'Only 850,000 businesses registered in Uganda'

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Registered businesses in Uganda now number 850,000, records from the Uganda Registration Bureau Services (URSB) have revealed.

The figure is an increase from 800,000 in 2021, indicating a six per cent rise as per records captured by the URSB business registry as of February 2025.

This is encouraging news as the government moves to increase the formalisation of businesses. A high level of informality causes challenges for the government when it comes to planning and can also take away the benefit of raising sufficient revenue through taxation.

Denis Nabende Communication officer Uganda Registration Service Bureau (URSB) interacting with Robert Mugabe Director Insolvency and Receivership at Uganda Registration Service Bureau (URSB). This was during the business rescue and aftercare program meeting at URBS offices Kololo on February 24, 2025. (Photo by Nancy Nanyonga)

Robert Mugabe, the director of insolvency and receivership at URSB, said the improvement in the statistics is due to sustained intervention that is encouraging more businesses to formalise.

“When you register, you stand a chance," he said, adding that the formalisation of businesses is a key consideration if institutions or organisations wish to extend loans to the business.

He said this is because registered businesses are easier to trace, lowering the risk of default.

James Bulenzibuto, the Chief Executive Officer Elimu Trust Eastern Africa addressing participants during the business rescue and aftercare program meeting at URBS offices Kololo on February 24, 2025. (Photo by Nancy Nanyonga)

Mugabe explained that they are also encouraging other good business habits, including record-keeping and ensuring sound governance. He said these can help ensure robust checks and balances to a business, ensuring that it thrives.

Registration made easier

To register a business, Mugabe said that currently one does not have to physically walk to URSB offices but can register through their online system.

Once registered, one is expected to continuously comply with registration requirements such as filing annual returns. "Filing of returns is an update about how the business is faring, detailing the status of issues such as change of address and new shareholders etc," he said.

Participants pose for a group photo during the business rescue and aftercare program meeting at URBS offices Kololo on February 24, 2025. (Photo by Nancy Nanyonga)

Mugabe made the revelation during the commencement of the 2025 Business and Aftercare Programme Skilling for Business Growth and Sustainability (BRAP) workshop at the URSB headquarters in Kampala on Monday.

The weeklong training is aimed at giving business owners the skills they need to get through the hardships of business to make sure they don’t become insolvent (collapse).

According to a 2016 Global Entrepreneurship Monitor (GEM) Report, Uganda is ranked among the world’s top entrepreneurial countries. The report, however, also showed that the rate of failure of businesses in Uganda was one of the highest in the world, citing that for every business that was started, another closed.