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11 Simple Steps to Register Your Business in Tanzania 2021

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. In addition, tourism is another major sector contributing to Tanzania’s economy, with attractions like Mount Kilimanjaro – Africa’s highest peak – along with several national parks and forest reserves. These make for a plethora of business opportunities in Tanzania.

Benefits of Starting a Business in Tanzania

Many opportunities exist in Tanzania that encourage new investments and motivate new and upcoming entrepreneurs like,

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

How to Register a Company in Tanzania?

Registering a company in Tanzania is a simple and straightforward process. The steps are as below.

1.Select the Type of Business Entity

The first step that has to be taken into consideration while forming a company in Tanzania is to select the type of business entity one wishes to form. Here, the incorporator has a choice from among these three types of business structures:

·Sole Proprietorship

The sole proprietorship in Tanzania can be registered under the Business Names Registration Act. It is business entity which is started by just one individual. He/She is liable to take all the major and minor decisions of the company and one benefit of this business structure is that, along with losses, all the profits are not for sharing

·Partnership

This type of business is appropriate when there is more than one investor. The liability of the partners in a partnership firm is limited to the extent of investment made by them in the company. Here, all the profits and losses made by the company are shared amongst the partners.

·Limited Liability Company (LLC)

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

2.Select a Company Name

The second step is to decide is 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. Once the registration is done, one has to obtain name clearance from BRELA as well.

3.Obtain Notarization of Compliance

The next step is to obtain a notarized declaration of compliance. For this, the incorporator should visit a notary for notarization of the declaration of compliance.

4.Apply for Certification

The fourth step is to apply for a Certificate of Incorporation. This is done at the Tanzania Investment Centre. Here, a subscriber, secretary, or a person who is 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

5.Draft Memorandum and Articles of Association

The fifth step is to prepare the Memorandum and Articles of Association, where the Memorandum of Association is basically the detailed statement of the objects of the company whereas the Articles of Association are the detailed statement of the management structure and processes.

6.Apply for Taxpayer Identification Number (TIN)

The sixth step is to apply for Taxpayer Identification Number (TIN) at the Tanzania Revenue Authority (TRA). The Certificate of incorporation also needs to be attached with the TIN application enclosed with Memorandum and Articles of Associations while making an application to TRA. The limited company shall apply for the TIN certificate by filling TIN application forms as follows:

  • Application for the company
  • Application for each shareholder/director

7.Secure your Business License

The seventh step is to 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. The following documents are supposed to be submitted along with the application:

  • Certificate of incorporation
  • Proof of a suitable company premises
  • Memorandum and Articles of Association (MAA)
  • Taxpayer Identification Number (TIN)
  • Proof of Tanzanian Citizenship

8.Complete your Value Added Tax (VAT) Registration

The next step is to apply for VAT registration at the Tanzania Revenue. VAT registration is a must for business that tends to have an initial capital of 50 million in the first six months and 100 million in a year. For this, one has to go to the TRA office in order to obtain the required papers for registration. Other than those businesses who offer professional expertise services, VAT registration applies to all. One could also do the online VAT registration by going through TRA’s website.

9.Register for Workmen’s Compensation Insurance

The next step is to register for the workmen’s compensation insurance at the National Insurance Corporation or an alternative insurance provider. For this, employers need to complete the Workmen's Compensation Tariff Proposal Form which is done at the Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory Authority (TIRA).

10.Obtain Social Security Registration

The tenth and the 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 service.

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

Any person being the owner of the company must register with the OSHA. They must complete the application form and provide the company registration documents. 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

Particulars

Cost in TZS

Notarized declaration of compliance

10,000-50,000

Certificate of Incorporation

337,200

Business license

400,000

OSHA Registration

600,000

Best Business Avenues in Tanzania

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

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 top 10 small business investment opportunities in Tanzania which could help you decide which sector to invest in:

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