Sarah an entrepreneur started making juice; she supplied it to different offices around town. She did this business for about five years and many of her clients fell in love with it.
Her juice became famous that it came to be referred to as ‘Sarah juice' the customers became so faithful that they stopped buying other kind of juices on the market.
A calculative entrepreneur by name Doreen picked the idea, she started making juice and named it ‘Sarah Juice'. She then rushed to register it. Her juice had the same taste like that of the "original" Sarah. Doreen also supplied it to the same offices.
Sarah later found out that a one Doreen was selling the same juice labeled as "Sarah juice"
He pondered on what to do next. Sarah rushed to court to settle the matter however; she overwhelmingly lost on the case.
Bernard Mukasa a senior associate with ENSafrica Advocates says that Sarah lost the case because she was running a business that does not legally exist.
"Many youth start businesses but fail to comply with the law; they eventually close down because of illegal operation. The tax authority may find you operating illegally, they will impose a penalty, someone could use your brand to register their businesses and you are pushed out of business," Mukasa said.
While addressing the Young Achievers Entrepreneurs at the Legal Summit in Kampala recently, Mukasa stressed the issue of registering one's business saying failure to register a company, deprives one of opportunities in both the private and public sector.
"Once you register your business, you stand chances of applying for funding and operating beyond the boundaries of your country," Mukasa added.
Robert Mugabe, the Manager Business Registration at Uganda Registration Services Bureau said getting registered can take one less than four working hours to register.
The legal summit was organized by Reach a Hand Uganda (RAHU) in partnership with ENSafrica a law firm.