Doing Business 2018 Uganda Economy Pro le of Uganda Doing Business 2018 Indicators (in order of appearance in the document) Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company Dealing with construction Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits safety mechanisms in the construction permitting system Getting electricity Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs Registering property Procedures, time and cost to transfer a property and the quality of the land administration system Getting credit Movable collateral laws and credit information systems Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance Paying taxes Payments, time and total tax rate for a firm to comply with all tax regulations as well as post-filing processes Trading across borders Time and cost to export the product of comparative advantage and import auto parts Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the legal framework for insolvency Labor market regulation Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. Page 2   for insolvency Doing Business Labor market 2018 regulation Uganda Flexibility in employment regulation and aspects of job quality About Doing Business The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected cities at the subnational and regional level. The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. Doing Business captures several important dimensions of the regulatory environment as it applies to local rms. It provides quantitative indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit, protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market regulation indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business, it does present the data for these indicators. By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time, Doing Business encourages economies to compete towards more e cient regulation; o ers measurable benchmarks for reform; and serves as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy. In addition, Doing Business o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent cities and regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region and with the 190 economies that Doing Business has ranked. The rst Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the Russian Federation and the United States) where Doing Business, also collected data for the second largest business city. The data for these 11 economies are a population-weighted average for the 2 largest business cities. The project has bene ted from feedback from governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving the regulatory environment for business around the world. The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to two decimals. More about Doing Business (PDF, 5MB) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Uganda Income Category Low income 122 Population 41,487,965 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 660 0 100 56.94 City Covered Kampala DB 2018 Distance to Frontier (DTF) 0 100 73.40: Rwanda (Rank: 41) 65.15: Kenya (Rank: 80) 64.89: South Africa (Rank: 82) 58.94: Malawi (Rank: 110) 56.94: Uganda (Rank: 122) Page 3   50.43: Regional Average (Sub­Saharan Africa) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Uganda Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Uganda Income Category Low income 122 Population 41,487,965 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 660 0 100 56.94 City Covered Kampala DB 2018 Distance to Frontier (DTF) 0 100 73.40: Rwanda (Rank: 41) 65.15: Kenya (Rank: 80) 64.89: South Africa (Rank: 82) 58.94: Malawi (Rank: 110) 56.94: Uganda (Rank: 122) 50.43: Regional Average (Sub­Saharan Africa) Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is re ected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190. Rankings on Doing Business topics - Uganda 1 28 55 55 64 84 82 Rank 108 113 109 124 127 136 148 165 163 173 190 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Investors Borders Permits Distance to Frontier (DTF) on Doing Business topics - Uganda 100 80 72.25 73.10 65.00 62.08 60.60 58.37 60 54.99 DTF 50.00 38.94 40 34.11 20 0 Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+1.83 Change:-0.82 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:-0.46 Change:+0.95 Permits Change:0.00 Change:+1.46 Change:+1.26 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+1.83 Change:-0.82 Change:0.00 Investors Change:0.00 Borders Change:0.00 Change:-0.46 Change:+0.95 Permits Change:0.00 Change:+1.46 Doing Business 2018 Uganda Change:+1.26 Starting a Business This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited liability company to start up and formally operate in economy’s largest business city. To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has start-up capital equivalent to 10 times income per capita, engages in general industrial or commercial activities and employs between 10 and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the other by 5 married men. The distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Uganda Standardized Company Legal form Private Limited Company Paid-in minimum capital requirement UGX 0 City Covered Kampala Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Procedure – Men (number) 13 7.6 4.9 1.00 (New Zealand) Time – Men (days) 24 24.0 8.5 0.50 (New Zealand) Cost – Men (% of income per capita) 33.6 49.9 3.1 0.00 (United Kingdom) Procedure – Women (number) 13 7.7 4.9 1.00 (New Zealand) Time – Women (days) 24 24.1 8.5 0.50 (New Zealand) Cost – Women (% of income per capita) 33.6 49.9 3.1 0.00 (United Kingdom) Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies) Figure – Starting a Business in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 87.66: Rwanda (Rank: 78) 83.20: Kenya (Rank: 117) 79.97: South Africa (Rank: 136) 76.82: Regional Average (Sub-Saharan Africa) 76.43: Malawi (Rank: 152) 72.25: Uganda (Rank: 165) Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Starting a Business in Uganda – Procedure, Time and Cost Time Cost 14 12 20 ost (% of income per capita) 10 15 Time (days) 8 10 6 Page 6   4 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uganda Figure – Starting a Business in Uganda – Procedure, Time and Cost Time Cost 14 12 20 Cost (% of income per capita) 10 15 Time (days) 8 10 6 4 5 2 0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit the Name Reservation Form to the assessment window of the 1 day USH 20,000 + USH Uganda Registration Services Bureau (URSB) and obtain the bank 2,200 bank fee payment slip Agency : O ce of the Registrar, Uganda Registration Service Bureau To reserve a company name, the entrepreneur submits the name reservation form to the assessment window of the Uganda Registration Service Bureau (URSB). The clerk returns the application, along with the requisite fee assessment payable at the bank. The name reservations forms can be downloaded for free at the following: http://ursb.go.ug/services/business-registration/forms-for-business- registration/ 2 Pay the name reservation fees at the bank 1 day included in previous Agency : Bank procedure All nontax payments to government agencies must be made at a bank. Upon payment of the speci ed assessment fee, the entrepreneur receives a bank receipt that is used to complete the name reservation process. The payable fees include: USH 20,000 for name reservation; and USH 2,200 for the bank service fee. As of 2017, there are two banks located at URSB, one on the rst oor and one on the sixth oor. 3 Reserve the company name between 1-3 days no charge Agency : O ce of the Registrar, Uganda Registration Service Bureau The entrepreneur presents the payment receipt at the name search window Page 7   of URSB. Upon payment of the required fee, the suggested name is (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Uganda Details – Starting a Business in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit the Name Reservation Form to the assessment window of the 1 day USH 20,000 + USH Uganda Registration Services Bureau (URSB) and obtain the bank 2,200 bank fee payment slip Agency : O ce of the Registrar, Uganda Registration Service Bureau To reserve a company name, the entrepreneur submits the name reservation form to the assessment window of the Uganda Registration Service Bureau (URSB). The clerk returns the application, along with the requisite fee assessment payable at the bank. The name reservations forms can be downloaded for free at the following: http://ursb.go.ug/services/business-registration/forms-for-business- registration/ 2 Pay the name reservation fees at the bank 1 day included in previous Agency : Bank procedure All nontax payments to government agencies must be made at a bank. Upon payment of the speci ed assessment fee, the entrepreneur receives a bank receipt that is used to complete the name reservation process. The payable fees include: USH 20,000 for name reservation; and USH 2,200 for the bank service fee. As of 2017, there are two banks located at URSB, one on the rst oor and one on the sixth oor. 3 Reserve the company name between 1-3 days no charge Agency : O ce of the Registrar, Uganda Registration Service Bureau The entrepreneur presents the payment receipt at the name search window of URSB. Upon payment of the required fee, the suggested name is subjected to a search in the business registry database. If the name passes the similarity, defensive, o ensive, and desirability tests, it is reserved for a period of 30 days. There are name reservations books where the entrepreneur can search and see if the name was approved or rejected and for what reasons. This procedure takes between 1-3 days. 4 Obtain the slip-in for the payment of the registration fee and the stamp 1 day no charge duty from URSB Agency : Bank or URSB Entrepreneurs can now obtain the bank payment advice forms online without having to go the Uganda Registration Services Bureau. This is because the fee assessment process can now be done online www.ura.go.ug/payment.do . Entrepreneurs can also go to the company registry, or to the bank to obtain the bank payment advice forms. 5 Pay the registration fees at a designated bank 1 day no charge Agency : Bank Registration receipts are obtained from the designated bank where the fees are paid (within 30-40 minutes). Previously, the founder had to pay the fee at the bank and wait for 3 days to pick up the receipts from the Ministry of Justice. 