
      deemed necessary by municipal inspections (health and building).

12    Register with the National Social Security Fund (NSSF)                             2 days   no charge
      Agency : National Social Security Fund
      The National Social Security Fund (NSSF) is governed by the revised laws of
      Uganda, the National Social Security Fund Act Cap 222. The NSSF is a
      compulsory saving scheme for private-sector employees between the age of 16-
      55 years, non-governmental organizations, and government parastatal bodies
      that are not covered by the government pension scheme. Under the Act, all
      employers with more than 5 employees are obliged to pay an NSSF contribution
      of 10% of the employees gross monthly salary. Registration forms for NSSF can
      be downloaded from the NSSF website.

13    Make a company seal                                                                1 day    USH 225,000
      Agency : Sealmaker
      A company seal is mandatory. Section 117 (b) of the companies Act 2012
      provides that every Company shall have its name engraved in legible letters on
      its seal which shall take the form of embossed metal die.

Takes place simultaneously with previous procedure.

                                                                                                                Page 10
Doing Business 2019              Uganda

     Dealing with Construction Permits

This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information

 What the indicators measure                              Case study assumptions

Procedures to legally build a warehouse                 To make the data comparable across economies, several assumptions about the
(number)                                                construction company, the warehouse project and the utility connections are used.

• Submitting all relevant documents and obtaining       The construction company (BuildCo):
  all necessary clearances, licenses, permits and
  certificates                                          - Is a limited liability company (or its legal equivalent) and operates in the economy’s
                                                        largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving   largest business city.
  all necessary inspections
                                                        - Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and           legal entity. Has a licensed architect and a licensed engineer, both registered with
  sewerage                                              the local association of architects or engineers. BuildCo is not assumed to have any
                                                        other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
  completion                                            topographical experts.
                                                        - Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure                upon its completion.
(calendar days)
                                                        The warehouse:
• Does not include time spent gathering
  information                                           - Will be used for general storage activities, such as storage of books or stationery.
                                                        - Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day—              approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
  though procedures that can be fully completed
                                                        meters (9 feet, 10 inches) high and will be located on a land plot of approximately
  online are an exception to this rule
                                                        929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final          warehouse is valued at 50 times income per capita.
  document is received                                  - Will have complete architectural and technical plans prepared by a licensed
                                                        architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials
                                                        documentation or getting prior approvals from external agencies, these are counted
Cost required to complete each procedure (% of          as procedures.
income per capita)                                      - Will take 30 weeks to construct (excluding all delays due to administrative and
                                                        regulatory requirements).
• Official costs only, no bribes
                                                        The water and sewerage connections:
Building quality control index (0-15)
                                                        - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2)                 is no water delivery infrastructure in the economy, a borehole will be dug. If there is
• Quality control before construction (0-1)             no sewerage infrastructure, a septic tank in the smallest size available will be
                                                        installed or built.
• Quality control during construction (0-3)             - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3)              wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
                                                        1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2)                 gallons) a day.
• Professional certifications (0-4)                     - Will have a constant level of water demand and wastewater flow throughout the
                                                        year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
                                                        the sewerage connection.

                                                                                                                                                   Page 11
Doing Business 2019          Uganda

Dealing with Construction Permits - Uganda

       Standardized Warehouse

    Estimated value of warehouse                                                   UGX 104,346,563.70

    City Covered                                                                   Kampala

       Indicator                                              Uganda                  Sub-Saharan            OECD high           Best Regulatory
                                                                                      Africa                 income              Performance

    Procedures (number)                                       18                      14.7                   12.7                None in 2017/18

    Time (days)                                               114                     145.7                  153.1               None in 2017/18

    Cost (% of warehouse value)                               8.1                     8.8                    1.5                 None in 2017/18

    Building quality control index (0-15)                     8.0                     8.5                    11.5                15.0 (3 Economies)

  Figure – Dealing with Construction Permits in Uganda and comparator economies – Ranking and Score

                                                   DB 2019 Dealing with Construction Permits Score

                     0                                                                                        100

                                                                            68.25: South Africa (Rank: 96)

                                                                           67.01: Rwanda (Rank: 106)

                                                                         63.49: Kenya (Rank: 128)

                                                                      61.17: Malawi (Rank: 136)

                                                                    58.93: Uganda (Rank: 145)

                                                                    58.59: Regional Average (Sub-Saharan Africa)

Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.

