Register company in Tanzania

Registering a company in Tanzania becomes a seamless process with the dedicated support of Fionza Consultants. Our team of experts simplifies the entire registration journey, ensuring a smooth experience for you. With our assistance at every step, you can focus your energy on crucial aspects of your business while we handle the complexities of company formation in Tanzania. Trust Fionza Consultants to streamline the process and expedite your entry into the Tanzanian business landscape.

Tanzania

Company Registration – 6 Week
Local Director? – No
Bank Account Opening – 4 Weeks
Travel Required – No

Register company in Tanzania

Experience a hassle-free company registration in Tanzania with Fionza Consultants, guiding you through the entire incorporation process. Our streamlined approach allows you to redirect your time and resources to more critical areas of your business.

Tanzania, a leading developing country in Africa, presents lucrative opportunities in tourism, import, manufacturing, and agribusiness. The pro-business government offers incentives for both local and foreign investors, making it an attractive market.

Embrace efficiency with our lean-and-mean mentality as our expert team ensures a seamless Tanzania company formation process. Our commitment is to have your company operationally ready within the designated timeframe.

Explore our comprehensive service package tailored for your Tanzanian business journey:

Register your company in Tanzania with the Business Registration and Licensing Agency (BRELA).
Benefit from a local company secretary and registered address.
Facilitate corporate bank account opening.
Receive annual accounting and tax services.

Partner with Fionza Consultants for a strategic entry into the Tanzanian market, positioning your business for success.

Benefits of registering company in Tanzania

Unlock abundant investment opportunities in Tanzania, a thriving hub for new ventures and aspiring entrepreneurs. Positioned among developing countries, Tanzania beckons investors across diverse sectors, including agribusiness, tourism, manufacturing, and importation.

Explore the advantages of investing in Tanzania:

Government Incentives: The Tanzanian government extends a range of investment incentives to both local and foreign investors through the Tanzania Investment Centre, fostering a favorable investment climate.
Peaceful Business Environment: Tanzania stands out as a peaceful country, offering a conducive environment for businesses to thrive and prosper in the foreseeable future.
Skilled Labor Force: Access a readily available pool of skilled and semi-skilled workers in Tanzania, eager to contribute to various industries such as manufacturing, agribusiness, mining, and more.
Free Capital Flow: Tanzania allows the free outflow of capital and profits, devoid of foreign exchange controls or restrictions, promoting a dynamic and investor-friendly environment.
Low Business Setup Costs: Benefit from low business setup costs in Tanzania, with one of the lowest consumer cost indices in Sub-Saharan Africa, making it a cost-effective destination for establishing your business.
Special Economic Zones (SEZs) Incentives: Explore the advantages offered by Special Economic Zones, including a 100% exemption of value-added tax (VAT) on utilities and a 10-year waiver on corporate tax and withholding tax.

Seize the opportunities that Tanzania presents, and let your business flourish in a vibrant and investor-friendly market. Partner with us to navigate the intricacies and make the most of your investment journey.

How long to register company in Tanzania and open a corporate bank account?

Experience a seamless and hassle-free Tanzania company formation process with Fionza Consultants. Upon receiving the necessary due diligence documents from directors and shareholders, we initiate a thorough Tanzania company registration search to confirm the availability of your preferred company name.

Our remote registration process eliminates the need for you to travel to Tanzania, making it convenient for you. Within a short span of 6 weeks, anticipate the receipt of your Tanzania company tax number and a digital copy of essential documents, including the Company Registration Certificate, Notice of Incorporation, and Memorandum of Incorporation (MOI).

Following a successful company formation, Fionza Consultants facilitates the opening of a corporate account. Choose from a local bank or an overseas global bank based on your long-term goals. For foreign individuals or businesses, the account setup in Tanzania typically takes around 4 weeks.

Expect to kickstart your operations and issue invoices with your new company within a total timeframe of 10 weeks from the moment you engage Fionza Consultants. Trust us to expedite the process and set the stage for your business success in Tanzania.

Can a foreigner start a business in Tanzania?

In 2012, Tanzania experienced a notable upswing in Foreign Direct Investment (FDI), reaching over US$ 1.1 billion, the highest in East Africa. The regulatory environment is highly favorable, characterized by the absence of laws or restrictions impeding foreign investment, participation, or control. Companies generally embrace foreign involvement without significant hurdles.

For foreign individuals desiring residence in Tanzania for investment, business, employment, or other approved purposes, the acquisition of both work and residence permits is feasible. The Non-Citizens (Employment Regulations) Act of 2015, operational since October 1, 2015, stipulates that work permits must be obtained from the Labour Commissioner before applying for a residence permit with the Director of Immigration Services.

