Register company in Tanzania

• The first step that has to be taken into consideration while forming a company in Tanzania is to select the type of business entity one wishes to form. Here, the incorporator has a choice among the different types of business structures as discussed above.
• Prior to company formation, it is essential to choose the correct type of company. Based on your business structure and long-term goals, Tetra Consultants will advise you on the most optimum business entity, paid-up share capital, corporate structure, and business licenses if applicable.

• The next step in the process of company registration in Tanzania is to decide the name of the company through which you want to promote your company. The name chosen for the company should not match any other closed or open business in the country.
• Tetra Consultants will reserve your preferred company name with the Business Registration and Licensing Agency (BRELA).

• Before Tetra Consultants can set up your company in Tanzania, you are required to provide a list of required KYC documents. Some of these documents include the names of directors and identification proof.
• Upon receiving all the necessary documents, Tetra Consultants will proceed to draft and notarize the company’s Memorandum and Articles of Association.
• According to the business activity and company structure, Tetra Consultants will also draft articles of incorporation, business plan, and other incorporation documents.

• Before Tetra Consultants can set up your company in Tanzania, you are required to provide a list of required KYC documents. Some of these documents include the names of directors and identification proof.
• Upon receiving all the necessary documents, Tetra Consultants will proceed to draft and notarize the company’s Memorandum and Articles of Association.
• According to the business activity and company structure, Tetra Consultants will also draft articles of incorporation, business plan, and other incorporation documents.

• Thereafter, Tetra Consultants will proceed with incorporation. We will submit the completed and Notarized memorandum and articles of association along with the necessary documents signifying the consent of directors and shareholders to take up the respective position for the first round of assessment of documents and fees to be paid is done by the Business Registration and Licensing Agency (BRELA).
• If the documents are in good order, the registrar will issue the certificate of incorporation along with the receipt signifying the registration fee to be paid by the applicant.
• Once the approval is received, Tetra Consultants will courier the certificate of incorporation along with other corporate and internal documentary evidence to your preferred address.

• After registration, Tetra Consultants will assist you in opening a corporate bank account. Our team has established partnerships with multiple reputable banks in both Tanzania and globally. We will present your business to each relationship manager and compliance team.
• Typically, the account opening will take roughly 4 weeks. In most cases, the directors and shareholders are not required to travel. However, if travel is required, we will have a representative accompany you to the bank meeting. Alternatively, our team will negotiate with the banks to conduct a conference call instead or to request a waiver.
• Once your account has been successfully opened, Tetra Consultants will courier the internet banking token and access codes to your preferred address.

• In order to work in a foreign land without any trouble, the company needs to complete the process of inclusion and get the license of incorporation.
• Tetra Consultants will undertake the process of submitting the details of the director and the secretary of the company along with the petition for acknowledging the compliance of company registration in Tanzania. Further, we will state the goal of the company and the hierarchy of all the members along with their responsibilities to the Tanzania Investment Centre.

• Once the above procedure is finished, Tetra Consultants will proceed with the further post-registration requirements to be carried out for the smooth day-to-day operation of your business.
• The Tanzania Revenue Authority (TRA) will provide the TIN for the company and authorize it for the VAT. If it is an LLC, we will need to submit the forms with the company and shareholders’ data to get the TIN.

• Tanzania’s government allows the company to operate legally once it has completed all the mandatory registration formalities.
• At this stage, Tetra Consultants will apply for a business license at the Ministry of Industry and Trade (MIT) and Local Government Authorities (LGAs). The license is either issued by MIT or LGAs based on the nature of the business. The following documents are supposed to be submitted along with the application:
  • Certificate of incorporation
  • Proof of suitable company premises
  • Memorandum and Articles of Association (MAA)
  • Taxpayer Identification Number (TIN)
  • Proof of Tanzanian Citizenship

• The next step is to register for workmen’s compensation insurance at the National Insurance Corporation or an alternative insurance provider. For this, employers need to complete the Workmen’s Compensation Tariff Proposal Form which is done at the Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory Authority (TIRA).

• The tenth and penultimate step is to obtain Social Security Registration Numbers from all mandatory security schemes. These mandatory schemes are provided by law and are guaranteed by the government in order to provide employees with social security services.