  Figure – Dealing with Construction Permits in Uganda – Procedure, Time and Cost

                                                        Time (days)              Cost (% of warehouse value)
                                                                                                                                                      6

               100
                                                                                                                                                      5
                                                                                                                                                          Cost (% of warehouse value)

               80
                                                                                                                                                      4
 Time (days)

               60
                                                                                                                                                      3

               40                                                                                                                                     2

               20                                                                                                                                     1

                0                                                                                                                                     0
                         1   2   *3   *4       5   6      7         *8       9       10       11    12       13      14   * 15    16    17    * 18
                                                                         Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                                        Page 12
Doing Business 2019                      Uganda

Figure – Dealing with Construction Permits in Uganda and comparator economies – Measure of Quality

              15                                                                                    14.0
                                                                                                                          12.0

Index score                                                                  9.5
              10                                      9.0
                               8.0                                                                                                            8.5

                  5

                  0

                             Uganda                  Kenya                  Malawi                Rwanda               South Africa     Sub-Saharan Africa

Details – Dealing with Construction Permits in Uganda – Procedure, Time and Cost

  No.                 Procedures                                                                             Time to Complete         Associated Costs

1                     Hire an independent private company to prepare the environmental impact                21 days                  UGX 5,000,000
                      assessement
                      Agency : Private Company
                      Preparation of the environmental impact assessment (EIA) is carried out by
                      independent private firms recognized and licensed by National Environment
                      Management Authority. Fees are incurred for the preparation of the EIA; the cost
                      would range from UGX 5,000,000 to UGX 15,000,000, depending on the project
                      complexity and site conditions.

2                     Obtain a search letter from the KCCA                                                   7 days                   UGX 10,000
                      Agency : Kampala Capital City Authority
                      A search letter is first carried out to ascertain the ownership of the land and that
                      there are no encumbrances on this land. It must be no more than 3 months old.
                      Once this confirmation is received, the process of requesting a building permit
                      may start.

              3       Request and obtain approval from National Environment Management                       21 days                  UGX 1,250,000
                      Authority (NEMA)
                      Agency : National Environment Management Authority
                      NEMA requires an environmental impact assessment preliminary report to be
                      undertaken on a project prior to its construction. Only consultants registered by
                      NEMA are allowed to provide environmental impact assessment submissions,
                      whether as an EIA project report or a full EIA study. The lead environmental
                      expert must be registered with NEMA.

                      The environmental consultant requires to provide a complete set of architectural
                      drawings to accompany the compiled EIA project report.

              4       Receive onsite inspection by members of NEMA                                           1 day                    no charge
                      Agency : National Environment Management Authority

5                     Obtain assessment of the plans by Kampala Capital City Authority (KCCA)                3 days                   no charge
                      Agency : Kampala Capital City Authority
                      KCCA provides a preliminary assessment or screening of the general plans.
                      KCCA gives feedback on the planning process for the project before proceeding
                      to the next approval stage of the full plan.

6                     Request and obtain approval of plans and receive building permit                       30 days                  UGX 1,460,600
                      Agency : Kampala Capital City Authority
                      All construction sites are required to provide for hoarding around the site of the
                      works for the duration of the construction period.

                      A Technical Review Team (TRT) comprising of engineers, physical planners,
                      environmental officers, and architects has been developed to visit the
                      construction site within one week after the application has been submitted. They
                      are expected to start conducting inspections in the coming year.

