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.

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.

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.

Growing economy

Tanzania’s economy has recently been growing, especially in sectors such as agriculture, mining, tourism, and manufacturing.

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.

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.

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:

1. Choose a company name: Choose a unique company name that has not been registered already. You can check the availability of a name by searching the Business Registrations and Licensing Agency (BRELA) database.
2. File the necessary documents: You will need to file the following documents with BRELA to incorporate your company:

• Memorandum and Articles of Association: This document outlines the purpose of the company and its structure, including the rights and duties of shareholders, directors, and officers.
• Form 7: This form provides information about the company, including its name, registered address, and authorised capital.
• Form 8: This form lists the names and addresses of the company’s directors and subscribers.
• Pay the registration fee: BRELA will require payment of a fee for the incorporation process. The fee is based on the authorised capital of the company.
• Appoint directors and shareholders: You will need to appoint directors and shareholders for your company. The minimum number of directors is two, and at least one must be a resident of Tanzania.
• Register for taxes: All companies incorporated in Tanzania must register for taxes with the Tanzania Revenue Authority (TRA). This includes Value Added Tax (VAT), Withholding Tax (WHT), and Corporate Income Tax (CIT).
• Obtain a Business Operating License from the Tanzania Investment Centre (TIC). The TIC provides a one-stop shop for all investment-related services, including the issuance of business licenses.
• Compliance with labour laws: Companies incorporated in Tanzania are subject to the country’s labour laws and must comply with all relevant regulations, including the payment of minimum wage, employee benefits, and working hours.
• Legal structure: Decide on the legal structure of your company, such as a limited liability company, a partnership, or a sole proprietorship.

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:

1. 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.
2. The names and titles of the company’s directors and secretary.
3. Information about any existing charges held by the company.
4. 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.
5. The full address of the company’s registered office in Tanzania.

Conclusion

The procedures for starting a business in Tanzania can be daunting, especially as a foreigner. Still, with Afrilink Consultants, you can launch your company easily and seamlessly from the comfort of your home. Reach out to us to get started.

📩clientservice@afrilinkconsultants.com

📞 Call: +254707280366

🌐 Visit: https://afrilinkconsultants.com/