To establish and run a business in Tanzania one needs to possess, initially, three primary documents which includes: the Certificate of Incorporation; TIN Number together with the Tax Clearance Certificate; and the Business License.

CERTIFICATE OF INCORPORATION

A Certificate of incorporation is issued by the Business Registration and Licensing Agency (BRELA). BRELA is the government agency responsible for registration of companies in Tanzania. The registration process is conducted through the BRELA Online Registration System, which can be accessed on the website of BRELA. To have access to the system one needs to have an account. Anyone can open an account to the system as long as he or she has a citizenship identity number (NIDA).

Needed information

To qualify for company registration, you must be, at least, two or more persons who are shareholders of the company (natural or legal persons). Among the persons there must be, at least, two directors and a company secretary.

It is possible for one to act as both a secretary and director.

The following information will be needed for the purpose of registration:

  • Details of current residential address of where the business will be locally located in Tanzania (i.e. Region, District, Village, Street, Postcode, Plot no., Block no., P.O Box,)
  • Personal details and address of shareholders;
  • Personal details and address of the secretary;
  • Personal details and address of the directors, including TIN number if the director is a local person.

Note: Personal details and address of someone should include the following: names; date of birth; NIDA no. (for local shareholders); passport No. (for a Foreigner); email; phone or mobile number; and current residential address.

Required documents

The following documents will be required before you submit the application for registration:

  • The Articles and Memorandum of Association (This is prepared by the shareholders themselves, it’s advisable to let the lawyer to this task);
  • Signed Form no. 14b ( This can be accessed from BRELA website)
  • Duly signed Consolidated form (This is generated from the online system)
  • An Integrity Pledge (This can be accessed from the BRELA website)
  • Copy of a passport, if one of the shareholders or director is a foreigner

Fees payable

The followings fees are payable to BRELA, to finalize the registration process.

  • Filing fee: Tshs. 22,000/= for each document (Usually three for registration purpose).
  • Stamp duty: Tshs. 9,000/=
  • Registration fee. This depends on the value of share-capital: for instance:-

    • Below Tshs. 1 M: Tshs.95,000/=;
    Between 1 M and 5 M: Tshs.175,000/=;
    Between 5 M and 20 M: Tshs.260,000/=;
    Between 20 M and 50 M: Tshs.290,000/=;
    Above 50 M: Tshs.440,000/=.

TIN CERTIFICATE AND TAX CLEARANCE CERTIFICATE

After obtaining the Certificate of incorporation, you need to obtain the TIN Certificate and Tax clearance certificate of the company. This is issued by the Tanzania Revenue Authority (TRA).

Typically TIN is issued free of charge but there are cost which are likely to be incurred in the process of obtaining depending on the nature of the business.

Needed information

To qualify for TIN registration you should have a lease agreement of the premise you intend to conduct business from or any proof of ownership – if you own the premises. You also need an introduction letter from the Executive Ward Office located in the area where you intend to carry business.

The following documents must be submitted:

  • Certificate of Registration;
  • Articles and Memorandum of Association;
  • Introduction letter from the ward officer;
  • Lease agreement or any proof of ownership of premises;
  • Copy of passport for foreign director or NIDA for local directors;

Costs likely to be incurred

The following costs are likely to be incurred in the process of obtaining a TIN Certificate and Tax Clearance Certificate;

  • 10% Withholding tax against the rent payment for one year;
  • 1% Stamps duty against rent payment for one year;
  • Payment of at least one installment of the self-assessed estimated tax.

BUSINESS LICENSE

After obtaining the Certificate of Incorporation and the TIN Clearance Certificate then using the two certificate you can now obtain a Business license.

The business license is issued by either the Local Government Authority or BRELA (which collects the fees on behalf of the Central Government). The question of where should one make the application between the LGA or BRELA will depend on the specific nature of the business. Also the fees payable depends on the specific nature of the business.