Ursb Annual Report 2017 - 2018 Corporate Governance Statement

ANNUAL REPORT

2017 2018

ANNUAL REPORT 2017/2018 URSB CORPORATE PROFILE

Uganda Registra�on Services Bureau (URSB) is a semi -autonomous body established by the URSB Act, Cap.210 to implement the relevant laws, provide registra�on services, collect and account for all the revenue provided for under the relevant laws.

The Bureau is responsible for the following func�ons:

Business Registra�on which includes registra�on of companies, business names, partnerships, legal documents, debentures and cha�els securi�es Intellectual Property Rights Registra�on which includes Industrial Designs, Geographical indica�ons, Patents, U�lity models, Tradi�onal knowledge and cultural expressions Trademarks and Service marks, Copyright, Neighbouring rights Civil Registra�on which includes registra�on of marriages (Civil, Church, Muslim, Hindu and Customary), Registra�on of Muslim divorces, licensing of churches to celebrate marriages and issuance of single status le�ers Handling of Insolvency ma�ers which includes corporate rescue and winding up of companies

VISION MISSION

Centre of Excellence for To provide accessible, reliable Reliable Registra�on and innova�ve registra�on Services services for a formalized economy

Professionalism

Accountablity Integrity CORE VALUES

Customer centric Teamwork

Excellence

i URSB ANNUAL REPORT 2017 - 2018 CORPORATE GOVERNANCE STATEMENT

“Corporate governance is concerned with holding the balance between economic and social goals and between individual and communal goals. The governance framework is there to encourage the eﬃcient use of resources and equally to require accountability for the stewardship of those resources. The aim is to align as nearly as possible the interests of individuals, (organiza�on) and society.” (Sir Adrian Cadbury, UK, Commission Report: Corporate Governance 1992)

Board of Directors Registrar General The Board of Directors (Board) is the principal The Registrar General is the Chief Execu�ve Officer governing body of Uganda Registra�on Services appointed by the Minister of Jus�ce and Bureau (URSB) and is appointed by the Minister of Cons�tu�onal Affairs and is a member of the Board. Jus�ce and Cons�tu�onal Affairs. He is responsible for the management of URSB in The Board comprises of nine members and is accordance with approved strategy, policies, responsible for the overall governance of URSB. The performance contract and delegated authority Board has delegated some of its powers, du�es and framework. The Registrar General is responsible for responsibili�es to its Commi�ees; Finance, Audit and ensuring that the Board is provided with the relevant Human Resource, for efficiency and effec�veness. strategic op�ons, policy and financial ma�ers on The Board receives reports from these Commi�ees which to deliberate, and with the necessary at its quarterly mee�ngs. administra�ve support to enable the Board to work The Board discusses strategy ma�ers, governance effec�vely. and management reports, at its mee�ngs and these Senior execu�ves including the Registrar General, include strategic risks, strategic projects and Deputy Registrar General Registries, Deputy Registrar evalua�on and monitoring of the opera�onaliza�on General Finance and Administra�on and the Board of the strategy. Secretary have formal job descrip�ons. The management of opera�ons, the implementa�on of strategy and policy ini�a�ves are the responsibility Board Secretary of the Registrar General and management. The All Board members have access to the Board Board may invite management to a�end Board or Secretary who is appointed by the Board. The Board commi�ee mee�ngs at its discre�on. Secretary is accountable to the Board, through the Chair, on governance ma�ers.

Board Training The Board members had one retreat and undertook the following trainings in the last Financial Year: Corporate Governance Leading a successful organiza�on Team building, team work, workplace poli�cs, ethics Collabora�ve leadership vs. transforma�ve leadership in implemen�ng public service reforms and na�onal vision; Best prac�ces in public sector delivery and rebuilding ci�zen trust Cu�ng edge leadership skills Managing Innova�on and Reform at the work place The Board of Directors approved the Strategic Development Plan II and it was oﬃcially launched on 16 March 2018.

Risk Management The Board approved the Risk Management Policy to guide Management in risk iden�ﬁca�on, assessment and mi�ga�on.

2017 - 2018 URSB ANNUAL REPORT ii BOARD MEMBERS

Amb.Francis K.Butagira Bemanya Twebaze Ben Anyama Board Chairman Registrar General Board Member

Abdul Kasule Christine Kaahwa Fred Opolot Board Member Board Member Board Member

Swizin Mugyema Emmanuel Dombo Moses Zziwa Board Member Board Member Board Member

iii URSB ANNUAL REPORT 2017 - 2018 TOP MANAGEMENT

Bemanya Twebaze Registrar General

Alfred Mugisha Jane Okot P’ Bitek Langoya Caroline T. Egesa Deputy RG Finance & Administra�on Deputy RG Registries Board Secretary

Alex Anganya Arthur Kwesiga Francis Kaggwa Fiona Bayiga Director Internal Audit Director ICT Director Finance & Administra�on Director Business Registra�on

Dir

Mercy K. Kainobwisho Vincent Katutsi Ntale Mustapher Paul Magera Director Intellectual Property Director Civil Registra�on Manager Liquida�on Manager Procurement

Provia Nangobi Senior Public Rela�ons Oﬃcer

2017 - 2018 URSB ANNUAL REPORT iv CONTENT 04 04 04 04 06 07 07 07 05 05 02 03 01 iv iii ii i 1.5 Operationalize URSB Structure StrategyDevelopment Board1.4 Develop andSta Capacity Policy HumanRights Observance 1.3 Develop List OfAcronyms Foreword Chairman’s Statement Top Management Board Members Corporate Governance Statement URSB Corporate Profile 1.7 Strengthen Enforcement andCompliance 1.6 Strengthen the Audit Function of URSB to Deliver onitsMandate 1. Strengthen Institutional Capacity Strategic Objectives Introductions 1.1 ReviewLegal andPolicy framework system 1.2 Strengthen FinancialManagement 09 2. Improve Access to Registration Services

09 2.1 Automation of Registration Services 2.2 Strengthened existing and rolled out 10 new service centers

10 2.3 Strengthening existing relationships and creating new Partnerships 11 2.4 Roll out of Technology and Innovation Support Centers (TISCs) to National Agricultural Research Organization (NARO) Centers CONTENT 12 2.6 Empowerment of Women and Youth

13 2.7 Strengthen Corporate Rescue Framework 2.8 Establishment and Operationalize new 14 Registers

14 3. Enhance public and stakeholder awareness

14 3.1 Public and Media Campaigns 3.2 Developed a client-based feedback 18 mechanism 3.3 Strengthening the Corporate Social 19 Responsibility function

21 4. Strengthen research and advisory function 21 4.1 Conducting regular surveys

21 4.2 Strengthen M&E System

5. Financial Report for the FY Ended 22 June 30 2018

2017 - 2018 URSB ANNUAL REPORT Page 01 CHAIRMAN’S STATEMENT

I am pleased to present to you the Annual Report for services provisioned online by 2020. Worldwide, ICT Uganda Registra�on Services Bureau (URSB) for the systems have been used to benefit from Financial Year 2017/18, where we reflect on the improvements such as reducing costs, increasing milestones and successes that the Bureau registered efficiency, improving decision-making and increasing in the repor�ng period. compe��veness. URSB will con�nue enhancing its ICT systems for improved service delivery. During the repor�ng period, the Board of Directors con�nued to play its oversight role over the Bureau’s On behalf of the Board of Directors, I wish to thank ac�vi�es as she carried out the mandate assigned to the Honorable Minister of Jus�ce and Cons�tu�onal her under the Uganda Registra�on Services Bureau Affairs for the never ending support rendered to the Act and other relevant legisla�on, with the aim of Bureau, all the Management and Staff of the Bureau ensuring that service delivery was effec�ve, efficient for their un�ring hard work and all our Stakeholders and in line with the Bureau’s Strategic Development be they clients or partners for their unrelen�ng Plan II. The total NTR collec�on for the FY 2017/18 support. was Ug. Shs. 39,269,857,690/= compared to Shs. 32,547,303,875/= for the previous FY 2016/17, represen�ng 20.65% growth. Ambassador Francis K. Butagira An evalua�on of Strategic Investment Plan I (SIP I) BOARD CHAIRMAN performance indicated considerable success that provided the pla�orm for formula�on of SDP II, that spans the period: 2017/18 - 2019/20. The SDP II sets out the path for URSB to become a significant contributor to Uganda’s compe��veness both regionally and globally, through providing registra�on services, crea�ng synergies with other Government departments and agencies, enhancing the integrity of the informa�on in the registry, improving opera�onal efficiencies and increasing Non Tax Revenue (NTR). As we move into FY 2018/19, the Bureau will be embarking on implementa�on of SDP II which will guide the planned enhanced performance it is looking forward to in the next three years. The Bureau has established ICT systems and all back- office registra�on services are automated and some services are online. The strategy is to have all