Foreign companies typically access the Tanzanian market through two primary avenues:

Setting up a Tanzanian Limited Liability Company: Establish a subsidiary as a limited liability company, offering a structured framework tailored to the needs of foreign businesses.
Registering a Foreign Limited Liability Company as a Branch: Choose to register a foreign limited liability company in Tanzania, creating a branch with a physical presence in the country.

Seize the opportunities in Tanzania’s thriving investment climate by selecting the strategy that aligns with your business objectives. Rely on our expertise to navigate the process seamlessly, ensuring a successful entry into the Tanzanian market.

Types of entities in Tanzania

When venturing into business in Tanzania, your choice of corporate structure plays a crucial role. Various legal entities are available for registration, catering to different interests and endeavors. Consider the following company types when starting a business in Tanzania:

Limited Liability Company (LLC): A Tanzania LLC is a distinct legal entity, separate from its shareholders. Each shareholder’s liability for debts and obligations is limited to their respective share capital contribution. Key requirements for LLC incorporation include a minimum of 2 shareholders (individual or corporate entities), 2 directors, no minimum share capital, and mandatory local registered office address and company secretary. LLCs are suitable for small businesses with a straightforward shareholding structure, making them a preferred choice for foreign entrepreneurs.
Public Company: A public company in Tanzania offers shares for trading to the public. Forming a public company requires at least 2 directors and 7 shareholders, with one Tanzanian national holding a minimum 40% stake. Minimum share capital is determined based on the intended business activity. Public companies are ideal for those seeking to raise capital or list on the Tanzanian stock exchange.
Private Company: A private company, not open to public share issuance, tends to be smaller than a public company. Registration requires at least two but not more than fifty shareholders.
Branch: An overseas firm can establish a 100% foreign-owned company in Tanzania in the form of a branch office, allowing business activities within the country.
Representative Office: A representative office is set up solely for market research or promotion purposes. It is restricted from engaging in commercial or business-related activities.

Selecting the appropriate corporate structure is vital for the success of your business in Tanzania. Trust our expertise to guide you through the process seamlessly, ensuring a legally sound and strategically aligned business establishment.

What are the documents required to register a company in Tanzania?

For Individual Shareholders/Directors:

Duly Signed Application Forms: Ensure that application forms are correctly filled out and signed by the authorized signatory.
Passport Copy of UBOs/Shareholders/Directors: Provide a clear copy of the passport of Ultimate Beneficial Owners (UBOs), shareholders, and directors.
National Identity Card Copy: Include a copy of the national identity card of UBOs, shareholders, and directors.
Proof of Residence: Submit the most recent utility bill, credit card statement, or bank statement containing the name and residential address of UBOs, shareholders, and directors.
Curriculum Vitae (CV)/Profile: Furnish a detailed curriculum vitae or profile for UBOs, shareholders, and directors.

For Corporate Shareholders:

Duly Signed Application Forms: Ensure that application forms are accurately completed and signed by the authorized signatory.
Certificate of Incorporation: Provide the Certificate of Incorporation of the corporate shareholder (mother company).
Memorandum and Articles of Association: Include the Memorandum and Articles of Association of the mother company.
Board Resolution: Submit a board resolution outlining the formation of the branch or subsidiary, designating an authorized manager.
Passport Copy of UBOs/Shareholders/Directors: Include clear copies of the passports of Ultimate Beneficial Owners (UBOs), shareholders, and directors.
National Identity Card Copy: Provide copies of the national identity cards of UBOs, shareholders, and directors.
Proof of Residence: Include the most recent utility bill, credit card statement, or bank statement with the name and residential address of UBOs, shareholders, and directors.
Curriculum Vitae (CV)/Profile: Furnish detailed curriculum vitae or profiles for UBOs, shareholders, and directors.

Optimize your business registration process with our comprehensive documentation support. Trust our expertise to navigate the intricacies, ensuring a seamless and legally sound establishment for your business.

How to register company in Tanzania?

Step 1: Choose the Optimal Business Entity

Initiate the process of forming a company in Tanzania by selecting the most suitable business entity. Depending on your business structure and long-term objectives, Fionza Consultants will guide you in determining the optimal business entity, paid-up share capital, corporate structure, and necessary licenses.

Step 2: Name Your Company

Following entity selection, proceed to choose a unique and compliant name for your company. Fionza Consultants will handle the reservation of your preferred company name with the Business Registration and Licensing Agency (BRELA).