7                     Request and obtain hoarding permit                                                     14 days                  no charge
                      Agency : Kampala Capital City Authority
                      The hoarding permit requires a separate application. It takes on average 2 weeks
                      after the application to be obtained. KCCA calls the customer to pick up the
                      permit.

              8       Request and obtain the "job card"                                                      14 days                  no charge
                      Agency : Kampala Capital City Authority
                      The constructor will apply for a job card, which is basically a commencement of
                      work. KCCA will inspect the construction site and then will give a letter to
                      commence construction and also a “Job Card” which is then signed during the
                      various stages of construction inspection.

                                                                                                                                                             Page 13
Doing Business 2019          Uganda

9     Notify and receive inspection after building foundation work                            1 day     no charge
      Agency : Kampala Capital City Authority
      There are several main inspections during construction:
      1. First inspection is during the pouring of the foundation
      2. Second inspection is during the installation of steel bars and foundation
      concrete
      3. Floor inspection – for each floor, during the critical elements of building – ie,
      suspended floor columns.
      4. Inspection after drainage and damp proofing work (this inspection might not
      happen often in practice)

10    Notify and receive inspection after structural work                                     1 day     no charge
      Agency : Kampala Capital City Authority
      BuildCo calls KCCA to inform of completion of each stage of construction and the
      inspectors come and inspect and sign on job card. Inspectors are usually
      available and inspect within 2-3 days of being called.

11    Notify and receive inspection after the completion of the first floor                   1 day     no charge
      Agency : Kampala Capital City Authority
      BuildCo calls KCCA to inform of completion of each stage of construction and the
      inspectors come and inspect and sign on job card. Inspectors are usually
      available and inspect within 2-3 days of being called.

12    Notify and receive inspection after the completion of the second floor                  1 day     no charge
      Agency : Kampala Capital City Authority
      BuildCo calls KCCA to inform of completion of each stage of construction and the
      inspectors come and inspect and sign on job card. Inspectors are usually
      available and inspect within 2-3 days of being called.

13    Notify and receive inspection after drainage and damp proofing work                     1 day     no charge
      Agency : Kampala Capital City Authority
      BuildCo calls KCCA to inform of completion of each stage of construction and the
      inspectors come and inspect and sign on job card. Inspectors are usually
      available and inspect within 2-3 days of being called.

14    Notify of the completion of construction and receive a final inspection                 1 day     no charge
      Agency : Kampala Capital City Authority
      BuildCo calls KCCA to inform of completion of each stage of construction and the
      inspectors come and inspect and sign on job card. Inspectors are usually
      available and inspect within 2-3 days of being called.

      Request provision of water and sewerage services                                        1 day     UGX 600,000
15    Agency : National Water & Sewerage Corporation
      New connection can be applied for online.The information entered is processed
      and a surveyor sent to the customer's premise to determine the material
      requirements. Connection expenses are calculated by the surveyor based on the
      connection type, distance from the mains, whether it is a new connection or a
      separation of account. NWSC caters for connection expenses within 50 meters,
      beyond that, the customer caters for any extra meters. The customer is given a
      payment advise slip and pays new connection fees, whose amount depends on
      the size of the service for instance, ½, ¾, 1 inch connection. When all the above
      has been done the customer is connected to NWSC service(s) by staff in charge.
      No official fee schedule, cost is calculated by NWSC based on the connection.

16    Receive survey inspection from the National Water & Sewerage                            1 day     no charge
      Corporation
      Agency : National Water & Sewerage Corporation

17    Connect to water and sewerage                                                           14 days   no charge
      Agency : National Water & Sewerage Corporation

      Request and obtain occupation permit                                                    14 days   UGX 80,000
18    Agency : Local Authority
      BuildCo submits a signed certificate to the local authority stating that the building
      has been constructed in compliance with the approved plans. It can then receive
      the occupation permit.

Takes place simultaneously with previous procedure.

