What partnership business entails
Partnership business involves individuals who start business together, share profits and losses based on the ratio of capital injected into the business. With partnership business, both parties bear the responsibilities of running the company; in case of losses, they are all affected.
A partnership comprises of 2 to 50 people who share a common vision and interests.
If you want to influence and inspire people, business is the way to go. Partnership is the best business to do when you want to pool resources together and achieve a common goal.
Below is the process of registering a partnership company in Uganda
Before you think of registering a company, ensure that you have at least three names for your company because there are millions of companies registered; the name you have in your mind might be someone’s registered name.
I usually see people presenting a single name for registration and get rejected because it’s being used elsewhere. Having three names will increase the chances of getting the most ideal name for your business-which is not used by somebody.
The domain name should also have some similarities with the title of your company so that you cannot confuse your customers and clients.
Name search can is done at Uganda Registration Services Bureau, where you are required to fill the form given at the institution and pay Ush 2,000 for the process.
Name reservation process is very simple. Once you have done name search and confirmed that your name is unique; you are required to reserve the name at Uganda Registration Services Bureau (URSB)
Name reservation requires you to pay Ush 2,200 and the payment should be done through the bank.
Once your name is reserved, you are required to complete all the registration requirements within a month, after which your name expires and you are required to pay Ush2, 200 to reserve your name again for another month. If you don’t reserve your name once the one month period elapses then someone can use the name and nothing will happen.
One difference between Partnership Company and sole proprietorship company is that in partnership a partnership deed is mandatory but with sole proprietorship business you are not required to prepare a partnership deed.
The Partnership deed gives details of your company. The following is a list of what Partnership deed must contain
Name of the company
The names and addresses of the partners.
The nature of the business.
The term or duration of partnership.
The capital contributed by each partner.
The interest to be allowed on capital and charged on drawings.
Rights and duties of partners.
How you will share profits and losses among partners.
Salaries to pay those who will be mandated with the management of the firm.
How to calculate goodwill at the time of admission, retirement, and death of a partner.
Settlement of amount on the dissolution of the firm.
The procedures to be adopted in the case of disputes among the partners.
Certificate of Incorporation
This certificate is issued once you have completed the entire registration requirement and you have paid Ush20, 000 at the URSB, which is mandatory. This is the document which will enable you do the business without being accused of violating any legal requirements.
Ensure that you Tax Pin from the Uganda Revenue Authority and also a trading license.