6 File the registration documents at the O ce of the Registrar and Obtain between 3-5 days see comments the Certi cate of Incorporation Page 8   Agency : O ce of the Registrar the bank and wait for 3 days to pick up the receipts from the Ministry of Doing Justice. Business 2018 Uganda 6 File the registration documents at the O ce of the Registrar and Obtain between 3-5 days see comments the Certi cate of Incorporation Agency : O ce of the Registrar Registration is an administrative process conducted by the Uganda Registration Services Bureau, which is autonomous from the Ministry of Justice and handles company registration-related issues. To register, the entrepreneur must submit the following documents as indicated to the Registration window of URSB: - A completed application Form. - Form A1: Statement of Nominal Capital. - Form S18: Declaration of Compliance with the Requirements of the Companies Act on Application for Registration of a Company. - Form A3: Before incorporation, shares are not yet paid for and thus not allotted. After incorporation, as soon as a company allots its shares, the returns should be registered within 60 days. - Form 20: Particulars of the directors and secretary of the company is required to be led within 14 days of company registration. - Form 9A: Notice of the situation of the Registered Address of the company. This form must be led with the Registrar of Companies within fourteen days of incorporation. - Company Resolutions: The Business Registry can register resolutions of the Company general meetings and board meeting. Fee schedule for company registration: - Registration fees: UGX 20,000 - Stamp duty: 0.5 % of the share capital - Stamp Duty on Memorandum & Articles of Association: UGX 35,000 - Filing Fees: UGX 25,000 - Filing Form A3: UGX 20,000 - Filing Form 7: UGX 20,000 - Filing Form A9: UGX 20,000 Once the documents are submitted and the fees are paid, the applicant will get a receipt to return to retrieve documents. The time for this procedure is between 3-5 days. 7 Obtain a Tax Identi cation Number (TIN) and Register for taxes at the between 2-7 days no charge Uganda Revenue Authority Agency : Uganda Revenue Authority According to section 14 of the Public Finance and Management Act 2015, all businesses seeking a trading license or any form of authorization necessary for purposes of conducting any business in Uganda are required to have a TIN. The company submits a personal inquiry form for each director, and a corporate preliminary inquiry form in application for the Tax Identi cation Number (TIN). The TIN application can be completed online on the website of the Uganda Revenue Authority (URA): www.ura.go.ug. The company also registers for VAT if the company has a threshold of over 50,000,000 shillings according to the Value Added Tax Act sect. 7. On uploading the application form online, the system will print the applicant to print out the online form which has to be signed and submitted it to the nearest URA o ce together with Company Form 20 and a copy of the Certi cate of Incorporation of the Company. TIN approval takes a period of 2- 7 days. The Corporate Tax le number is internally assigned. Page 9   get a receipt to return to retrieve documents. The time for this procedure is Doing between Business days. 3-52018 Uganda 7 Obtain a Tax Identi cation Number (TIN) and Register for taxes at the between 2-7 days no charge Uganda Revenue Authority Agency : Uganda Revenue Authority According to section 14 of the Public Finance and Management Act 2015, all businesses seeking a trading license or any form of authorization necessary for purposes of conducting any business in Uganda are required to have a TIN. The company submits a personal inquiry form for each director, and a corporate preliminary inquiry form in application for the Tax Identi cation Number (TIN). The TIN application can be completed online on the website of the Uganda Revenue Authority (URA): www.ura.go.ug. The company also registers for VAT if the company has a threshold of over 50,000,000 shillings according to the Value Added Tax Act sect. 7. On uploading the application form online, the system will print the applicant to print out the online form which has to be signed and submitted it to the nearest URA o ce together with Company Form 20 and a copy of the Certi cate of Incorporation of the Company. TIN approval takes a period of 2- 7 days. The Corporate Tax le number is internally assigned. 8 Receive inspection of the business premises by the Uganda Revenue 1 day no charge Authority (URA) Agency : Uganda Revenue Authority The business premises undergo inspection by the Uganda Revenue Authority (URA). Once the applicant calls for an appointment, they will usually come to your premise the next day if you are available. 9 Obtain trading license 4 days no charge Agency : Kampala Capital City Authority The entrepreneur applies for a trade license at the Municipal Authority/Council Authority where the company premises are located. The trading license is a general business license required for all companies, including service companies. As of January 2015, you can download and print the standard forms online through the COIN system:https://ecitie.kcca.go.ug/portal/registration/coin- application-non-individual/. Once online, you complete the standard form A, which can be accessed online, and submitted to the Municipality or City Council, along with the relevant company documents, including the memorandum and articles of association, the name of the directors, the certi cate of incorporation, and the lease agreement. You will then be issued a payment slip to take to the Bank. 10 Receive inspection of the business premises by the licensing o cer and 1 day no charge Obtain the assessment form Agency : Kampala Capital City Authority The division of Kampala Capital City Authority (KCCA) in the jurisdiction where the business premises are located does inspection ensuring you have applied for the trading license, then issues the Trading licenses on behalf of KCCA. Upon inspection of the company premises, these divisions issue the assessment forms for the fees payable, which vary with the location of the o ce. These fees are regulated by the Trade Licensing (Amendment of Schedule) Instrument, 2011. 11 Pay the license fee at the bank 1 day included in the Page 10   certi cate of incorporation, and the lease agreement. You will then be issued Doing a payment slip Business to take 2018 to the Bank. Uganda 10 Receive inspection of the business premises by the licensing o cer and 1 day no charge Obtain the assessment form Agency : Kampala Capital City Authority The division of Kampala Capital City Authority (KCCA) in the jurisdiction where the business premises are located does inspection ensuring you have applied for the trading license, then issues the Trading licenses on behalf of KCCA. Upon inspection of the company premises, these divisions issue the assessment forms for the fees payable, which vary with the location of the o ce. These fees are regulated by the Trade Licensing (Amendment of Schedule) Instrument, 2011. 11 Pay the license fee at the bank 1 day included in the Agency : Bank following procedure The founder must pay the relevant license fee at the bank, as follows: Grade 1 - Carrying out wholesale business: UGX 498,750 - Carrying out retail business: UGX 210,000 Grade 2 - Carrying out wholesale business: UGX 236,250 - Carrying out retail business: UGX 78,750 Once the fees are paid, the Municipal Authority issues the Trading License. This authority also reserves the right to revoke and cancel the trading license if deemed necessary by municipal inspections (health and building). 12 Register with the National Social Security Fund (NSSF) 2 days no charge Agency : National Social Security Fund The National Social Security Fund (NSSF) is governed by the revised laws of Uganda, the National Social Security Fund Act Cap 222. The NSSF is a compulsory saving scheme for private-sector employees between the age of 16-55 years, non-governmental organizations, and government parastatal bodies that are not covered by the government pension scheme. Under the Act, all employers with more than 5 employees are obliged to pay an NSSF contribution of 10% of the employees gross monthly salary. This procedure takes 1-7 days. Registration forms for NSSF can be downloaded from the NSSF website. 13 Make a company seal 1 day USH 225,000 Agency : Sealmaker A company seal is mandatory. Section 117 (b) of the companies Act 2012 provides that every Company shall have its name engraved in legible letters on its seal which shall take the form of embossed metal die. Applies to women only. Takes place simultaneously with previous procedure. Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional Page 11   certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more Applies to women only. Takes place simultaneously with previous procedure. Doing Business 2018 Uganda Dealing with Construction Permits This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all required noti cations, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of quality control and safety mechanisms, liability and insurance regimes, and professional certi cation requirements. The most recent round of data collection was completed in June 2017. See the methodology for more information What the indicators measure Case study assumptions Procedures to legally build a warehouse (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external agencies, these are counted as procedures. Building quality control index (0-15) - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 12   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Uganda Standardized Warehouse Estimated value of warehouse UGX 104,470,478.70 City Covered Kampala Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Procedures (number) 18 14.8 12.5 7.00 (Denmark) Time (days) 122 147.5 154.6 27.5 (Korea, Rep.) Cost (% of warehouse value) 8.0 9.9 1.6 0.10 (5 Economies) Building quality control index (0-15) 8.0 8.0 11.4 15.00 (3 Economies) Figure – Dealing with Construction Permits in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 67.53: South Africa (Rank: 94) 65.56: Rwanda (Rank: 112) 63.16: Kenya (Rank: 124) 59.22: Malawi (Rank: 144) 58.37: Uganda (Rank: 148) 56.91: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Dealing with Construction Permits in Uganda – Procedure, Time and Cost Time Cost 120 6 100 5 Cost (% of warehouse value) 80 4 Time (days) 60 3 40 2 20 1 0 0 1 2 *3 *4 5 6 7 *8 9 10 11 12 13 14 * 15 16 17 * 18 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 13   component indicators. Doing Business 2018 Uganda Figure – Dealing with Construction Permits in Uganda – Procedure, Time and Cost Time Cost 120 6 100 5 Cost (% of warehouse value) 80 4 Time (days) 60 3 40 2 20 1 0 0 1 2 *3 *4 5 6 7 *8 9 10 11 12 13 14 * 15 16 17 * 18 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Uganda and comparator economies – Measure of Quality 16 14.0 14 12 11.0 9.5 Index score 10 9.0 8.0 8.0 8 6 4 2 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Dealing with Construction Permits in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Hire an independent private company to prepare the environmental 21 days UGX 5,000,000 impact assessement Agency : Private Company Preparation of the environmental impact assessment (EIA) is carried out by independent private rms recognized and licensed by National Environment Management Authority. Fees are incurred for the preparation of the EIA; the cost would range from UGX 5,000,000 to UGX 15,000,000, depending on the project complexity and site conditions. 