Business Opportunity Starts With Tanzania Company Registration
For a country located in the African continent, Tanzania boasts vast plains of wilderness. It is the home of the highest mountain in Africa, Mount Kilimanjaro. It also has tropical islands with Arabic influences as well as a marine park lush with coral reefs. As such the country is big on tourism. Its riches do not end there, as its political stability remains a strong reason for entrepreneurs going for a Tanzania company registration.
The Riches of Tanzania
First things first, any business owners wanting to set up a company in Tanzania should realise that the country is blessed with natural fortune. Its climate is remarkable that it has enough sun and rainfall that makes its lands arable. It is not extremely warm or cold, hence, moving or expanding a business to Tanzania is highly appropriate. Although the country relies heavily on agriculture exports, it also exports a considerable amount of gemstones such as diamonds and tanzanite. Despite being multi-ethnic, everyone gets the same treatment. It also has weathered an economic recession because it was yet to penetrate global markets. But if you wish to market to the African nations as well as the world, setting up shop in Tanzania is a good move.
Perks of Doing Business
Apart from doing business in a country that is blessed with natural resources, Tanzania assures business owners will have access to business incentives. Among the incentives are access to financing and support. There has been a growth in the start-up scene in Tanzania. There are endless possibilities of doing business in Tanzania that one can exploit. The corporate tax rate in Tanzania is 30%. It may be high, but in return, you get to be part of developing Tanzania into a modern nation. There is also a reduced tax rate for specific sectors of manufacturing. The reduction rate ranges from 10% to 25%. Tanzania also boasts sizeable skilled and semi-skilled workers for any business owner to hire.
How to Register Business in Tanzania
The following is a guide to register a company in Tanzania. There could be more requirements or processes, depending on the type of company structure you choose to register.
THE TYPE OF COMPANY
There are several types of company allowed to register in Tanzania. These are private companies, public companies, and foreign companies.
- Private companies are the most common business structure people decide on when registering a company. It is formed with a minimum of two shareholders and a maximum of 50 shareholders. Under the law, shares are not easily transferred.
- Public companies are companies listed on the stock exchange with shares traded publicly. It is formed with a minimum of two shareholders. Public companies have no limit on shareholders. Any natural person can purchase shares of these company and become a shareholder. A private company can convert into a public company by amending its Articles of Association and issuing a prospectus.
- Foreign companies are branches of companies formed outside Tanzania. Even if all the shareholders are Tanzania nationals, it remains as an international company.
PRIVATE COMPANY REGISTRATION
If you wish to register a company in Tanzania, the Business Registration and Licensing Agency (BRELA) is the place to go. You can visit the agency’s website to find out the necessary documents needed for a Tanzania company registration. Generally, you will begin the process by:
- Undergo a Company Name search to ensure your preferred name is not taken. Reserve the name quickly so that it is yours.
- Draft the Memorandum and Articles of Association that complies with ISIC classification. Please submit them to the Registrar for the registration process.
- Comply with all requirements in form 14b, which is sworn before a Commissioner for Oath.
- Sign and stamp the Ethics form
- Sign and date the consolidated form generated by the system.
Recently, BRELA has completed their online company registration system. Applicants can have a look at what it entails at the agency’s website. The process of incorporating a company from (A) to (E) can take up to five working days.
COMPLETED COMPANY REGISTRATION
After receiving the Certificate of Incorporation, there are several more steps that are needed before commencing the business. These include obtaining the Tax Identification Number (TIN), Business License and Value Added Tax identification number. If you have further queries on these matters, contact us, and we will gladly assist you.