• Any person being the owner of the company must register with the OSHA. They must complete the application form and provide the company registration documents. The OSHA officials visit the workplace/factory prior to you applying for inspection and health safety. The application requires the following:
  • Name of occupier
  • Address
  • Nature of work
  • Total number of employees

• It is a statutory duty for every company incorporated in Tanzania mainland and in Zanzibar to file their annual returns with the Registrar of Companies accompanied with audited accounts, which are made up to a date not later than the return date. The return date is the date of the anniversary of the company’s incorporation.
• Tetra Consultants will timely prepare your firm’s financial statements, annual returns, and accounting records and file them with the relevant authorities and auditors to ensure your company remains compliant with the Tanzania tax authority. Annual filings and tax returns will be timely completed before the stipulated deadlines set out by the government.

Steps for ongoing compliance post-registration  

Annual returns filing 

• Among other compliance requirements, companies operating in Tanzania are required to submit annual returns to the BRELA. This is done within 18 months from the date of incorporation; thereafter, annually. Noncompliance will result in penalties, among other things, leading to the deregistration of the firm. Tetra Consultants helps businesses with reminders and support in preparing and filing annual returns correctly, in compliance with local regulations, and free from penalties. 

Conducting Annual General Meetings (AGMs) 

• Companies must hold annual general meetings to discuss significant matters, including the company’s financial performance, director appointments, and future strategies. The holding of AGMs is vital in ensuring that a company is transparent and accountable. Tetra Consultants organizes the meetings by offering templates for agendas, compliance with legal requirements, and assisting in the documentation of meeting minutes to ensure effective governance. 

Maintaining proper books of accounts 

• The Tanzanian law requires any company to maintain proper books of accounts that adequately reflect the firm’s financial transaction. The accounting records should either be in the English or Swahili languages and be provided for inspection to directors and auditors. Through bookkeeping, Tetra Consultants helps businesses comply with the requirements regarding accurate financial recording that will smooth the auditing and the financial reporting of a business organization. 

Registration of changes with BRELA 

• A change in share capital, a change in directors or secretaries, or a variation to the Memorandum and Articles of Association must be filed with BRELA within a certain timeframe if such occurs in the company. This helps the public record to reflect the prevailing conditions of the company. Tetra Consultants is able to keep the companies properly documented and registered so that all requirements are complied with within the stipulated timeframe. 

Tax compliance 

• Companies in Tanzania have obligations towards various taxes, including the submission of annual returns to the Tanzania Revenue Authority (TRA). The list includes corporate income tax, value-added tax, and other taxes applicable. Tetra Consultants supports clients with tax advisory services that enable them to have a clear understanding of their respective obligations and produce documentation as required to file returns correctly and on time. 

Compliance with employment laws 

• Companies need to comply with the local labor laws that include record keeping of employees, social security contributions, and compliance with workplace safety standards. Failure to comply with such laws will lead to legal implications. Tetra Consultants guides employment law compliance by helping businesses to establish proper HR practices and maintaining necessary documentation in employee management. 

Environment compliance 

• Companies depending on the type of their activities are also obligated to comply with some environmental laws of Tanzania under NEMC, such as necessary environmental impact assessments’ permits. Environmental compliance consulting service by Tetra Consultants ensures businesses understand what their obligations are and navigate through the process to get a permit. 

Audits periodically 

• Regular audits are conducted to ascertain financial integrity and respond to statutory requirements. Most businesses are required by the various laws to file audited statements as part of their annual returns. Tetra Consultants can connect businesses with reputable audit firms or offer internal audit services for ensuring that financial records are clean and compliant with local laws. 

Update corporate records 

• Corporate records are kept correctly for compliance purposes. The statutory registers should be updated periodically, reflecting changes in the shareholders, directors, and decisions adopted by the company. Tetra Consultants keeps these records correct and ensures that any change is reflected in the company’s filings with regulatory authorities on time. 

How to Set Up a Tanzania Company as a Non-Resident 

Choose the form of business ownership 

• The first step to be taken into consideration while formulating a company in Tanzania as a non resident is choosing the type of business entity one wants to form. In this case, the incorporator has a choice among the other types of business structures. 

