“Send the deposit and we deliver tomorrow.” Every week, Ugandans lose money to businesses that do not exist — fake suppliers on social media, ghost contractors, cloned company pages, and impersonators using the names of real firms. As more buying moves to WhatsApp and Facebook, the ability to verify a business before you pay has become a basic skill for consumers and procurement officers alike.
This guide gives you a practical, step-by-step checklist you can use in under an hour, plus the warning signs that should make you walk away.
- Confirm the business is registered with URSB and that the name matches the invoice and payment details.
- Visit or video-call the premises; check the physical address on Google Maps.
- Pay only into accounts in the registered business name — never a personal number.
- Prefer businesses whose documents have been checked by an independent platform.
Step 1: Confirm legal registration
Ask for the registration number and certificate, then check the name on URSB’s online services. The name on the certificate, the quotation, the invoice, the stamp and the bank account should all match. A business that cannot produce a registration certificate is not necessarily a scam — many genuine small traders are informal — but it should make you more cautious with large deposits.
For bigger contracts, also ask for a TIN certificate and confirm the TIN with URA, and for regulated work (medical, legal, security, financial, construction), the relevant professional or sector licence.
Step 2: Check the physical location
- Search the address on Google Maps and Street View. Does a real shop or office exist there?
- Visit if you can. If not, ask for a live video call walking through the premises — a recorded video can be borrowed from someone else.
- Be wary of businesses that “recently moved” and cannot give a specific building and floor.
Step 3: Look at the digital footprint
- Age: a Facebook page created last month with thousands of followers is suspicious.
- Consistency: phone numbers, logo and address should be the same across website, social media and directory listings.
- Reviews: read the negative reviews too — and look for detailed, specific experiences rather than one-line praise.
- Website domain: check the spelling carefully; cloned sites often add a letter or use a different extension.
Step 4: Use verified directories
Independent business directories that check documents reduce your risk. On Uglisted, the Verified badge is only shown after our team manually reviews a business’s registration documents against the details it submitted — the badge cannot be bought. You can read more on our business verification page. Combine this with your own checks for high-value purchases.
Step 5: Test with a small order
For a new supplier, start small: one batch of printing, a few bags of cement, a single solar panel. A legitimate business will deliver and earn your bigger order. A fraudulent one usually pushes you towards a large upfront payment immediately.
Step 6: Pay safely
- Pay into a bank account or mobile money merchant account in the registered business name.
- Be suspicious of last-minute changes to payment details — call the business on a number you already know to confirm.
- Get a receipt or invoice for every payment; for businesses that must use EFRIS, ask for the e-invoice and check its QR code.
- For large jobs, pay in stages tied to delivery or progress, with a written agreement.
Red flags: walk away if you see these
- Prices far below the market with “limited time” pressure.
- Requests to pay a personal mobile money number or an account in a different name.
- Refusal to meet, show premises or provide registration details.
- Poor grammar and copied photos (do a reverse image search).
- Only WhatsApp communication, no fixed address, no landline or email.
- Stamped documents with spelling errors or names that differ from the certificate.
Spotting impersonation of real businesses
Scammers often copy well-known companies’ names, logos and photos. If a deal seems to come from an established firm, contact that firm through the phone number on its official website or verified listing. Cloned stamps and letterheads are a common tool in this kind of fraud, which is why reputable stamp makers such as BrandAds Limited insist on registration documents before producing an official company stamp, precisely to reduce this risk. When in doubt, call the company directly.
For procurement officers: a supplier due-diligence checklist
| Document / check | Why |
|---|---|
| Certificate of registration / incorporation | Confirms legal existence |
| TIN certificate and tax clearance (where required) | Tax compliance; often required in tenders |
| Trading licence | Authorised to operate locally |
| Sector licence | Required for regulated services |
| Bank letter or account details in company name | Prevents payment diversion |
| Two or three client references | Track record |
| Site visit report | Confirms capacity |
What to do if you’ve been scammed
Report to the police immediately and keep all evidence: chats, call logs, transaction IDs and receipts. Contact your bank or mobile money provider at once — fast reporting sometimes allows funds to be frozen. If the fraudster used a directory listing, report it to the platform; on Uglisted, every profile has a “Report this listing” link.
Frequently asked questions
Can I check a company’s directors in Uganda?
URSB provides search services for registered entities; official searches attract a fee and give more detail than a basic name check.
Is a business without a website a scam?
Not necessarily — many genuine Ugandan businesses operate without one. Rely on registration, premises and payment checks rather than a website alone.