How To Start A Business in Tanzania
Starting (Registering) a Business in Tanzania
Starting a business, or company, in Tanzania takes approximately 29 days as compared to about 46 days for the Sub-Saharan Africa region. This piece outlines the general technical procedures for starting a company in Tanzania, according to the Doingbusiness.org database by the World Bank. It includes details and requirements to be in good standing with all relevant agencies beyond the company registrar like social security agencies.
Use this as a guide while you complete the process and consult with agents carrying out work on your behalf. Additional notes may be found here.
Technical Procedures
The steps involved in registering a company (Private Limited Liability Company) in Tanzania are:
- Apply for clearance of the proposed company name at the Business Registration and Licensing Authority (BRELA).
- Apply for a certificate of incorporation and of commencement at Registrar of Companies.
- Apply for taxpayer identification number (TIN) with the Tanzania Revenue Authority.
- Have income tax officials inspect the office site of the new company.
- Apply for PAYE with the Tanzania Revenue Authority.
- Apply for a business license from the regional trade officer (depending on the nature of business).
- Have the land and town-planning officer inspect the premises and obtain his/her signature.
- Have the health officer inspect the premises and obtain his/her signature.
- Apply for a VAT certificate with the Tanzania Revenue Authority.
- Receive VAT/stamp duty inspection.
- Register for the workmen’s compensation insurance at the National Insurance Corporation or other alternative insurance policy.
Obtain registration number at the National Social Security Fund (NSSF
| No. | Procedure | Time to Complete | Associated Costs |
|---|
| | 1 | Apply for clearance of the proposed company name at the Business Registration and Licensing Authority (BRELA)
Agency: Business Registration and Licensing Authority ("BRELA")
A business name and a company name are different names. Regarding the company name, the applicant writes a letter to BRELA with at least three (3) or more proposed names for the company. The Company Registrar will then approve one (1) of the names proposed.
A company can have different businesses/projects, and as such those register under the umbrella of the company, but the said businesses/projects can have different names. An application for registering a business name can be submitted either by mail to the Registrar of Companies or at the counter of the Business Registration and Licensing Authority (BRELA) for clearance of the proposed name. Upon receiving notification that the name is available, the applicant prepares the memorandum and articles of association and submits to BRELA. If the memorandum and articles of association have been prepared and presented for registration without name clearance, the search will be conducted during the registration process. If a search reveals a similar name in the Register, the name/application will be rejected.
Recently, the Business Registration and Licensing Authority (BRELA) enabled the online name search service to be conducted on its website: www.brela.go.tz. |
1 day |
no charge |
|---|
| | 2 | Obtain a notarized declaration of compliance
Agency: Notary
Entrepreneurs visit the notary for notarization of the declaration of compliance. |
1 day |
Notaries do charge at the range of TZS 10,000-50,000, for notarial services to normal documents such as form No. 14 b. |
|---|
| | 3 | Apply for company incorporation and obtain the certificate of incorporation
Agency: Registrar of Companies
Business names and companies can be registered only in Dar es Salaam. A lawyer is not required, but using one is common practice.
To apply for a certificate of incorporation, a subscriber, secretary, or a person named in the articles of association as a director must submit the following to the Registrar of Companies:
- 14a (First Directors and Secretary and Intended situation of Registered Office)
- 14b (Declaration of Compliance on Application for the Registration of a Company)
The Memorandum and Articles of Association are also filed with the forms.
After the forms are filed, the certificate of incorporation is usually processed within 2-3 days. Registration forms are free, and applicable registration fees (according to the New Companies Act 2002) are shown below.
A company can prepare its own articles of association but Table A of the Schedules to the Companies is in most cases adopted by companies limited by shares.
Company registration fee (based on share capital):
- Share capital from 20,000 to 500,000: TZS 50,000.
- Share capital from 500,000 to 1,000,000: TZS 80,000.
- Share capital from 1,000,000 to 2,000,000: TZS 100,000.
- Share capital from 2,000,000 to 3,000,000: TZS 120,000.
- Share capital from 3,000,000 to 5,000,000: TZS 150,000.
- Share capital from 5,000,000 to 10,000,000: TZS 180,000.
- Share capital from 10,000,000 to 30,000,000: TZS 200,000.
- Share capital 30,000,000 and over: TZS 300,000.
Filing fee: TZS 45,000: 15,000 per document
Stamp duty fee:
- Original memorandum and articles of association: TZS 6,200.
