(i) Requirements for registration or incorporation of a company in Tanzania
Generally, there are two options for foreign companies to set up their legal presence in Tanzania. These are as follows:
(a) By making a declaration to the Registrar of Companies that a foreign company has complied with the requirements of the Tanzanian company law. The declaration can be obtained by filing the specified documents to the Companies Registry. The Companies Registry will always examine the specified documents and if it is satisfied that the documents are in line with the requirements of the Tanzanian company law, it will register the foreign company and issue a certificate of compliance. The required documents for registration through obtaining certificate of compliance include submission to the Companies Registry the Memorandum and Articles of Association, a statute or charter under which a company was incorporated in a foreign country.
(b) By incorporating a new company in a form of a subsidiary or branch. In order to form a new company, the following documents must be submitted to the Companies Registry:
(i) Name of the company (which must be cleared by the Registrar of Companies);
(ii) The address of the registered office in Tanzania;
(iii) Names, residential addresses and nationalities of the first subscribers (at least two).
(iv) Memorandum of Association (stating in details the objects of the company) and Articles of Association (stating in detail the management structure and processes). At least two copies of each document must be filed;
(v) Filing a prescribed form to make a declaration that a company has complied with the requirements of the Tanzanian company law; and
(vi) Payment of the filing fee, registration fee and the stamp duty.
Our firm provides assistance to foreigners who are not in position to fulfill the above requirements within a very short time. For further details of this service you can view the company formation services under the practice areas in the navigation bar.
(ii) Requirements for obtaining Investment Incentives from Tanzania Investment Center
As part of the Government policy to promote investments in Tanzania, there are special investment incentives granted to eligible investors. Tanzania Investment Center grants these incentives. In making application for investment incentives, the following documents are required:
(i) Three (3) copies of the projects Business Plan/Feasibility Study. The intended project should aim at foreign exchange generation and savings, import substitution, creation of employment opportunities, linkage benefits, transfer of technology, expansion of production of goods and services etc. The feasibility study should contain clear statement of the project objective, information regarding the investor, details of investment costs (foreign and local expected capital expenditure), how the proposed investment will be financed, specific sources(s) of finance for the project, terms and conditions of the loan if applicable, sources of technology if applicable, project financial and economic analysis, market study, project capacity, production process if applicable, environmental impact assessment, expected employment generation, proposed implementation schedule, etc;
(i) Three (3) duly filed copies of application forms which are issued by the Tanzania Investment Center at a fee of US$ 100;
(ii) In case of expansion/rehabilitation, a copy of audited account for the past three years;
(iii) A copy of the companys Memorandum and Articles of Association;
(iv) A certified copy of the Certificate of company Incorporation;
(v) A brief profile of investors(s);
(vi) Evidence of sufficient finance capital available to implement the project;
(vii) Evidence of land ownership for the location of the project;
(viii) Project implementation schedule; and
(ix) An overall covering letter to which all the above are attached.
(iii) Requirements for obtaining a business license in Tanzania
Unless you have planned properly, the process of obtaining license in Tanzania can be a complex process. The procedures and requirements of obtaining business license may differ from one sector to another depending on the degree of regulation in the sector involved. Apart from obtaining sector specific licenses/permits, all businesses must be licensed under the Business Licensing Act, 1972. To obtain a business license under this legislation, the Applicant must submit the following documents:
(i) Photocopy of the certificate of incorporation or certificate of compliance (in case of a company) or certificate of registration or extract (in case of partnership or sole traders);
(ii) Memorandum and Articles of Association showing among other things that the objectives of the company allow it to do the business which the license is being applied for;
(iii) Proof of Tanzania citizenship e.g. photocopy of passport, birth certificate, or in case of a non-citizen, resident permit Class A (showing the holder to be the investor in that company/business);
(iv) In case the shareholders of the company are non-residents, a Powers of Attorney to a citizen/resident must be submitted;
(v) Proof by the applicant having a suitable business premises for the business applied. Proof that can be submitted includes title deed, tenancy agreements, receipt of rent or property tax payment, etc); and
(vi) Tax identification number (TIN) issued by Tanzania Revenue Authority.
