A patent is granted to an inventor for his invention. When it is granted, he becomes the sole owner of the invention that can be bought, sold, rent or hired.
Company Formation in Tanzania
Tanzania, known officially as the United Republic of Tanzania, is a country in East Africa, just south of the Equator. The population of the country is ethnically and linguistically diverse.
The economy of Tanzania is primarily agrarian, with agriculture accounting for about 40% of the nation’s GDP. In addition, Tanzania is also rich in mineral resources, especially gold, diamond, tin and gypsum. The major industries are food processing, textiles, brewing, and tobacco, with a smattering of steel mills and paper & pulp processing units. In the service sector, tourism has been gaining a lot of traction of late. Mount Kilimanjaro, the highest peak in Africa, serves as a major tourist attraction, as does the country’s aggregation of forest reserves, national parks, and conservation areas, which cumulatively span about a fourth of the country’s land area.
Company Incorporation in Tanzania
To start a business in Tanzania, you can opt for one of the following company types.
1. Limited Liability Company
A limited liability company (LLC) in Tanzania is a distinct legal entity, separate from its shareholders. The liability of each shareholder towards the debts and obligations of an LLC is limited to their respective share capital contribution. As for the prerequisite for an LLC incorporation in Tanzania, it requires at least 2 shareholders and 2 directors, all of whom may belong to any nationality. There is no minimum paid-up share capital precondition. An LLC is the most commonly preferred legal entity by a foreigner for registering one’s business, and is best suited for the incorporation of a small business with a simple shareholding structure.
2. Public Company
A public company in Tanzania is one whose shares are available for trading to the people. To form such a company, at least 2 directors and 7 shareholders (one of whom must be a Tanzanian national with a minimum 40% stake in the company) are required. Also, a minimum share capital of US$300,000 must be deposited to start a public company. A public company is ideal for someone looking to raise capital or list the company on the Tanzanian national stock exchange.
An overseas firm may set up a 100% foreign-owned company in Tanzania in the form of a branch office. It may be used to carry out business activities within the country.
4. Representative Office
A representative office refers to a company set up only for market research or promotion purposes. It is not allowed to carry out commercial or business-related activities.
Benefits of Company Incorporation in Tanzania
There is a plethora of advantages for registered companies in Tanzania:
- Perhaps the greatest advantage of formation of a company in Tanzania is the low business expense, as the country has one of the lowest consumer cost indices in Sub-Saharan Africa.
- Tanzania has entered double tax avoidance treaties with over 20 countries, including the UK, Canada, Germany, Norway and India. This leads the businesses incorporated in Tanzania to ward off uncalled-for expenses.
- In addition, Tanzania is a member of the regional trade blocs in Africa, providing the companies here the advantage of a vast African market base and skilled/unskilled labour.
Who We Are
Business Setup Worldwide is a platform to help you start your company in Tanzania. We assist you in setting up your business by aiding you in company incorporation, registration, licensing, accounting, bookkeeping, tax advisory and intellectual property protection.
Business Setup Worldwide's proprietary business design techniques, in addition to its deep regional know-how and global reach, enable you to foresee changes in the market and target segment, and then model your businesses and modify operations to seize the opportunities created by those changes. If you intend to start a business in Tanzania, we would go the extra mile to place you on the list of registered companies in Tanzania.
Goal-oriented service, wide reach in company setup experience and industry domain breadth, adaptability to the changing global market trends, and the ability to come up with innovative business strategies and provide requisite support in implementing such strategies distinguish Business Setup Worldwide, putting us a cut above the other auditing firms in Tanzania and providing your business the edge it requires for consistent growth.
How many days does it take to open a bank account in Tanzania?
Opening a bank account in Tanzania takes around one to two weeks.
What are the procedures to register your business in Tanzania?
Below are the procedures one should follow to start a business in Tanzania
Select the business activity
Choose the trade name
Find a business structure
Open a corporate bank account
What are the various business activities in Tanzania?
The different business activities in Tanzania are
What are the main industries in Tanzania?
The major industries in Tanzania are food processing, textiles, brewing, and cigarette production.