How to register a business in Tanzania. Company registration in Tanzania is very simple, It’s done through BRELA(Business Registration and Licensing Agency) a government agency that facilitates business registration and post-registration issues. Setting up a company in Tanzania is a right of those who wish to associate and form themselves into a company pursuant to the existing company laws.
Also, foreigners looking to start a business in Tanzania, need to follow defined laws and processes associated with company registration in Tanzania.
STEPS TO REGISTER A COMPANY IN TANZANIA
For successful company registration in Tanzania, follow these steps:
- Choose the type of company you want to register
- Register your business name with BRELA
- Submit your Memorandum and Articles of Association
- Register with Tanzania Revenue Authority
- Get your business licence
DOCUMENTS REQUIRED FOR COMPANY REGISTRATION IN TANZANIA
- Certified Memorandum and Articles of Association
- Certified copy of the lease agreement (with stamp duty and withholding tax paid) for the office
- Passport copies of the shareholders and directors
- TIN application form
- VAT application and registration form
- Application for employer registration
STEPS TO REGISTER A COMPANY IN TANZANIA
BUSINESS STRUCTURES YOU CAN REGISTER IN TANZANIA
- Limited Liability Company In Tanzania, a limited liability company (LLC) is a separate legal entity from its shareholders. Each shareholder’s liability for an LLC’s debts and obligations is limited to their respective share capital contribution. The requirement for an LLC incorporation in Tanzania is at least two shareholders and two directors, all of whom can be of any nationality. There is no requirement for a minimum paid-up share capital. An LLC is the most commonly used legal entity for registering a business by a foreigner, and it is best suited for the incorporation of a small business with a simple shareholding structure.
- Public company A public company in Tanzania is one whose shares are available for public trading. To form such a company, at least two directors and seven shareholders are required (one of whom must be a Tanzanian national with a minimum 40% stake in the company). A minimum share capital of US$300,000 is also required to establish a public company. A public company is ideal for anyone looking to raise capital or list his or her business on the Tanzanian national stock exchange.
- Branch A foreign firm may establish a 100 percent foreign-owned company in Tanzania as a branch office. It can be used to conduct business within the country.
- Representative A foreign firm may establish a 100 percent foreign-owned company in Tanzania as a branch office. It can be used to conduct business within the country.
BENEFITS OF REGISTERING A COMPANY IN TANZANIA
- Tanzania allows free capital and profit outflows and does not impose foreign exchange controls or restrictions, thereby encouraging investment activity.
- Tanzania has one of the lowest consumer cost indices in Sub-Saharan Africa, so starting a business is inexpensive.
- Tanzania’s special economic zones offer a variety of incentives, including a complete exemption from value added tax (VAT) on utilities and a 10-year exemption from corporate tax and withholding tax
ALL COMPANIES
All local businesses are required to file annual returns in prescribed forms. Company accounts (unless exempted by law) are included in the returns. Only audited balance sheets of foreign corporations are required to be filed
LOCAL COMPANIES REGISTRATION PROCEDURES
- Applicants submit a letter for name clearance, the registry clears establish: –
- The availability or non-availability of the applied name
- Prepare Memorandum and Articles of Association which complies with ISIC classification and submit the same to the Registrar for registration process.
- Compliance with all requirements relating to formation of the company is declared in form no.14b which is sworn before Commissioner for oath.
- Signing and stamping of Ethics form
- Signing and dating of consolidated form generated by the system
POST REGISTRATION MATTERS
Any changes in the company should be reported to the Registrar as soon as possible. After noting the reported change, the registrar registers it upon payment of filing fees. If a change is not reported on time, a penalty is imposed.
If a company fails to take off after one year for any reason, the officers may notify the Registrar, who issues a notice to strike the such company off the register of companies. If no notification is made, the Registrar has reason to believe that the company is carrying on business and is thus required to comply with all the requirements relating to existing companies.
ONLINE COMPANY REGISTRATION IN TANZANIA
The Business Registrations and Licensing Agency (BRELA) has finished developing a modern Online Registration System (ORS), which includes the registration of Companies, Business Names, Trade and Service Marks, and their respective post registrations, as well as the issuance of Patents and Industrial Licenses. Customers will be able to access all BRELA services from wherever they are, at any time of day, without having to visit BRELA premises. BRELA has begun offering services online in modules, beginning with industrial property services such as trade and service marks, patents, and company registrations. Furthermore, the number assigned to the registered company via ORS corresponds to the Registered Company’s TIN ID Number. As a result, you should take a company registration certificate to the nearest Tanzania Revenue Authority (TRA) office to collect the company’s TIN certificate.
CONTACT US FOR COMPANY REGISTRATION IN TANZANIA
Are you looking to invest in Tanzania today or you are a foreigner looking to start a business here in Tanzania? we encourage you to call us today. Our team is made up of professionals who will help you with your company registration procedures here in Tanzania. Furthermore, we will give you a step by step guide on how to register your business in Tanzania.
Read More at https://tanbizlink.co.tz/company-registration-in-tanzania/
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