Starting a business in Tanzania
Are you a foreign investor or Tanzanian national thinking of starting a business in Tanzania? This blog offers a comprehensive step-by-step guide for starting a business in Tanzania.
What structures are available when starting a business in Tanzania?
Tanzania offers several business structures for registration, including the Sole Proprietorship, Partnership, Private Company Limited by Shares (the most common for local and foreign investors), Public Company Limited by Shares, Company Limited by Guarantee, and Foreign Companies via a Branch or Representative Office. The best choice depends on factors like liability, control, and the business’s growth potential.
Why start a business in Tanzania
Incorporating a company in Tanzania offers opportunities due to its strong economic growth, strategic location in East Africa with access to EAC and SADC markets, and rich natural resources in sectors like agribusiness and mining. Investors benefit from government incentives and special economic zone benefits, a stable political environment, a readily available workforce, and policies supporting the free flow of capital and profits.
a)Favourable business environment; Tanzania offers a friendly business environment, with a growing economy, good tax policies, and a stable political climate. These factors combine to make it an attractive destination for businesses looking to establish a presence in Tanzania.
b)Strategic location: Tanzania is strategically located in East Africa and serves as a gateway to the larger East African market. This makes it the best location for businesses looking to tap into the East African market.
c)Growing economy: Tanzania’s economy has recently been growing, especially in sectors such as agriculture, mining, tourism, and manufacturing.
d)Friendly tax policies; Tanzania has a favourable tax policy laced with low corporate tax rates and exemptions for certain types of businesses. If you want to minimise tax liabilities, Tanzania tops the list.
e)Available and skilled workforce; The country boasts a pool of skilled workers, particularly in the areas of engineering and technical fields. This makes Tanzania the best country to set up operations.
f)Government support: The Tanzanian government has put in place incentives to support businesses. This includes tax holidays, import duty exemptions, and other fiscal incentives.
How to start a company in Tanzania
When setting up a business in Tanzania, the following steps must be followed:
Step 1: Choose and Reserve a Company Name
Select a unique company name that is not already registered in Tanzania. Conduct a name search through the BRELA Online Registration System (ORS) to confirm availability. Once approved, the name can be reserved for the registration process.
Step 2: Create an Account on the BRELA Online Registration System (ORS)
Visit the BRELA Online Registration System and create a user account. Foreign applicants may register using passport details, while Tanzanian citizens use their National Identification Number (NIDA).
Step 3: Select the Type of Company
Log into the portal and choose the appropriate company type, such as:
- Private Company Limited by Shares
- Public Company
- Foreign Company (Branch)
- Company Limited by Guarantee
Select the structure that best suits your business objectives.
Step 4: Prepare the Incorporation Documents
Prepare the required incorporation documents, which typically include:
- Memorandum and Articles of Association (MEMARTS)
- Director and shareholder information
- Registered office address
- Beneficial ownership details
- Copies of identification documents
Foreign shareholders may be required to provide notarized corporate and identification documents.
Step 5: Complete the Online Application
Enter the company details into the BRELA system, including:
- Company name
- Business activities
- Share capital
- Shareholding structure
- Director and shareholder particulars
- Registered office details
Carefully review all information before submission.
Step 6: Upload Supporting Documents
Upload all required supporting documents through the ORS portal. Ensure all documents are properly signed, certified, and notarized where required.
Step 7: Pay the Registration Fees
Once the application is completed, BRELA will generate a control number for payment. Registration fees can be paid through designated banks or mobile payment channels.
Step 8: Obtain the Certificate of Incorporation
After BRELA reviews and approves the application, a Certificate of Incorporation will be issued electronically, confirming that the company has been legally established in Tanzania.
Step 9: Register for Tax Purposes with TRA
Following incorporation, register the company with the Tanzania Revenue Authority (TRA) to obtain a Tax Identification Number (TIN) and any additional tax registrations required for your business activities.
Step 10: Obtain Business Licenses and Other Regulatory Approvals
Depending on the nature of the business, obtain the necessary business licenses, sector-specific permits, and regulatory approvals before commencing operations.
Step 11: Open a Corporate Bank Account
Once the company and tax registrations are complete, open a business bank account using the Certificate of Incorporation, TIN certificate, and company constitutional documents.
Requirements for starting a business in Tanzania as a foreigner
A foreigner starting a business in Tanzania is subject to the same requirements as Tanzanian citizens, with some additional requirements. A foreign business starting operations in Tanzania must submit the following documents to the Company Registry:
- A certified copy of the memorandum and articles of association or other document outlining the company’s constitution. If it is not written in English.
- The names and titles of the company’s directors and secretary.
- Information about any existing charges held by the company.
- Names and addresses of one or more individuals residing in Tanzania who are authorised to receive legal documents and notices on behalf of the company, and serve as its permanent representative at its place of business.
- The full address of the company’s registered office in Tanzania.
Conclusion
Starting a business in Tanzania can seem complex, especially for foreign investors. However, with Afrilink Consultants, the entire process can be completed smoothly and remotely from the comfort of your home.
Our team assists with company registration, tax registration, licensing requirements, and ongoing compliance support, allowing you to focus on growing your business while we handle the administrative process. We support investors across Africa with practical, end-to-end business setup solutions.
📧 clientservice@afrilinkconsultants.com
📞 +254 707 280 366