Step 3: Prepare Essential Documents

Before initiating company registration, provide Fionza Consultants with the required KYC (Know Your Customer) documents, including names of directors and identification proof. Upon receiving these documents, our team will draft and notarize the Memorandum and Articles of Association, along with other relevant documents based on business activity and structure.

Step 4: Register the Entity

Fionza Consultants will submit the completed and notarized documents to BRELA for the initial assessment of fees and documents. If approved, the registrar issues the certificate of incorporation, and Fionza Consultants will courier it, along with other internal documents, to your specified address.

Step 5: Open a Corporate Bank Account

Post-registration, Fionza Consultants will assist in opening a corporate bank account. With established partnerships with reputable banks in Tanzania and globally, our team will present your business to relationship managers and compliance teams. The account opening process typically takes around 4 weeks, and our team can negotiate alternatives to in-person meetings if necessary.

Step 6: Process of Inclusion

Complete the process of inclusion to work seamlessly in Tanzania. Fionza Consultants will submit necessary details to the Tanzania Investment Centre, outlining company hierarchy, goals, and director/secretary information.

Step 7: Register for TIN and VAT

Proceed with post-registration requirements, including obtaining a Taxpayer Identification Number (TIN) and authorization for Value Added Tax (VAT) from the Tanzania Revenue Authority (TRA). For an LLC, submission of forms with company and shareholders’ data is required to obtain the TIN.

Step 8: Apply for Other Mandatory Registrations

Fionza Consultants will apply for a business license at the Ministry of Industry and Trade (MIT) or Local Government Authorities (LGAs), depending on the nature of the business. Submission of necessary documents, including the certificate of incorporation, is required.

Step 9-12: Further Registrations and Compliance

Register for Workmen’s Compensation Insurance at the Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory Authority (TIRA).
Obtain Social Security Registration Numbers from mandatory security schemes.
Register with the Occupational Safety and Health Authority (OSHA).
Fulfill post-incorporation compliances by filing annual returns with the Registrar of Companies, accompanied by audited accounts.

Fionza Consultants ensures a smooth and legally compliant business establishment in Tanzania, guiding you through each step with expertise and efficiency.

Accounting and tax obligations

Corporate income tax in Tanzania applies to both resident and non-resident business entities. For resident entities, corporate income tax is levied on their aggregate income, encompassing both domestic and foreign sources. Non-resident entities, on the other hand, are taxed solely on income derived from within Tanzania.

Corporate Tax Rates in Tanzania:

Standard Corporate Income Tax:
- Applicable to both resident entities and Permanent Establishments of non-resident entities.
- Tax rate: 30%
- For technical and management service providers in mining, oil, and gas, a 5% turnover fee is charged.
Reduced Rates for Newly Established Companies:
- Newly established companies benefit from reduced corporate income tax rates.
- For the first three years of operation for businesses on the stock exchange, the rate is set at 25%. Eligibility requires around 30% of shares already issued to the public.

Special Reduced Rates for Specific Companies:

New Vehicle Assembly Plants, Tractors, or Fishing Equipment:
- Applicable for the first five years of operation.
- Tax rate: 10%
Manufacturers of Pharmaceutical Products and Leather Products:
- Applicable for the first five years of operation.
- Tax rate: 20%
Manufacturers of Sanitary Pads:
- Applicable for the first two years of operation.
- Tax rate: 25%

SEO-Optimized Rewrite:

Corporate income tax in Tanzania is comprehensive, encompassing both local and foreign income for resident entities. Non-resident entities are subject to tax only on income generated within Tanzania.

Corporate Tax Rates Overview:

Standard Corporate Income Tax:
- Applies to resident entities and Permanent Establishments of non-resident entities.
- Tax rate: 30%
- Technical and management service providers in mining, oil, and gas face a 5% turnover fee.
Reduced Rates for New Companies:
- Newly established companies enjoy reduced corporate income tax rates.
- For the first three years of operation for stock exchange businesses: 25%. Eligibility requires around 30% of shares issued to the public.

Special Reduced Rates for Specific Industries:

New Vehicle Assembly Plants, Tractors, or Fishing Equipment:
- Applicable for the initial five years.
- Tax rate: 10%
Manufacturers of Pharmaceutical and Leather Products:
- Applicable for the initial five years.
- Tax rate: 20%
Manufacturers of Sanitary Pads:
- Applicable for the initial two years.
- Tax rate: 25%

Understanding these rates is vital for businesses in Tanzania to optimize tax strategies and compliance.