• Before forming a company, the right type of company needs to be selected. Depending on your business structure and long-term goals. Tetra Consultants will advise you on the most optimum business entity, paid-up share capital, corporate structure, and business licenses if applicable. 

Choosing the name of the company 

• Once this is done, the next thing in the procedure of company registration in Tanzania would be to come up with the name of the company through which you want to market your company. The name of the company selected should not coincide with the name of another closed or opened business in that country. 

• Tetra Consultants will reserve your preferred company name with the Business Registration and Licensing Agency (BRELA). Additionally, we also provide international trademark registration services to our clients for brand name protection. 

Preparation of important documents  

• Before Tetra Consultants can assist you in incorporating your company into Tanzania as a nonresident, the client is required to prepare a list of necessary KYC documents. 

• After Tetra Consultants receive all the required documents, it will proceed to draw up and get the company’s Memorandum and Articles of Association notarized. 

Registration of the entity 

• Following that, Tetra Consultants will initiate the incorporation process. We shall deliver the filled-in and notarized memorandum and articles of association accompanied by the required documents to signify that directors and shareholders consent to the taking up of their respective positions. The first round of document assessment and payment of fees is undertaken by the BRELA. 

• If the documents are in order, the registrar shall issue the certificate of incorporation with the receipt for the registration fee to be paid by the applicant. 

• Once the approval is received, Tetra Consultants will courier the certificate of incorporation along with other corporate and internal documentary evidence to your preferred address. 

Corporate bank account opening  

• After the registration process, Tetra Consultants will help open your corporate bank account. The team has developed numerous relationships with the reputable banks of Tanzania and the international level. We will introduce your business to each relationship manager and compliance team. 

• Usually, the corporate bank account opening takes about 4 weeks. After opening the account successfully, Tetra Consultants will courier the internet banking token and access codes to your preferred address. 

Process of inclusion 

• The company needs to complete the process of inclusion and get the license of incorporation to work in a foreign land without any trouble. 

• Tetra Consultants will carry out the procedure of providing the information about the director and the secretary of the company along with the petition for accepting the compliance of the company registration in Tanzania. We will further explain the objective of the company and the structure of all the members along with their duties to the Tanzania Investment Centre. 

Registration of company for TIN and VAT 

• Orice the above procedure is complete. Tetra Consultants will now proceed with the further post-registration requirements to be carried out for the smooth day-to-day operation of your business. 

• The TIN for the company will be given by the Tanzania Revenue Authority and authorized for the VAT, If it is on LLC, we will have to submit the forms with the company’s data, as well as their shareholders’ data to receive the TIN. 

Other compulsory registration application 

• Tanzania’s government allows the company to operate legally once it has completed all the mandatory registration formalities. 

• At this stage Tetra Consultants will apply for a business license from the Ministry of Industry and Trade (MIT) or Local Government Authorities (LGAS). The license is issued by either MIT or LGAs depending on the nature of the business. 

Sign up for workmen’s compensation insurance 

• The next thing is registering for workmen’s compensation insurance at the National Insurance Corporation or other alternative insurance providers. For this, employers must submit the Workmen’s Compensation Tariff Proposal Form that is done at the Workers Compensation Fund and Tunzania Insurance Regulatory Authority. 

Apply for social security registration 

• Further, our experts will proceed with getting Social Security Registration Numbers from all mandatory security schemes. These schemes are provided for by law, and the government guarantees them for the purpose of providing social security services to the employees. 

Register with the Occupational Safety and Health Authority (OSHA) 

• Any person being an owner of a company must, therefore, go to the OSHA. To do this, Tetra Consultants obtain the application form and present copies of the documents showing the company’s registration. The OSHA officials visit your workplace/factory before you request for inspection or health safety check. 

Post incorporation compliances 

• Every company incorporated in Tanzania mainland and in Zanzibar is under a statutory duty to file with the Registrar of Companies its annual returns accompanied with audited accounts that are made up to a date not later than the return date. The return date refers to the date of the anniversary of the incorporation date of a company. 

