The Ugandan government has officially commenced a large-scale registration effort for informal businesses in a bid to generate a revenue of at least UGX 90 billion over the next four years. The Uganda Services Registration Bureau (URSB) will lead this registration initiative, which aims to reduce business informality and expand the tax base.
During the launch of this business registration strategy, Mr. Ramathan Ggoobi, the Secretary to the Treasury and Permanent Secretary of the Ministry of Finance, emphasized the importance of formalizing businesses for economic growth. He assured entrepreneurs and business owners that the registration process would be streamlined and devoid of bureaucratic hurdles, designed for easy understanding.
Mr. Ggoobi stated, “Our target is to register a total of 873,546 businesses by the 2026/27 financial year, resulting in a non-tax revenue of approximately UGX 90.25 billion. While it’s natural for entrepreneurs to want to minimize tax obligations, formalizing their businesses offers benefits such as government support for business growth and revenue generation.”
He also pointed out that businesses that remain informal miss out on government benefits, including access to the Shs200 billion Small Business Recovery Fund and financial institution capital.
Ms. Mercy Kainabwisho, the Registrar General of URSB, highlighted the significance of this initiative in shaping the business formalization agenda. She stressed that the initiative’s goal is to reach every household in Uganda, as a substantial number of households have never registered a business.
“Government has mandated that this year, everyone at the grassroots level should register a business,” she stated.
This mass business registration drive not only aims to boost government revenue but also seeks to promote transparency, provide businesses with access to support, and enhance economic growth in Uganda.