REGISTRATION OF A BUSINESS IN TANZANIA

The registration of a business in Tanzania involves various entities and is a process that takes between 7 to 14 working days. For an entrepreneur or an investor, it is recommended to use professional services of a Lawyer or a Consultant to register a business since they can advise on the correct description of the scope of a business which can give the business enormous benefits.

The Business Registration and Licensing Agency (BRELA) is the organization that deals with all the Company incorporations in Tanzania. The office is located at the Ushirika Building, Lumumba Street, Dar es Salaam, Tanzania. Any person wishing to incorporate a Company can visit www.brela.go.tz to find out all the necessary details required, but it is not as simple as it looks as this can be a tedious and lengthy process if one doesn’t know their way around it.

For the purpose of Incorporating a Company one must do the following:

1. Conduct a Name Search to see the availability of the company name that will be used;
2. If the search is clear than either reserve the name, if company is to be incorporated at a later stage or fill in form 14a, form 14b and prepare the Memorandum & Articles of Association for filing at BRELA; and
3. In respect of foreign branches submit the certified copies of the Memorandum & Articles of Association of the parent company, Notice of the location of the registered office in the country of domicile, List of directors and Names of the representatives in the country.

There are four types of Companies in Tanzania:

1. Private Companies
2. Public Companies
3. Foreign Branch
4. Parastatal or State Owned Companies.

The process of Incorporating a Company from the time of a Name Search to the issuance of a Certificate of Incorporation is Five (5) Working days.

After the issuance of a Certificate of Incorporation you must obtain the following in order to do business in Tanzania:

1. Tax Identification Number (TIN);
2. Business License
3. Value Added Tax identification number (VAT).

Tax Identification Number (TIN)

A TIN Certificate is obtained from the Tanzania Revenue Authority (www.tra.go.tz) and for the purpose of obtaining a TIN one must fulfill the following requirements:

1. Certified copy of the Memorandum & Articles of Association;
2. Certified copy of a Certificate of Incorporation;
3. Directors TIN;
4. Payment of provisional taxes;
5. Lease Agreement (stamp duty & Withholding tax paid) for the office; and
6. Directors/ Shareholders Passport copies & Photos.

The process of obtaining a TIN takes a maximum of 3 working days.

Business License

A Business License is obtained from the Ministry of Trade & Industry and for the purpose of obtaining a Business License one must fulfill the following requirements:

1. Certified copy of the Memorandum & Articles of Association;
2. Certified copy of a Certificate of Incorporation;
3. Certified copy of a TIN certificate;
4. Certified copy of the Tax Clearance obtained from the Tanzania Revenue Authority;
5. Certified copy of the Lease Agreement (stamp duty & Withholding tax paid) for the office; and
6. Directors/ Shareholders Passport copies.

The process of obtaining a Business License takes a maximum of 3 working days.

VAT

VAT is obtained from the Tanzania Revenue Authority and for the purpose of obtaining a VAT one must fulfill the following requirements:

1. Certified copy of the Memorandum & Articles of Association;
2. Certified copy of a Certificate of Incorporation;
3. Certified copy of a TIN certificate;
4. Certified copy of the Tax Clearance certificate;
5. Certified copy of a Business License;
6. Purchase of an EFD Devise for VAT;
7. Certified copy of the Lease Agreement (stamp duty & Withholding tax paid) for the office; and
8. Directors/ Shareholders Passport copies.

The process of obtaining a VAT takes a maximum of 3 working days.

At the completion of the registration of a business, it is very important to look into the other licenses and permits that are required to be obtained as per the industry in which the business falls, hence the need to engage a Lawyer or a Consultant. It is highly recommended to visit www.tic.co.tz and  www.epza.co.tz to explore various incentives provided in Tanzania.