11 Simple Steps to Register Your Business in Tanzania

Tanzania lies in East Africa, just south of the equator. It is blessed with mineral resources like diamond, gold and tin. The country’s is known for its food processing, brewing, textiles, and mining industries. Moreover, with attractions like Mount Kilimanjaro, among other attractions, tourism is another key sector contributing to this country’s economy. So, you have several options for setting up your business in Tanzania. However, before you proceed with registering your business, here are the details you must know about.

Benefits of Starting a Business in Tanzania

Many opportunities exist in Tanzania that encourage new investments and motivate new and upcoming entrepreneurs. These opportunities and benefits include:

• Investment opportunities are available in a variety of sectors ranging from agribusiness, tourism, and manufacturing to importation.
• The Tanzanian government provides various investment incentives to local and foreign investors through the Tanzania Investment Centre.
• Tanzania is a peaceful country, and it offers a conducive environment for businesses to operate and prosper in the near future.
• The country has plenty of uncultivated arable land for agricultural investment.
• The labour market in Tanzania is readily available with skilled and semi-skilled workers in various industries like manufacturing, agribusiness, mining and many others.

How to Register a Company in Tanzania?

Registering a company in Tanzania is a straightforward process. The steps are as follows:

1. Seek Assistance From a Business Expert 

The first order of business for you is to register yourself with a business expert. This expert/advisor is well-versed in registering a company in Tanzania. They will guide you through every step of the process and ensure that your business set up journey is seamless.

2. Select the Type of Business Entity

You need to select the most suitable business entity before forming a company in Tanzania. Here are the different types of business structures you can choose from:

• Sole Proprietorship

You can register a sole proprietorship in Tanzania under the Business Activities Registration Act. This business entity has one owner, you, and you will be responsible for all major and minor decisions of the company. The profits will be solely yours; however, you will be entirely responsible for all loss liabilities.

• Partnership

This type of business is appropriate when there is more than one investor. Your liability in a partnership firm is limited to the extent of your investment in the company. You share all the profits and losses made by the company with your partners.

• Limited Liability Company (LLC)

In Tanzania, the requirement to set up an LLC includes having a minimum of two shareholders and two directors. The company can be private or public. An LLC, unlike a sole proprietorship or partnership firm, is a separate legal entity, and the liability of the shareholders is limited.

3. Select a Company Name

The second step is to decide a suitable name for the company. In Tanzania, all businesses, irrespective of their legal form, must register with the Business Registration and Licensing Agency (BRELA), which comes under the Ministry of Industries and Trade. BRELA is responsible for approving and registering your company’s name. 

4. Notarization of Compliance

The next step is to obtain a notarized declaration of compliance. You should visit a notary for notarization of the declaration of compliance.

5. Apply for Certification of Incorporation

The fifth step is to apply for a Certificate of Incorporation. You can apply for the same at the Tanzania Investment Centre. A subscriber, secretary, or a person named in the Articles of Association as a director needs to submit the following to the Registrar of Companies:

• First directors and secretary and intended situation of the registered office
• Declaration of compliance on application for the registration of the company

6. Draft Memorandum and Articles of Association

The sixth step is to prepare the Memorandum and Articles of Association (MOA/AOA). The Memorandum of Association is basically a detailed statement of the objectives of the company, whereas the Articles of Association are a detailed statement of the management structure and processes.

7. Apply for a Taxpayer Identification Number (TIN)

Next, you need to apply for the Taxpayer Identification Number (TIN) at the Tanzania Revenue Authority (TRA). You need to attach the Certificate of Incorporation along with the Memorandum and Articles of Association to your TIN application. Here are the types of applications you need to prepare:

• Application for the company
• Application for each shareholder/director (in case your company type is an LLC)

8. Secure your Business License

Now, you must apply for a business license at the Ministry of Industry and Trade (MIT) and Local Government Authorities (LGAs). The license is either issued by MIT or LGAs based on the nature of the business. You need to submit the following documents along with your application:

• Certificate of Incorporation
• Certificate of Compliance
• Memorandum and Articles of Association (MOA/AOA)
• Taxpayer Identification Number (TIN)
• Certificate of Registration
• Lease Agreement/Title Deed
• Proof of Nationality for (non-resident owners, directors, or shareholders)

9. Complete your Value Added Tax (VAT) Registration

The next step is to apply for VAT registration. VAT registration is a must for businesses that tend to have an initial capital of 50 million in the first six months and 100 million in a year. You have to go to the Tanzania Revenue Authority office to obtain the required registration papers. The only exemption to thi VAT registration are businesses that offer professional expertise services. You can register for VAT online by using the TRA website.

10. Obtain Social Security Registration

The tenth and penultimate step is to obtain Social Security Registration Numbers from all mandatory security schemes. These mandatory schemes are provided by law and are guaranteed by the Government in order to provide employees with social security services.

11. Register with the Occupational Safety and Health Authority (OSHA)

All business owners must register their companies with the Occupational Health and Safety Authority (OSHA). The OSHA officials visit the workplace/factory prior to you applying for inspection and health safety. The application requires the following:

• Name of occupier
• Address
• Nature of work
• Total number of employees

Cost of Setting up a Business in Tanzania

* These prices are base values. Your liability may increase based on the nature of your business, the size of your company, and other factors. Please consult your business advisor for final rates before registering your company.

Best Business Avenues in Tanzania

If you are looking forward to investing in Tanzania, here’s a list of 5 business sectors you could consider:

• Telecom and Information & Communication Technology (ICT)
• Energy
• Real Estate
• Logistics and Warehousing
• Agribusiness

Also, if you are planning on starting a small business in Tanzania, then here’s a list of the top 10 small opportunities for you:

• Aviation
• Tobacco Manufacturing
• Tea and Coffee Production
• Food Processing
• Travel and Tourism
• Construction
• Mechanized Farming
• Consignment Shop
• Water Refill Station
• Rental Services

Business Setup Worldwide is a platform that can help you set up your business in Tanzania. Our business advisors in Tanzania can provide customized solutions for incorporation, registration, accounting, bookkeeping, corporate secretarial services, legal advisory, tax consulting, and intellectual property protection. To register your company in Tanzania, contact us.