01 URSB ANNUAL REPORT 2017 - 2018 FOREWORD

The Financial Year, FY 2017/2018, is “All Digital, All Online” by 2020. across various member countries so which marked the first year in the URSB is currently developing an that they are able to collect implementa�on of the Strategic on-line system for filing of annual remunera�on in all those countries in Development Plan 11 (SDP 11), ended returns and marriage returns. This the same way they do here in Uganda. successfully with a total collec�on of will further reduce the �me spent on Non Tax Revenue (NTR) of Ushs 39.2 accessing registra�on services and The ground breaking for the billion against the target from the also enable improvement in doing of construc�on of the Uganda Business Ministry of Finance, Planning & business in Uganda. The major impact Facilita�on Centre located on Economic Development of Ushs 38.6 of our opera�ons within the financial Baskervile Avenue in Kololo, by the billion. The target from the Ministry year was the increased formaliza�on Rt.Hon. Prime Minister of Uganda in of Finance, Planning & Economic of businesses especially in hard to February 2018 was one of the Development was a result of the reach areas. milestones during the financial year. appropria�on of an addi�onal Ushs We acknowledge the support from 10 billion to enhance NTR collec�ons. During the financial year the Security the Ministry of Finance, Planning and URSB collected Ushs 39.2 billion Interest in Movable Property Bill 2018 Economic Development and the compared to UGX 32.5 billion was approved by Cabinet and laid World Bank Compe��veness collected for the same period in the before Parliament for debate and Enterprise Development Project Financial Year, FY 2016/17 enactment. The new bill once passed (CEDP) which are funding the represen�ng 20.65% growth in into law will replace the Cha�els construc�on of the building. revenue collec�on over the two Security Act of 2014. The Bill is years. currently before the Legal and The Uganda Business Facilita�on Parliamentary Affairs Commi�ee for Center will also house the Uganda The success is a�ributed to the scru�ny. Once passed, the Bill will Investment Authority, the Capital increased sensi�za�ons, outreach facilitate access to affordable credit Markets Authority and other programs and mobile clinics which for Ugandans especially for Micro, Government agencies that are resulted in greater apprecia�on of Small and Medium Enterprises by regulators in ‘the star�ng and the URSB services countrywide. We were promo�ng use of movable assets as doing of business’ in Uganda. able to have ‘on the spot’ collateral for loans. registra�ons using the mobile van and As we move into a new financial year, mobile clinics. It was also possible for The Bureau begun the process of we will con�nue to build on these the Regional Offices, Branches and ra�fying four copyright Trea�es; the successes and focus on improving TREP centers to process registra�ons Berne Conven�on for the Protec�on service delivery to our Clients. without movement of physical of Literary and Ar�s�c Works (1886); documents to and from Head Office. the WIPO Copyright Treaty (WCT) For God and My Country 1996; the WIPO Performances and The digi�za�on of all registra�on Phonograms Treaty (WPPT) (1996) Bemanya Twebaze processes has resulted in electronic and The Beijing Treaty on Audio-visual REGISTRAR GENERAL retrieval of company files/documents Performances (2012). The objec�ve as well as marriage and intellectual of ra�fying the Trea�es is to provide property documents. Our ICT strategy Ugandan creators with protec�on

2017 - 2018 URSB ANNUAL REPORT 02 List of Acronyms

AIA NARO AIDS AIGP Assistant Inspector General of Police NFBAPC-U Pentecostal Churches of Uganda African Regional Intellectual Property ARIPO NIRA Authority BAFU Born Again Faiths Uganda BRS NITA-U Authority Uganda CAOs NMRS CBS NSSF CEDP Non Tax Revenue Development Project NTR OBS CFR Corporate Registers Forum OSS One Stop Shop CSR Corporate Social Responsibility PAU Petroleum Authority of Uganda CRIMS Management System PSFU EDMS Electronic Document Management System RIA Regulatory Impact Assessment ERPT Enterprises Resource Planning Tool SCM Standard Cost Model FBOs SDA SDP Strategic Development Plan FIDA(U) Lawyers SMEs Small and Medium Enterprises FPC First Parliamentary counsel SMS Short Message Service FY Financial Year TISCs HIV Human Immune Virus Centres H/Qs Headquarters TREP Tax Payer Register Expansion Program TV Television ICT Technology UFZA Uganda Free zone Authority UNBS IEC UPRS Uganda Preforming Rights Society IP Intellectual Property URA Uganda Revenue Authority IPAS URSB IRA Insurance Regulatory Authority USH Uganda Shillings JLOS UTL Uganda Telecom Limited KCCA Kampala Capital City Authority Uganda Women Entrepreneurs UWEAL KMP Kampala Metropolitan Police MBPS Mega Bytes Per Second Uganda Micro Finance Regulatory UMRA Government Ministries, Departments and Authority MDAs Agencies URBRA M& E Authority Ministry of Finance Planning and WIPO MoFPED Economic Development WICCO West Indian Ocean Cable Company Ministry of Lands, Housing and Urban WCT WIPO-Copyright Treaty MoLHUD Development WIPO Performances and Phonograms WPPT MoLG Ministry of Local Government Treaty MoU Memorandum of Understanding RG Registrar General

03 URSB ANNUAL REPORT 2017 - 2018 INTRODUCTION

The Annual Report for the year ﬁnancial 2017/18 is based on the four strategic objec�ves of the Strategic Development Plan II (SDP II) 2017/18 -2019/2020 which is aligned to the Na�onal Development Plan II. The four strategic objec�ves are:

1. 2. 3. 4.

Strengthen Improve Enhance Strengthen Ins�tu�onal access to public and Research and capacity of URSB to registra�on stakeholder Advisory func�on deliver on its services. awareness of URSB mandate. services

Strengthen Institutional 1. Capacity 0f URSB to Deliver on its Mandate. The following interven�ons were undertaken to strengthen ins�tu�onal capacity of the Bureau: review of legal and policy framework, strengthening of the ﬁnancial management system, development of human rights policy, development of staﬀ capacity, opera�onaliza�on of URSB structure, strengthening the Audit func�on and strengthening enforcement and compliance.

1.1 Review Legal and Policy Framework In the ﬁnancial year 2017/18 the following Regula�ons were passed:

The Insolvency Prac��oners Regula�ons S.I No. 55 of 2017 to provide for registra�on and regula�on of Insolvency Prac��oners with the Oﬃcial Receiver. The code of conduct for the Insolvency Prac��oners was approved and there are 31 prac��oners registered. The Insolvency (Inves�ga�ons and Prosecu�ons) Regula�ons S.I No.4 of 2018 to strengthen the procedure for inves�ga�on and prosecu�on of Insolvency Prac��oners, Directors, Shareholders and Contributories, all present and past members of an insolvent company or company under insolvency proceedings. The Regula�ons are opera�onal. The Insolvency Fees (Amendment) Regula�ons S.I No.5 of 2018 to prescribe the fees payable in solvency mat- ters as provided for under the Insolvency Act 2011.The Regula�ons are opera�onal.

1.1.1 Laws And Policies Under Review The following laws and policies under review are expected to be finalized in FY 2018/19 The Security Interest in Movable Property Bill No.1 of 2018 was approved by the Cabinet of the Government of Uganda and tabled in Parliament for the first hearing and therea�er referred to the Commi�ee on Legal and Parliamentary Affairs for further scru�ny.

2017 - 2018 URSB ANNUAL REPORT 04 The Companies Amendment Bill was submi�ed to the Minister of Jus�ce and Cons�tu�onal Affairs for submission to the Cabinet. Proposals to the amendment of the Insolvency Act 2011 to ease exit of business were submi�ed to the First Parliamentary Counsel (FPC) for review The Geographical Indica�ons Regula�ons of 2017 await publica�on in the Uganda Gaze�e and are expected to be opera�onal in FY 2018/2019 Trademark Regula�ons 2018 to provide for the internal publica�on of an Intellectual Property Journal to ease the adver�sement of Trademarks were submi�ed to the Minister of Jus�ce and Cons�tu�onal Affairs. The Copyright and Neighboring Act Amendment has been put on hold awai�ng ra�fica�on of the interna�onal Copyright Trea�es Collec�ve Management Regula�ons, the dra� was concluded and stakeholder consulta�on is ongoing 1.1.2 International Conventions The Cabinet of Uganda ra�fied the Marrakesh Treaty on 23 April 2018. The treaty provides for access to literary works for the blind, visually impaired persons and print disabled. The process of domes�ca�on (Amendment of the Copyright and Neighbouring Rights Act) has commenced. The WIPO Copyright Treaty (WCT) 1996; The WIPO Performances and Phonograms Treaty (WPPT) (1996), Berne Conven�on for the Protec�on of Literary and Ar�s�c Works (1886) and The Beijing Treaty on Audio-Visual Performances (2012). The consulta�on processes have began. The process for ra�fica�on and domes�ca�on of the Madrid Protocol, Nice Agreement and the Locarno Agreement have begun.