2 Obtain a search letter from the KCCA 30 days UGX 10,000 Agency : Kampala Capital City Authority Page 14   Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Doing Business 2018 Uganda Details – Dealing with Construction Permits in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Hire an independent private company to prepare the environmental 21 days UGX 5,000,000 impact assessement Agency : Private Company Preparation of the environmental impact assessment (EIA) is carried out by independent private rms recognized and licensed by National Environment Management Authority. Fees are incurred for the preparation of the EIA; the cost would range from UGX 5,000,000 to UGX 15,000,000, depending on the project complexity and site conditions. 2 Obtain a search letter from the KCCA 30 days UGX 10,000 Agency : Kampala Capital City Authority A search letter is rst carried out to ascertain the ownership of the land and that there are no encumbrances on this land. It must be no more than 3 months old. Once this con rmation is received, the process of requesting a building permit may start. 3 Request and obtain approval from National Environment Management 21 days UGX 1,250,000 Authority (NEMA) Agency : National Environment Management Authority NEMA requires an environmental impact assessment preliminary report to be undertaken on a project prior to its construction. Only consultants registered by NEMA are allowed to provide environmental impact assessment submissions, whether as an EIA project report or a full EIA study. The lead environmental expert must be registered with NEMA. The environmental consultant requires to provide a complete set of architectural drawings to accompany the compiled EIA project report. 4 Receive onsite inspection by members of NEMA 1 day no charge Agency : National Environment Management Authority 5 Obtain assessment of the plans by Kampala Capital City Authority 3 days no charge (KCCA) Agency : Kampala Capital City Authority KCCA provides a preliminary assessment or screening of the general plans. KCCA gives feedback on the planning process for the project before proceeding to the next approval stage of the full plan. 6 Request and obtain approval of plans and receive building permit 30 days UGX 1,460,600 Agency : Kampala Capital City Authority All construction sites are required to provide for hoarding around the site of the works for the duration of the construction period. A Technical Review Team (TRT) comprising of engineers, physical planners, environmental o cers, and architects has been developed to visit the construction site within one week after the application has been submitted. They are expected to start conducting inspections in the coming year. 7 Request and obtain hoarding permit 14 days no charge Page 15   KCCA gives feedback on the planning process for the project before Business to Doing proceeding the next 2018 approval stage of the full plan. Uganda 6 Request and obtain approval of plans and receive building permit 30 days UGX 1,460,600 Agency : Kampala Capital City Authority All construction sites are required to provide for hoarding around the site of the works for the duration of the construction period. A Technical Review Team (TRT) comprising of engineers, physical planners, environmental o cers, and architects has been developed to visit the construction site within one week after the application has been submitted. They are expected to start conducting inspections in the coming year. 7 Request and obtain hoarding permit 14 days no charge Agency : Kampala Capital City Authority The hoarding permit requires a separate application. It takes on average 2 weeks after the application to be obtained. KCCA calls the customer to pick up the permit. 8 Request and obtain the "job card" 14 days no charge Agency : Kampala Capital City Authority The constructor will apply for a job card, which is basically a commencement of work. KCCA will inspect the construction site and then will give a letter to commence construction and also a “Job Card” which is then signed during the various stages of construction inspection. 9 Notify and receive inspection after building foundation work 1 day no charge Agency : Kampala Capital City Authority There are several main inspections during construction: 1. First inspection is during the pouring of the foundation 2. Second inspection is during the installation of steel bars and foundation concrete 3. Floor inspection – for each oor, during the critical elements of building – ie, suspended oor columns. 4. Inspection after drainage and damp proo ng work (this inspection might not happen often in practice) 10 Notify and receive inspection after structural work 1 day no charge Agency : Kampala Capital City Authority BuildCo calls KCCA to inform of completion of each stage of construction and the inspectors come and inspect and sign on job card. Inspectors are usually available and inspect within 2-3 days of being called. 11 Notify and receive inspection after the completion of the rst oor 1 day no charge Agency : Kampala Capital City Authority BuildCo calls KCCA to inform of completion of each stage of construction and the inspectors come and inspect and sign on job card. Inspectors are usually available and inspect within 2-3 days of being called. 12 Notify and receive inspection after the completion of the second oor 1 day no charge Agency : Kampala Capital City Authority BuildCo calls KCCA to inform of completion of each stage of construction and the inspectors come and inspect and sign on job card. Inspectors are usually available and inspect within 2-3 days of being called. 13 Notify and receive inspection after drainage and damp proo ng work 1 day no charge Page 16   the inspectors come and inspect and sign on job card. Inspectors are usually Doing available Business and within 2-3 days of being called. inspect Uganda 2018 13 Notify and receive inspection after drainage and damp proo ng work 1 day no charge Agency : Kampala Capital City Authority BuildCo calls KCCA to inform of completion of each stage of construction and the inspectors come and inspect and sign on job card. Inspectors are usually available and inspect within 2-3 days of being called. 14 Notify of the completion of construction and receive a nal inspection 1 day no charge Agency : Kampala Capital City Authority BuildCo calls KCCA to inform of completion of each stage of construction and the inspectors come and inspect and sign on job card. Inspectors are usually available and inspect within 2-3 days of being called. Request provision of water and sewerage services 1 day UGX 600,000 15 Agency : National Water & Sewerage Corporation New connection can be applied for online.The information entered is processed and a surveyor sent to the customer's premise to determine the material requirements. Connection expenses are calculated by the surveyor based on the connection type, distance from the mains, whether it is a new connection or a separation of account. NWSC caters for connection expenses within 50 meters, beyond that, the customer caters for any extra meters. The customer is given a payment advise slip and pays new connection fees, whose amount depends on the size of the service for instance, ½, ¾, 1 inch connection. When all the above has been done the customer is connected to NWSC service(s) by sta in charge. No o cial fee schedule, cost is calculated by NWSC based on the connection. 16 Receive survey inspection from the National Water & Sewerage 1 day no charge Corporation Agency : National Water & Sewerage Corporation 17 Connect to water and sewerage 14 days no charge Agency : National Water & Sewerage Corporation Request and obtain occupation permit 14 days UGX 80,000 18 Agency : Local Authority BuildCo submits a signed certi cate to the local authority stating that the building has been constructed in compliance with the approved plans. It can then receive the occupation permit. Takes place simultaneously with previous procedure. Details – Dealing with Construction Permits in Uganda – Measure of Quality Answer Score Building quality control index (0-15) 8.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. Page 17   Takes place simultaneously with previous procedure. Doing Business 2018 Uganda Details – Dealing with Construction Permits in Uganda – Measure of Quality Answer Score Building quality control index (0-15) 8.0 Quality of building regulations index (0-2) 1.0 How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0 Free of charge. Which requirements for obtaining a building permit are clearly speci ed in the building List of required 0.0 regulations or on any accessible website, brochure or pamphlet? (0-1) documents. Quality control before construction index (0-1) 1.0 Which third-party entities are required by law to verify that the building plans are in Licensed 1.0 compliance with existing building regulations? (0-1) architect; Licensed engineer. Quality control during construction index (0-3) 2.0 What types of inspections (if any) are required by law to be carried out during Inspections at 1.0 construction? (0-2) various phases. Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0 inspections are always done in practice. Quality control after construction index (0-3) 3.0 Is there a nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 1.0 always occurs in practice. Liability and insurance regimes index (0-2) 0.0 Which parties (if any) are held liable by law for structural aws or problems in the No party is held 0.0 building once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) liable under the law. Which parties (if any) are required by law to obtain an insurance policy to cover No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 1.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Page 18   Professional Doing cations Uganda certi 2018 Business index (0-4) 1.