- Tanzania is blessed with an abundance of natural resources, which presents investors with fantastic investment possibilities. We can assist you in analyzing all of the investment opportunities with the aid of our business consulting services in Tanzania.
- Accordingly, the benefits of choosing to register company in Tanzania include a favorable geographic location (six landlocked nations rely on Tanzania ports as their least expensive entry and exit ports), arable land, internationally renowned tourist destinations (the Serengeti, Kilimanjaro, Ngorongoro, and the Spice Islands of Zanzibar), natural resources, a sizable domestic and subregional market, a broad local raw materials supply base, an abundance of affordable skills, assurance of personal safety, warm and hospitable people, and a suitable.
- Tanzania is without a doubt a fantastic destination to invest in Africa right now. There are countless business and investment options available, and you are welcome to explore them. As a consequence of the above, if you too are thinking of starting a company in Tanzania then we are here to assist you. In this article, Tetra Consultants’ team of experts has provided an overview of the requirements and process to register company in Tanzania along with insights on company registration fees in Tanzania as well as the timeline associated with it.
Requirements of company registration in Tanzania
- One must consider the kind of business entities (vehicles) to establish when starting a business in the United Republic of Tanzania. Also, one must be informed of the regulations for forming the company vehicle before establishing it. If that corporate entity is effectively set up and running, one will also need to be aware of the compliance requirements that follow after the registration of the company.
- The Tanzanian Companies Act, Cap 212, governs the registration of companies in Tanzania. The act also provides and considers the development of best practices in corporate governance by providing the post-compliance requirements.
- Generally, one can establish a business in Tanzania in form of an individual (Sole Proprietorship), a partnership (or firm), a trust, or a limited company. A company limited by shares is the most prevalent form of company structure in Tanzania and the requirements to form the same comprises of
- Minimum of 2 shareholders (can be an individual/ corporate entity) and a minimum of 2 directors.
- A director or shareholder can be the same or different person of any nationality. Hence, 100% local or foreign shareholding is allowed.
- A local registered office address is mandatory and a company secretary/local agent.
- There is no minimum share capital required but it is advisable to have a capital of TZS 100,000,000 for a company consisting of Foreign Shareholders.
An Overview of the company registration process in Tanzania
In order for a person or entity to register a company in Tanzania the following steps have to be fulfilled, which include:
Step 1: Choose the type of business entity
The option of the type of business entity one desire to form must be made as the first stage in the formation of a company in Tanzania. The investor may select one of the following three company forms in this situation:
- Sole Proprietorship: The Business Names Registration Act in Tanzania allows the sole proprietorship to be registered. It is an organization that is formed by only one person. He or she is responsible for making all significant and small decisions for the organization. One advantage of this organizational structure is that, in addition to losses, all earnings are kept entirely for the company.
- Partnership: This type of company is useful when there are several investors. The partners’ liability in a partnership firm is limited to the amount they invested in the company. All of the company’s profits and losses are divided among the partners.
- Limited Liability Company (LLC): A minimum of two shareholders and two directors are required in Tanzania to form an LLC. The company may be private or public. Unlike a sole proprietorship or a partnership business, an LLC is a separate legal organization with limited liability for its shareholders.
Step 2: Reserve a company name
- The second step is to choose a suitable name for the business. All firms in Tanzania, regardless of legal structure, must register a company name with the Business Registration and Licensing Agency (BRELA), which is part of the Ministry of Industry and Commerce. Once confirmed, BRELA must be contacted to acquire name approval.
Step 3: Preparation and submission of relevant documents to register company in Tanzania
- Consequently with the reservation of the company name, you need to proceed with preparing corporate documents including a memorandum and articles of association.
- Tetra Consultants’ legal team is proficient with the preparation and notarization of corporate documents as well as the drafting of other policies, employment contracts, etc required to register the company.
Step 4: Register with the Business Registration and Licensing Agency (BRELA)
- Once the documents are prepared, you will need to register your company with BRELA, which is responsible for the registration and administration of businesses in Tanzania.
- Tetra Consultants’ team of business set-up consultants ensures the remote registration of your entity so that you can channel your energy into other important aspects of your business.
- Depending on the type of business entity to be registered, you might also be required to go through the process of inclusion, wherein you will be required to intimate the Tanzania Investment Centre (TIC) of the prospective investment and starting of a business in the nation.
Step 5: Post-registration compliances
- Obtain a tax identification number: You will need to obtain a TIN from the Tanzania Revenue Authority (TRA). This is a unique number that identifies your company for tax purposes.
- Obtain necessary permits and licenses: Depending on the nature of your business, you may need to obtain additional permits and licenses from other government agencies.
- Register with the Social Security Regulatory Authority (SSRA): You will also need to register with the SSRA, which is responsible for overseeing social security contributions in Tanzania.
- Open a bank account: Once your company is registered, you will need to open a bank account in the name of your company. Tetra Consultants can assist with the corporate bank account opening process, wherein you can leverage our vast banking network and open a corporate bank account in the international or a local bank of your choice within a period of 4 weeks.
What is the timeline for company registration in Tanzania?
- For a typical Tanzanian company limited by shares, Tetra Consultants expect to complete the registration within 6 weeks. This additionally depends on the time taken and approval granted by the Tanzanian authorities. In most cases, it will take a shorter amount of time as compared to the time when any additional trading license is required to operate the entity.
- Simultaneously, Tetra Consultants’ banking team will begin the corporate bank account opening process. We expect to get a bank account secured for your entity within 4 weeks.
- Prior to the start of the engagement, Tetra Consultants will send you a project plan with the timelines stipulated for company registration, preparation of documents as well as corporate bank account opening. This is to ensure that all parties are clear on the upcoming project.
What is the overall company registration fees in Tanzania?
- Tanzania is the ideal location for establishing a company thanks to its business-friendly policies, growing pool of skilled talent, and simple access to the African market. In addition to offering excellent support for startups in the form of pro-entrepreneur regulations, cutting-edge infrastructure, and a thriving ecosystem, Tanzania also has business costs that are lower than those of other nations.
- While the cost to register a company in Tanzania is relatively low, it may be difficult to set up a company in Tanzania without engaging a service provider. This is because a company incorporated in Tanzania must have a local registered office. If your company does not have one, you will need to engage a service provider who can assist with the provision of a local registered office as well as represents the entity as a registered agent.
- Furthermore, drafting a constitution and opening a corporate bank account for your Tanzanian entity may be difficult and time-consuming because it requires the necessary legal expertise and negotiation skills, respectively. Hence it may be much more convenient to employ a service provider and consult on the overall cost of setting up your company in Tanzania.
- Tetra Consultants provides you with a fast and easy way to register company in Bahrain through our service package which includes company registration with Bahrain Companies Registry; the provision of a local company secretary, and registered address; the opening of a corporate bank account; tax registration; and annual accounting and tax services. Tetra Consultants will also recommend the type of business entity suitable for your company, based on your long-term goals and business model.
- Contact us now if you wish to find more information about the incorporation process in Bahrain and our comprehensive range of services allowing you to do the same. Our experienced team will revert within the next 24 hours.