1.1.3 Policies The cabinet memo for the dra� Na�onal Intellectual Property Policy together with the Regulatory Impact Assessment (RIA), were submi�ed to Ministry of Jus�ce and Cons�tu�onal Aﬀairs.

1.2 Strengthen Financial Management System The Sage Evolu�on System for financial management was procured to help track the thirty eight liquidated accounts handled by the Liquida�on Unit. This system enables the sharing of vital informa�on on all liquidated company accounts through shared spreadsheets and databases. This eliminates duplica�on, inaccuracies and other repor�ng and administra�ve challenges. The system provides users with informa�on on all financials, approval history, real �me informa�on, email no�fica�on, reminders, audit trails, event log, files and all forms of role-based security.

A wider scope Enterprise Resource Planning Tool (ERPT) is under way to provide a similar solu�on to the en�re URSB ﬁnancial system, to ensure utmost performance in maintenance of accoun�ng records and source documenta�on, ﬁnancial repor�ng and internal controls.

1.3 Development of Human Rights Observance Policy URSB has incorporated within the Human Resource Manual components of human rights observance features. The Bureau is implemen�ng the Presiden�al HIV/AIDS fast track ini�a�ve to end HIV/AIDS by 2020. The Bureau opera�onalized an HIV/AIDS Workplace Commi�ee that promotes HIV/AIDS awareness and mi�ga�on measures among staﬀ. The medical insurance covers HIV/AIDS; and the Bureau implemented a subsidized Hepa��s B vaccina�on, in promo�on of the health of all staﬀ.

URSB observes non-discrimina�on in recruitment. Of the 313 under the mainstream and project support staﬀ, 56% are female and 44% male. A disciplinary commi�ee is set up to hear each case prior to dismissal. The Human Rights Observance Policy is to be developed.

05 URSB ANNUAL REPORT 2017 - 2018 1.4 Develop Staff Capacity and Strengthen Functions of the Bureau

Staff training was based on the iden�fied gaps within the Bureau. The following trainings were carried out to strengthen staff capacity:

Training

1 Cyber Security 4

2 2

3 Expenditure Control & Budgetary Mgt in Public Sector 2

4 2

5 Public Private Partnerships 1

6 2

7 2

8 ISACA Kenya Chapter IT Audit & Financial 2

9 Electronic Records Management Capacity building course 4

10 2

11 ISOO 9001 (QMS) Lead Auditor 1

12 1

13 1

14 Management skills for Secretaries, Personal Assistants and Administrators 1

15 Talent Management 1

16 1

17 1

18 Macroeconomic Development Strategy and Planning for Developing Countries 1

19 313

20 50

21 69

The Support func�ons in the Bureau are: Human Resource and Administra�on, Procurement, Corporate Communica�ons, Planning, Research, Monitoring & Evalua�on, all of which are key in facilita�ng and promo�ng produc�vity in the Bureau. The repor�ng period saw a number of ac�ons implemented in line with strengthening the support func�on, notably the recruitment of sixty nine NTR project support staff for a period of eight months. These staff were deployed in all departments and made significant contribu�on to the different output areas of the Bureau.

The NTR Project staff were further taken through a four day induc�on course in November 2017 to prepare them to deliver in their different deployments in the Bureau. Twenty Six (26) staff from the Support Departments and Units underwent training in par�cular skill areas during the repor�ng period, such as Budgetary Management in the Public Sector, Cyber Security, ICT Audit, Public Private Partnerships, Leadership, Development Planning and Strategy, among others. A state of the art training room was set up on the Floor 4 and has greatly assisted with internal trainings.

As a result of strengthening support func�ons, there was an increase in the number of ac�vi�es within URSB headquarters and Regional oﬃces, increased registra�on services and increase in NTR collected. The details are discussed in the subsequent chapters.

2017 - 2018 URSB ANNUAL REPORT 06 to forty one firms to comply with the requirements within The following are some of the ac�vi�es of the Unit: thirty days or risk de-registra�on. The firms The Unit carried out enforcement opera�ons with the complied. URSB con�nues to engage IRA, focusing on support of territorial Unit Commanders. Successful mee�ng clustered groups e.g insurance firms, assurance Enforcement Opera�ons result into increased firms, insurance brokers and insurance consultants to registra�on of Trademarks and Copyright promote further compliance. The Unit collected and provided the needed evidence for successful prosecu�on of sanc�oned cases. With the An Enforcement Unit was established at the Bureau and it secondment of a Senior State A�orney to URSB, the Unit is mandated to enforce intellectual property laws as has seen a case of trademark infringement being administered by URSB and is the focal point for prosecuted in Court and several other cases being inves�ga�ng cases of piracy and counterfeit. The in house mediated by URSB with the complainant and the suspect. Unit in the Directorate of Intellectual Property is The Unit has been responsible for preserva�on and coordinated by an Assistant Inspector General (AIGP) of storage of the exhibits Police. Benchmarking visit to the Kenya Copyright Board exposed the Enforcement team to considerable Cases of piracy and counterfeit are on the increase. On knowledge and good prac�ces in enforcement work. The average the Unit receives two to three cases a week. unit has assisted in enforcement areas in the Liquida�on Majority of these cases arise from the Kampala Unit and Business Registra�on Directorate. There are Metropolitan Area (KMP), while a few others have arisen plans to expand the scope of the unit so that it serves from upcountry. URSB as a whole.

1.5 Operationalize URSB structure In fostering compliance with registra�on of Customary Marriage, the Bureau engaged with tradi�onal leaders The revised organiza�onal structure was approved by the including the Lango Cultural Founda�on, Tooro Kingdom, Board of Directors and by the Ministry of Public Service. Busoga Kingdom and Buganda Kingdom to interest them Its opera�onaliza�on awaits funding from Ministry of in the importance of registra�on of customary marriages. Finance Planning and Economic Development. As a result there has been an increase in the registra�on of customary marriages. 1.6 Strengthen the Audit Function Internal Audit func�on has a total of ten staff, of which The Uganda Na�onal Bureau of Standards (UNBS) and one was recruited in the repor�ng period. Three Project URSB signed a Memorandum of Understanding (MoU) on Support Officers were also deployed to the Directorate in the promo�on and enforcement of standards, and the repor�ng period, to further strengthen the Audit protec�on and enforcement of intellectual property func�on. Training in various skills was carried out in the rights. The signing of this MoU shows commitment by the Directorate to enhance competence. two ins�tu�ons to work together in areas of tracking of local manufacturers and traders, joint sensi�za�on 1.7 Strengthen Enforcement and programs on issues of joint concern, informa�on sharing and having a common posi�on on ma�ers of common Compliance interest and joint enforcement programs. The Bureau strengthened the enforcement and compliance func�on through the establishment of URSB entered into a partnership with the Insurance strategic partnerships with key stakeholders including the Regulatory Authority of Uganda (IRA) to ensure leadership of Uganda Muslim Supreme Council, Kibuli compliance by all Insurance companies in mee�ng the Mosque, Born Again Faith Uganda (BAFU), Na�onal minimum legal requirements in their business Fellowship of Born Again Pentecostal churches of Uganda transac�ons. It had been discovered that some of the (NFBAPC-U), Anglican Church, Catholic Church and insurance companies were un-registered, did not meet Seventh Day Adven�st Church. This enhanced synergies the minimum paid up share capital requirements as on the importance of formalizing marriages, filing required by the regulator (IRA), and were not compliant marriage returns, licensing marriage centers and the role with the legal requirement of filing of per�nent company of the religious leaders in the marriage administra�on forms with URSB. As a result of this engagement, on the func�on. 25th May 2018, IRA and URSB jointly issued out a no�ce

07 URSB ANNUAL REPORT 2017 - 2018 to forty one firms to comply with the requirements within The following are some of the ac�vi�es of the Unit: thirty days or risk de-registra�on. The firms The Unit carried out enforcement opera�ons with the complied. URSB con�nues to engage IRA, focusing on support of territorial Unit Commanders. Successful mee�ng clustered groups e.g insurance firms, assurance Enforcement Opera�ons result into increased firms, insurance brokers and insurance consultants to registra�on of Trademarks and Copyright promote further compliance. The Unit collected and provided the needed evidence for successful prosecu�on of sanc�oned cases. With the An Enforcement Unit was established at the Bureau and it secondment of a Senior State A�orney to URSB, the Unit is mandated to enforce intellectual property laws as has seen a case of trademark infringement being administered by URSB and is the focal point for prosecuted in Court and several other cases being inves�ga�ng cases of piracy and counterfeit. The in house mediated by URSB with the complainant and the suspect. Unit in the Directorate of Intellectual Property is The Unit has been responsible for preserva�on and coordinated by an Assistant Inspector General (AIGP) of storage of the exhibits Police. Benchmarking visit to the Kenya Copyright Board exposed the Enforcement team to considerable Cases of piracy and counterfeit are on the increase. On knowledge and good prac�ces in enforcement work. The average the Unit receives two to three cases a week. unit has assisted in enforcement areas in the Liquida�on Majority of these cases arise from the Kampala Unit and Business Registra�on Directorate. There are Metropolitan Area (KMP), while a few others have arisen plans to expand the scope of the unit so that it serves from upcountry. URSB as a whole.

