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Foreign Entities Without Local Registration Can Now Sue in Uganda

Foreign Entities Without Local Registration Can Now Sue in Uganda
The Court of Appeal has held that foreign entities—including partnerships—may bring suits in Ugandan courts even if they are not registered locally, as long as they are not conducting ongoing business in Uganda.
Background
The case arose from Vantage Mezzanine Fund II Partnership, a South African partnership, which sued businessman Patrick Bitature to enforce obligations tied to a USD 26 million loan agreement. In pursuing enforcement, the fund sought to transfer shares in companies within the Simba Group through the Uganda Registration Services Bureau (URSB).
In 2022, the High Court (per Justice Musa Ssekaana) struck out Vantage’s action for lack of legal capacity, reasoning that, under the Partnership Act and the Business Names Registration Act, a partnership must be registered in Uganda to sue or be sued.
Court of Appeal’s Decision
On appeal, Justice Esta Nambayo delivered the lead judgment, concluding that Vantage was entitled to seek relief in Ugandan courts. Citing the constitutional guarantee of equal protection and access to justice, the Court noted that preventing Vantage from suing—particularly where its status had been raised by the respondent—would offend Article 21(1) of the 1995 Constitution.
The Court further clarified that the mere advancement of a loan to a Ugandan party, without a physical presence or sustained operations in Uganda, does not amount to “carrying on business” for purposes of local registration requirements. Consequently, foreign entities not engaged in ongoing local business are not barred from suing solely because they lack Ugandan registration.
Key Takeaways
• Foreign entities (including partnerships) may sue in Uganda without local registration if they are not carrying on business in Uganda.
• Providing a loan, without a local footprint or sustained operations, is not “carrying on business.”
• The decision emphasizes equal access to courts under Article 21(1) of the Constitution.
Note: This summary is for general information and does not constitute legal advice.
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