- Every additional copy: TZS 5,000. |
4 days |
TZS 256,200 |
|---|
| | 4 | Apply for taxpayer identification number (TIN) at the Tanzania Revenue Authority
Agency: Tanzania Revenue Authority ("TRA")
TIN registration is free of charge. Tax registration has been computerized. It takes a minimum of 2 days to obtain a TIN number, depending on the number of requests made to the Revenue Authority (TRA) at the time.
The Certificate of incorporation shall be attached to the TIN application enclosed with Memorandum and Articles of Associations when a person makes application to TRA.
The limited company shall apply for TIN certificate by filling TIN application forms as follows:
• Application for the company.
• Application for each shareholders/directors, in case any director has already issued with TIN certificates for other purpose he/she cannot make another application. The same TIN number will be used. |
1 day |
no charge |
|---|
| | 5 | Obtain taxpayer identification number (TIN)
Agency: Tanzania Revenue Authority ("TRA")
At least one of the directors of the company must be physically present at the tax office to give their fingerprints (biometric data). The applicant must visit TRA offices to pick up the TIN number in person. The company will be required to declare its estimated income or turnover for the provision tax assessment for the particular year. At the TRA office, the tax officer may interview the company founders/directors and record their business and personal particulars. |
1 day |
no charge |
|---|
| | 6 | Apply for a business license at the Ministry of Industry and Trade (MIT) and Local Government Authorities (LGAs)
Agency: Regional trade officer
The business license is either issued by the Ministry of Industry and Trade or the Local Authorities depending on the nature of business. Together with the application, the following documents must be submitted:
1) Certificate of incorporation
2) Memorandum and Articles of Association
3) Proof of Tanzanian Citizenship
4) Proof of a suitable company premises
5) Taxpayer Identification Number (TIN) |
6 days |
TZS 1,000 |
|---|
| | 7 | Apply for the VAT certificate at the Tanzania Revenue Authority
Agency: Tanzania Revenue Authority
VAT registration takes 3–5 days if the proposed company will have a threshold income of TZS 40 million. |
4 days |
no charge |
|---|
| | 8 | Register for the workmen’s compensation insurance at the National Insurance Corporation or an alternative insurance policy provider
Agency: Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory Authority (TIRA)
To register for workers’ compensation insurance, employers must complete the Workmen’s Compensation Tariff Proposal Form. This form should be completed once the firm begins hiring employees and just before the firm becomes operational. However, because the insurance industry is privatized in Tanzania, employers may opt to take an insurance policy instead of the workmen’s compensation claims. |
1 day |
no charge |
|---|
| | 9 | Obtain Social Security registration numbers from all mandatory social security schemes
Agency: Social Security Regulatory Authority (SSRA)
It takes a week to obtain a social security registration number. Every employer in the formal sector is required to register his/her employees with any of the mandatory schemes, provided that it shall be the right of the employee to choose the mandatory scheme to register under. These mandatory schemes are established by law and guaranteed by the Government to provide social security benefits to employees. |
7 days |
no charge |
|---|
| No. | Procedure | Time to Complete | Associated Costs |
|---|
| | 1 | Apply for clearance of the proposed company name at the Business Registration and Licensing Authority (BRELA)
Agency: Business Registration and Licensing Authority ("BRELA")
A business name and a company name are different names. Regarding the company name, the applicant writes a letter to BRELA with at least three (3) or more proposed names for the company. The Company Registrar will then approve one (1) of the names proposed.
A company can have different businesses/projects, and as such those register under the umbrella of the company, but the said businesses/projects can have different names. An application for registering a business name can be submitted either by mail to the Registrar of Companies or at the counter of the Business Registration and Licensing Authority (BRELA) for clearance of the proposed name. Upon receiving notification that the name is available, the applicant prepares the memorandum and articles of association and submits to BRELA. If the memorandum and articles of association have been prepared and presented for registration without name clearance, the search will be conducted during the registration process. If a search reveals a similar name in the Register, the name/application will be rejected.
Recently, the Business Registration and Licensing Authority (BRELA) enabled the online name search service to be conducted on its website: www.brela.go.tz. |
1 day |
no charge |
|---|
| | 2 | Obtain a notarized declaration of compliance
Agency: Notary
Entrepreneurs visit the notary for notarization of the declaration of compliance. |
1 day |
Notaries do charge at the range of TZS 10,000-50,000, for notarial services to normal documents such as form No. 14 b. |
|---|
| | 3 | Apply for company incorporation and obtain the certificate of incorporation
Agency: Registrar of Companies
Business names and companies can be registered only in Dar es Salaam. A lawyer is not required, but using one is common practice.