In fostering compliance with registra�on of Customary Marriage, the Bureau engaged with tradi�onal leaders including the Lango Cultural Founda�on, Tooro Kingdom, Busoga Kingdom and Buganda Kingdom to interest them in the importance of registra�on of customary marriages. As a result there has been an increase in the registra�on of customary marriages.

The Uganda Na�onal Bureau of Standards (UNBS) and URSB signed a Memorandum of Understanding (MoU) on the promo�on and enforcement of standards, and protec�on and enforcement of intellectual property rights. The signing of this MoU shows commitment by the two ins�tu�ons to work together in areas of tracking of local manufacturers and traders, joint sensi�za�on programs on issues of joint concern, informa�on sharing and having a common posi�on on ma�ers of common interest and joint enforcement programs. The Bureau strengthened the enforcement and compliance func�on through the establishment of URSB entered into a partnership with the Insurance strategic partnerships with key stakeholders including the Regulatory Authority of Uganda (IRA) to ensure leadership of Uganda Muslim Supreme Council, Kibuli compliance by all Insurance companies in mee�ng the Mosque, Born Again Faith Uganda (BAFU), Na�onal minimum legal requirements in their business Fellowship of Born Again Pentecostal churches of Uganda transac�ons. It had been discovered that some of the (NFBAPC-U), Anglican Church, Catholic Church and insurance companies were un-registered, did not meet Seventh Day Adven�st Church. This enhanced synergies the minimum paid up share capital requirements as on the importance of formalizing marriages, ﬁling required by the regulator (IRA), and were not compliant marriage returns, licensing marriage centers and the role with the legal requirement of ﬁling of per�nent company of the religious leaders in the marriage administra�on forms with URSB. As a result of this engagement, on the func�on. 25th May 2018, IRA and URSB jointly issued out a no�ce

2017 - 2018 URSB ANNUAL REPORT 08 Improve Access To Registration Services 2.

The Bureau improved access to registra�on services through automa�on of registra�on services, strengthening exis�ng and roll out of new service centers, streamlining of service delivery standards, empowerment of women and youth and strengthening corporate rescue framework.

2.1 Automation of Registration Services During the repor�ng period there was con�nued use of the Electronic Document Management System (EDMS) to digi�ze all manual records. The digital records are stored in a centralized repository accessible to all Directorates online.

In the business directorate all the documents rela�ng to companies were digi�zed and the digi�za�on of other business records has commenced. The digi�za�on of these records has improved the quality and integrity of data and enabled real-�me searches on company records. As a result the records are accessible to the Regional oﬃces, branches and TREP centers. Registra�ons can now be carried out countrywide.

For Intellectual Property records the Industrial Property Administra�on System (IPAS) was upgraded to a newer version that oﬀers the ARIPO member states module. The system also provides a pla�orm for exchange and searches of all IP records under the Banjul and Harare Protocols by the ARIPO Member States.

The IPAS EDMS was installed to manage the digital copies of IP files. The first phase was from July - September 2017 and involved scanning, indexing and digi�za�on of 28,000 trademark files. The second phase of the project targeted 20,000 files. This was undertaken December 2017-January 2018. It should be noted that the second phase of the project surpassed the target by over 5,000 files.

An Online Single Services Portal for filing marriage and business annual returns online is being developed. The special features on the system include; The Na�onal Marriages Registra�on System (NMRS) to register all events and services offered in the civil registry; The official Online Bulle�n system (OBS) to reflect in real �me changes that happen to a company, business name or a marriage registra�on. This will serve as a no�ce board for the URSB; The Online filling of Marriage returns to aid clients to file their marriage returns online; The Online filing of Company annual returns to facilitate the online submission of company annual returns; The registra�on forms are to be re-designed, simplified and modernized for use online. The procurement for consultancy services for the Design and Development of the Security Interest in Movable Property Registry system was concluded.

2.1.1 E-Registry/E-Licensing Portal: URSB con�nued to operate the informa�onal portal that contains all informa�on on business licenses in Uganda. URSB as a host and in partnership with other Government MDAs ensured that up to date informa�on was available on the portal. The new MDAs that enlisted and provided the relevant informa�on include; Uganda Micro Finance Regulatory Authority (UMRA), Uganda Re�rements Beneﬁts Regulatory Authority (URBRA), Petroleum Authority Uganda (PAU), Na�onal Informa- �on Technology Authority (NITA-U) and the Na�onal Bureau for NGOs. A consultant was contracted to conduct a needs assessment and develop requirements for the transac�onal E-licensing system.

09 URSB ANNUAL REPORT 2017 - 2018 Statistics on the traffic to the Informational E-licensing Portal Table 1

ITEM/ACTIVITY FY 2016/17 FY2017/18 CUMULATIVE Sessions (Whenever the url 1 15,539 11,516 27,055 www.businesslicenses.go.ug is used)

2 Users 11,443 8,378 19,821

3 Page Views (Pages viewed while the user I son the portal) 48,621 36,763 85,384

4 10,568 5,782 16,350

It is expected that traﬃc to the web portal shall increase once it is transac�onal and not for informa�on purposes only.

2.2 Strengthened Existing and Rolled out New Service Centers

The Bureau improved access to registra�on services through mobile clinics where the Bureau partnered with the District Commercial Officers in mobiliza�on of on spot registra�ons services in upcountry hard to reach areas. The Bureau rolled out six TREP centers in the districts of Kisoro, Lugazi, Tororo, Mubende, Rukungiri, Kasese. Addi�onal Registra�on Officers were deployed at all Regional and Branch offices. This greatly contributed to the outreach programs to various clientele. In addi�on furniture and ICT equipment were purchased to revamp the regional offices.

2.3 Strengthening existing relationships and creating new Partnerships. The con�nued implementa�on of the TaxPayer Register Expansion Programme (TREP) in collabora�on with KCCA, URSB, URA and Ministry of Local Government where all these Government services are obtained under one roof, strengthened the exis�ng partnership. In the repor�ng period. TREP contributed 68.8 % to the total business names registered by URSB. Trep Performance FY 2017/2018 Table 2

OUTPUT INDICATOR TARGET ACTUAL RECEIVED

135,648 44,456

NTR 3,255,552,000 1,147,676,053

*TREP registered a 68.8% contribution to the Business names registered at URSB for the FY 2017/18.

2017 - 2018 URSB ANNUAL REPORT 10 The Uganda Government Business Facilita�on Center was established in FY 2016/17 and since its incep�on two other MDAs have joined in providing one stop shop services:

Uganda Free Zone Authority (UFZA), a body corporate responsible for the establishment, development, management, marke�ng, maintenance, supervision and control of free zones. The overall objec�ve is to create an enabling environment aimed at enhancing economic growth and development of export-oriented manufacturing in all sectors of the economy, in order to diversify the country’s economic base, a�ract Foreign Direct Investment (FDI), generate employment, increase foreign exchange earnings, enhance technology transfer, skill acquisi�on/upgrading as well as create backward linkages; and Ministry of Lands, Housing and Urban Development (MOLHUD) which is responsible for providing policy direc�on, na�onal standards and coordina�on of all ma�ers concerning land, housing and urban development. Instant searches on the land register are available.