                                                                                                                      Page 14
Doing Business 2019         Uganda

Details – Dealing with Construction Permits in Uganda – Measure of Quality

                                                                                                      Answer               Score

Building quality control index (0-15)                                                                                      8.0

Quality of building regulations index (0-2)                                                                                1.0

  How accessible are building laws and regulations in your economy? (0-1)                             Available online;    1.0
                                                                                                      Free of charge.

  Which requirements for obtaining a building permit are clearly specified in the building            List of required     0.0
  regulations or on any accessible website, brochure or pamphlet? (0-1)                               documents.

Quality control before construction index (0-1)                                                                            1.0

  Which third-party entities are required by law to verify that the building plans are in             Licensed             1.0
  compliance with existing building regulations? (0-1)                                                architect;
                                                                                                      Licensed
                                                                                                      engineer.

Quality control during construction index (0-3)                                                                            2.0

  What types of inspections (if any) are required by law to be carried out during construction?       Inspections at       1.0
  (0-2)                                                                                               various phases.

  Do legally mandated inspections occur in practice during construction? (0-1)                        Mandatory            1.0
                                                                                                      inspections are
                                                                                                      always done in
                                                                                                      practice.

Quality control after construction index (0-3)                                                                             3.0

  Is there a final inspection required by law to verify that the building was built in accordance     Yes, final           2.0
  with the approved plans and regulations? (0-2)                                                      inspection is
                                                                                                      done by
                                                                                                      government
                                                                                                      agency.

  Do legally mandated final inspections occur in practice? (0-1)                                      Final inspection     1.0
                                                                                                      always occurs in
                                                                                                      practice.

Liability and insurance regimes index (0-2)                                                                                0.0

  Which parties (if any) are held liable by law for structural flaws or problems in the building      No party is held     0.0
  once it is in use (Latent Defect Liability or Decennial Liability)? (0-1)                           liable under the
                                                                                                      law.

  Which parties (if any) are required by law to obtain an insurance policy to cover possible          No party is          0.0
  structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance   required by law
  or Decennial Insurance)? (0-1)                                                                      to obtain
                                                                                                      insurance .

Professional certifications index (0-4)                                                                                    1.0

  What are the qualification requirements for the professional responsible for verifying that the     University degree    1.0
  architectural plans or drawings are in compliance with existing building regulations? (0-2)         in architecture or
                                                                                                      engineering;
                                                                                                      Being a
                                                                                                      registered
                                                                                                      architect or
                                                                                                      engineer.

  What are the qualification requirements for the professional who supervises the construction        University degree    0.0
  on the ground? (0-2)                                                                                in engineering,
                                                                                                      construction or
                                                                                                      construction
                                                                                                      management.

                                                                                                                                   Page 15
Doing Business 2019              Uganda

     Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.

 What the indicators measure                                Case study assumptions

Procedures to obtain an electricity connection             To make the data comparable across economies, several assumptions about the
(number)                                                   warehouse, the electricity connection and the monthly consumption are used.

• Submitting all relevant documents and obtaining          The warehouse:
  all necessary clearances and permits
                                                           - Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and                - Is located in the economy’s largest business city. For 11 economies the data are
  receiving all necessary inspections
                                                           also collected for the second largest business city.
• Obtaining external installation works and possibly       - Is located in an area where similar warehouses are typically located and is in an
  purchasing material for these works                      area with no physical constraints. For example, the property is not near a railway.
                                                           - Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and
                                                           - Has two stories with a total surface area of approximately 1,300.6 square meters
  obtaining final supply
                                                           (14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure                   (10,000 square feet).
(calendar days)
                                                           The electricity connection:
• Is at least 1 calendar day
                                                           - Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day                  capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
• Does not include time spent gathering                    kilowatt (kW).
  information                                              - Has a length of 150 meters. The connection is to either the low- or medium-voltage
                                                           distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little         common in the area where the warehouse is located and requires works that involve
  follow-up and no prior contact with officials
                                                           the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
Cost required to complete each procedure (% of             carried out on public land. There is no crossing of other owners’ private property
income per capita)                                         because the warehouse has access to a road.
                                                           - Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes                           already been completed up to and including the customer’s service panel or
• Value added tax excluded                                 switchboard and the meter base.

