Requirements For Starting A Microfinance In Uganda

Microfinance is the provision of financial services to low-income clients, including consumers and the self-employed, who traditionally lack access to banking and related services.

Requirements For Starting A Microfinance In Uganda

Apply in Person
Stage 1: Approval of Name

Contact the Central Bank of Uganda at an early stage for a preliminary meeting to discuss Central Bank of Uganda licensing requirements and related issues

Seek Bank of Uganda’s approval for the use of the word Microfinance Bank” e.g. XYZ Microfinance Bank Limited

Book an appropriate name with the Registrar of Companies and write to the Central Bank to seek approval for the name.

The name a search and reservation takes one day to complete and a fee of UGsh.20,000 is charged for the process.

After the name has been approved by the Central Bank, you should proceeded to the Registrar of Companies for incorporation of the proposed bank as a limited liability company.

Upon incorporation of the Limited Liability Company, apply to the Bank of Uganda for a Microfinance Bank License.

Stage 2: Application for Licence

Complete and submit a certified Application Form to Bank of Uganda accompanied by all supporting documents, including:

Certified copy of the Certificate of Incorporation.

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 50 million or UGshs 100 million for community and nationwide microfinance bank business, respectively).

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).

Pay a non-refundable application fee of UGshs 1,000,000 to the Central Bank by Bankers cheque or by such other mode of payment as the Central Bank may prescribe.

A declaration witnessed by an advocate or Commissioner of Oaths indicating that the proposed entity has no existing scheme of arrangement with its creditors.

Provide evidence of minimum core capital (UGshs 50 million and UGshs 100 million for a “community” and “nationwide” microfinance bank business, respectively)

Prepare and submit a comprehensive feasibility study and business plan

Duly complete and submit the “Fit and Proper Forms” for all significant shareholders (at least 10% shareholding) and proposed directors accompanied by supporting documentation (certified)

Stage 3: Letter of Intent
Upon assessment and fulfilment of all the requirements in stage two, the Central Bank will issue a Letter of Intent, which is an approval in principle and advises the applicant on the next steps and requirements to be fulfilled before issuance of a licence and approval to commence operations, including:

payment of licence fees to the Central Bank by bankers cheque or such other mode of payment that the Central Bank may prescribe (UGshs 2,000,000 for nationwide microfinance bank.
preparation of operating premises to meet prescribed standards in readiness for inspection by the Central Bank
completion and submission of the “Fit and Proper” Forms for key senior managers (to be guided by the Central Bank) accompanied by all the supporting documentation.
preparing and putting in place the proposed management information system (MIS) and other institutional structures required to conduct the microfinance bank business

Stage 4: Issuance of Licence

The Central Bank, if satisfied that the applicant has met all the requirements of the above three stages, May then issue a licence; the Central Bank will duly specify the institution by placing a notice in the Uganda Gazette, thereby legally authorizing the applicants to commence microfinance bank business.

Required Documents

Certified copy of the Certificate of Incorporation.(certified Copy)

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 50 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 Form 18)

Pay a non-refundable application fee of UGshs 1,000,000 to the Central Bank by Bankers cheque or by such other mode of payment as the Central Bank may prescribe.

A declaration witnessed by an advocate or Commissioner of Oaths indicating that the proposed entity has no existing scheme of arrangement with its creditors.

Forms of particulars of directors and company Secretary (certified Copies Form 20)

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 1)

TIN Number

Organisation Structure

Office Locations & Contacts

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
Email:info@umrago.ug

Bank of Uganda
Plot 37/45 Kampala Road
P.O Box 7120, Kampala, Uganda
Tel: +256 414 258-441/6
Tel: +256 414 258 060/9
Tel: +256 417 302 000
Tel: +256 312 392 000
Fax: +256 41-4230878
Email: info@bou.or.ug
SWIFT:UGBA UG KA

Bank Of Uganda Branches.

The bank has 9 branches situated in the following towns in the country:

Bank of Uganda.
Arua (Branch)
Location: Plot 27/29 Avenue Road (Inzikuru Road)
Address: P. O. Box 152 Arua
Tel: +256-476-420253

Bank of Uganda
Fort Portal (Branch)
Location: Plot 1 Kaboyo Road
Address: P.O. Box 562 Fort Portal
Tel: +256-483-422532