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the University 0.0 construction on the ground? (0-2) degree in engineering, construction or construction management. Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Page 19   Tools to restore power supply (0–1) construction management. Doing Business 2018 Uganda Getting Electricity This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply, transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10- Official costs only, no bribes meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 20   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Uganda Standardized Connection Price of electricity (US cents per kWh) 16.5 Name of utility Umeme City Covered Kampala Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Procedures (number) 6 5.3 4.7 2 (United Arab Emirates) Time (days) 66 115.3 79.1 10 (United Arab Emirates) Cost (% of income per capita) 7508.4 3737.0 63.0 0.00 (Japan) Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies) index (0-8) Figure – Getting Electricity in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 76.68: Kenya (Rank: 71) 63.21: South Africa (Rank: 112) 60.69: Rwanda (Rank: 119) 45.91: Regional Average (Sub-Saharan Africa) 43.43: Malawi (Rank: 166) 34.11: Uganda (Rank: 173) Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Getting Electricity in Uganda – Procedure, Time and Cost Time Cost 8000 60 7000 Cost (% of income per capita) 50 6000 40 5000 Time (days) 4000 30 3000 20 2000 10 Page 21   1000 getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uganda Figure – Getting Electricity in Uganda – Procedure, Time and Cost Time Cost 8000 60 7000 Cost (% of income per capita) 50 6000 40 5000 Time (days) 4000 30 3000 20 2000 10 1000 0 0 1 2 3 *4 5 6 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Uganda and comparator economies – Measure of Quality 4.5 4 4 3.5 3 Index score 2.5 2 1.5 0.9 1 0.5 0 0 0 0 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Getting Electricity in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application letter to UMEME and await site visit 7 calendar days UGX 0 Agency : UMEME Licensed contractor, with valid Installation permit from Electricity Regulatory Authority (ERA) on team provides a wiring certi cate, con rming that all wiring has been done as per code. Application form will include details such as name, zone, type of service; whether domestic, commercial or otherwise, telephone number etc. The passport size photo and the Wiring Certi cate will be attached to this form. The customer is also required to sign a declaration form at the back of the application form. This form states the conditions of supply. Where Way-Leaves are required, the letter of consent will be issued and both the person authorizing and the prospective Page 22   customer will be required to sign on it. If it’s a company, the company o cial Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Doing Business 2018 Uganda Details – Getting Electricity in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Submit application letter to UMEME and await site visit 7 calendar days UGX 0 Agency : UMEME Licensed contractor, with valid Installation permit from Electricity Regulatory Authority (ERA) on team provides a wiring certi cate, con rming that all wiring has been done as per code. Application form will include details such as name, zone, type of service; whether domestic, commercial or otherwise, telephone number etc. The passport size photo and the Wiring Certi cate will be attached to this form. The customer is also required to sign a declaration form at the back of the application form. This form states the conditions of supply. Where Way-Leaves are required, the letter of consent will be issued and both the person authorizing and the prospective customer will be required to sign on it. If it’s a company, the company o cial stamp will su ce instead of a passport photo; There is a requirement for a simple location sketch of the premises highlighting nearby other major known installations. 2 Receive external site inspection by UMEME and await estimate 15 calendar days UGX 118,000 Agency : UMEME Umeme inspects the premises of the client to verify the requirement and the existing infrastructure. There is a speci c inspector/surveyor for industrial connection. There is only one to cover all the country. There are 6 others who cover the 6 regions of Uganda for simple connections. The surveyor draws the route of the power lines. Since there is no planning of the city, there is some delay in determining the roads as it often cross private property. In that case, Umeme helps the client to obtain a way leave. Umeme receives around 30 requests by month; amongst them 10 require the surveyor. Once the route is determined, the surveyor lists the required materials and does the drawings for the extension of the MV network. The costing is then done by planning engineers for the low voltage and by the central planning department for the medium voltage. The quotation is then given to the customer with the list of materials and the labor costs for the connection. The customer can now choose an electrical contractor to do the works. There is a list of prequali ed contractors by Umeme. There have been over 40 contractors approved in the past years. 3 Hire private electrical contractor to carry out external works 30 calendar days UGX 150,800,000 Agency : Electrical Contractor The approval of the plans is done at the planning department. Once the plans are approved, the contractor starts the construction of the connection. The approval of the plans is very fast as the contractors have been working closely with the planning department. Once the construction begins or the contractor noti es the planning department who will transmit the le to the local o ce. 4 Obtain test of distribution transformer by UMEME 7 calendar days UGX 800,000 Agency : UMEME The client has to bring the transformer to Umeme workshop in order to test it. 5 Submit inspection fee to UMEME and receive internal wiring inspection 7 calendar days UGX 118,000 Page 23   Agency : UMEME The client has to bring the transformer to Umeme workshop in order to test Doing it. Business 2018 Uganda 5 Submit inspection fee to UMEME and receive internal wiring inspection 7 calendar days UGX 118,000 Agency : UMEME This is the fee for the site inspection, and needs to be paid at the utility in cash. The installation inspector/surveyor will visit the site to verify whether the wiring conforms to the requirements of the company. This will take about 3 days. The customer pays for inspection fee to the Utility company and you be allocated an Engineer who handles the le within a period of one week. This is paid to the Utility company cash o ce. 6 Receive meter installation and electricity ow from UMEME 7 calendar days UGX 5,044,643.53 Agency : UMEME All payments made in cash at the utility, at the bank counter. Two separate payments are made – one for capital contribution and one for security deposit and the two receipts are then given at respective counters in the utility. Once all payments are made, the utility gives an account number and instructions are sent to connections department. Cost breakdown is as follows: One pole service 3 phase, the cost varies depending on the distance, security deposit, transformer structure; Distribution transformer; LV Cable cost; and labor cost of transformer structure. Utility conducts all external connection works and meter installation. Takes place simultaneously with previous procedure. Details – Getting Electricity in Uganda – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 50.2 System average interruption frequency index (SAIFI) 27.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 6.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Page 24   Are e ective tari s available online? Yes Takes place simultaneously with previous procedure. Doing Business 2018 Uganda Details – Getting Electricity in Uganda – Measure of Quality Answer Reliability of supply and transparency of tari index (0-8) 0 Total duration and frequency of outages per customer a year (0-3) 0 System average interruption duration index (SAIDI) 50.2 System average interruption frequency index (SAIFI) 27.8 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 6.0 Mechanisms for monitoring outages (0-1) 1 Does the distribution utility use automated tools to monitor outages? Yes Mechanisms for restoring service (0-1) 1 Does the distribution utility use automated tools to restore service? Yes Regulatory monitoring (0-1) 1 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on Yes reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 1 Are e ective tari s available online? Yes Link to the website, if available online http://www.era.or.ug / les/2017_Annual_T ari _Review_Report. pdf Are customers noti ed of a change in tari ahead of the billing cycle? Yes Note: If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tari index. If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index. If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 25   If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing Business 2018 Uganda Registering Property This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land administration system in each economy. The quality of land administration index has ve dimensions: reliability of infrastructure, transparency of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Procedures to legally transfer title on immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 square feet). A two-story warehouse of 929 square meters (10,000 square feet) is located on the land. The warehouse is 10 years old, is in Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value UGX 104,470,478.70 City Covered Kampala Page 26   Sub-Saharan OECD high Doing Business 2018 Uganda Standard Property Transfer Property value UGX 104,470,478.70 City Covered Kampala Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Procedures (number) 10 6.2 4.6 1.00 (4 Economies) Time (days) 42 59.3 22.3 1.00 (3 Economies) Cost (% of property value) 3.1 7.8 4.2 0.00 (5 Economies) Quality of the land administration index (0-30) 10.5 8.6 22.7 29.00 (Singapore) Figure – Registering Property in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 93.26: Rwanda (Rank: 2) 62.45: Malawi (Rank: 96) 58.43: South Africa (Rank: 107) 54.99: Uganda (Rank: 124) 54.49: Kenya (Rank: 125) 51.71: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Registering Property in Uganda – Procedure, Time and Cost Time Cost 1.6 40 1.4 35 Cost (% of property value) 1.2 30 1 Time (days) 25 0.8 20 15 0.6 10 0.4 5 0.2 0 0 1 2 3 4 5 6 7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Page 27   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Uganda Figure – Registering Property in Uganda – Procedure, Time and Cost Time Cost 1.6 40 1.4 35 Cost (% of property value) 1.2 30 1 Time (days) 25 0.8 20 15 0.6 10 0.4 5 0.2 0 0 1 2 3 4 5 6 7 8 9 10 Procedures (number) * This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure. Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Uganda and comparator economies – Measure of Quality 30 28.0 25 20 Index score 16.0 15 13.5 10.5 10.5 10 8.6 5 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Registering Property in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request a search and obtain Consent form to transfer at the Registry of 1 day paid in procedure 2 Lands Agency : Registry of Lands The process starts by requesting a search of the property in the Registry of Lands. The requester has to ll out a form indicating the details of the property to be searched. The Registry gives a Bank Advice Form (BAF) with the amount to be paid, which one takes to the bank to pay in full. The Consent Form has a dual purpose, because it is the same form that is used for the payment of taxes, so even in instances where the land is owned in freehold and there is no need to obtain consent to transfer, the same form will be used to determine tax payments owed and to make payment. Page 28   Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Doing Business 2018 Uganda Details – Registering Property in Uganda – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Request a search and obtain Consent form to transfer at the Registry of 1 day paid in procedure 2 Lands Agency : Registry of Lands The process starts by requesting a search of the property in the Registry of Lands. The requester has to ll out a form indicating the details of the property to be searched. The Registry gives a Bank Advice Form (BAF) with the amount to be paid, which one takes to the bank to pay in full. The Consent Form has a dual purpose, because it is the same form that is used for the payment of taxes, so even in instances where the land is owned in freehold and there is no need to obtain consent to transfer, the same form will be used to determine tax payments owed and to make payment. 2 Pay Search Fee at designated Commercial Bank 1 day UGX 25,000 (UGX Agency : Commercial Bank 10,000 search fee + UGX 2,500 bank fee, To facilitate the o cial fees payment process, the government now allows UGX 10,000 Consent citizens to pay at one of the designated pool of commercial banks. For every fee + UGX 2,500 bank procedure in which fees are paid, one rst begins the procedure at the land fee) registry, obtains a Bank Advice Form (BAF) there with the amount due, takes the BAF to the bank, pays that amount plus bank fees, and obtains a receipt that will later be presented again at the land registry to complete the procedure. Because all o cial fees are now paid at more than one bank, citizens do not need to pay and come back the following day to obtain the receipt. 3 Conduct a search at the Registry of Lands 4-7 days paid in procedure 2 Agency : Registry of Lands Parties conduct a search at the Registry of Lands. The receipt of payment of the search fee from the bank must be presented. At this time one also picks up the consent to transfer application. 4 Lawyer drafts sale agreement 1 day 1% - 2% property Agency : Lawyer value (to conduct entire transaction) It is not mandatory to use a lawyer to draw up the sale agreement or conduct the transaction, but it is common practice. 5 Valuation of property for transfer purposes by Chief Government 2 weeks no cost Valuer's O ce Agency : Chief Government Valuer o ce A government valuer will determine the value of the property for transfer purposes and for assessing and paying stamp duty. The Government Valuer does not necessarily physically visit the property that he/she is allocated to value. That o ce has approximated values of properties in the di erent parties of the city on which the valuers base their valuation for tax purposes 6 Obtain assessment form for payment of stamp duty from Uganda 2-3 days no cost Revenue Authority Agency : Uganda Revenue Authority Once the Chief Government valuer has given his consent on the cost, the le is taken to the Uganda Revenue Authority, where an assessment form for Stamp duty is provided. At that time, the name of the designated bank will be Page 29   value. That o ce has approximated values of properties in the di erent Doing parties of the Business city on which 2018 Ugandathe valuers base their valuation for tax purposes 6 Obtain assessment form for payment of stamp duty from Uganda 2-3 days no cost Revenue Authority Agency : Uganda Revenue Authority Once the Chief Government valuer has given his consent on the cost, the le is taken to the Uganda Revenue Authority, where an assessment form for Stamp duty is provided. At that time, the name of the designated bank will be provided. 7 Payment of stamp duty at the designated commercial bank 3-5 days 1.5% of property Agency : Commercial Bank price (of the government’s Stamp duty must be paid at the commercial bank before registration. To valuation) control the revenue from o cial fees, the government now requires that they be paid only at the commercial bank. In the rst instance there is an assessment form which is taken to the bank and payment is made. The Bank will inform the Uganda Revenue Authority that payment has been received. There is a reconciliation process between the Bank and the Uganda Revenue Authority which can take up to 3 days. 8 Obtain assesment of registration fee 1 day no cost Agency : Registry of Lands at Kampala Capital City Authority The sale agreement is given to the Kampala Capital City Authority for assessment of Registration Fee. An assessment form is given providing the amount to the paid for Registration Fees. This form will also provide the name of the designated bank where payment is to be made. The documentation shall include: Signed sale agreement (obtained in Procedure 4) Receipts of stamp duty payment (obtained in Procedure 7) Companies’ resolutions to buy and sell 9 Payment of registration fee at the designated commercial bank 1 day UGX 22,500 (UGX Agency : Commercial Bank 20,000 in fees + 2,500 bank fee) + UGX Registration fees must be paid in a designated commercial bank to continue 20,000 (registration with the registration process. Parties must pay: UGX 22,500 (UGX 20,000 in of companies' fees + 2,500 bank fee) + UGX 20,000 (registration of companies' resolutions). resolutions) 10 The transfer documents are lodged at the Registry of Lands 7-15 days (already paid at the Agency : Registry of Lands bank) The transfer documents lodged at the Registry of Lands, where they will be transmitted to the Registrar who will pass the Instrument of Transfer. The le goes to typing and is then sent to the Commissioner in charge of land registration for veri cation. The registrar cancels out the old owner in handwriting and signs against the new owner. The buyer and seller must now provide a passport size photograph. The documentation shall include: Receipts of payment for registration fees (obtained in Procedure 9= Page 30   with the registration process. Parties must pay: UGX 22,500 (UGX 20,000 in of companies' fees + 2,500 bank fee) + UGX 20,000 (registration of companies' resolutions). Doing Business 2018 Uganda resolutions) 10 The transfer documents are lodged at the Registry of Lands 7-15 days (already paid at the Agency : Registry of Lands bank) The transfer documents lodged at the Registry of Lands, where they will be transmitted to the Registrar who will pass the Instrument of Transfer. The le goes to typing and is then sent to the Commissioner in charge of land registration for veri cation. The registrar cancels out the old owner in handwriting and signs against the new owner. The buyer and seller must now provide a passport size photograph. The documentation shall include: Receipts of payment for registration fees (obtained in Procedure 9= Photo ID of both Seller and Buyer Owner's copy of the title The Land Registry is currently undergoing a le digitization process. This involves scanning all paper les and creating a computer database. This may sometimes reduce the speed of transactions, where a necessary le is unavailable to the parties. Takes place simultaneously with previous procedure. Details – Registering Property in Uganda – Measure of Quality Answer Score Quality of the land administration index (0-30) 10.5 Reliability of infrastructure index (0-8) 3.0 What is the institution in charge of immovable property registration? Department of Land Administration, KCCA (Kampala Capital City Authority) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Ministry of Land, Housing and Urban Development In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Page 31   Takes place simultaneously with previous procedure. Doing Business 2018 Uganda Details – Registering Property in Uganda – Measure of Quality Answer Score Quality of the land administration index (0-30) 10.5 Reliability of infrastructure index (0-8) 3.0 What is the institution in charge of immovable property registration? Department of Land Administration, KCCA (Kampala Capital City Authority) In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Ministry of Land, Housing and Urban Development In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Di erent 1.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases but or in separate databases? linked Do the immovable property registration agency and cadastral or mapping agency use Yes 1.0 the same identi cation number for properties? Transparency of information index (0–6) 3.5 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, online 0.5 made publicly available–and if so, how? Link for online access: http://mlhud.go. ug/faqs/ Is the applicable fee schedule for any property transaction at the agency in charge of Yes, online 0.5 immovable property registration in the largest business city made publicly available– and if so, how? Link for online access: http://mlhud.go. ug/department- of-land- registration/ Page 32   immovable property registration in the largest business city made publicly available– and if Doing so, how? 2018 Business Uganda Link for online access: http://mlhud.go. ug/department- of-land- registration/ Does the agency in charge of immovable property registration commit to delivering a Yes, online 0.5 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: http://mlhud.go. ug/department- of-land- registration/ Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, online 0.5 —and if so, how? Link for online access: http://mlhud.go. ug/lands- managment/dep artment-of- surveys-and- mapping/ Does the cadastral or mapping agency commit to delivering an updated map within a Yes, online 0.5 speci c time frame—and if so, how does it communicate the service standard? Link for online access: http://mlhud.go. ug/lands- managment/dep artment-of- surveys-and- mapping/ Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 Page 33   Geographic Doing coverage Business (0–8) indexUganda 2018 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Registrar; Lawyer; Interested Parties. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Lawyer; Interested Parties. Is there a national database to verify the accuracy of identity documents? No 0.0 For a standard land dispute between two local businesses over tenure rights of a The High Court property worth 50 times gross national income (GNI) per capita and located in the of Uganda-Land largest business city, what court would be in charge of the case in the rst instance? Division How long does it take on average to obtain a decision from the rst-instance court for Between 2 and 3 1.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: 945.0 Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit Page 34   This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Uganda Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Strength of legal rights index (0-12) 6 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Page 35   Credit registry coverage (% of adults) 0.0 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Uganda Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Strength of legal rights index (0-12) 6 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 7 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 0.0 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 6.4 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 90.00: Malawi (Rank: 6) 90.00: Rwanda (Rank: 6) 75.00: Kenya (Rank: 29) 65.00: Uganda (Rank: 55) 60.00: South Africa (Rank: 68) 40.73: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Uganda and comparator economies 12 11 10 10 8 Index score 7 6 6 5 5.1 4 2 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Legal Rights in Uganda Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Page 36   Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Doing Business 2018 Uganda Details – Legal Rights in Uganda Strength of legal rights index (0-12) 6 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without Yes requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring Yes a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds Yes or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and Yes obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency Yes procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Uganda and comparator economies 10 8 8 8 7 7 7 Index score 6 4 3.0 2 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Credit Information in Uganda Page 37   0 Uganda Doing Business 2018 UgandaKenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Credit Information in Uganda Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? Yes No 1 Are both positive and negative credit data distributed? Yes No 1 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more Yes No 1 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? Yes No 1 By law, do borrowers have the right to access their data in the credit bureau or credit registry? Yes No 1 Can banks and financial institutions access borrowers’ credit information online (for example, Yes No 1 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial Yes No 1 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 7 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 1,298,602 0 Number of firms 21,204 0 Total 1,319,806 0 Percentage of adult population 6.4 0.0 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 38   transactions; Available legal remedies (damages, Percentage of adult population 6.4 0.0 Doing Business 2018 Uganda Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 4.0 6.4 Page 39   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Uganda Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 73.33: Rwanda (Rank: 16) 70.00: South Africa (Rank: 24) 58.33: Kenya (Rank: 62) 51.67: Malawi (Rank: 96) 50.00: Uganda (Rank: 108) 43.72: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Uganda and comparator economies – Measure of Quality Uganda 6 5 3 5 4 7 Kenya 4 5 6 6 5 9 Malawi 4 7 4 2 7 7 Rwanda 7 9 7 8 8 5 South Africa 4 8 8 6 8 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 50 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Uganda – Measure of Quality Answer Score Page 40   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Uganda Details – Protecting Minority Investors in Uganda – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5 Extent of disclosure index (0-10) 3 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) No disclosure 0.0 obligation Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 5 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if 1.0 negligently concluded Ease of shareholder suits index (0-10) 7 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove speci c facts in the plainti ’s claim Page 41   Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction Doing 2018 (0-1) documents? Business Uganda Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Documents that 2.0 directly prove speci c facts in the plainti ’s claim Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Yes 2.0 Is the level of proof required for civil suits lower than that of criminal cases? (0-1) Yes 1.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5 Extent of shareholder rights index (0-10) 4 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? No 0.0 Do shareholders automatically receive preemption rights every time Buyer issues new No 0.0 shares? Must shareholders approve the election and dismissal of the external auditor? Yes 1.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new No 0.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their No 0.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 5 Is it forbidden to appoint the same individual as CEO and chair of the board of Yes 1.0 directors? Must the board of directors include independent and nonexecutive board members? Yes 1.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 Page 42   of Buyer? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board Doing members? Business 2018 Uganda Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? No 0.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve No 0.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a No 0.0 maximum period set by law? Extent of corporate transparency index (0-10) 6 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? Yes 1.0 Must Buyer disclose information about board members’ primary employment and Yes 1.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general No 0.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? Yes 1.0 Must Buyer disclose its audit reports to the public? Yes 1.0 Assuming that Buyer is a limited company, must members meet at least once a year? No 0.0 Assuming that Buyer is a limited company, can members representing 5% put items on No 0.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Page 43   Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory Assuming that Buyer is a limited company, must Buyer's annual nancial statements be Yes 1.0 audited by an external auditor? Doing Business 2018 Uganda Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect tax depreciation rates, or incorrectly treating an expense as tax deductible) Post ling Index leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Payments (number per year) 31 37.2 10.9 3 (Hong Kong SAR, China) Page 44   return, but within the tax assessment period. Doing Business 2018 Uganda Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Payments (number per year) 31 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 195 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 33.7 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 72.28 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 84.60: Rwanda (Rank: 31) 80.02: South Africa (Rank: 46) 73.10: Uganda (Rank: 84) 71.67: Kenya (Rank: 92) 62.10: Malawi (Rank: 134) 57.49: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Uganda and comparator economies – Measure of Quality 80 72.28 70 62.03 63.68 60 55.45 54.39 Index score 50 40 33.41 30 20 10 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Paying Taxes in Uganda Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Page 45   Corporate income tax 3 39 30% taxable profit 22.31 Doing Business 2018 Uganda Figure – Paying Taxes in Uganda and comparator economies – Measure of Quality 80 72.28 70 62.03 63.68 60 55.45 54.39 Index score 50 40 33.41 30 20 10 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Paying Taxes in Uganda Total tax and Tax or mandatory Payments Notes on Time Statutory contribution rate (% of Notes contribution (number) Payments (hours) tax rate Tax base profit) on TTR Corporate income tax 3 39 30% taxable profit 22.31 Social security 12 66 10% gross 11.28 contributions salaries Tax on interest 0 15% interest 0.38 not income included Property tax 1 7%-10% rental value 0.06 of property Stamp duty on 1 various per contract 0.05 contracts rates Employee Social 0 5% gross 0.00 not security contributions salaries included Fuel tax 1 included in liters 0.00 small fuel price amount Trading license 1 various nature of 0.00 small rates trade amount Value added tax (VAT) 12 90 18% value added 0.00 not included Totals 31 195 33.7 Details – Paying Taxes in Uganda – Tax by Type Taxes by type Answer Profit tax (% of profit) 22.3 Labor tax and contributions (% of profit) 11.3 Other taxes (% of profit) 0.1 Page 46   Totals 31 195 33.7 Doing Business 2018 Uganda Details – Paying Taxes in Uganda – Tax by Type Taxes by type Answer Profit tax (% of profit) 22.3 Labor tax and contributions (% of profit) 11.3 Other taxes (% of profit) 0.1 Details – Paying Taxes in Uganda – Measure of Quality Answer Score Post ling index (0-100) 72.28 VAT refunds Does VAT exist? Yes Does a VAT refund process exist per the case study? Yes Restrictions on VAT refund process None Percentage of cases exposed to a VAT audit (%) 75% - 100% Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) 9.0 82 Time to obtain a VAT refund (weeks) 15.5 76.35 Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 50% - 74% Time to comply with a corporate income tax audit (hours) 20.0 66.06 Time to complete a corporate income tax audit (weeks) 11.3 64.73 Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Page 47   Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Uganda Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) from its natural import partner—the economy from which it imports the Traffic delays and road police checks while shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 48   of agriculture or industry, national security agencies and any other Doing Business 2018 Uganda government authorities. Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Time to export: Border compliance (hours) 64 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 209 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 51 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 102 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 154 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 412 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 138 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 296 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 72.44: Rwanda (Rank: 87) 67.63: Kenya (Rank: 106) 65.29: Malawi (Rank: 117) 62.08: Uganda (Rank: 127) 58.01: South Africa (Rank: 147) 52.56: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Uganda – Time and Cost Time Cost 180 412 450 160 154 400 138 140 350 296 120 300 Time (hours) Cost (USD) 100 250 209 80 64 200 60 51 150 102 40 100 20 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary CompliancePage 49   Doing Business 2018 Uganda Figure – Trading across Borders in Uganda – Time and Cost Time Cost 180 412 450 160 154 400 138 140 350 296 120 300 Time (hours) Cost (USD) 100 250 209 80 64 200 60 51 150 102 40 100 20 50 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Uganda Characteristics Export Import Product HS 09 : Coffee, tea, matï and spices HS 8708: Parts and accessories of motor vehicles Trade partner Switzerland United Arab Emirates Border Malaba border crossing Malaba border crossing Distance (km) 220 220 Domestic transport time (hours) 23 23 Domestic transport cost (USD) 391 391 Details – Trading across Borders in Uganda – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 13.0 148.1 Export: Clearance and inspections required by agencies other than customs 48.0 61.3 Export: Port or border handling 9.0 0.0 Import: Clearance and inspections required by customs authorities 19.5 211.7 Import: Clearance and inspections required by agencies other than customs 120.0 200.0 Import: Port or border handling 29.3 0.0 Details – Trading across Borders in Uganda – Trade Documents Export Import Commercial Invoice Shipping line manifest Packing List Bill of lading Page 50   Domestic transport cost (USD) 391 391 Doing Business 2018 Uganda Details – Trading across Borders in Uganda – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 13.0 148.1 Export: Clearance and inspections required by agencies other than customs 48.0 61.3 Export: Port or border handling 9.0 0.0 Import: Clearance and inspections required by customs authorities 19.5 211.7 Import: Clearance and inspections required by agencies other than customs 120.0 200.0 Import: Port or border handling 29.3 0.0 Details – Trading across Borders in Uganda – Trade Documents Export Import Commercial Invoice Shipping line manifest Packing List Bill of lading International Coffee Organization Certificate of Origin Commercial invoice Parking List/Tally Sheet Packing list Bill of Lading Customs entry - T810+T812 Terminal Handling Receipt Insurance Certificate Generalized System Preference (GSP) Form A IM4 – Direct Import for Home use Kenya Transit Entry Import Declaration Form (IDF) Customs Export Declaration Terminal handling receipts Phytosanitary Certificate Transit documents Fumigation Certificate Delivery Order Export License Final Certification Document (Certification Decision/CoC) SOLAS certificate Request for Certification (RFC) SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. Page 51   SOLAS certificate Doing Business 2018 Uganda Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value UGX 13,865,162.00 Court name Chief Magistrates Court of Mengo City Covered Kampala Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Time (days) 490 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 31.3 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 8.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 60.60: Uganda (Rank: 64) 58.62: Rwanda (Rank: 85) 58.27: Kenya (Rank: 90) Page 52   of judicial processes Quality Business Doing index (0-18) 2018 Uganda 8.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 60.60: Uganda (Rank: 64) 58.62: Rwanda (Rank: 85) 58.27: Kenya (Rank: 90) 54.10: South Africa (Rank: 115) 48.14: Regional Average (Sub-Saharan Africa) 45.55: Malawi (Rank: 151) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Uganda – Time and Cost Time Cost 700 82.7 656.8 90 577.8 600 80 600 522 69.1 Cost (% of claim value) 490 70 500 465 60 Time (days) 400 44.0 50 41.8 300 33.2 40 230 31.3 30 200 21.5 20 100 10 0 0 Kenya Malawi OECD high income Rwanda South Africa Sub-Saharan Africa Uganda Figure – Enforcing Contracts in Uganda and comparator economies – Measure of Quality Uganda 2.5 1.5 0.5 4 Kenya 2 2 0.5 4.5 Malawi 1.5 1 1.5 4.5 Rwanda 2.5 4.5 4 3 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 Page 53   16 0 0 Kenya Malawi OECD high income Rwanda South Africa Sub-Saharan Africa Uganda Doing Business 2018 Uganda Figure – Enforcing Contracts in Uganda and comparator economies – Measure of Quality Uganda 2.5 1.5 0.5 4 Kenya 2 2 0.5 4.5 Malawi 1.5 1 1.5 4.5 Rwanda 2.5 4.5 4 3 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Uganda Indicator Time (days) 490 Filing and service 20 Trial and judgment 365 Enforcement of judgment 105 Cost (% of claim value) 31.3 Attorney fees 15 Court fees 6.7 Enforcement fees 9.6 Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.0 Case management (0-6) 1.5 Court automation (0-4) 0.5 Alternative dispute resolution (0-3) 2.5 Details – Enforcing Contracts in Uganda – Measure of Quality Page 54   Alternative dispute resolution (0-3) 2.5 Doing Business 2018 Uganda Details – Enforcing Contracts in Uganda – Measure of Quality Answer Score Quality of judicial processes index (0-18) 8.5 Court structure and proceedings (-1-5) 4.0 1. Is there a court or division of a court dedicated solely to hearing commercial cases? Yes 1.5 2. Small claims court 1.5 2.a. Is there a small claims court or a fast-track procedure for small claims? Yes 2.b. If yes, is self-representation allowed? Yes 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? No 0.0 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.5 1. Time standards 0.5 1.a. Are there laws setting overall time standards for key court events in a civil case? Yes 1.b. If yes, are the time standards set for at least three court events? Yes 1.c. Are these time standards respected in more than 50% of cases? No 2. Adjournments 0.0 2.a. Does the law regulate the maximum number of adjournments that can be No granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? No 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? n.a. 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.5 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 55   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Uganda 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.5 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme Yes court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 2.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 1.0 2.a. Is voluntary mediation or conciliation available? Yes 2.b. Are mediation, conciliation or both governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., No if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 56   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Uganda Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Recovery rate (cents on the dollar) 37.5 20.3 71.2 93.1 (Norway) Time (years) 2.2 2.9 1.7 0.4 (Ireland) Page 57   Cost (% of estate) 29.5 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Uganda Sub-Saharan OECD high Indicator Uganda Africa income Overall Best Performer Recovery rate (cents on the dollar) 37.5 20.3 71.2 93.1 (Norway) Time (years) 2.2 2.9 1.7 0.4 (Ireland) Cost (% of estate) 29.5 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 1 .. .. .. concern) Strength of insolvency framework index (0-16) 6.0 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Uganda and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 57.59: South Africa (Rank: 55) 47.79: Rwanda (Rank: 78) 43.11: Kenya (Rank: 95) 38.94: Uganda (Rank: 113) 33.28: Malawi (Rank: 138) 30.28: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Uganda – Time and Cost Time Cost 5 35 4.5 29.0 29.5 30 4 25.0 22.7 25 Cost (% of estate) 22.0 Time (years) 2.9 3 2.6 18.0 20 2.5 2.2 2.0 15 2 1.7 9.1 10 1 5 0 0 Kenya Malawi OECD high income Rwanda South Africa Sub-Saharan Africa Uganda Figure – Resolving Insolvency in Uganda and comparator economies – Measure of Quality Uganda 3 2.5 0 0.5 Page 58   Kenya 3 3 1 2 0 0 Kenya Malawi OECD high income Rwanda South Africa Sub-Saharan Africa Uganda Doing Business 2018 Uganda Figure – Resolving Insolvency in Uganda and comparator economies – Measure of Quality Uganda 3 2.5 0 0.5 Kenya 3 3 1 2 Malawi 4 3 1 0.5 Rwanda 6 3 3 0 South Africa 6 3 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Uganda and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 40 37.5 34.4 35 30 27.9 25 19.1 20.3 20 15 12.5 10 5 0 Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Details – Resolving Insolvency in Uganda Indicator Answer Explanation Page 59   Uganda Kenya Malawi Rwanda South Africa Sub-Saharan Africa Doing Business 2018 Uganda Details – Resolving Insolvency in Uganda Indicator Answer Explanation Proceeding receivership A receiver may be appointed under the terms of the security document and the Insolvency Act, 2011. The receiver will take custody of the property under receivership and carry out other obligations specified in the Act. After preparing the abstracts prescribed in the Insolvency Act, the receiver may find a buyer that will continue operating the business. Outcome going concern Assuming that there will be a receiver appointed under the debt instrument which will seek for potential buyers of the company, the sale will take place after approximately 2 years and the business will continue operating as a going concern. Time (in years) 2.2 Receivership commences when a receiver accepts the appointment. The receiver is then