The reliability of supply and transparency of              The monthly consumption:
tariffs index (0-8)
                                                           - It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3)            p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
• Tools to monitor power outages (0–1)                     there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
                                                           consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1)                      - If multiple electricity suppliers exist, the warehouse is served by the cheapest
• Regulatory monitoring of utilities’ performance          supplier.
  (0–1)                                                    - Tariffs effective in January of the current year are used for calculation of the price of
                                                           electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1)              purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*

• Price based on monthly bill for commercial
  warehouse in case study

*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.

                                                                                                                                                         Page 16
Doing Business 2019           Uganda

Getting Electricity - Uganda

  Standardized Connection

 Price of electricity (US cents per kWh)                                        17.1

 Name of utility                                                                Umeme

 City Covered                                                                   Kampala

  Indicator                                                 Uganda                 Sub-Saharan         OECD high      Best Regulatory
                                                                                   Africa              income         Performance

 Procedures (number)                                       6                      5.2                 4.5             3 (25 Economies)

 Time (days)                                               66                     112.0               77.2            18 (3 Economies)

 Cost (% of income per capita)                             7513.6                 3456.5              64.2            0.0 (3 Economies)

 Reliability of supply and transparency of tariff          0                      1.6                 7.5             8.0 (27 Economies)
 index (0-8)

 Figure – Getting Electricity in Uganda and comparator economies – Ranking and Score

                                                          DB 2019 Getting Electricity Score

        0                                                                                                  100

                                                                                  78.72: Rwanda (Rank: 68)

                                                                                 76.80: Kenya (Rank: 75)

                                                                        68.79: South Africa (Rank: 109)

                                                       49.00: Regional Average (Sub-Saharan Africa)

                                                    44.40: Malawi (Rank: 169)

                                         34.09: Uganda (Rank: 175)

Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.

                                                                                                                                                    Page 17
Doing Business 2019     Uganda

  Figure – Getting Electricity in Uganda – Procedure, Time and Cost

                                                   Time (days)         Cost (% of income per capita)
                                                                                                                                      8000

                   60
                                                                                                                                      7000

                                                                                                                                               Cost (% of income per capita)
                   50                                                                                                                 6000
 Time (days)

                   40                                                                                                                 5000

                                                                                                                                      4000
                   30
                                                                                                                                      3000
                   20
                                                                                                                                      2000

                   10
                                                                                                                                      1000

                   0                                                                                                                  0
                         1            2                    3                    *4                     5                  6
                                                               Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

  Figure – Getting Electricity in Uganda and comparator economies – Measure of Quality

                   8
                   7
                   6
     Index score

                                                                                       5
                   5
                                          4                                                                    4
                   4
                   3
                   2                                                                                                            1.6
                   1
                          0                                    0
                   0

                        Uganda        Kenya                 Malawi                   Rwanda                South Africa   Sub-Saharan Africa

                                                                                                                                                                               Page 18
Doing Business 2019           Uganda

Details – Getting Electricity in Uganda – Procedure, Time and Cost

No.     Procedures                                                                              Time to Complete   Associated Costs

1       Submit application letter to UMEME and await site visit                                 7 calendar days    UGX 0
        Agency : UMEME
        Licensed contractor, with valid Installation permit from Electricity Regulatory
        Authority (ERA) on team provides a wiring certificate, confirming that all wiring
        has been done as per code. Application form will include details such as name,
        zone, type of service; whether domestic, commercial or otherwise, telephone
        number etc. The passport size photo and the Wiring Certificate will be attached
        to this form. The customer is also required to sign a declaration form at the back
        of the application form. This form states the conditions of supply. Where Way-
        Leaves are required, the letter of consent will be issued and both the person
        authorizing and the prospective customer will be required to sign on it. If it’s a
        company, the company official stamp will suffice instead of a passport photo;
        There is a requirement for a simple location sketch of the premises highlighting
        nearby other major known installations.

