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Post office numbers still mandatory for all businesses, govt says
Posta Uganda is mandated with issuing postal addresses to businesses in Uganda. Photo / File
What you need to know:
- Section 115 of the Companies Act requires all registered companies to provide a postal address issued by Posta Uganda
Uganda Registration Services Bureau (URSB) has maintained that post office box numbers are still mandatory for businesses despite growing public reluctance to use the postal addressing system in business transactions.
Ms Mercy Kainebwisho, the URSB registrar general, was responding to queries over public complaints on the relevance of post office numbers in the modern era, where proliferation of other smart technologies such as emails, short text messages and social media platforms, have enabled real time communication.
A section of Ugandans have previously wondered why URSB continues to enforce the requirement of post office box numbers in a period when it should be promoting modern technology.
Some Ugandans argue that postal office box numbers are outdated, costly and unreasonable for companies, suggesting amendments to the Companies Act to allow use of other modes of communication. Section 115 of the Companies Act requires all registered companies to provide a postal address issued by Posta Uganda.
Ms Susan Mugenyi, a proprietor of FunaRide, a mobility company told Daily Monitor that it’s costly to register and acquire a box number address system visa-vis the return of investment, which requires an annual subscription.
Details obtained from Posta Uganda, a government entity that issues postal addresses, indicate that companies have to pay an annual fee of Shs90,000 for a postal address.
Ms Kainebwisho said the post office addressing system remains a key feature of the statute and provides a mandate and obligation for registries to communicate to companies anytime.
“We send notices for compliance and filing returns. We consider it an authentic and permanent address because people change phones,” she said, noting that acquiring a box number is simpler through online means for an e-posta.
Uganda currently has over 90,000 physical post boxes and 129 post offices spread across the country, according to data from the ICT Ministry.
During the quarter ended December 2022, Uganda Communications Commission, which regulates postal services, indicated that the postal addressing system remains key in delivery of mails, which during the period, increased to 182,370 mails from 172,863 mails in the quarter to September 2022,
The increase, UCC noted, represented a 5 percent growth in quarter-on-quarter due to increased demand for door-to-door delivery by domestic e-commerce businesses.
Mr James Arinaitwe, the Posta Uganda managing director, yesterday said, the post address system remains a legal requirement through government and others can communicate and identity a business.
“It’s the only recognised government means of communication, the other means [of communication] such as [social media] can work, but government has control over [social media],” he said.
Other developments
During the 2022/23 financial year, URSB registered 23,789 companies, which was a 28 percent increase, 27,104 business names, 86,375 legal documents, and 1,483 debentures
Other developments included registration of 118 insolvency practitioners, liquidated 53 companies, settled six liabilities and 154 declarations of solvency.
URSB also noted that there were reforms made, among which included amendment of the Insolvency Act, 2011 to simplify winding-up of companies that have no assets, provide for post-commencement financing of companies in insolvency to enable them settle claims, and prioritising of secured creditors.
