How To Register SACCO In Uganda

What Is SACCO In Uganda?

A SACCO (Savings and Credit Cooperative Organization) is a group of people with similar interests who come together to form a credit union. They register the union with the Ministry of Cooperatives, which in turn authorizes the SACCO to receive deposits and provide loans to its members.

How To Register SACCO In Uganda

Licence or Permit to operate a SACCO can be obtained from Uganda Microfinance regulatory Authority.
- A SACCO shall not carry on the business of financial Services unless it is-
  - a registered society; and
  - Licensed under the Act.
Prepare the necessary background and relevant information then fill up the appropriate application form as described by the Microfinance Regulatory Authority.
- The documents to be attached on the application form includes:
  - a certified copy of the certificate of registration issued under the Cooperative Societies Act;
  - the organizational structure and management of the registered society;
  - the business plan of the registered society;
  - the credit policies and lending policies of the registered society.
After filling the form proceed to pay the prescribed fee.
Submit the dully filled in form and attached with pay slip to the finance Officer in charge SACCO Registration.
Ensure that the application fee is submitted and all required information is included with application.
Collect your SACCO Licence certificate from where your application was submitted within 21 days from the date the application was received at Microfinance Regulatory Authority in case there is no rejection.

How Do SACCOs Work In Uganda?

A SACCO is unique, democratic, member driven and self-help cooperative organization. In a SACCO, members agree to save their money together and offer loans to each other at reasonable rates of interest. Interest is charged on loans, to cover the interest cost on savings and the cost of administration.

What Is The Difference Between A Bank And A SACCO?

Ownership. One of the main difference between traditional banks and SACCOs is ownership. Banks are generally owned by investors who may or may not be account holders. However, in a SACCO, you become a partial owner of the organization the moment you open an account there.

What Is SACCOs Purpose?

To promote thrift among its members by affording them an opportunity for accumulating their savings and deposits and create thereby a source of funds from which loans can be made available to them for provident or productive or both purposes, at a fair and reasonable rate of interest.

What Are The Benefits Of SACCO?

Benefits of Sacco Membership

Service motive. In Co-operative Society members are provided with better services at reasonable prices.
Saving discipline.
Return on investment.
Cheap interest rates on loans.
Inspires a Saving culture.
Limited liability.

Required Documents To Register SACCO In Uganda

Certified copy of the Certificate of Incorporation is issued under a Cooperative societies Act.
Certified copy of the tax Personal Identification Number PIN certificate.
Certified copy of the registered Memorandum and Articles of Association indicating core capital at least UGshs 5 million.
Verified official notification of the company’s registered place of business, including the prospective places of business (Head Office,branches,agency and outlets,if any Registered Address(certified Copy)
Pay a non-refundable application fee of UGshs 50,000 to the Microfinance regulatory Authority.
Forms of particulars of directors and company Secretary (certified Copies Form) National Identity Cards for all the directors and company secretary
Certificates of good conduct for all the directors
Proof of payment of fees for application of the licence.
A copy of the interest rates according to the categories of loans products offered.
Memorandum and articles of association.(certified copy )
TIN Number and a business plan of the registered society.
Organisation Structure and management of the registered society.
Objective statement of the registered society in relation to offering financial services.
Credit policies and lending procedures of a registered society.

What Is The Meaning Of A SACCO?

Savings and Credit Co-operativeSacco definition

Acronym of Savings and Credit Co-operative; a credit union. noun.

How Is SACCO Formed?

NON DEPOSIT TAKING SACCO REGISTRATION

Formal request in writing with intent for the formation of a Sacco.
Proposed names for search and approval;
Objects of the society;
The number of members in the society (At least 10 members);
The names, occupation and postal addresses of the Chairman, treasurer and secretary;

Fees To Register SACCO In Uganda

Registration fee shs 50000/= Account No. 6000010330 Barclays Bank IPS Branch Account
Buy Co-operative Bye laws. A set of 4(four) books is:

Shs.15000/= for savings & Credit byelawsShs. 10000/=for multi-purpose bye laws

Business name registration and reserve fees

Company/business name search registration fees ug.x2, 200

Reservation of the name fees ugx.20, 000.