2       Receive external site inspection by UMEME and await estimate                            15 calendar days   UGX 118,000
        Agency : UMEME
        Umeme inspects the premises of the client to verify the requirement and the
        existing infrastructure. There is a specific inspector/surveyor for industrial
        connection. There is only one to cover all the country. There are 6 others who
        cover the 6 regions of Uganda for simple connections. The surveyor draws the
        route of the power lines. Since there is no planning of the city, there is some
        delay in determining the roads as it often cross private property. In that case,
        Umeme helps the client to obtain a way leave.
        Umeme receives around 30 requests by month; amongst them 10 require the
        surveyor. Once the route is determined, the surveyor lists the required materials
        and does the drawings for the extension of the MV network. The costing is then
        done by planning engineers for the low voltage and by the central planning
        department for the medium voltage. The quotation is then given to the customer
        with the list of materials and the labor costs for the connection. The customer can
        now choose an electrical contractor to do the works. There is a list of prequalified
        contractors by Umeme. There have been over 40 contractors approved in the
        past years.

3       Hire private electrical contractor to carry out external works                          30 calendar days   UGX 150,800,000
        Agency : Electrical Contractor
        The approval of the plans is done at the planning department. Once the plans are
        approved, the contractor starts the construction of the connection. The approval
        of the plans is very fast as the contractors have been working closely with the
        planning department.
        Once the construction begins or the contractor notifies the planning department
        who will transmit the file to the local office.

    4   Obtain test of distribution transformer by UMEME                                        7 calendar days    UGX 800,000
        Agency : UMEME
        The client has to bring the transformer to Umeme workshop in order to test it.

5       Submit inspection fee to UMEME and receive internal wiring inspection                   7 calendar days    UGX 118,000
        Agency : UMEME
        This is the fee for the site inspection, and needs to be paid at the utility in cash.
        The installation inspector/surveyor will visit the site to verify whether the wiring
        conforms to the requirements of the company. This will take about 3 days. The
        customer pays for inspection fee to the Utility company and you be allocated an
        Engineer who handles the file within a period of one week. This is paid to the
        Utility company cash office.

6       Pay security deposit and capital contributions, receive meter installation              7 calendar days    UGX 4,967,731.73
        and electricity flow from UMEME
        Agency : UMEME
        All payments made in cash at the utility, at the bank counter. Two separate
        payments are made – one for capital contribution and one for security deposit
        and the two receipts are then given at respective counters in the utility. Once all
        payments are made, the utility gives an account number and instructions are sent
        to connections department.

        Cost breakdown is as follows: One pole service 3 phase, the cost varies
        depending on the distance, present value lost on interests to the security deposit,
        transformer structure; Distribution transformer; LV Cable cost; and labor cost of
        transformer structure. Utility conducts all external connection works and meter
        installation.

Takes place simultaneously with previous procedure.

                                                                                                                                      Page 19
Doing Business 2019           Uganda

 Details – Getting Electricity in Uganda – Measure of Quality

                                                                                                                           Answer

 Reliability of supply and transparency of tariff index (0-8)                                                              0

 Total duration and frequency of outages per customer a year (0-3)                                                         0

    System average interruption duration index (SAIDI)                                                                     59.3

    System average interruption frequency index (SAIFI)                                                                    42.2

    What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI             6.0

 Mechanisms for monitoring outages (0-1)                                                                                   1

    Does the distribution utility use automated tools to monitor outages?                                                  Yes

 Mechanisms for restoring service (0-1)                                                                                    1

    Does the distribution utility use automated tools to restore service?                                                  Yes

 Regulatory monitoring (0-1)                                                                                               1

    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of      Yes
    supply?

 Financial deterrents aimed at limiting outages (0-1)                                                                      0

    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages              No
    exceed a certain cap?