2.4 Roll out of Technology and Innovation Support Centers (TISCs) to National Agricultural Research Organization (NARO) Centers

URSB rolled out TISCs to a total of seventeen (17) NARO research centers. This brings it to a total number of 25 TISCs countrywide. TISCs are designed to provide innovators with access to locally based, high quality technology informa�on services and other related services helping them to exploit their innova�ve poten�al and to create, protect, and manage their intellectual property (IP) rights. Services oﬀered by TISCs include: Access to online patent and non-patent (scien�ﬁc and technical) resources and IP-related publica�ons; Assistance in searching and retrieving technology informa�on; Training in database search; On-demand searches (novelty, state-of-the-art and infringement); Monitoring technology and compe�tors; Basic informa�on on industrial property laws, management and strategy, and technology commercializa�on and marke�ng.

11 URSB ANNUAL REPORT 2017 - 2018 2.5 Streamline Service Delivery Standards. The Bureau revised the Clients Charter to include the new delivery standards, for instance the �me taken for registra�on of companies improved from eight to four hours and registra�on of Insolvency Prac��oners was introduced. The new Client Charter 2017-2020 sets out the procedure and expected �me taken or each service. It also creates a mechanism for enforcement, complaint handling and feedback.

The Bureau acquired faster, reliable and stable internet services from UTL to supplement MTN services. This greatly improved the online services and registra�on services countrywide.

2.6 Empowerment of Women and Youth

In the repor�ng period, the Bureau trained over 2000 women and youth from Mbarara, Gulu, Mbale and Masaka in Business Development, Business Registra�on, Financial Management, and Strategic Planning. During the training the Bureau oﬀered on spot registra�on services.

2017 - 2018 URSB ANNUAL REPORT 12 2.7 Strengthen Corporate Rescue Framework The Bureau intensified its sensi�za�on drive by encouraging the public to adopt business rescue mechanisms as opposed to liquida�on so as to encourage economic growth. The sensi�za�on was mainly through TV talk shows, radio talk shows, and shoo�ng of a insolvency documentary on the changing landscape of insolvency in the country. The Bureau promoted corporate rescue which is designed to rescue an otherwise insolvent company which, but for its inability to repay its debts, is s�ll financially strong as evidenced by its assets. Under the protec�on of a court order for Administra�on, the company is given breathing space to re-organize its affairs with an aim of turning around the business to profitability and achieving a be�er result for the creditors. Uganda Telecom Ltd has been rescued under this arrangement.

On 18th April 2017, by special resolu�on of the Board, the Oﬃcial Receiver was appointed as provisional administrator of Uganda Telecom Limited (UTL) with du�es and powers under the Insolvency Act and any other law in force. Since taking over management, the Administrator totally transformed UTL as evidenced below:

UTL is now supplying internet and telephone services to over 330 Government Ministries, Departments and Agencies (MDAs). Several Banks including Stanbic, DFCU and Centenary Bank, interna�onal Agencies and SMEs use UTL’s internet and telephone services.

Through various interven�ons the average network availability has been improved from 75% to 96% a growth of 21%.

The Administrator has posi�vely inﬂuenced the reduc�on of the cost of telecommunica�ons services in Uganda. The cost of internet to MDAs has reduced from $300/Mbps to $70/Mbps and the ripple eﬀect is spreading to the private sector. Voice interconnect costs have reduced from UGX. 112/- per minute to UGX.65 - 25 per minute resul�ng into cheaper calls across the networks.

The Staﬀ and service providers are now paid on �me.

During the reported period the Oﬃcial receiver has also par�cipated in liquida�ng companies. Following a pe��on of the creditors vide Company Cause No. 31 of 2017, the High court on 20th October 2017, issued a liquida�on order and the Oﬃcial Receiver was appointed provisional liquidator of the Nakuma� Uganda Limited. The supermarket was the largest retail chain in East Africa, it operated nine Branches in Uganda with over 400 employees.

In speciﬁc terms the court issued the following orders;

Nakuma� Uganda Limited be placed under liquida�on.

The Oﬃcial Receiver is appointed as provisional liquidator of Nakuma� Uganda Limited.

The provisional liquidator immediately takes control of all the property of Nakuma� Uganda Limited and executes the statutory du�es of a provisional liquidator.

The assets, equipment and stock of Nakuma� Uganda Limited seized, distresses and/or a�ached by creditors, Bailiﬀs, Judgment Creditors, Landlords and any other person/en�ty since the commencement of the liquida�on on 5th September, 2017 are to be immediately handed over to the Oﬃcial Receiver for purposes of liquida�on of Nakuma� Uganda Limited, and

The costs and fees of the pe��on be taxed and paid out of the proceeds of Liquida�on by the Liquidator as expenses of Liquida�on.

The legal implica�on of the court order is that creditors were barred from taking legal ac�on against the company. At the �me of the liquida�on order, several businesses had obtained execu�on orders while a number of cases were pending before diﬀerent courts for claims ranging from non-payment of suppliers, overdue rent and breach of employment contracts.

The Liquidator’s responsibility was to collect and sell oﬀ the assets of Nakumat and equitably distribute the proceeds of the assets as provided for under the Insolvency Act. The liquida�on process was s�ll ongoing at the close of the repor�ng period.

13 URSB ANNUAL REPORT 2017 - 2018 2.8 Establishment and Operationalize new Registers Following the passing of the Insolvency Prac��oners Regula�ons, N0. 55 of 2017, the Oﬃcial Receiver/URSB established and now maintains a register of Insolvency Prac��oners. During the repor�ng period thirty one Insolvency Prac��oners were registered. During the period the Security Interest in Movable Property Bill was approved by the Cabinet of the Government of Uganda and tabled before Parliament for debate and enactment.

Enhance Public and 3. Stakeholder Awareness of URSB Services

The Bureau enhanced public and stakeholder awareness through conduc�ng public and media campaigns, development of client based feedback mechanism and strengthening the corporate social responsibility (CSR) func�on.

3.1 Public and Media Campaigns The Bureau used mainstream and social media to reach target audience

3.1.1 Media campaigns The prime �me of three television sta�ons, NTV, NBS and BBS were used in crea�ng awareness of URSB services. The Bureau was hosted on 65 talk shows in the morning and evening prime �me hours on television, including NTV perspec�ves, Mwasuze Mutya, Tuwaye, the Link, Morning Breeze, NBS at 9, Gambuuze, News Features and Spot Adverts. There were also several skits running on the different televisions. Print media such as Daily Monitor and New Vision published general adverts on URSB services, noncompliant companies in business registra�on, companies requiring renewal of trademarks and non-complaint places of worship. A number of ar�cles on the different services of the Bureau were published in the local dailies some of which included the insolvency reforms in Uganda, impacts of ra�fica�on of the Marrakesh treaty, business reforms as a result of ICT and the need for registra�on of marriages. The Bureau was hosted on several prominent radio sta�ons around the country including; CBS FM, Radio One, Capital FM, Sanyu FM, Namirembe FM, Bilal FM, KFM, Sapienta, Kiira FM, Voice of Toro, Hunter FM, Mega FM, Rupiny FM, Crooze FM, Radio West, Step FM, Arua One, Radio Pacis, Unity FM, Buddu FM, Dunamis FM, Eye FM. The Bureau had 2077 infomercials running during peak hours on different radio sta�ons in English, Luganda, Runyakitara, Lumasaba, Luo, Lusoga, Lugbara, Lusamya, Japadhola, Itesot. These informercials helped to increase awareness and market the benefits of all the services that are provided by the Bureau. The Bureau distributed 5000 informa�on guides, 6000 client charters, 8000 copies of the Quarterly Newsle�er, posters, fliers and brochures on all services offered, as well as the Annual Report for Financial Year 2016/17. Addi�onally, the informa�on guide and client charter were translated into four local languages, namely Luganda, Runyakitara, Swahili and Luo. This gave our Clients and stakeholders a clear understanding of the procedures and costs of accessing URSB services, which was a key enabler in elimina�ng middle men from the service delivery chain.

3.1.2 Social Media engagements URSB grew its online presence from 2548 Facebook followers to 10,107 and twi�er from 1583 followers to 2555. Engagement of our users on the two pla�orms was more interac�ve and this has enabled the provision of quick and �mely responses since there is a dedicated team responsible for providing content on URSB services and responses to client inquiries. Two posts with informa�on on URSB services were put up daily and this enabled visitors to the page interact and acquire more knowledge about URSB services.

2017 - 2018 URSB ANNUAL REPORT 14 Social Media Performance

12000

10000

8000

6000

4000

2000

0 01 - Dec - 18 01 - Jul - 18

Twitter Facebook

12000

10000

8000

2016/7 6000

2017/8 4000

2000

0 Facebook Twi�er

15 URSB ANNUAL REPORT 2017 - 2018 3.1.3 Outdoor Advertising In a bid to increase the brand visibility, 100 western region bound matatus/taxis were branded with s�ckers with informa�on on the benefits of business formaliza�on as well as how to access URSB services in the western regional office. The campaign was for six (6) months. Twenty-six (26) street poles within the Central Business District in the areas of Bakuli, Kalitunsi and on Ring Road were branded with direc�ons to the loca�on of the Nakivubo branch office as well as registra�on informa�on.

