Requirements For Starting A Forex Bureau In Uganda

Requirements For Starting A Forex Bureau In Uganda

Forex Bureaus were established and first licensed in January 1995 to foster competition in the foreign exchange market and to narrow the exchange rate spread in the market. As authorized dealers, forex bureaus conduct business and are regulated under the provisions of the Central Bank of Kenya Act (Cap 491).

Application for a Forex Bureau Business Licence

If owned by a bank, be registered as a wholly owned subsidiary of that bank.

A bank statement for the period of six months before the submission of the application.

Must be a company registered under the Companies Act as a limited liability company whose main objective is to conduct foreign exchange bureau business.

A certificate of incorporation and memorandum and articles of association from Uganda Registration Services Bureau.

A certified copy of the resolution of the board of the proposed forex bureau authorising the submission of the application.

A minimum paid up share capital of not less than one thousand currency points.

Business and financial plans.

Individual references relating to the fit and proper status of each of the applicant’s shareholders and proposed directors.

Particulars of the applicant’s bankers.

Proposed management, directors and owners who must be persons of good repute and integrity with the necessary qualifications and competence required to run a forex bureau.

Provide the name and full address, including telephone and email address of the proposed forex bureau.

Should have a fixed and identifiable place of business that is accessible to the public and suitable in all respects for the business of a forex bureau.

The applicant’s memorandum and articles of association.

The names and curriculum vitae of all the applicant’s proposed shareholders and management team.

Work permits for all non-Ugandan directors and employees of the applicant.

Any other information that the Bank of Uganda may request the applicant to provide.

Application for a Money Remittance Business Licence

An application for a Money Remittance business licence shall be made in duplicate in accordance with Form A specified in Schedule 5 of the Foreign Exchange (Forex Bureaus and Money Remittance) Regulations, 2006 and submitted to Bank of Uganda.

Conditions for applying for the licence

The applicant for a Forex Bureau or Money Remittance business licence must fulfill the following conditions:

(a) be a company registered under the Companies Act as a limited liability company, with a minimum of two shareholders, whose main objective is to conduct foreign exchange bureau or money remittance business;

(b) have a minimum un-impaired paid up share capital of not less than

Uganda shillings twenty million (UGX.20 million) in case of a forex bureau and Uganda shillings fifty million (UGX.50 million) for money remittance business;

(c) have a fixed and identifiable place of business that is accessible to the public and suitable for the proposed business;

(d) provide the name and full address, including telephone contacts and email address of the proposed business; and

(e) propose management, directors and owners who must be persons of good repute and integrity with the necessary qualifications, experience and competence required to run a forex bureau or money remittance business.