How to obtain a trading licence in Uganda
In brief
A trading licence is required to carry on most businesses. Under the Trade (Licensing) Act, Cap. 79, no person may trade in any goods or carry on any business specified in the Schedule to the Act unless they hold a trading licence granted for that purpose (s.8); some activities (such as a farmer selling their own produce) are exempt. The licence is obtained from the licensing authority for the area (the local government), and trading without a required licence is an offence.
1. Governing law
The Trade (Licensing) Act, Cap. 79 requires a trading licence for specified businesses: subject to the exemptions, no person shall trade in any goods or carry on any business specified in the Schedule to the Act unless he or she is in possession of a trading licence granted for that purpose under the Act (s.8). Certain activities are exempt — for example the trade of a planter, farmer, gardener, dairyperson or agriculturist in respect of the sale of their own produce (s.8(2)). A licensing authority may decline to issue a licence in the circumstances the Act sets out, and giving false information for a licence, or trading without a required licence, is an offence carrying a fine. Trade licensing is administered by local governments as the licensing authorities, and trading licences are issued and renewed annually; the prescribed fees vary by business and locality, so confirm the current fee with the relevant local government. Statutory text verified against the consolidated Laws of Uganda as at 31 December 2023. Sourced from the Uganda Legal Information Institute (ulii.org).
2. Key statutes & rules
- Trade (Licensing) Act, Cap. 79 — s.8 (no person may trade in goods or carry on a business specified in the Schedule without a trading licence; exemptions, e.g. a farmer selling own produce); provisions making it an offence to trade without a required licence or to give false information for a licence; licensing authorities and grounds for declining a licence.
3. Practical guidance
Check whether your business is in the Schedule and not exempt (s.8) — most commercial trades require a licence; a farmer selling own produce does not.
Identify the licensing authority for your area (the local government — city, municipal or district).
Apply for the trading licence with the required particulars of the business and premises, giving accurate information (false information is an offence).
Pay the prescribed fee for your business class and locality and obtain the licence before trading.
Renew the licence as required (trading licences run annually) and keep it available at the business.
This note is a practitioner orientation, not legal advice, and does not create an advocate–client relationship. Ugandan law changes and chapter and section numbers were revised in the 2023 Laws of Uganda. Verify every statute, rule and authority against the current primary source — and the specific facts of your matter — before filing or relying on it.