 Communication of tariffs and tariff changes (0-1)                                                                         1

    Are effective tariffs available online?                                                                                Yes

    Link to the website, if available online                                                                               https://www.umeme.
                                                                                                                           co.ug/file/Tariffs.pdf

    Are customers notified of a change in tariff ahead of the billing cycle?                                               Yes

Note:

If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.

If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.

                                                                                                                                                    Page 20
Doing Business 2019           Uganda

     Registering Property

This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.

 What the indicators measure                               Case study assumptions

Procedures to legally transfer title on                  To make the data comparable across economies, several assumptions about the
immovable property (number)                              parties to the transaction, the property and the procedures are used.

• Preregistration procedures (for example,               The parties (buyer and seller):
  checking for liens, notarizing sales agreement,
  paying property transfer taxes)                        - Are limited liability companies (or the legal equivalent).
                                                         - Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest       economies the data are also collected for the second largest business city.
  business city.
                                                         - Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling      - Have 50 employees each, all of whom are nationals.
  title with municipality)                               - Perform general commercial activities.

Time required to complete each procedure                 The property (fully owned by the seller):
(calendar days)
                                                         - Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering                  - Is fully owned by the seller.
  information                                            - Has no mortgages attached and has been under the same ownership for the past
• Each procedure starts on a separate day -              10 years.
  though procedures that can be fully completed          - Is registered in the land registry or cadastre, or both, and is free of title disputes.
  online are an exception to this rule                   - Is located in a periurban commercial zone, and no rezoning is required.
                                                         - Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final           square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
  document is received
                                                         located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials                        heating system and complies with all safety standards, building codes and legal
                                                         requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of           entirety.
property value)                                          - Will not be subject to renovations or additional construction following the purchase.
• Official costs only (such as administrative fees,      - Has no trees, natural water sources, natural reserves or historical monuments of
  duties and taxes).                                     any kind.
                                                         - Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit         residential use, industrial plants, waste storage or certain types of agricultural
  payments are excluded                                  activities, are required.
                                                         - Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)

• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)

                                                                                                                                                     Page 21
Doing Business 2019      Uganda

Registering Property - Uganda

       Indicator                                             Uganda                Sub-Saharan             OECD high             Best Regulatory
                                                                                   Africa                  income                Performance

    Procedures (number)                                     10                     6.2                    4.7                1 (4 Economies)

    Time (days)                                             42                     53.9                   20.1               1 (New Zealand)

    Cost (% of property value)                              3.1                    7.6                    4.2                0.0 (Saudi Arabia)

    Quality of the land administration index (0-30)         10.5                   8.8                    23.0               None in 2017/18

  Figure – Registering Property in Uganda and comparator economies – Ranking and Score

                                                          DB 2019 Registering Property Score

                    0                                                                                       100

                                                                                                   93.70: Rwanda (Rank: 2)

                                                                        65.12: Malawi (Rank: 83)

                                                                  59.32: South Africa (Rank: 106)

                                                              55.97: Kenya (Rank: 122)

                                                             54.99: Uganda (Rank: 126)

                                                           52.62: Regional Average (Sub-Saharan Africa)

Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.

  Figure – Registering Property in Uganda – Procedure, Time and Cost

                                                          Time (days)         Cost (% of property value)
                                                                                                                                                   1.6
               40
                                                                                                                                                   1.4
               35

                                                                                                                                                         Cost (% of property value)
                                                                                                                                                   1.2
               30
 Time (days)

                                                                                                                                                   1
               25

                                                                                                                                                   0.8
               20

               15                                                                                                                                  0.6

               10                                                                                                                                  0.4

               5                                                                                                                                   0.2

               0                                                                                                                                   0
                        1   2            3            4               5             6               7             8          9            10
                                                                    Procedures (number)

* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.

Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology ). For details on the procedures reflected here, see the summary below.