3.1.4 Business Clinics A number of business clinics were conducted in the districts of Mukono, Iganga, Busia, Tororo, Bushenyi, Kabale, Hoima, Mubende, Jinja, Masindi, Kasese, Soro�, Fortportal, Lira, Busia where businesses were registered on spot and responses provided on other URSB related services. Prior to the clinics, week long sensi�za�on campaigns were carried out on radio sta�ons that appealed to the target audience in each community. During this sensi�za�on, people were called out to the venue where the services would be provided. Large numbers of people were served for ﬁve days at each of the business clinics.

3.1.5 World Intellectual Property Day – April 26, 2018

The annual World Intellectual Property day was commemorated on 26 April 2018 where Uganda joined the rest of the World in celebra�ng women innovators under the theme “Powering Change: Women in Innova�on and Crea�vity”. The summit brought together intellectual property experts in the ﬁeld of agriculture, technology, health, environment, music and arts industry who inspired women to be innova�ve.

The following women who had succeeded in their respec�ve ﬁelds of intellectual property were recognized and received awards: Ms Evageline Ledi Barongo, Ms Hilda Twongeirwe, Ms.Glaydah Namukasa, Ms.Anita Beryl Ahikiriza, Ms.Beatrice Lamwaka and Ms.Phillipa Ngaju Makobore. The following Women led organiza�ons also received awards for their promo�on of intellectual property: UWEAL, Aloesha Organic products, Oribags Ecofriendly Innova�ons, Ecosmart Uganda and Eco Stove Uganda.

2017 - 2018 URSB ANNUAL REPORT 16 3.1.6 Workshops The Bureau conducted workshops/training for women and youth on benefits of business formaliza�on in Busia, Masaka, Mbale, Mbarara and Gulu; and for Abogezzi (spokesmen) at their Annual General mee�ng in November 2017. The Muslim leaders, Heads of faith based organiza�ons, CAOs, Town Clerks, Sub County Chiefs and cultural leaders in the Toro region were sensi�zed on their roles as duty bearers in the administra�on of marriages. Workshops were also conducted for the SDA church at the Central Conference Synod in Kasese and Jinja, the synod (House of Bishops of the Province of the Church of Uganda) and the Episcopal Conference on the relevance and prac�ce of marriage registra�on, filing marriage returns and licensing places of worship. The tradi�onal medicine prac��oners were sensi�zed on the importance of protec�ng the intellectual property in their tradi�onal and cultural knowledge. The Bureau par�cipated in and made presenta�ons in the following stakeholder workshops: a presenta�on on licensing churches and filing marriage returns to the Synod of the Catholic Diocese of Fort Portal which was a�ended by the Bishop and all 38 Parish priests of the Diocese; the 35th session of the WIPO InterGovernmental Commi�ee on Intellectual Property and Gene�c Resources, Tradi�onal Knowledge and Folklore; the Uganda Insurers Associa�on on Business Registra�on and Intellectual Property Rights; the Visual Ar�sts’ Clinic. Trainings on Intellectual Property Registra�on were also conducted for women under the umbrella of Uganda Women Entrepreneurs Associa�on Ltd, Uganda Manufacturers Associa�on, Youths, Uganda Small Scale Industries Associa�on, THETA Uganda, Innova�on Hubs, Na�onal Agricultural Research Organiza�on, Uganda Na�onal Council for Science and Technology, Makerere University Business School, Uganda Industrial Research Ins�tute, Rotary Interna�onal, Uganda Law Society and Uganda Prin�ng and Publishing Corpora�on. These contributed to the growth in Intellectual Property Registra�ons in the Financial Year.

3.1.7 Stakeholder Engagement – User Committees The following stakeholders were engaged through user commi�ee mee�ngs which helped address the special stakeholder needs and interests in as far as the services of the Bureau are concerned, as well as for the Bureau to explain its expecta�ons of the stakeholders: Ministry of Gender Labour and Social Development, Bank of Uganda, Inter-Religious Council of Uganda, Uganda Joint Chris�an Council, Innova�on Hubs, Uganda Law Society, Uganda Bankers Associa�on, Kampala Capital City Authority, Uganda Police, FIDA (U), Na�onal Council for Women, Uganda Human Rights Commission and Refugee Law Project, The user commi�ee mee�ngs for all the stakeholders greatly informed many of the interven�ons that URSB formulated to address the low registra�on rates including the crea�on of an enabling environment for clients at the One Stop Shop and the move to digi�ze all the Bureau’s services.

17 URSB ANNUAL REPORT 2017 - 2018 3.1.8 Exhibitions and open days The Bureau par�cipated in exhibi�ons, tradeshows and provided informa�on on its services to the public through brochures, leaﬂets and ﬂyers. Some of the exhibi�ons par�cipated in included: CBS Pewosa Tradefair at Wankulukuku grounds, NSSF Customer Connect week, Earth day Celebra�ons at the KCCA grounds, URA TayPayer Apprecia�on week at Kololo Independence grounds, Capital Markets Authority exhibi�on at the cons�tu�onal square, Buganda Book fair in Luwero Mengo, 7th Africa Public Service Day, Ministry of Finance, Planning and Economic Development Budget week, Interna�onal Day of the Family May 15, 2018, Career Expo at Makerere Business School and the Na�onal Science Week organized by Educators Network for Development Uganda in partnership with the Uganda Na�onal Council for Science and Technology. By par�cipa�ng in these events, URSB maintained its client rela�ons, and built stronger networks and synergies with various stakeholders.

3.2 Developed a Client-Based Feedback Mechanism A client-based SMS Pla�orm was set up to enable clients get instant no�ﬁca�ons on the status of documents they submi�ed. This led to a reduc�on of the queues of clients wai�ng to collect their documents. The system is integrated into the CRIMS and BRS systems for Civil and Business Registra�ons respec�vely.

The Bureau con�nued to receive customer feedback and made faster responses to client inquiries, through an established toll free number 0800 100 006 and WhatsApp number 0712 448 448. These tools greatly reduced the costs of communica�on on the client’s side, both in terms of �me and money.

The Toll free Line number 0800 100 006 for the Customer Call Centre con�nued to be opera�onal. The URSB call center is equipped to handle large amounts of customer telephone requests/inquires. The center handles both inbound and outbound communica�on.

During the year the Call Centre transformed the image of URSB by oﬀering instant responses to Clients with queries/inquires. Calls and Emails were sent to clients on the progress of their work. This led to a reduc�on in the number of walk in clients because inquiries are made online (social media and email) or on phone (voice calls and text messages). The Bureau created a customer address /contact data base for ease of reference.

2017 - 2018 URSB ANNUAL REPORT 18 3.3 Strengthening the Corporate Social Responsibility Function The Bureau organized the Corporate Social Responsibility (CRS) that run from December 11 to 15, 2017. The ac�vi�es included Dona�ons of scholas�c materials and food stuffs/dry ra�on to Missionaries of the Poor – Good Shepherd Home in Kisenyi to improve the children’s’ welfare. Three (3) day customer engagement ac�vi�es at the head and branch offices, where Staff interacted with Clients and received feedback on URSB services. Forty (40) key clients were iden�fied and appreciated for their con�nuous use of URSB services.

3.3.1 Recognition and Awards During The Year The Bureau recognized and awarded stakeholders during the launch of the Strategic Development Plan II at Serena Hotel Kampala on March 22, 2018. The following Stakeholders were awarded for their achievement of URSB objec�ves as set in the Strategic Investment Plan 1 for 2012 to 2017 Ligomarc Advocates - Most outstanding Insolvency Prac�cing Law Firm due to the number of filings and partnership with the Official Receiver SIPI Law Associates- for filing 3,688 trademark applica�ons since 2012 PKF Uganda – As outstanding insolvency consultancy firm Wakiso District Local Government - for filing 68 returns of marriages conducted at the District Rubaga Miracle Centre – for the single largest filling of marriage returns Catholic Diocese of Kasana Luwero – for gaze�ng 19 of its parishes Namirembe Cathedral – for filing returns consistently on a monthly basis Uganda Muslim Supreme Council – Gaddafi Mosque – For filing 354 marriage returns Province of the Church of Uganda - for filing 123 applica�ons for licensing their parishes Mr Ben Mungyereza – for filing 56 returns on behalf of married couples. Mr.Karamagi Kabiito – As most outstanding Insolvency Prac��oner Osho Chemical Industries Limited – A local company that filed 158 trademarks Movit Products Limited – A local company with the most industrial designs filed – totaling 11 Kiriri Co�on Development – the oldest company on the business register Diamond Trust Bank – the bank with the highest number of searches totaling 129,530 Mr. John Fred Kibuuka – a local innovator with two patent applica�ons that were converted to u�lity models a�er examina�on.

