The money lending business ethically deals with lending loans. It helps boost the people with businesses, and in return, one gets profit when the loans are returned with interest. Therefore, here is a look at how to start and register money lending business in Uganda.
How much capital do I need to commence a money lending business in Uganda?
To begin a money lending business, one needs around 50,000 dollars to start up the business and be able to offer loans. This goes by the requirements of the Regulatory acts. In addition to this, you will also need funds for renting an office space, acquiring all the necessary licenses, and marketing.
Steps to register a money lending business in Uganda
- To start a money lending business, one is required to apply for a license. The license is applied at the Uganda Microfinance Regulatory Authority. The license is only valid for one (1) year and is thereafter renewed. One is also required to have incorporation documents when applying for a license.
- The license application process involves filling out a form and submitting it to UMRA. When filling the application form, one should accompany it with;
a) A certificate of incorporation
b) Evidence of payment of the required fees
c) The address of the business location
d) Copies of your national identity card
- Another important thing is that one is required to keep a record of all the transactions and maintain the business premises for ten (10) years. The money lending business is also supposed to display their interest charges somewhere visible.
- The Uganda Microfinance Regulatory Authority will have to always check on your business and manage it.
5. The next step is to look for a unique company name or brand name. One that is easily recognizable and has never been used before.
6. Once you have decided what the company or organization’s name will be, the next step is to register the company as either a private Limited Company or a Private Business Corporation.
7. The applicant should also write an application to the Uganda Microfinance Regulatory Authority.
8. Study and find out more about the business you won’t dwell in. Perform a SWOT analysis to identify the strengths and weaknesses of the business.
How long does it take to have a license?
After applying for the license, one will have to wait for 90 days. In case you forgot some information and it is requested, then 90 days from the newly submitted day is when the license will arrive.
For more information, visit: https://umra.go.ug/
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