Tanzania, officially the United Republic of Tanzania, is a country located in Eastern Africa. Famous for its rich heritage, wildlife, and the highest peak in Africa – Mount Kilimanjaro, Tanzania is rich in natural resources and cultural diversity. Moreover, Tanzania has seen substantial growth in its economy over the past years making it an attractive destination for investors. One of the key business entities that can be established in Tanzania is a Limited Liability Company (LLC).
What is an LLC?
In Tanzania, a Limited Liability Company (LLC) is a separate legal entity that offers limited liability to its owners. This means that the personal assets of the owners or shareholders are protected from the company’s liabilities and debts.
Step by Step Guide to Registering an LLC in Tanzania
1. Name Availability Search and Reservation: Before you can register your LLC, you must first conduct a name availability search at the Business Registrations and Licensing Agency (BRELA). Once you have confirmed that the desired name is available, you can proceed to reserve it.
2. Drafting of Memorandum and Articles of Association: These documents outline the purpose of the company, its operating rules, and the details of its shareholders and share capital.
3. Registrations and Declarations: You will need to submit a duly completed Form 14b, a declaration of compliance.
4. Application for Incorporation: Submit the application for incorporation to BRELA along with the prescribed fee. You will also need to submit the memorandum and articles of association, Form No. 14b and a statement of nominal capital.
5. Obtain a Taxpayer Identification Number (TIN): All companies in Tanzania are required to have a Tax Identification Number, which is obtained from the Tanzania Revenue Authority (TRA).
6. Register for VAT: If the company expects to have a turnover exceeding a certain threshold, it must register for Value Added Tax (VAT) at the TRA.
7. Register with the Occupational Safety and Health Authority (OSHA): All companies in Tanzania are required to register with OSHA, which is responsible for ensuring safety and health at work.
Benefits of Registering an LLC in Tanzania
A Limited Liability Company in Tanzania offers several benefits including legal protection, tax benefits, more credibility and easy access to banks and other financial institutions. Tanzania has a growing economy and a stable political environment, making it an ideal location for starting an LLC.
In conclusion, setting up an LLC in Tanzania may seem like a tedious process, but with proper understanding and guidance, it is a straightforward task. Before deciding to set up an LLC in Tanzania, it is recommended to seek advice from professionals who are familiar with Tanzanian business laws and regulations. This will not only simplify the process but will also ensure that all legalities are handled professionally.
Suggested related links:
Tanzania Medicines & Medical Devices Authority
Ministry of Industry and Trade
National Identification Authority