Other Taxation in Tanzania

Alternative Minimum Tax (AMT) in Tanzania:

The Alternative Minimum Tax (AMT) in Tanzania is imposed at a rate of 0.5% of the sales turnover for companies experiencing unrelieved tax losses in the current and preceding income years. However, this doesn’t apply to agricultural firms or those engaged in healthcare or education.

Value Added Tax (VAT) Overview:

Value Added Tax (VAT) serves as a consumption tax for all locally sourced goods and services in Mainland Tanzania, set at a standard rate of 18%. In Tanzania Zanzibar, the VAT rate is 15%. Certain businesses, such as those involved in exports or staple food supplies, enjoy zero-rated VAT.

Accounting Requirements in Tanzania:

For entities conducting business in Tanzania, adherence to specific accounting requirements is crucial:

Income Tax Returns:
- Entities must file income tax returns within six months from the fiscal year-end.
- TRA (Tanzania Revenue Authority) only accepts income tax returns if the entity has cleared assessed income tax during TIN registration, payable quarterly.
Bookkeeping Obligations:
- As per legal requirements, every company must maintain proper books of account in English or Swahili.
- The books should accurately reflect the company’s transactions and financial position, enabling compliance with laws.
- Directors have the responsibility to ensure that balance sheets, profit and loss accounts, and cash flow statements meet legal standards.
Bookkeeping Locations:
- Books of account must be kept at the registered office or another designated place in Tanzania, open to inspection by directors.

SEO-Optimized Rewrite:

Alternative Minimum Tax (AMT):

In Tanzania, the Alternative Minimum Tax (AMT) is imposed at a rate of 0.5% on the sales turnover for companies facing unrelieved tax losses, excluding agricultural, healthcare, or education entities.

Value Added Tax (VAT) Guidelines:

Value Added Tax (VAT) acts as a consumption tax, set at 18% for Mainland Tanzania and 15% for Tanzania Zanzibar on locally sourced goods and services. Certain businesses, including exporters and staple food suppliers, benefit from zero-rated VAT.

Compliance with Accounting Standards:

Income Tax Returns:
- Entities must file income tax returns within six months of the fiscal year-end.
- Successful filing is contingent on clearing assessed income tax during TIN registration, payable quarterly.
Bookkeeping Requirements:
- Legal obligations mandate companies to maintain accurate books of account in English or Swahili.
- These books must transparently depict transactions and financial positions, ensuring compliance with regulations.
- Directors play a pivotal role in guaranteeing that financial statements meet legal standards.
Bookkeeping Locations:
- Books of account must be stored at the registered office or another designated Tanzanian location, accessible for inspection by directors.

Understanding and adhering to these tax and accounting nuances is crucial for businesses in Tanzania, ensuring legal compliance and smooth operations.

Looking to register company in Tanzania?

Contact us to find out more about how to register a company in Tanzania. Our team of experts will revert within the next 24 hours.

FAQ

How much does it cost to set up a company in Tanzania?

Depending on the services you need from Fionza Consultants, the total engagement fee will differ. Our services include planning and strategizing with your company, assisting you in the incorporation process, ensuring that you are compliant, and more.

This total fee includes the registration fee charged by the Tanzanian government. We will discuss with you the total engagement fee you would need to pay before we start the registration process for your company.

How do you register a company in Ajman Mainland?

Submit an application to the Ajman authorities of the Customer Services Center for initial approval.

Choose a business location and notify the Inspection Unit.

Get a membership certificate.

Submit required documents to the Register of Companies.

Pay the necessary fees.

Get your business license.

How much time does it take to register company in Tanzania?

Fionza Consultants will register your Tanzania company within 10 weeks.

What is the most prevalent form of an entity registered in Tanzania?

The most prevalent form of entity in Tanzania is a limited liability company.

What is the most prevalent form of an entity registered in Tanzania?

The most prevalent form of entity in Tanzania is a limited liability company.

Is there any requirement for having a registered local office address in Tanzania?

Yes, entities registering in Tanzania are required to have a registered local address.

Do I need a local registered agent to register Company in Tanzania?

Yes, according to the laws of Tanzania you will need a local agent who will act as an intermediary between you and the government authorities of Tanzania.

Is there any requirement of a license to operate a business in Tanzania?

The requirement for licenses depends on the activities to be carried on by the entity.

Can I set up a company with 100% foreign ownership in Tanzania?

Yes, a typical Tanzanian limited liability company allows 100% foreign ownership.

Register company in Tanzania