Tanzania, officially known as the United Republic of Tanzania, is a country in East Africa. Its population is diverse, with a rich mix of ethnicities and languages, making it a truly multicultural nation. Starting a business in Tanzania is an exciting venture, whether you are an entrepreneur or an international investor. The country offers a variety of business structures to choose from and a straightforward registration process. To navigate this process and make it easy, you can rely on the assistance of a business advisor like Business Setup Worldwide (BSW), which provides company formation services to help entrepreneurs establish their dream businesses.
Benefits of Company Registration in Tanzania
There are the following benefits of registering a company in Tanzania:
- Tanzania allows the free outflow of capital and profits and does not impose foreign exchange controls or restrictions, which promotes investment activity.
- The expenses associated with setting up a business in Tanzania are low.
- The special economic zones in Tanzania offer several incentives, such as a 100% exemption from Value-Added Tax (VAT) on utilities and no corporate tax or withholding tax for ten years.
- Tanzania has entered into double tax avoidance treaties with over 20 countries, including the UK, Canada, Germany, Norway, and India. These treaties enable businesses incorporated in Tanzania to avoid unnecessary expenses.
Business Structures in Tanzania
Company formation in Tanzania requires choosing a business structure. You can choose from the following structures:
-
Limited Liability Company
A Limited Liability Company (LLC) in Tanzania is a legal entity that is separate from its shareholders. The liability of each shareholder for the debts and obligations of the LLC is limited to their respective contribution to the share capital. Business owners highly prefer an LLC, making it the most popular type of legal entity. It is particularly well-suited for the incorporation of a small business with a simple shareholding structure.
-
Public Company
A public company in Tanzania is one where the shares of the company are available for trading to the general public. It is ideal for organizations looking to raise capital or list the company on the national stock exchange.
-
Branch
An overseas firm can set up a 100% foreign-owned company in Tanzania in the form of a branch office. A company uses a branch to carry out business activities within a foreign country.
-
Representative Office
A representative office functions as a legal entity that is solely established for conducting market research or promoting the business activities of its parent company. A representative office is not allowed to carry out commercial or business-related activities on its own.
How to Register a Company in Tanzania?
You will need to follow the below-mentioned steps for business registration in Tanzania:
-
Seek Help From a Business Advisor
If you are looking to start a company in Tanzania, you must seek the help of a business advisor like BSW. Your advisor will guide you through the application process and ensure that you meet all the legal requirements.
-
Decide on a Business Structure for Your Company
Choose a legal entity for your business that best suits your needs. You can choose from a limited liability company, a public company, a company branch, or a representative office.
-
Register Your Business Name
Register your company name with the Business Registration and Licensing Agency (BRELA) through the Online Registration System (ORS). Ensure that the proposed name is unique and does not match any existing registered business in Tanzania. Additionally, ensure that the name does not offend any religious or cultural sentiments. The name should also clearly convey the nature of your company.
-
Submit the Documents
Prepare the necessary documents and complete the required form with detailed information about the office location, directors, and company secretary. You can submit the form through the Online Registration System (ORS).
-
Register with the Tax Authority
Obtain a Taxpayer Identification Number (TIN) for your company. The Tanzania Revenue Authority (TRA) issues it for free. Once the TRA issues a TIN, they will open a tax file for your business, enabling you to file your returns with ease.
-
Get a Business License
Your business license from BRELA will allow you to begin operations in Tanzania. The type of business you are starting determines where you obtain your license. BRELA can issue a general business license. Suppose your business is in a sector such as oil and gas, food and beverage, manufacturing, consultancy, or any other specialized field. In that case, you may need to apply for special permission from the relevant authorities.
Documents Required for the Formation of a Company in Tanzania
You will require the following documents for your Tanzania company formation:
- Certified Memorandum and Articles of Association
- A certified copy of the lease agreement (with stamp duty and withholding tax paid) for the office
- Passport copies of the shareholders and directors
- TIN application form
- VAT application and registration form
- Application for employer registration
Why Choose Business Setup Worldwide?
Business Setup Worldwide (BSW) is a leading consultancy with 7+ years of experience and is best known for helping business people like you register a company in international locations. Our experts are well-versed in the legalities and can help and guide you every step of the way, from company incorporation to opening a bank account. Contact Us today! We’ll be happy to help.
