Complete Procedure Involved for Company Registration in Tanzania
It has been seen that the trend of doing global business is gradually getting shifted to the countries of the African continent. This is because Africa has some major countries which are considered to be one of the most ideal locations to invest in the establishment of any new ventures. The country is chosen by all the types of entrepreneurs as it is the potential center for both big as well as small scale businesses. However, to start a business in any other country, it is required to know the rules and regulations of that particular country where you want to do business in. Here, we are going to consider all the aspects of company registration in Tanzania.
Why Should You Go for Company Registration in Tanzania?
Tanzania is ideally located in the eastern belts of the African continent. It enjoys the proximity to the countries of the Middle East and European countries which makes the country more potentially progressive in terms of supporting international enterprises. The major reasons for being the preferred choice for company registration in Tanzania is the availability of natural resources in a huge amount such as gold, tin, diamond, and many more. Entrepreneurs can consider various business ideas in the core sectors of fabric, beverage, and food. Tanzania is preferred by the tourism industry due to the presence of Mount Kilimanjaro along with many reserves and sanctuaries.
What Benefits Can One Derive Through Company Registration in Tanzania?
- There are no restrictions for international businessmen to promote their business in Tanzania. If you set up a company in Tanzania, you will get the privilege of retaining the revenue of your company without paying any extra fees to the government.
- Investment account company registration in Tanzania is relatively lower than any other country because of the client payment index of Tanzania is low.
- There are certain regions in the country where companies get the leverage of getting exempted from paying the VAT. This is done to attract more entrepreneurs in the country.
- To improve the social and economic condition of Tanzania the government has decided to reserve certain zones in Tanzania where entrepreneurs will not be asked to pay withholding or corporate tax for a decade.
A Complete Guide for Company Registration in Tanzania
Choose the Type of Company
You are required to decide upon the type of business you want to run in Tanzania. You can select from the below mention business types:
- Individual entrepreneurship- The Tanzanian government gives the authority to run a business by single shareholders under the Business Names Registration Act. The owner will be exclusively liable for all the costs and revenues of the investment.
- Partnership-This type of business has multiple shareholders who are involved with the operation of the business. All the members of the company will be responsible for the outcome of the investment.
- Limited Liability Company (LLC) – To start a company as an LLC in Tanzania, the venture is required to have at least 2 shareholders along with two managers. In an LLC, the liability is on the corporation and not on the individuals.
Decide the Name of the Company
The next step in the process of company registration in Tanzania is to decide the name of the company through which you want to promote your company. The name chosen for the company should not match any other closed or open business in the company. The entrepreneurs need to that bunny registered and authorized by the Business Registration and Licensing Agency (BRELA).
Notarize the Company
All the companies need to be notarized by the governing body in Tanzania. After getting the company notarized, it can perform its operations smoothly.
Process of Inclusion
To work in a foreign land without any trouble, the company needs to complete the process of inclusion and get the license of incorporation. The Tanzania Investment Centre requires you to submit the details of the director and the secretary of the company along with the petition for acknowledging the compliance of company registration in Tanzania. Further, the entrepreneurs should have to state the goal of the company and the hierarchy of all the members along with their responsibilities.
Register the Company for TIN and VAT
Once the above procedure is finished, the Tanzania Revenue Authority (TRA) will provide the TIN for the company and authorize it for the VAT. If it is an LLC, the business owner would have to submit the forms with the company and shareholders’ data to get the TIN.
Apply for Other Mandatory Registrations
Tanzania government allows the company to operate legally once it has completed all the mandatory registration formalities. The country has certain rules and regulations for entrepreneurs with the following compulsory registrations:
- Get your employees insured for reimbursement by enrolling at the Workers Compensation Fund (WCF).
- Get registered for social security.
- Signup with the OSHA (Occupational Safety and Health Authority)
3E Accounting – Your Assistant for Company Registration in Tanzania?
With all the steps for the company registration in Tanzania as clearly mentioned above, it will not be very difficult for you to launch a new business in the country. We tend to work for all the types of entrepreneurs to set up their company with minimum cost. Do contact us for assistance or services and will make the registration process a lot more convenient and easier for you.