Real Estate License Application In Uganda

Real Estate License Application In Uganda

Real estate licenses, authorizations issued by state governments, give agents and brokers the legal ability to represent a home seller or buyer in the process of buying or selling real estate. The ratio of defaulters is high, which again makes it a smart move for genuine players to make a better scope in the market and attract customers with timely delivery of projects.

Procedure For Real Estate License Application In Uganda

A person who intends to conduct activities in a capacity of a broker/dealer shall apply to the Authority for a Licence or approval in Form 1 and Form 2 respectively as the case may be.

Carefully read and fill the appropriate form 1 or form 2 (broker/Dealer) attach the following documents:

Evidence of payment of the fees

The certificate of incorporation;

The memorandum and articles of association;

a statement of the un-audited accounts for the period of the accounting year ending not earlier than six months prior to the date of application and audited accounts for the preceding two years;

in the case of a broker/dealer a letter from the securities exchange stating that the applicant meets all the relevant requirements of that securities exchange and that the securities exchange would admit the applicant, if licensed by the Authority.

a business plan containing the management structure;

the particulars of the directors,

including one or more executive directors, their qualifications, experience and expertise, addresses and details of other directorships;

the shareholding structure which shall disclose whether any of the shareholders will have an executive role to oversee the day to day operations of the business;

the evidence of paid up share capital of a minimum amount of fifty million shillings in the case of a stockbroker and twenty million shillings in the case of a dealer;

the particulars of the proposed management and qualifications of key personnel;

the financial projections for three years;

in the case of a broker, the proposed information technology and access to the trading network in compliance with the trading, clearing, delivery and settlement requirements of the securities exchange to which the applicant intends to be admitted as a trading participant;

One bank reference;

Information on the ability to run the business for two (2) years;

the particulars of the proposed premises suitably located and equipped to provide satisfactory service to clients in the field of activity to which the licence relates or evidence acceptable to the Authority that such premises will be available;

the staff capable of providing professional services to clients in the field of activity to which the licence relates or evidence acceptable to the Authority that such staff will be available;

the particulars of the proposed independent auditor;

a declaration that no person is a director or holds beneficial interest either directly or indirectly in more than one trading participant of a securities exchange; and

Such additional documents the Authority may require

After completion to fill and attach all the required documents as stated above attach a certificate of good character, competence and experience.

Proceed to the bank to pay the prescribed fees for application and Licence fee and attach the bank payslip to the application before submission.

Once you have fulfilled all requirements and payment of the admission fee prescribed by the Authority, proceed to the Authority to submit your application including all the required documents.

The issuance officer after checking and satisfied with your submission will give you a claim slip/stub that states you have submitted your application form to the authority for review.

The Authority shall consider an application and inform of the applicant of its decision within thirty days after the application has been lodged with it, except that where the application is incomplete, the period of thirty days shall be calculated from the time that a complete application is submitted to the authority.

Where the authority fails to make a decision within thirty days of submission of a complete application, the authority shall immediately notify the applicant of the reasons for the delay.

The authority shall, before granting a Licence or an approval satisfy itself-

that the applicant is a company with the minimum share capital as the Authority may prescribe,

that none of the directors of the company—

has been declared bankrupt;

has been a director of a company that has been denied a Licence or approval in any other jurisdiction;

that management and the Board of the applicant possess the minimum qualifications required by the Authority;

in the case of a stockbroker, dealer or any other person prescribed by the Authority, that the applicant has lodged a security or deposit in such sum as may be determined by the Authority or an equivalent bank guarantee or bond .

that the applicant has the necessary administrative capacity to carry on the business for which the approval is required;

in the case of an application for a stockbroker’s Licence, that the applicant shall carry on business solely on behalf of its clients;

in the case of an application for a dealer’s Licence, that the applicant shall carry on business solely on the applicant’s own behalf;

that the persons engaged or to be engaged in the position of management or other capacity are fit and proper persons.

The applicant on successful fulfillment of all the requirements as prescribed by the Authority shall grant a Licence if it appears to it, from the information furnished by the applicant and having regard to any other information in its possession, that the applicant is a fit and proper person to carry on the business for which the application is made and provide the services described in the application.

The applicant shall be approved as a trading member of a securities exchange and stockbroker /dealer license be granted.

A license or approval granted to a partnership to operate as a commodities broker shall authorize the carrying on of capital markets business in the names of the partnership in which the license is granted or with the consent of the Authority in the name of any partnership or person which succeeds the partnership.

Note: Where more information is required and it is not provided within 3 months of request, the application shall be deemed to expire and a fresh application filed along with the required fee (application fees) as provided in the regulations.

Required Documents For Real Estate License Application In Uganda

Completed form 1 signed by the applicant.

Certified copy of Articles and Memorandum of Association.

Certified copy of Certificate of Incorporation.

Organizational structure.

Complete CVs of Board of Directors.

Copies of the passport for the directors.

Coloured passport photos for the directors.

Complete CVs of Senior management staff.

Coloured passport photos for all the staff.

Copies of identification cards for the staff.

Capital requirement: Paid up capital and reserves of not less than Ugsh. 150 million for a fund manager license; For broker dealer, a net capital of Ugx. 15,000, 20,000,000

A full set of latest audited financial statements.

A comprehensive business plan.

Internal controls ( risk management, operational controls, procedures manuals).

Contact details of three independent referees supporting the application.

Evidence of payment of fees.

Evidence of a Taxpayer Identification Number (TIN).

Copy of the current bank statement.

Certificate of good conduct from the police, for the Directors of the company.

Details of the custodian bank(s) in Uganda.

Eligibility For Real Estate License Application In Uganda

The eligibility for the grant of a stock/dealer’s licence is restricted to institutions committing funds for investment as principals in securities dealings.

Fees For Real Estate License Application In Uganda

Application Fees: 500,000 UgShs

License Fee: 500,000 UgShs

Renewal Fee: 1,500,000 UgShs

Office Locations & Contacts For Real Estate License Application In Uganda

Capital Markets Authority

8th Floor, Jubilee Insurance Centre

14 Parliament Avenue

P. O. Box 24565 Kampala, Uganda

+256 414 342 788/91, +256 312 264950/1,

+256 772 589997

Fax: +256 – 414 – 342803