Starting a fintech company in Uganda requires more than just a great idea. You must navigate strict regulations, secure licenses, and build strong compliance systems. Uganda’s financial sector is regulated by the Bank of Uganda (BoU) under the National Payment Systems Act, 2020, and every fintech must align its business model to a specific license. Below is a step-by-step guide to start a fintech company in Uganda.
Step 1: Map Your Product to a License
Identify which Bank of Uganda license applies to your business. Options include Payment Service Provider (PSP), Electronic Money Issuer (EMI), Payment System Operator (PSO), or Issuer of a Payment Instrument. Operating without the right license is illegal.
Step 2: Incorporate and Register for Taxes
Register your company with the Uganda Registration Services Bureau (URSB) and obtain a certificate of incorporation. Next, secure Taxpayer Identification Numbers (TINs) for the company and directors from the Uganda Revenue Authority (URA).
Step 3: Prepare and Submit a License Application
The license application must include your governance structure, financial projections, risk and cybersecurity frameworks, AML policies, consumer protection plan, and disaster recovery procedures. Bank of Uganda also inspects offices, verifies capital, and requires license and annual fees.
Step 4: Set Up AML and Data Protection Compliance
Register with the Financial Intelligence Authority (FIA) as an accountable institution. Implement Know-Your-Customer (KYC) systems, suspicious transaction reporting, and customer due diligence. You must also register with the Personal Data Protection Office (PDPO) under the Data Protection and Privacy Act, 2019, and renew annually.
Step 5: Secure Banking and Trust Accounts
If you plan to issue e-money, you must establish a trust account, appoint trustees approved by Bank of Uganda, and distribute float funds across multiple banks.
Step 6: Build Technology and Cybersecurity Systems
Your technology must align with your BoU license application. Strengthen cybersecurity, build business continuity systems, and integrate payment gateways or wallet infrastructure securely.
Step 7: Publish and Display Your License
Once approved, publish your license in the Gazette and a national newspaper. Display it at your offices, pay annual fees, and comply with reporting obligations to Bank of Uganda.
Step 8: Operate and Scale Responsibly
Keep compliance at the core of operations. Renew your PDPO registration, maintain minimum capital, file AML reports, and notify Bank of Uganda of any major business changes.
Conclusion
To start a fintech company in Uganda, you must combine innovation with strict regulatory compliance. Following these steps ensures your startup not only launches legally but also earns the trust of regulators, customers, and investors.