                                                                                                                                                                                      Page 22
Doing Business 2019                   Uganda

Figure – Registering Property in Uganda and comparator economies – Measure of Quality

              30                                                                                 28.5

              25
Index score
              20
                                                   16.0                                                                 15.0
              15
                           10.5                                           10.5
              10                                                                                                                              8.8

              5

              0

                          Uganda                  Kenya                  Malawi                Rwanda                South Africa      Sub-Saharan Africa

Details – Registering Property in Uganda – Procedure, Time and Cost

  No.              Procedures                                                                              Time to Complete         Associated Costs

1                  Request a search and obtain Consent form to transfer at the Registry of                 1 day                    Paid in procedure 2
                   Lands
                   Agency : Registry of Lands
                   The process starts by requesting a search of the property in the Registry of
                   Lands. The requester has to fill out a form indicating the details of the property to
                   be searched. The Registry gives a Bank Advice Form (BAF) with the amount to
                   be paid at the Commercial Bank. The Consent Form has a dual purpose;
                   because it is the same form that is used for the payment of taxes, so even in
                   instances where the land is owned in freehold, and there is no need to obtain
                   consent to transfer, the same form will be used to determine tax payments owed.

2                  Pay Search Fee at designated Commercial Bank                                            1 day                    UGX 25,000; (UGX
                   Agency : Commercial Bank                                                                                         25,000 (UGX 10,000
                   To facilitate the process for paying fees, the government allows now citizens to                                 search fee + UGX
                   pay at one of the designated pool of commercial banks. For every procedure in
                                                                                                                                    2,500 bank fee, UGX
                   which fees are paid, the user has to go first to the Land Registry to obtain the
                                                                                                                                    10,000 Consent fee +
                   Bank Advice Form (BAF) with the amount to be paid, and then go to the bank for
                                                                                                                                    UGX 2,500 bank fee))
                   paying the BAF plus the bank fees. The receipt should be presented later at the
                   Land Registry to complete the procedure. Since all official fees are now paid at
                   more than one bank, citizens do not need to pay and come back the following
                   day to obtain the receipt.

3                  Conduct a search at the Registry of Lands                                               5 days                   Paid in procedure 2
                   Agency : Registry of Lands
                   Parties conduct the search at the Registry of Lands. The receipt with the
                   payment of the search fee from the bank must be presented. At this time one
                   also picks up the consent to transfer application.

4                  Lawyer drafts sale agreement                                                            1 day                    UGX 1,565,198.46;
                   Agency : Lawyer                                                                                                  (1% - 2% property
                   It is not mandatory to hire a lawyer to draw up the sale agreement or conduct the                                value (to conduct
                   transaction, but it is common practice.
                                                                                                                                    entire transaction))

5                  Valuation of property for transfer purposes by Chief Government Valuer's                14 days                  no charge
                   Office
                   Agency : Chief Government Valuer office
                   A government valuer will determine the value of the property for transfer
                   purposes and for assessing and paying stamp duty. The Government Valuer
                   does not necessarily physically visit the property for designating the value. The
                   officers have approximated values of properties in different parts of the city, and
                   they base their valuation on it for tax purposes.

6                  Obtain assessment form for payment of stamp duty from Uganda Revenue                    3 days                   Paid in procedure 7
                   Authority
                   Agency : Uganda Revenue Authority
                   Once the Chief Government valuer has given his consent on the cost, the file is
                   taken to the Uganda Revenue Authority, where an assessment form for Stamp
                   duty is provided. At that time, the name of the designated bank will be provided.

7                  Payment of stamp duty at the designated commercial bank                                 4 days                   UGX 1,565,198.46;
                   Agency : Commercial Bank                                                                                         (1.5% of property
                   Stamp duty must be paid at the commercial bank before registration. The                                          price (of the
                   government requires now all official fees to be paid at Commercial Banks to
                                                                                                                                    government’s
                   control the revenue product of payments to public agencies. There is an
                                                                                                                                    valuation))
                   assessment form which is taken to the bank for making the payment. The Bank
                   will inform the Uganda Revenue Authority when payment has been received.
                   There is a reconciliation process between the Bank and the Uganda Revenue
                   Authority which can take up to 3 days.

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