To apply for a certificate of incorporation, a subscriber, secretary, or a person named in the articles of association as a director must submit the following to the Registrar of Companies:
- 14a (First Directors and Secretary and Intended situation of Registered Office)
- 14b (Declaration of Compliance on Application for the Registration of a Company)
The Memorandum and Articles of Association are also filed with the forms.
After the forms are filed, the certificate of incorporation is usually processed within 2-3 days. Registration forms are free, and applicable registration fees (according to the New Companies Act 2002) are shown below.
A company can prepare its own articles of association but Table A of the Schedules to the Companies is in most cases adopted by companies limited by shares.
Company registration fee (based on share capital):
- Share capital from 20,000 to 500,000: TZS 50,000.
- Share capital from 500,000 to 1,000,000: TZS 80,000.
- Share capital from 1,000,000 to 2,000,000: TZS 100,000.
- Share capital from 2,000,000 to 3,000,000: TZS 120,000.
- Share capital from 3,000,000 to 5,000,000: TZS 150,000.
- Share capital from 5,000,000 to 10,000,000: TZS 180,000.
- Share capital from 10,000,000 to 30,000,000: TZS 200,000.
- Share capital 30,000,000 and over: TZS 300,000.
Filing fee: TZS 45,000: 15,000 per document
Stamp duty fee:
- Original memorandum and articles of association: TZS 6,200.
- Every additional copy: TZS 5,000. |
4 days |
TZS 256,200 |
|---|
| | 4 | Apply for taxpayer identification number (TIN) at the Tanzania Revenue Authority
Agency: Tanzania Revenue Authority ("TRA")
TIN registration is free of charge. Tax registration has been computerized. It takes a minimum of 2 days to obtain a TIN number, depending on the number of requests made to the Revenue Authority (TRA) at the time.
The Certificate of incorporation shall be attached to the TIN application enclosed with Memorandum and Articles of Associations when a person makes application to TRA.
The limited company shall apply for TIN certificate by filling TIN application forms as follows:
• Application for the company.
• Application for each shareholders/directors, in case any director has already issued with TIN certificates for other purpose he/she cannot make another application. The same TIN number will be used. |
1 day |
no charge |
|---|
| | 5 | Obtain taxpayer identification number (TIN)
Agency: Tanzania Revenue Authority ("TRA")
At least one of the directors of the company must be physically present at the tax office to give their fingerprints (biometric data). The applicant must visit TRA offices to pick up the TIN number in person. The company will be required to declare its estimated income or turnover for the provision tax assessment for the particular year. At the TRA office, the tax officer may interview the company founders/directors and record their business and personal particulars. |
1 day |
no charge |
|---|
| | 6 | Apply for a business license at the Ministry of Industry and Trade (MIT) and Local Government Authorities (LGAs)
Agency: Regional trade officer
The business license is either issued by the Ministry of Industry and Trade or the Local Authorities depending on the nature of business. Together with the application, the following documents must be submitted:
1) Certificate of incorporation
2) Memorandum and Articles of Association
3) Proof of Tanzanian Citizenship
4) Proof of a suitable company premises
5) Taxpayer Identification Number (TIN) |
6 days |
TZS 1,000 |
|---|
| | 7 | Apply for the VAT certificate at the Tanzania Revenue Authority
Agency: Tanzania Revenue Authority
VAT registration takes 3–5 days if the proposed company will have a threshold income of TZS 40 million. |
4 days |
no charge |
|---|
| | 8 | Register for the workmen’s compensation insurance at the National Insurance Corporation or an alternative insurance policy provider
Agency: Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory Authority (TIRA)
To register for workers’ compensation insurance, employers must complete the Workmen’s Compensation Tariff Proposal Form. This form should be completed once the firm begins hiring employees and just before the firm becomes operational. However, because the insurance industry is privatized in Tanzania, employers may opt to take an insurance policy instead of the workmen’s compensation claims. |
1 day |
no charge |
|---|
| | 9 | Obtain Social Security registration numbers from all mandatory social security schemes
Agency: Social Security Regulatory Authority (SSRA)
It takes a week to obtain a social security registration number. Every employer in the formal sector is required to register his/her employees with any of the mandatory schemes, provided that it shall be the right of the employee to choose the mandatory scheme to register under. These mandatory schemes are established by law and guaranteed by the Government to provide social security benefits to employees. |
7 days |
no charge |
|---|