As pointed above, there are licenses/permits that must be given by the relevant government departments or regulators. When you inform us the nature of your business, we will advise you the sector specific licenses/permits that apply to your line of business. The following are examples of sector specific licenses/permits that must be obtained before a business license is granted:
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Customs agency license (issued by Tanzania Revenue Authority) for those applying for a license to carry out the business of clearing and forwarding.
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Tourist agency license (issued by the Ministry of Natural Resources and Tourism) for those applying for a license to carry out tourism promotion business such as tourist hotels, travel agents, tour operators, hunting, etc.
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Mineral rights (issued by the Ministry of Energy and Minerals) for those applying for a license to carry out mining business.
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Banking license (issued by the Bank of Tanzania) for those applying for a license to carry out banking business.
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Telecommunications/postal/broadcasting license (issued by Tanzania Communications Regulatory Authority) for those applying for a license to carry out telecommunications/postal/broadcasting business.
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Insurance license (issued by Insurance Supervisory Department) for those applying for a license to carry out insurance business.
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Special license/permit (issued by Tanzania Food and Drugs Authority) for those applying for a license to carry out business relating to food, drugs and cosmetics.
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Fishing license (issued by the Ministry of Natural Resources and Tourism) for those applying for a license to carry out fishing business.
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Professional certificates/authorization for all professional businesses e.g. doctors, lawyers, pilots, accountants, ship captains, etc (issued by the respective professional organization).
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Petroleum exploration license (issued by the Ministry of Energy and Minerals) for those applying for a license to carry out petroleum exploration.
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Industrial license (issued by the Ministry of Industries and Trade) for those applying for a license to establish industries and factories.
(iv) Requirements for obtaining resident permit in Tanzania and Zanzibar
All individuals intending to reside in Tanzania for the purpose of carrying out business must possess resident permits. The following types of resident permits apply to foreigners intending to reside in Tanzania for the purpose of carrying out business:
(a) Class A (for self-employed investors); and
(b) Class B (for foreigners to be employed).
(i) Class A Permits (for self-employed investors)
Applicants for this type of resident permit are required to fill in Tanzania Immigration Form 1, which can be obtained from any immigration office in Tanzania and Tanzanian embassies abroad. The following items must be attached to the application form:
Tanzania mainland applications
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A covering letter from the applicant;
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Certificate of Incentives from Tanzania Investment Center;
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Six photographs;
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Curriculum vitae;
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Educational certificates (if appropriate);
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Evidence of company registration/incorporation in Tanzania;
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Memorandum and articles of association or other company statute/charter;
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Evidence of business premises;
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Approval from the relevant ministry/regulator;
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Share certificate (if needed);
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Copy of passport pages authenticating nationality and validity of passport; and
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For those who do not possess a Certificate of Incentives from Tanzania Investment Center must provide a Bank proof of possessing at least US$ 300,000
Zanzibar applications
Specific requirements for the application process in Zanzibar include:
(ii) Class B Permits (for foreigners to be employed)
Applicants for Class B permit must complete Tanzania Immigration Form 1 and submit it to the Commissioner for Labor for recommendations. The recommendations given by the Commissioner for Labor will be forwarded to the Director of Immigration Services for further action. The following items must be attached to the application form:
Tanzania mainland applications
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Covering letter or letter of appointment;
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Five photographs;
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Curriculum vitae;
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Academic qualifications (preferably copies of diplomas);
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Job description for each individual expatriate;
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Organizational structure o f a company showing clearly the number and types of posts filled in or lined up for expatriates;
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A letter of clearance from the Government for anyone to be employed in a public sector organization;
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Membership certificates or clearances from local professional bodies for testing and monitoring the professional integrity of expatriates i.e. doctors, lawyers, nurses, engineers, pilots, surveyors, accountants and the like;
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Employment contract;
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Photocopy of passport pages to authenticating nationality, validity, and the current immigration status (if the applicant is already in the country); and
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Evidence to show that the company has tried to fill the position with a Tanzanian by producing copies of advertisements announcing the vacancy as well as the Curriculum Vitae of a Tanzanian alternative.
Zanzibar applications
Specific requirements for the application process in Zanzibar include:
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Applicants in Zanzibar are required to produce additional attachments as follows:
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A covering letter from Zanzibar Investment Promotion Agency or the authority responsible for Export Processing Zones;
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Four Photographs passport size; and
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Police clearance.