• Tetra Consultants will prepare your firm’s financial statements, annual retuns and accounting records on time and file them with the relevant authorities and auditors to ensure your company will be on good terms with the Tanzania tax authority. Completion of Annual filings and tax returns will be done on time before the deadlines stipulated by the government. 

Accounting and tax obligations

• For business entities that are residents in Tanzania, corporate income tax is charged on the aggregate income, regardless of the geography from which it has been sourced. In other words, both, income sourced from within Tanzania, as well as income sourced outside Tanzania are used to calculate corporate income tax in Tanzania.
• On the contrary, non-residents are supposed to pay taxes on income that has been sourced from within Tanzania only.

Corporate tax

• Corporate income is taxed in Tanzania at a rate of 30%. This rate is applicable for both, resident business entities, as well as Permanent Establishments of non-resident business entities. Alternatively, a 5% turnover fee is charged for technical and management service providers for mining, oil, and gas-related services.
• For newly established companies, a reduced rate of Corporate Income Tax is applicable. Under this premise, the applicable rate is set at 25% for the first three years of operations of businesses on the stock exchange. However, only those companies eligible for this have around 30% shares already issued to the public.

Reduced corporate tax rates for specific companies

Reduced rates of corporate tax are applicable for the following business entities:

• For new vehicle assembly plants, tractors, or fishing equipment (for the first five years of operations): tax is levied at a rate of 10%.
• For newly established manufacturers of pharmaceutical products and leather products (for the first five years of operations): tax is levied at a rate of 20%.
• For newly established manufacturers of sanitary pads (for the first two years of operations): tax is levied at a rate of 25%.

Other Taxation in Tanzania

Alternative Minimum Tax

• AMT is levied at a rate of 0.5% of the sales turnover for companies that have unrelieved tax losses for current, as well as preceding income years. However, this does not apply to agricultural companies or companies that are engaged in healthcare or education.

Value Added Tax (VAT)

• VAT is charged as a consumption tax across all locally sourced goods and services, at a standardized rate of 18%. However, this rate of VAT is applicable in Mainland Tanzania. For Tanzania Zanzibar, VAT is levied at a rate of 15%. Export-related businesses, as well as businesses dealing with staple food supplies, are zero-rated when it comes to VAT.

Accounting requirements

• An entity doing business in Tanzania must file income tax returns within six months from the end of every fiscal year. It should be noted that income tax returns can only be accepted at TRA if the entity has cleared the income tax assessed by TRA during registration for TIN. This assessed tax is required to be paid every four months of the year (quarterly).
• It is a requirement of the law that every company shall keep in English or Swahili proper books of account, which are sufficient to show and explain the company’s transactions. The accounts shall disclose with reasonable accuracy at any time, the financial position of the company and enable the directors to ensure that any balance sheet, profit and loss account, and cash flow statement prepared complies with the law.
• The books of account shall be kept at the registered office of the company or at such other place in Tanzania as the directors think fit, and shall at all times be open to inspection by the directors.

Documents required to register company in Tanzania 

• Certified Memorandum and Articles of Association. 

• Certified copy of the lease agreement (with stamp duty and withholding tax paid) for the office. 

• TIN application form. 

• VAT application and registration form. 

• Application for employer registration. 

• National Identification Cards or Travel Passport copies of the shareholders and directors. 

• List of directors and company secretary. 

• Statement of all subsisting charges created by the company. 

• Names and addresses of people authorized to accept service on behalf of the company. 

• Full address of registered principal office and place of business in Tanzania. 

• Statutory declaration by the director or secretary of the company. 

• Copy of the most recent accounts and related reports of the company (if applicable). 

• At least 3 proposed company names. 

• Passport size photographs of shareholders and directors. 

• Proposed business location details. 

• Description of business activities. 

Why do companies invest in Tanzania?

