Understand the Jurisdictions Setup Requirement Before Proceed Your Tanzania Company Formation
The Tanzania company formation involves different entities and it takes 7 to 14 days before a person can become an investor. It is recommended to hire the services of a professional lawyer or consultant in setting up a business in Tanzania. They are familiar with the scope of business in Tanzania that gives the business big benefits.
Tanzania is in Eastern Africa and it is a sovereign state. Tanzania is connected to major countries in Africa. It borders Kenya, Malawi, Uganda, Mozambique, Congo, Zambia, Burundi, and Rwanda. A business set up in Tanzania is a good option for entrepreneurs who want to expand their business in agriculture, tourism, and import. The population of Tanzania is about 57 million, and it has one of the biggest markets in Africa.
Company Registration in Tanzania
To set up a business in Tanzania, you need a limited liability, partnership, or sole proprietorship business entity. If your business is a sole proprietorship or business, it must be registered under the Business Names Registration Act. The most common is the Limited Liability Company. Every legal business that operates in Tanzania must register under the Business Registration and Licensing Agency (BRELA). This is under the Ministry of Industries and Trade. You must first obtain a name clearance from BRELA. In general, these documents are required in the Tanzania company formation process:
- The company name (which should be cleared by the Register of Companies)
- The registered address of the office in Tanzania
- Names, residential addresses, and nationalities of the directors and first subscribers (give at least two)
- You must provide at least two copies of the Memorandum of Association and the Articles of Association.
- File a prescribed form to declare that the company has all the complied requirements of the company law in Tanzania
- A filing fee, registration fee, and stamp duty fee
Tax Identification Number (TIN)
The certificate comes from the Tanzania Revenue Authority and in order to obtain a TIN, you must fulfil these requirements:
- Certified copy of Memorandum of Association and Articles of Association
- Certified copy of Certificate of Incorporation
- Payments of Provisional Taxes
- Director’s TIN
- Least Agreement
- Directors/shareholders photos and passport copies
The process of acquiring a TIN is a maximum of three working days.
The VAT can obtain from the Tanzania Revenue Authority and you must complete these requirements:
- Certified copy of Memorandum and Articles of Association
- A copy of Certificate of Incorporation
- Certified copy of your TIN certificate
- Certified copy of your Tax Clearance Certificate
- Business License certified copy
- You must purchase the EFD devise for the VAT
- Lease Agreement certified copy for the office
- Passport copies of Directors/Shareholders
Obtaining a VAT can take up to three days, but not more than that.
Why Choose to Set Up a Limited Liability Company (LLC)?
- An LLC can be private or public
- It enjoys more advantages compared to a sole proprietorship and partnership
- There is a distinct and separate legal personality that is separate from the shareholders
- The capital is relatively easy to raise
- The shareholders have a limited liability
- The business does not close if one of the directors or shareholders die
In general, foreign companies establish their presence in Tanzania by setting up an LLC as a group subsidiary. Another way is to register a foreign LLC as a branch with an established business location in Tanzania.
If your company does charity, the set up will be generally a Tanzanian company that is limited by guarantee. You might also have to undergo the company registration process as an NGO.
We can help your Tanzania company formation, and we will guide you in every step. 3E Accounting is an established company that helps investors get started in different countries.