Resplendent with vast national parks and natural resources, Tanzania is a gem located on the east coast of Africa. Flaunting its magnificence with the iconic mount Kilimanjaro, the stunning islands of Zanzibar, and the historically rich city of Dar es Salaam, this country is home to diverse culture and languages with Swahili and English being the most spoken. Known primarily for its tourism, agriculture, and mining industries, recent years have seen a burgeoning growth in its GDP, making it a lucrative hub for businesses and start-ups.
Deciding the Type of Business Entity
In Tanzania, you can register your business as a Limited Liability Company, a Joint Venture, a Partnership, or a Sole Proprietorship depending on your objectives and needs. Your choice will influence the number of shareholders, the amount of share capital, and the structure of management.
Choosing a Unique Company Name
First and foremost, your desired company name should be distinctive, not registered previously by any other entity in Tanzania. Once a choice is made, register it with the Business Registration and Licensing Agency (BRELA).
Articles of Association and Memorandum
Next in line is the preparation of your Company’s Memorandum and Articles of Association which delineates the proposed activities and the internal governance rules. You will need the assistance of a certified advocate who is registered under the Tanzanian Law Society to prepare these.
Declaration of Compliance
An important procedure in establishing your company in Tanzania is demonstrating your conformity to the Companies Act through the Declaration of Compliance. A Tanzanian advocate is entrusted with its preparation and filing.
Registration of the Tax Identification Number (TIN)
This process can be completed by submitting the application form to the Tanzania Revenue Authority (TRA), along with the original and duplicate of a National Identity Card or Passport.
Business License
Applying for a business license is a crucial step that validates your business operation in Tanzania. The cost and requirements vary according to the nature of your business and location.
Registration of the Value Added Tax (VAT)
If your business has or expects to have an annual turnover exceeding Tanzania Shilling 100 million, you are obliged to register for VAT. The application can be acquired and submitted to any TRA office.
Employees’ Registration with Regulatory Bodies
After successful registration, you should register your employees with the social security schemes and Workers Compensation Fund.
Registrations could seem daunting initially, but comprehending the necessary requirements and processes profoundly simplifies the task. Having an adept business plan and being cognizant of the prevailing laws and regulations pave the way for a successful business establishment in Tanzania.
It is pivotal to understand that the Tanzanian business milieu proffers both challenges and opportunities. Therefore, ensure that you are well-prepared to navigate through this dynamic environment. Persistence coupled with the right expertise can help you create a prosperous business in this thriving East African nation.