STARTING BUSINESS IN TANZANIA
What do you need to do when you want to start
a business in Tanzania?
Tanzanian
businesses can be registered as a business name, a local company or a foreign
company. Usually the process will depend on the type of business and ownership.
Business Registrations and Licensing Agency (BRELA) is responsible for business
registration in Tanzania. BRELA issues certificates of compliance for foreign companies,
certificates of incorporation for local companies and certificates of
registration for single proprietorship. Firms must then register their
businesses with the Tanzania Revenue Authority (TRA), the National Social
Security Fund (NSSF) or any of the other five social security schemes in
Tanzania and, depending on their business activities, they should obtain
licenses with the Ministry of Industry, Trade and Investment; District;
Municipal; or City depending on the type of business. The procedural below are
general and may change without notice, you are generally advised to seek
professional advice before starting the process. In case of any reservation
please do not hesitate to contact us and we will be glad to assist you. Email:
vtconsult17@gmail.com, sirjossy@rocketmail.com, Mobile: +255683517251
The following
are general procedures:
- Individual
An individual
whether a Tanzanian of foreigner is required to fill Tax Identification Number
application form to apply for TIN. The application can also be made online,
however the applicant must physically visit TRA offices for biometric scanning
which involves taking photograph, finger prints and signature. The TIN is vital
for the application of business license from the Trade office in District, Municipal,
City and/or the Ministry of Industry, Trade and Investment depending on the
type of business
Obtaining Certificate of
Registration:
An
individual may opt to register the business name with Business Registration and
Licensing Agency (BRELA). The registered name can be obtained before or after
application for TIN. The registered business name shall be indicated on the TIN
certificate together with an individuals’ name showing the owners name trading
as (T/A).
- Corporation (limited Company)
Starting a
corporation requires a person to apply for the Certificate of incorporation
from BRELA. The promoters of the company are required to draw and submit the
certificate and Memorandum and articles of association. The Certificate of
incorporation shall be attached to the TIN application enclosed with Memorandum
and Articles of Associations when a person makes application to TRA. For non
citizen directors of a limited company are required to fulfill all immigration
procedure and obtaining business permit from the Immigration Department working
under Ministry of Home Affairs.
Registering a
foreign company
A foreign
company is a company which is registered/ incorporated outside Tanzania. They
may conduct business in Tanzania by opening a branch in Tanzania. In this case
a foreign company can also be a company that has been incorporated in Tanzania
but with majority shareholding (51%) being owned by a foreigner. A foreign
company wishing to start a business in Tanzania will have to undergo the
following procedures; 1. Obtain notarized return and declaration delivered form
2. Obtain certificate of compliance 3. Register notarized lease agreement 4. Obtain
Taxpayer Identification Number (TIN) 5. Obtain business license 6. Register for
VAT 7. Register for social security
- Partnership
The
partners have to register the firm at BRELA and acquire the certificate of
registration which shows the number and names of partners with their respective
distribution ratio. In applying for TIN
the partnership firm shall apply for its certificate by submitting the copy of
certificate of registration obtained from BRELA.
- Trust
Trust is an arrangement
under which the trustees hold assets but excludes partnership and a company. A
trust has to register the firm at BRELA and acquire the certificate of
registration which shows the names and addresses of trustees.
- Charitable organization:
A charitable organization must be issued with a ruling by
the Commissioner General and must acquire all necessary documents from the
Ministry of Home Affairs.
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