HOW TO OBTAIN A FOREX BUREAU LICENSE IN UGANDA

HOW TO OBTAIN A LICENSE FOR OPERATING A FOREX BUREAU BUSINESS LEGALLY IN UGANDA

LAWS APPLICABLE INCLUDE,

• THE FOREIGN EXCHANGE ACT, 2004.
• COMPANY ACT OF 2012,
• THE FOREIGN EXCHANGE (FOREX BUREAUS AND MONEY REMITTANCE) REGULATIONS,2006.
• Foreign exchange business means the business of buying, selling, borrowing or
• lending of foreign currency
• A person shall not transact business as a forex bureau without a valid license issued by the Bank of Uganda under these Regulations.
• A person who satisfies the requirements/conditions listed hereunder and wishes to transact business as a forex bureau may apply to the Bank of Uganda for a license to transact that business, below is the procedure;
• Register a liability limited company in accordance with the laws of Uganda (see procedure for incorporating a company in Uganda in my earlier posts) with REGISTRAR of companies at URSB whose main object is to conduct foreign exchange bureau business.
• If the Forex bureau is to be owned by aparticular bank, it must be registered as a wholly owned subsidiary of the bank in issue.
• The share holders of the applicant must pay for their shares translating to minimum paid up share capital of not less than one thousand currency points before applying for the license
• Have a bank statement for the period of six months reflecting your cash transaction preceding the submission of the application if you do not own A BANK account, if you do not have one kindly open one with any bank of your choice.
• Get a fixed and identifiable place of business(PHYSICAL ADRESS) which is suitable for the business of a Forex bureau and must be conveniently accessible to the public.
• Prepare the particulars /details of applicant’s banker in a specicified form B of the regulations mentioned above.
• Obtain individual references of each of applicant’s shareholders’ and proposed directors indicating that the person in issue is fit and proper person to engage in such business,
• Have a proposed list directors, shareholders and management in general who must be individuals of sound repute and integrity with the necessary qualifications and competence required to operate Forex bureau business.
• Document the full names and address of the proposed Forex bureau with its telephone numbers and email address among others
• Prepare business and financial plans of the proposed Forex bureau.
• Certify the company’s certificate of incorporation.
• The board of directors of the proposed Forex bureau should pass a resolution authorizing the application and submission of application for a license to carry our Forex bureau business in Uganda
• Resister with Registrar of Companies at URSB the resolution of the board of directors of the proposed Forex bureau authorizing the application and submission of the application for a license to bank of Uganda.
• Certify three copies of the memorandum and articles of association of the applicant company applying for the license to conduct Forex bureau business.
• Prepare the curriculum vitae of each of the applicant’s proposed shareholders and management team.
• Obtain Work permits for all non-Ugandan directors and employees of the applicants if any(see procedures for obtaining work permit in Uganda).
• Make the application for Forex Bureau License in duplicate as per Form A specified in Schedule 2 to the Regulations mentioned above by filling in accordingly in duplicate.
• Attach all the above mentioned documentations on both copies of the application.
• Take the application for assessment to bank of Uganda, pick payment slip from bank of Uganda and pay accordingly.
• Attach the payment receipt on your application for Forex Bureau License .
• Ensure that all the above mentioned documentations are attached on the application and a sealed an envelope.
• Submit the application in the sealed envelope to Bank of Uganda for consideration.
• The Bank of Uganda shall, within a period of three months after the receipt of an application for a Forex bureau license consider and approve or reject the application.
• The decision of the Bank of Uganda shall be communicated to the applicant within three months after the date of submission of the application.
• Where the Bank of Uganda approves an application, you proceed to get payment slip FRM BANK OF UGANDA and pay license fee as directed
• Upon payment of license fees , take the payment receipt to bank of Uganda for issuance of a license.
• Bank of Uganda will verify your license fee payment receipt and issue you with a licence to operate Forex bureau for one year renewable annually.
• Where a license is granted, the Bank of Uganda may, in conformity with the Act, add, vary or substitute any condition to the license.
• A license issued or renewed under these Regulations is valid for a period of one year and shall then expire one year after the date of issuance unless it is renewed or revoked by the Bank of Uganda.
• A licensee shall not transfer or assign the license issued under the above mentioned regulations.

Author is A regional transactions legal consultant (ADVOCATE) at NOA REGIONAL ASSOCIATED ADVOCATES AND LEGAL CONSULTANTS
Email address: onlinetransactionconsultancy@gmail.com.

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NOTE: whereas the author has made necessary efforts to ensure the accuracy of this post, it is not intended to provide specific legal advice to a particular individual as individual situations may differ. For specific technical / legal transaction advice on this subject matter and related subject,kindly contact any transaction legal consultant of your own choice or the author at a fee, 

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