required to immediately notify the debtor of the appointment and also notify the public notice and the Registrar of Companies of the appointment no later than 14 days of commencement of the receivership. Following the notification, the receiver then commences the exercise of his powers, including taking custody of the property under receivership, registration in his names all land and other assets under receivership. This takes approximately 30 working days. The receiver is required, within 40 working days after his appointment, to prepare a preliminary report on the state of affairs of the property in receivership. The preliminary report must be sent to the debtor, all persons in whose interests the receiver is appointed and the official receiver within 5 working days after its preparation. The receiver will then manage the property, while trying to find a suitable buyer and then arranging the sale of the assets. Following the sale of the property, the receiver is required to deal with the proceeds as provided for under the Insolvency Act. Cost (% of 29.5 For a receivership procedure, the cost is approximately 30% of the value of the estate to estate) resolve the case. Attorneys' fees (10%) and the receiver’s fees (10%) will represent the major components of the cost associated to this procedure. The rest would be fees of accountants, auctioneer’s fees and court expenses. Recovery rate (cents on the 37.5 dollar) Details – Resolving Insolvency in Uganda – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts Page 60   as they mature dollar) Doing Business 2018 Uganda Details – Resolving Insolvency in Uganda – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 6.0 Commencement of proceedings index (0-3) 2.5 What procedures are available to a DEBTOR when commencing insolvency (a) Debtor may 1.0 proceedings? le for both liquidation and reorganization Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (a) Debtor is 1.0 insolvency framework? generally unable to pay its debts as they mature Management of debtor's assets index (0-6) 3.0 Does the insolvency framework allow the continuation of contracts supplying essential No 0.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.5 Which creditors vote on the proposed reorganization plan? (a) All creditors 0.5 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 Page 61   Creditor Doing participation Business 2018 index (0-4) Uganda 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 62   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Uganda Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). The most recent round of data collection was completed in June 2017. See the methodology for more information. What the indicators measure Case study assumptions Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Uganda Answer Hiring Page 63   Fixed-term contracts prohibited for permanent tasks? No days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Uganda Details – Labor Market Regulation in Uganda Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) No limit Maximum length of xed-term contracts, including renewals (months) No limit Minimum wage applicable to the worker assumed in the case study (US$/month) 1.9 Ratio of minimum wage to value added per worker 0.0 Maximum length of probationary period (months) 12.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 0.0 Premium for work on weekly rest day (% of hourly pay) 0.0 Premium for overtime work (% of hourly pay) 50.0 Restrictions on night work? No Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? No Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 21.0 Paid annual leave for a worker with 5 years of tenure (working days) 21.0 Paid annual leave for a worker with 10 years of tenure (working days) 21.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 21.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? No Third-party approval if one worker is dismissed? No Third-party noti cation if nine workers are dismissed? No Third-party approval if nine workers are dismissed? No Retraining or reassignment obligation before redundancy? No Page 64   Third-party Doing approval Business 2018 if nine workers are dismissed? Uganda No Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? No Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 8.7 Notice period for redundancy dismissal for a worker with 10 years of tenure 13.0 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 8.7 Severance pay for redundancy dismissal for a worker with 1 year of tenure 0.0 Severance pay for redundancy dismissal for a worker with 5 years of tenure 0.0 Severance pay for redundancy dismissal for a worker with 10 years of tenure 0.0 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 0.0 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 84.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? Yes Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? n.a. Business Reforms in Uganda In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Uganda implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Trading across Borders: Uganda reduced the time for export documentary compliance and border compliance by allowing for electronic document submission and processing of certi cates of origin and by further developing the Malaba One-Stop Border Post. DB2017 Starting a Business: Uganda made starting a business easier by eliminating the requirement that a commissioner of oaths must sign compliance declarations. Page 65   Minimum contribution period for unemployment protection (months)? n.a. Doing Business 2018 Uganda Business Reforms in Uganda In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Uganda implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Trading across Borders: Uganda reduced the time for export documentary compliance and border compliance by allowing for electronic document submission and processing of certi cates of origin and by further developing the Malaba One-Stop Border Post. DB2017 Starting a Business: Uganda made starting a business easier by eliminating the requirement that a commissioner of oaths must sign compliance declarations. Paying Taxes: Uganda made paying taxes easier by eliminating a requirement for tax returns to be submitted in paper copy following online submission. At the same time, Uganda increased the stamp duty for insurance contracts. Trading across Borders: Uganda made trading across borders easier by constructing the Malaba One-Stop Border Post which reduced border compliance time for exports. DB2016 Starting a Business: Uganda made starting a business easier by introducing an online system for obtaining a trading license and by reducing business incorporation fees. Getting Electricity: The utility in Uganda reduced delays for new electricity connections by deploying more customer service engineers and reducing the time needed for the inspection and meter installation. Getting Credit: In Uganda the credit bureau expanded borrower coverage, improving access to credit information. DB2015 Trading across Borders: Uganda made trading across borders easier by implementing the ASYCUDA World electronic system for the submission of export and import documents. Resolving Insolvency: Uganda made resolving insolvency easier by consolidating all provisions related to corporate insolvency in one law, establishing provisions on the administration of companies (reorganization), clarifying standards on the professional quali cations of insolvency practitioners and introducing provisions allowing the avoidance of undervalued transactions. DB2014 Registering Property: Uganda made transferring property easier by eliminating the need to have instruments of land transfer physically embossed to certify payment of the stamp duty. DB2013 Registering Property: Uganda made transferring property more di cult by introducing a requirement for property purchasers to obtain an income tax certi cate before registration, resulting in delays at the Uganda Revenue Authority and the Ministry of Finance. At the same time, Uganda made it easier by digitizing records at the title registry, increasing e ciency at the assessor’s o ce and making it possible for more banks to accept the stamp duty payment. Resolving Insolvency: Uganda strengthened its insolvency process by clarifying rules on the creation of mortgages, establishing the duties of mortgagors and mortgagees, de ning priority rules, providing remedies for mortgagors and mortgagees and establishing the powers of receivers. DB2012 Starting a Business: Uganda introduced changes that added time to the process of obtaining a business license, slowing Page 66   business start-up. But it simpli ed registration for a tax identi cation number and for value added tax by introducing an online Doing Business 2018 DB2012 Uganda Starting a Business: Uganda introduced changes that added time to the process of obtaining a business license, slowing business start-up. But it simpli ed registration for a tax identi cation number and for value added tax by introducing an online system. Registering Property: Uganda increased the e ciency of property transfers by establishing performance standards and recruiting more o cials at the land o ce. DB2011 Starting a Business: Uganda made it more di cult to start a business by increasing the trade licensing fees. Getting Credit: Uganda enhanced access to credit by establishing a new private credit bureau. Enforcing Contracts: Uganda continues to improve the e ciency of its court system, greatly reducing the time to le and serve a claim. DB2010 Paying Taxes: Uganda reduced the time required for companies to prepare, le and pay value added tax through improved e ciency of taxpayer services and banks. Trading across Borders: Uganda reduced the time required for trading across borders through expanded operating hours at the port of Mombasa and improvements in customs processes and in border cooperation. DB2008 Trading across Borders: Uganda made trading across borders easier by extending the ASYCUDA++ electronic data interchange system to 4 additional customs stations, introducing a system linking banks to customs (for payment of duties) and enhancing cooperation at the Kenya–Uganda border crossing at Malaba through joint inspections. Labor Market Regulation: Uganda eliminated restrictions on working on the weekly rest day and introduced a requirement for third-party noti cation for collective dismissals. Page 67   Labor Market Regulation: Uganda eliminated restrictions on working on the weekly rest day and introduced a requirement for third-party noti cation Doing Business for collective 2018 Uganda dismissals. Page 68