19 URSB ANNUAL REPORT 2017 - 2018 The following Employees were recognized and awarded for their outstanding performance during the End of Year celebrations.

a. Ms. Provia Nangobi was the Employee of the Year. b. Ms. Mary Alinaitwe was best employee in Directorate of Intellectual Property; c. d. Mr. Ronald Otukol was the best employee in Directorate of Internal Audit; e. f. g. h. i. Mr. Robert Madeyo was the best employee in Directorate of ICT; and j.

The Bureau Staff also received recognition from various stakeholders during the year; The Registrar General, Mr. Bemanya Twebaze was elected the President of the Paris Union Assembly during the World Intellectual Property Organiza�on (WIPO), 57th General Assembly in Geneva, Switzerland from 2-11 October 2017. The Director Internal Audit, Mr. Anganya Alex, was re-elected as Chairman ARIPO Audit Commi�ee. The Director Intellectual Property, Ms. Mercy Kainobwisho Kyomugasho recognised by Uganda Law Society as the Best female Corporate Lawyer in Government, The Member of the Board of Directors, Ms. Chris�ne Kaahwa a Board member, won the Best State prosecutor award. The Bureau was recognized by Private Sector Development as the Government Agency of the Year 2017. The Bureau was also recognised by Uganda Law Society as the best Law prac�ce corpora�on that mentors female lawyers

2017 - 2018 URSB ANNUAL REPORT 20 Strengthen Research and 4. Advisory function

The strengthening of the research and advisory func�on is a rela�vely new strategic objec�ve and while it was not fully implemented during the year, regular survey and ac�vi�es to strengthen the monitoring and evalua�on system were carried out.

4.1 Conducting regular surveys The Standard Cost Model (SCM) was carried out by URSB under the Business Licensing and Registra�on Reform Project that is spearheaded by the Bureau. It is the OECD-adopted standard tool for calcula�ng compliance costs of administra�ve procedures. The SCM provides a simpliﬁed, consistent method for es�ma�ng the administra�ve costs imposed on business by the diﬀerent �ers of Government.

The SCM Report analyzed the business licensing reforms since 2012, and calculated the compliance cost changes due to reforms as follows: UGX 93.4 billion compliance cost reduc�on has been achieved, represen�ng 12.9% compared to the total of UGX 725.73 billion business licensing compliance costs as calculated by the Zero Baseline Measurement of 2012. 69% of the compliance costs reduc�on is induced by legal reforms, this mainly through elimina�on of regula�ons. 31% of the compliance cost reduc�on is a result of administra�ve reforms, characterized by automa�on (online informa�on, online facilita�on of the license applica�on process), decentraliza�on and capacity increase of Government licensing personnel.

Against these compliances cost reduc�ons, substan�al compliance cost increases have occurred since 2012. It is calculated that compliance costs have increased by UGX 151.5 billion, to 20.9% of the total compliance costs of the Zero Baseline Measurement of 2012. This increase is solely caused by legal reforms: new licenses, new regula�on on exis�ng licenses, and above all new regula�ons introducing higher license fee charges.

Ul�mately, deduc�ng the total compliance cost reduc�on from the compliance costs increase, since 2012 the overall business licensing compliance costs in Uganda have increased by 8.0%, This Data could further be used for advisory purposes by the Government.

4.2 Strengthen M&E System The Bureau launched Strategic Development Plan11 (SDP II) for the three-year period, 2017/18 – 2019/20 as well as the Strategic Plan for Sta�s�cs for the same period. These have provided a comprehensive framework of results, indicators and targets on the basis of which M&E has been organized and executed.

For the repor�ng period, four Monitoring and Evalua�on exercises were carried out including mentoring and coaching frontline staﬀ on skills and good prac�ces in Data management, Opera�onal Planning, Implementa�on and Repor�ng, establishing a baseline in regard to genera�on of performance data for the FY 2017/18, suppor�ng Regional teams on planning skills, notable Stakeholder Analysis, Results Chain Methodologies, Plan implementa�on, M&E and Repor�ng and linking the SIP to opera�onal planning, iden�fying strategies for improving performance and enhancing NTR some of which were to inform the budget and Work plans for FY 2018/19. Dissemina�ng the published SDP II and suppor�ng the Regional teams to align their opera�onal plans to it and following-up on the issues raised in the stakeholder analysis.

21 URSB ANNUAL REPORT 2017 - 2018 Expenditure Out of the total warranted amount of Shs. 25,694,789,458/= from the Treasury amounted Shs. 24,857,249,492/= (97%) was spent leaving a balance of Shs. 837,539,966 /= unspent during the period. 5. FINANCIAL REPORT FOR THE PERIOD ENDED JUNE 30TH, 2018

5.1 Income and Expenditure of the Vote

Income

approved budget for was revised to supplementary total amount the Bureau for FY budget provided warranted by 30th 2017/2018 June 2018

Shs. 24,129,995,145 /= Shs. 25,694,791,605/= Shs. 1,564,796,460/= Shs. 25,694,789,458 /=

The approved budget for the Bureau for FY 2017/2018 was Ug. Shs. 24,129,995,145 /= which was revised to Ug. Shs. 25,694,791,605/= as a result of a supplementary budget amoun�ng to Ug. Shs. 1,564,796,460/= that was provided to cater for salaries and wages for the Compe��ve Enterprises Development Project (CEDP) Staﬀ. Their salaries were funded last FY by the World Bank under PSFU. The total amount warranted by 30th June 2018 was Ug. Shs. 25,694,789,458 /= represen�ng 100% of the total budget for the FY. The details of the budget are tabled below:

Table 3 Percentage Budget Approved Budget Revised Budget Total Warranted Unwarranted Warranted Wage 7,550,356,645 9,115,153,105 9,115,151,105 2,000 121% Non-Wage 5,891,318,500 5,891,318,500 5,891,318,497 3 100% AIA 10,688,320,000 10,688,320,000 10,688,319,856 144 100% Total 24,129,995,145 25,694,791,605 25,694,789,458 2,147 106%

Key components of the non-wage budget were Office Rent (1.879 Bn), Staff Gratuity (1.817Bn) and Social Security contribu�ons (0.727Bn). Provision for other recurrent costs was Shs. 1.468 billion, which is quite insufficient During this same period, MoFPED allocated Shs. 10Bn towards NTR growth and this triggered an unprecedented growth in NTR by up to 18.5%.

Ug. Shs. 688,320,000/= was appropriated to URSB for FY 2017/2018 as Appropria�on in Aid (AIA) in lieu of Ugan- da’s revenue shares of administra�ve fees earned by members’ states of African Regional Intellectual Property Organiza�on (in accordance with the Banjul and Harare Protocol) for the purpose of suppor�ng the Intellectual Property Ac�vi�es in Uganda.

2017 - 2018 URSB ANNUAL REPORT 22 Expenditure Out of the total warranted amount of Shs. 25,694,789,458/= from the Treasury amounted Shs. 24,857,249,492/= (97%) was spent leaving a balance of Shs. 837,539,966 /= unspent during the period.

Warranted Amount Amount Spent Balance

Shs. 25,694,789,458/= Shs. 24,857,249,492/= Shs. 837,539,966 /= (97%)

Below are Details of Budget Sources and Utilization During the Year Table 4 Approved Revised Balance Percentage Budget Total Warranted Expenditure Budget Budget Unspent Expenditure

Wage 7,550,356,645 9,115,153,105 9,115,151,105 8,835,803,097 279,348,008 96.94%

Non-Wage 5,891,318,500 5,891,318,500 5,891,318,497 5,682,807,523 208,510,974 96.46% AIA 10,688,320,000 10,688,320,000 10,688,319,856 10,338,638,872 349,680,984 96.73%

Total 24,129,995,145 25,694,791,605 25,694,789,458 24,857,249,492 837,539,966 96.74%

A Column chart comparing Wage, Non-wage and AIA across the Approved, Revised, Total Warranted and Expenditure Budgets during the FY 2017/18

12,000,000,000

10,000,000,000

8,000,000,000

Key components of the non-wage budget were Office Rent (1.879 Bn), Staff Gratuity (1.817Bn) and Social Security 6,000,000,000 Amount (Ushs.) contribu�ons (0.727Bn). Provision for other recurrent costs was Shs. 1.468 billion, which is quite insufficient

During this same period, MoFPED allocated Shs. 10Bn towards NTR growth and this triggered an unprecedented 4,000,000,000 growth in NTR by up to 18.5%.