Instructions To Register SACCO In Uganda

Members should be twelve (12) years and above.
Ensure that all members pay membership fees and deposit their share capital before applying for registration.
The membership fees and share capital to be contributed should be determined basing on the members of the society intending to register.
Before applying for registration, know the type of society you would like to register.
Ensure that the society meets the minimum numbers required for registration.
Ensure that the cooperative society to be registered function under specified principles of societies in Uganda.
Recommendations by the District Commercial Officer (DCO) are based on interim operation reports of cooperatives.
Cooperative members are advised to open up a bank account for the cooperative during the process of registration.
A bank account must have at least three (3) signatories.

Why Do SACCOs Fail?

We found that the main challenges facing SACCOs include defaulting on payment of loans by members, low volume of business and poor financial practices.” Agaba explained that whereas cooperatives are managed by elected committees, the leaders chosen often lack the knowledge required to manage them.

Required Information To Register SACCO In Uganda

Names of Applicants / members of the cooperative society to be registered
Contact addresses of Applicants / members of the cooperative society to be registered;
Nationality, sex, age and marital status of each member;
Proposed name of society;
Proposed activities of society;
Office location and contact address of society;

What Is The Structure Of A SACCO?

Times U Sacco Society is governed by nine elected directors- four Executive Directors and five Board of Directors who are complemented by a supervisory committee that consists of three members. The operations of the Sacco are conducted by a competent group of staff members who are headed by the CEO.

Need for the Document To Register SACCO In Uganda

The main purpose of a Co-operative Society is to provide service to its members. For example, in a Consumer Co- operative Store, goods are sold to its members at a reasonable price by retaining a small margin of profit. It also provides better quality goods to its members and the general public.

What Are Shares In A SACCO?

Sacco shares means you are a member, as well as an owner; with equal rights and a voice in how the society is ran democratically. Shares are available to our members of the Sacco upon positive identification to the satisfaction of the Sacco.

Information which might help To Register SACCO In Uganda

If need arises, the registrar may decided to cancel registration of a society at any period of time and the cancellation is published in at least one of the English newspapers in Uganda.
If a certificate is lost or destroyed, an application for a duplicate certificate must be sent to the registrar.

What Is Needed To Start A SACCO?

Section 13(1) of the Act requires that for a person to become a member of a Sacco, he or she should have attained the age of eighteen years as well as being a resident within or in occupation of land within the society’s area of operation.

External Links To Register SACCO In Uganda

Ministry Of Trade And Industry Co-Operatives
Co-operative Society

What Are The Principles Of SACCOs?

OUR PRINCIPLES

Democratic member control. Members’ economic participation. Autonomy and independence. Education, training, and information.

Validity To Register SACCO In Uganda

The document is Valid for a period of 3 years

What Are The Challenges Of SACCOs?

Challenges faced by SACCOs

Lack of entrepreneurial vision. It is critical for any business to have an entrepreneurial vision to lead better growth and development.
Members don’t understand their principles and values.
Lack of focus on youth and gender equality.
Lack of innovation.
How can technology help SACCOs?

Processing Time To Register SACCO In Uganda

Processing takes 30 working days

How Do SACCO Loans Work?

At a minimum, SACCOs offer savings accounts and loans. Deposit-based loans are usually sized at three to four times the amount of the member’s savings held at the SACCO. What makes the model unique is that loans are secured by the members’ deposits, and oftentimes by guarantees from other members too.

Office Locations & Contacts To Register SACCO In Uganda

Uganda Microfinance Regulatory Authority (UMRA)
Ruwenzori Towers Block B Ground Floor
P.O.Box x 11545, Kampala Uganda.
Plot 6 Nakasero Road
Tel: +256 417 799 700
Fax: + 256 414 230 163
Website:- Uganda Microfinance Regulatory Authority

Uganda Cooperative Saving and Credit Union (UCSCU)
P.O.Box 7103 Kampala.
Plot 239 Maganjo, Bombo Road, Kampala
Tel : +256 414 233 601,
Fax : +256 414 233 598
Email : info@ucscu.coop,
Website :Uganda cooperative Savings

What Is SACCO In Uganda?