Political

• Tanzania is a peaceful and politically stable country with no history of civil wars, ethnical conflicts, or internal uprisings. This political stability is crucial as it provides protection to investors.
• Tanzania has been working to improve its business environment, but further improvements are required. This is as the country lags behind its regional peers in a number of global business environment rankings. Tanzania ranked 141 out of 190 countries in the latest 2020 World Bank’s Doing Business rankings.
• Similarly, the World Economic Forum’s (WEF) Global Competitiveness Report of 2019 ranks Tanzania in the 117th position, placing it behind Uganda, Ethiopia, Kenya, and Rwanda, despite gradual progress in Tanzania’s ranking since 2013, given improvements in its macroeconomic environment, in infrastructure, education, and institutions.

Economical

• Tanzania’s infrastructure quality differs largely between the four major modes of transport. It is well served by air, particularly domestically, but also has relatively good international connections.
• Infrastructure in Tanzania has witnessed impressive investment in recent years and there is more to come.
• The Heritage Foundation’s Index of Economic Freedom 2022 ranks Tanzania at 93rd position globally and 10th in the sub-Saharan region with notable successes being fiscal and investment freedom.

Technology

• The Global Innovation Index report of 2020 comes with a piece of good news to Tanzania’s innovation ecosystem. In the top 3 innovation economies by region, in Sub-Saharan Africa, the country ranks 3rd just behind South Africa/Mauritius (1st) and Kenya (2nd).
• Tanzania also has been clustered among economies that are outperforming on innovation relative to their peers. Tanzania is among the countries in the group of innovation achievers together with 7 other economies; Bulgaria, Serbia, Tunisia, Jamaica, Morocco, Madagascar, and Niger. The last time Tanzania was in this group was in 2017.

Legal

• While the jury is still out on this, the Magufuli government has, in its first few months in office, shown its intent to root-out corruption in many public sector offices.
• According to the World Bank’s Global Indicators of Regulatory Governance 2020, Tanzania scores low in regulatory governance with 1.25 out of 5 totals in the transparency of regulatory governance.
• One example of reform in the above-mentioned 2016 World Bank ranking is that Tanzania is amongst the economies that have shown the most progress in adopting electronic tax filing and payment systems. For instance, the implementation of the LGRCIS in 2014, which increased tax revenues by 71% between 2014 and 2015, is one example of measured progress and reforms.

Society

• Tanzania is accorded the position of 163rd out of 189 countries on the United Nations Development Programme’s Human Development Index 2019.
• Tanzania remains a low-income country, with almost half the population of 55 million living on less than US$1.90 a day and over 56% of the population considered to live in multidimensional poverty (which takes into account such factors as health, education, and standard of living).

Environmental

• Tanzania’s rich natural resources are fundamental for the country’s growth and economic development. However, the underutilization of the potential of the environment and natural resources for the economy and people’s livelihoods contributes to Tanzania’s standing as one of the world’s poorest countries.
• According to the Environmental Performance Index of 2022, Tanzania ranks at the position of 134th out of 180 countries in terms of facing environmental challenges and having updated environmental policies in the country.

Cost to setup register company in Tanzania 

• Engaging with Tetra Consultants to establish and register company in Tanzania would give entrepreneurs a full and streamlined process designed to make their entry into the market smooth. Tetra Consultants provides professional advice at every stage of company formation, from name availability searches and reservation of the company name to preparation and submission of all documents required to the Business Registration and Licensing Agency (BRELA).  

• Our team would ensure that the legal requirements for the business setup are met very efficiently, so the entrepreneurs can focus more on their core operations. Apart from this, Tetra Consultants also provides follow-up support with local regulations compliance including tax registration and corporate bank account opening. With their assistance, businesses would be able to navigate the establishment of a presence in Tanzania confidently and effectively. 

How Tetra Consultants will help you to register company in Tanzania 

• Tetra Consultants provides a detailed process of company registration in Tanzania with minimum hassle and maximum efficiency. Four main stages are covered: pre-investment planning, incorporation, account opening, and post-incorporation compliance. At first, Tetra experts help clients decide on the appropriate corporate structure, then collect all the needed documents for incorporation. The company can handle the whole process of registration itself, by submitting all the necessary documents to the competent authorities in Seychelles, thus receiving the Certificate of Incorporation. Besides, Tetra Consultants offer an opening corporate bank account service and support thereafter to ensure a company is following local regulations when commencing its 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