Tanzania’s economy was once solely dependent on agriculture. But now, everything has changed. Recent reforms and encouragement for private enterprises have made Tanzania’s economy less reliant on agriculture and more on the growing corporate sector. The Tanzanian government has incentivized foreign companies to invest in the country by reducing corporate and income tax rates. This move has attracted numerous companies to set up businesses in Tanzania, contributing to the nation’s economic growth.
Now, it is no surprise that this corporate growth has also brought a booming requirement for entrepreneurs to open a bank account offshore. It has become more effortless as opening a Tanzania bank account is comparatively straightforward, and you can open it in either TZS, USD, GBP, or EUR. The currency depends upon the type of account you choose and the bank in which you want to open. Before you incorporate your business in Tanzania, you must open a corporate bank account there. If you are looking to learn about different corporate structures and banks you can choose from, along with how to open a bank account in Tanzania, then this guide is for you.
Different Business Structures in Tanzania
Since several companies have been set up in Tanzania, corporate banks have established their requirements for opening an account. In this jurisdiction, the government has mandated the following types of companies to open a Tanzania bank account:
- Limited Liability Company (LLC)
- Public Company
- Branch Office
- Representative Office
For a sole proprietorship, the organization must open a separate bank account in the company’s name rather than the owner using their account for business transactions.
Commercial Banks in Tanzania
In Tanzania, there are a total of 40 commercial banks, out of which the National Bank of Commerce (NBC) is the country’s national bank as well as the regulatory body for all the banks. Apart from being the country’s national bank, most of Tanzania’s assets are also owned by NBC. The commercial banks or other banks that have set up offices in Tanzania are:
- Mkombozi Commercial Bank
- National Bank of Commerce (Tanzania)
- National Microfinance Bank
- NIC Bank Tanzania
- The People's Bank of Zanzibar
- Stanbic Bank Tanzania Limited
- Standard Chartered Bank
- United Bank for Africa
- AccessBank Tanzania
- Azania Bank
- Letshego Bank Tanzania
- Akiba Commercial Bank
- Amana Bank
- BancABC
- Bank of Africa Tanzania
- Bank of Baroda Tanzania Limited
- Bank of India (Tanzania)
- Barclays Bank of Tanzania
- Citibank
- Commercial Bank of Africa (Tanzania)
- CRDB Bank
- Letshego Bank Tanzania
- Akiba Commercial Bank
- Amana Bank
- DCB Commercial Bank
- Diamond Trust Bank Tanzania
- Ecobank
- International Commercial Bank
- Kenya Commercial Bank
- UBL Bank Tanzania Limited
- Mwalimu Commercial Bank
- TPB Bank Plc
- TIB Corporate Bank
- First Housing Company Tanzania Limited
- China Dasheng Bank Limited
- Equity Bank (Tanzania)
- Exim Bank (Tanzania)
- FINCA Microfinance Bank (Tanzania)
- First National Bank of Tanzania
- FBME Bank
- Guaranty Trust Bank (Tanzania) Limited
- Habib African Bank
- I&M Bank (Tanzania)
How to Open a Bank Account in Tanzania
Now you must be wondering, can a foreigner open a bank account in Tanzania? The answer is yes. If you follow these steps, you can open a corporate account with any of the above banks.
- First, select the bank where you want to open your account. Many banks offer competitive benefits for opening a corporate account, so list your requirements and choose the bank that best fits your needs.
- After selecting your bank, research the documents necessary to open your Tanzania bank account. Bring both the original documents and a copy to submit to the bank.
- In Tanzania, most banks do not need a minimum deposit to open an account, but it is advisable to maintain at least TZS 100,000.
- Once you have completed the steps mentioned above, you must submit the attested and verified documents to the bank.
- After submission, the bank will take some time to cross-check and verify all details with the relevant authorities. If everything is in order, your account will be opened, and you will receive a Certificate of Deposit. This certificate can assist with any further registration processes.
Opening a bank account takes one to two weeks. In addition to corporate accounts, individual accounts in USD, GBP, EUR, and other currencies can be opened by both residents and non-residents.
Documents Required to a Tanzania Bank Account
Below is a generic list of documents that you will be required to submit to the bank in order to open your account:
For a Sole Proprietorship Company
- A copy of the company’s profile, extracted from the Registrar of Companies
- A copy of the business license
- A local ID proof, which can be either a passport, local driving permit, or voter card
- To open an account at certain banks, you'll need a referee, someone with an already existing account at the bank who can refer you
- Two passport-sized photographs
For a Partnership Company/Associations/ Limited Liability Companies (LLC)
- Certificate of Registration of the company, along with a duplicate
- Memorandum of Association, along with the Articles of Association
- Business license
- Letter of Application, drafted at the time of opening a bank account
- Tax Identification Number (TIN), along with the Value Added Tax (VAT) registration certificate
The opening fee for a corporate bank account is usually minimal and often free for most companies. Additionally, the bank may charge a nominal maintenance fee, which varies accordingly.
Why Business Setup Worldwide?
At Business Setup Worldwide, we assist our clients in opening bank accounts in Tanzania. Our experienced consultants will guide you through the entire process. Our other services include:
- Assisting clients with selecting the most suitable bank for their private or corporate needs
- Helping to prepare all the required legal forms
- Assisting with the preparation of all documents needed by the bank for a new account
- Supporting clients throughout the entire process, from start to final approval
Contact us today to learn more about these services. We are happy to help!
