Benefits of Company Registration in Tanzania
- Tanzania allows free outflow of capital and profits, and does not exercise foreign exchange controls or restrictions – promoting investment activity.
- The expenses in setting up a business in Tanzania are low, as the country has one of the lowest consumer cost indices in Sub-Saharan Africa.
- The special economic zones in Tanzania have several incentives to offer, like 100% exemption of value added tax (VAT) on utilities and no corporate tax or withholding tax for 10 years.
How to Register a Company in Tanzania?
For company registration in Tanzania, these steps may be followed:
1. Decide on a Business Structure for Your Company
Choose the legal entity type you wish to run your business as – from among limited liability company, public company, branch or representative office.
2. Register Your Business Name
Register the name of your company with the Business Registration and Licensing Agency (BRELA). Keep in mind that the name proposed should be unique and not identical to the existing registered business in Tanzania.
3. Submit Documents
Prepare the Memorandum & Articles of Association (MAA) and fill form 14A, giving detailed information about office location, directors and company secretary. Submit form 14A to BRELA. This shall be processed (taking about 2 days), and if everything is in order, BRELA will issue a certificate of incorporation.
4. Register with the Tax Authority
Obtain a Taxpayer Identification Number (TIN) for your company. It is issued for free by the Tanzania Revenue Authority (TRA). Once TRA has issued a TIN, they will open a tax file for your business and you will be required to fill the tax return form.
5. Get a Business Licence
Obtain a business licence, wherewith you can commence your business in Tanzania legally. The type of business licence would depend on the nature of activity your business in involved in. A general business licence can be obtained from the Ministry of Industry, Trade and Investment or the Municipal Council in the locality which your business is would be operating. Businesses in certain sectors like oil & gas, food & beverage, manufacturing, consultancy, etc. are required to apply for special licences or permits.
Documents Required for Business Registration in Tanzania
- Certified Memorandum and Articles of Association
- 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