Ug. Shs. 688,320,000/= was appropriated to URSB for FY 2017/2018 as Appropria�on in Aid (AIA) in lieu of Ugan- 2,000,000,000 da’s revenue shares of administra�ve fees earned by members’ states of African Regional Intellectual Property Organiza�on (in accordance with the Banjul and Harare Protocol) for the purpose of suppor�ng the Intellectual

Property Ac�vi�es in Uganda. Approved Budget Revised Budget Total Warranted Expenditure Balance Unspent

Wage Non wage AIA

23 URSB ANNUAL REPORT 2017 - 2018 5.2 Assets and Liabilities Assets During the year, the Bureau acquired assets worth Shs. 1,131,006,640/= as per details below; Table 5 Transport Equipment ICT Equipment Furniture & Fixtures Total

Shs.528,000,000 Shs.179,979,841 Shs. 423,026,799 Shs. 1,131,006,640

Pie Graph Showing Assets Acquired in the FY 2017/18

15.92%

37.40% Transport Equipment 46.68% ICT Equipment

Furniture & Fixtures

Liabilities The total liabili�es for the year ending 30th June 2018 was Ug. Shs. 22,340,859,645/= detailed as follows: Ug. Shs. 20,405,584,788/= being Deposits Received for disclosure purposes. These are funds held by the Oﬃcial Receiver on behalf of the Government of Uganda in trust for the Companies under the Liquida�on process. Shs. 6,501,929/= being overpayment of WHT as a result of cancelled Supplier Invoices on the IFMS and not cancelling the system generated WHT deduc�on. Shs. 1,941,423,697/= being domes�c arrears veriﬁed for year ending 30th June 2018 as compared to shs 1,901,794,514 rela�ng to arrears of the previous FY 2016/2017.

Out of the outstanding domes�c arrears amoun�ng to Shs. 1,901,794,514/= as at 30th June 2017, Shs. 1,870,448,514/= (98%) was paid out by end of the FY 2017/2018 leaving a balance of Shs. 31,346,000/= being 2% of the outstanding obliga- �on which will be se�led in the upcoming FY 2018/2019.

The outstanding obliga�on (domes�c arrears) for the FY 2017/2018 amounts to Shs. 1,941,423,697/=. This cons�tutes Shs. 26,875,600/= and Shs. 1,914,548,097 being employee Costs and Goods and Services respec�vely. This was mainly as a result of unpaid rental obliga�ons, suppliers’ contracts that were not concluded by end of 30th June 2018 and will be se�led in the upcoming FY 2018/2019.

2017 - 2018 URSB ANNUAL REPORT 24 5.3 Financial Statements for the period ended June 30th, 2018

Below are the unaudited accounts forwarded to the Auditor general for his opinion:

Statement of Financial Performance [Based on classiﬁcation of expenditures by nature]

Table 6 Actual 30 June 2018 Actual 30 June 2017 Note (Shs) (Shs) OPERATING REVENUE Revenue Taxes 2 External Grants Received 3 Transfers received from the Consolidated Fund 4 24,859,146,846 13,899,913,019 Transfers from the Conn�ngencies Fund 5

Transfers received from Other Government units 6

Non – Tax revenue 7 39,954,469,012 33,708,733,845 Total opera�ng revenue 64,813,615,858 47,608,646,864 OPERATING EXPENSES

Employee costs 8 12,630,743,200 9,987,654,376 Goods and services consumed 9 10,999,960,977 3,907,714,086 10 1,131,006,640

Subsidies 11

14 137,065,212

Total Opera�ng Expenses 24,898,776,029 13,895,368,462

39,914,839,829 33,713,278,402

Foreign exchange loss (Gain) 15

Finance costs 16

Transfers to Treasury 17 (39,954,469,012) (33,708,733,845) Excess of Revenue over expenditure for the year (39,629,183) 4,544,557

25 URSB ANNUAL REPORT 2017 - 2018 Statement of Financial Position

Table 7

30 June 2018 30 June 2017 Notes (Shs) (Shs) ASSETS Cash and cash equivalents 18 20,406,052,823 20,905,379,545 Receivables 19 Inventories 20 Investments 21 Non Produced Assets 22 Total Assets 20,406,052,823 20,905,379,545 LIABILITIES Borrowings 23 Payables 24 22,347,361,574 22,802,514,556 Pension Liability 25 22,347,361,574 22,802,514,556 (1,941,308,751) (1,897,135,011) REPRESENTED BY:- Net Worth (1,941,308,751) (1,897,135,011)

Statement of Changes in equity (Net worth) Table 8 30 June 2018 30 June 2017 Schedule (Shs) (Shs)

At 1 July - Net worth Last Year (B/F) (865,299,967) (1,897,135,002) Less: Transfers to the UCF account ( Previous Year

Balances) +/- Adjustments ( Cash and cash equivalents)) Payables adjustments ( See statement of outstanding commitments) Other Adjustments (548,597,076) (484,783,606) Receivables (2,998,910) With Holding Tax Payable (4,544,557) Adjustments in the receivables

Add: Excess of revenue over expenditure for the (39,629,183) 4,544,557 Year Closing Net Financial Worth (1,941,308,742) (1,897,135,002)

2017 - 2018 URSB ANNUAL REPORT 26 5.4 Physical Output statistics for FY 2016/17 and FY 2017/18

Table 9

URSB STATISTICS DIRECTORATE ITEM FY 2016/17 FY 2017/18 % Change New Companies and Business Names registered 49,954 75,814 51.77 Legal Documents 38,744 47,182 21.78 (POA,Deeds,Cons�tu�ons,Agreements,Affidavits & Business Registra�on Declara�ons) Debentures/Mortgages 983 1,080 9.87 Cer�fica�ons 10,579 29,350 177.44 Company Forms 41,822 71,597 71.19 Cha�els 425 302 -28.94 Resolu�ons received 97 174 79.38 Court appearances 20 61 205.00 Liquida�on Unit Insolvency Prac��oners registered 983 16 9.87 Companies liquidated 10 31 210.00 Civil Marriages 1,175 1,563 33.02 Marriage returns FBOs & Districts 10,578 7,414 -29.91 Churches Licensed 106 561 429.25 Cer�fica�on of marriages (Civil, Church, Customary 2,135 2,754 28.99 Civil Registra�on and single status le�ers) Searches on Marriage Register 642 853 32.87 Customary marriages registra�ons 289 187 -35.29 Single Status 313 354 13.10 Special Licenses 17 132 676.47 Foreign Trademark Registra�ons 1,603 1,589 -0.87 Foreign Trademark applica�ons 1,582 1,325 -16.25 Local Trademark applica�ons 1,225 1,314 7.27 Local Trademark Registra�ons 1,186 1,082 -8.77 Foreign Trademark Renewals 1,108 1,312 18.41 U�lity model applica�ons 7 13 85.71 Intellectual Property U�lity model grant 6 11 83.33 Patent applica�ons 30 22 -26.67 Patent grants 2 1 -50.00 Copyrights applica�ons 71 134 88.73 Copyrights registra�ons 30 62 106.67 Industrial Design applica�ons 71 Industrial Design registra�onsBusiness 10

5.5 NTR Statistics for 2017/18 The total NTR collec�on for the FY 2017/18 was Ug. Shs. 39,269,857,690/= compared to Shs. 32,547,303,875/= for the previous FY 2016/17, represen�ng 20.65% growth.

The NTR sta�s�cs and growth trend from FY 2011/12 to date are presented below:

FINANCIAL FY FY FY FY FY FY FY YEAR 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018

NTR 7,505,532,830 20,646,797,322 20,374,150,626 23,479,348,677 26,881,242,437 32,547,303,875 39,269,857,690

27 URSB ANNUAL REPORT 2017 - 2018 A Trend Line Graph Showing NTR Collections For The Past 7 Financial Years

45,000,000,000

40,000,000,000 39,269,857,690

35,000,000,000

32,547,303,875 30,000,000,000

26,881,242,437 25,000,000,000 23,479,348,677 20,646,797,322 20,000,000,000

Amount (Ushs.) 20,374,150,626

15,000,000,000

10,000,000,000

7,505,532,830 5,000,000,000

FY2011/2012 FY2012/2013 FY2013/2014 FY2014/2015 FY2015/2016 FY2016/2017 FY2017/2018 Financial Year

2017 - 2018 URSB ANNUAL REPORT 28 29 URSB ANNUAL REPORT 2017 - 2018

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