REGISTRATION OF AN NGO IN UGANDA

 

The Non-Governmental Organisations Act, 2016 (NGO Act) provides for the registration and regulation of NGOs. See section 3 for definition of an organiation which provides that it can be a company limited by guarantee or an incorporated trust.. Section 5 of the Act establishes the National Bureau for Non-Government Organisations (the Bureau) which is the regulatory board governing NGOs.

NGOs have to first be incorporated as companies limited by guarantee then be registered with the bureau pursuant to section 29 of the NGO Act. Regulation 3 (2) Non-Government Organization Regulations 2017 provides for the form of the application as being in Form A as prescribed in the Schedule. Regulation 4 of the same provides that an application for registration of an organization under regulation 3 shall be accompanied by; 

a)     evidence of a statement in the application as the Minister may prescribe by the regulations.

b)    certified copy of the certificate of incorporation

c)      a chart showing the governance structure of the organization

d)     a copy of the constitution

e)       evidence of payment of fees

f)      source of funding of the activities of the organization

g)     copies of valid identification documents for at least 2 founder members

h)     minutes and resolutions of the members authorizing the organization to register with the Bureau

i)       a statement complying with S.45 of the Act

j)       a recommendation from District Non-Government Organization Monitoring Committee where the headquarters are located and the responsible ministry or ministries or a government department or agency.

Regulation 4 (3) provides that the application for registration shall be signed by at least 2 founder members.

S.29 (3) Non-Governmental Organizations Act read together with Regulation 5 provide that the Bureau shall register the entity upon proof of the above requirements and shall issue a certificate of registration to the organization as in Form B.

Regulation 6 of the Non-Government Organization Regulations 2017 states that where the Bureau refuses to register an organization, the Bureau shall give the reasons for the refusal and notify the organization for its decision within 30 days from the date of refusal, notification is in Form C.

S.3 of the NGO Act the Act restricts NGOs from making profits and engaging in commercial purposes. From our facts, our clients want the charitable entity to be another source of funding for their business entity. This is therefore prohibited because the section 3 of the NGO Act restricts from engaging in commercial activities.

Section 30 of the NGO Act provides that bureau can only refuse registration where: (1) the applicant’s objectives in its Memorandum are illegal; (2) the application does not comply with the requirements of the law; (3) the applicant has given false or misleading information.

 The registered NGO then applies for and is then issued with a permit within 45 days of applying pursuant to section 31(3) of the NGO Act. Section 31 provides that no organisation is allowed to operate in Uganda without such a permit.  Renewal of the permit must be applied for six months prior to the expiry of the existing permit as provided for by section 32.

Regulation 7 of the Non-Government Organization Regulations 2017 an organization shall upon registration apply to the Bureau for a permit. Regulation 7(2) provides that the application for a permit shall be in Form D.

The application for permit shall specify the following: the operations or objectives of the organization, staffing of the organization, geographical area of coverage of the organization, location of the organization’s headquarters, evidence of payment of the prescribed fees and intended period of operation not exceeding five (5) years

Regulation 7 (4) provides that subject to S.31 of the Act and this regulation, the Bureau shall issue an organization with permit to operate in the permit beyond five years.

The permit shall be in Form E indicating the name, the operations or objectives, geographical area of operation and the date of issue and expiry of the permit.

Regulation 8 provides for conditions under which the permit is to be used as follows;

(i)               The permit shall not be used for purposes or objectives other than those specified in the permit, and an organization shall not engage in any form of activity relating to sector than the sector specified in the permit.

(ii)            The permit shall not be transferable to any other organization or person

(iii)The permit shall be specific to the geographical area of operation specified in the permit

(iv) The organization shall within fourteen days after making any change in the area of operation, headquarters of the organization or activities, notify the Bureau of the change. (v) Any other condition that may be specified in the permit by the Bureau

Section 33(1) provides that a permit can only be revoked if the organisation acts in contravention of its constitution or of the directions on the permit^. Section 39 provides that NGOs are required to keep proper books of accounts and draw up annual financial statements. Audited books of accounts have to be submitted to the bureau with estimates of income, sources of funding and the work plan pursuant to section 39(3) of the Act.

Section 44 (g) of the NGO Act require the Organization to be non-partisan and shall not engage in fundraising or campaigning to support or oppose any political party or candidate for an appointive office or elective political office, nor may it propose or register a candidate for elective political office.

Regulation 41 provides that an organization seeking to operate in a district shall seek in writing the approval from the District Non-Government Organization Monitoring Committee & the Local Government of that district.

Regulation 42 provides that where the District Non-Government Organization Monitoring Committee and the Local Government has approved an organization to operate in a district, the Local Government shall sign a Memorandum of Understanding with the organization to carry out its activities in the district. The MOU has a template in Form V in the Schedule.

Therefore, the company must seek for permission from the district in which they want to operate. From our facts, our clients want their chariatable organization to be in Kampala. Therefore, they will have to seek permission from the Kampala District Non-Government Organization Monitoring Committee & the Local Government of that district pursuant to Regulation 41.