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LAW; DO YOU NEED A LICENSE TO START A BUSINESS AT HOME ?.

By Editor

#we_inform_the_uninformed .


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Sande started his business during the COVID lockdown. Before he knew it, his neighbour and their neighbour had also started one. Because business has been good this year, he plans to open up six more businesses for his wives and his ‘side people’ and advertise them on Instagram, Facebook, WhatsApp business, Jumia, Jiji and many other online platforms. If you are like Sande and his neighbours, you are probably thinking of starting your own small ‘side hustle. What do you need to do to run that business at home?

WHAT DOES THE LAW SAY?

Simply, the law (The trade licensing Act) requires you to get permission before being part of certain trade/business activities in a trading centre. This permission is known as a Trade Licence.

This is because there are areas designated by law to be trading areas so that the local authorities (such as the municipal council) can collect taxes and fees from the business activities carried out in those areas. This permission is also given every year, and this means that after a year, you must apply for this license again after fulfilling certain conditions the local authority has set and the payment of a fee.

So, to get this trading licence, you must apply to the local council of the area where your business is located. For example, you can register with the Kampala Capital City Authority if you are in Kampala.

IF I HAVE 10 BRANCHES ALL OVER UGANDA, DOES THAT MEAN I MAY HAVE TO GET DIFFERENT LICENCES?

Yes!!
A trading licence is permission to carry out a trading/ business activity in a specific area and for a specific business. Therefore, if you leave that area and open a branch in another area, you will be in a different trading centre and council and will have to apply to carry out your business in that new area. For example, If your main business location is in Kampala and you have a branch in Gulu, you will also be required to get a trading licence for the trading centre in Gulu Municipal Council.

Source; BareFootLaw

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