How to Start a Business in Tanzania

Starting a business in Tanzania involves more than just registering a company name. In practice, entrepreneurs usually need to complete business registration, tax registration, licensing, and employer compliance steps before they begin operating legally. Today, most company registration processes in Tanzania are handled through the BRELA Online Registration System (ORS), while tax matters are handled by the Tanzania Revenue Authority (TRA).

For most businesses in Tanzania Mainland, the process generally includes the following steps:

1. Reserve and approve the proposed business or company name through BRELA ORS. BRELA is the government agency responsible for business registration and licensing administration in Tanzania.
2. Register the company with BRELA and obtain the certificate of incorporation. The online system supports company registration, filing of company documents, annual returns, and related post-registration services.
3. Prepare the company’s constitutional documents, including the memorandum and articles of association, as part of the incorporation process. This remains a standard requirement for company formation in Tanzania.
4. Apply for a Taxpayer Identification Number (TIN) with the Tanzania Revenue Authority (TRA). A TIN is essential for tax compliance and is commonly required before other registrations and licences are completed.
5. Apply for a business licence if your business activity requires one. The exact licensing authority may depend on the nature and location of the business.
6. Register for VAT if your business meets the registration threshold. TRA states that VAT registration is mandatory for persons who attain the threshold, including those whose taxable turnover reaches TZS 200 million in a 12-month period in Mainland Tanzania, or half that threshold in six months under the stated conditions.
7. Register with the Workers Compensation Fund (WCF) if you have employees. WCF states that every employer in Mainland Tanzania should register and contribute to the Fund.
8. Register with the National Social Security Fund (NSSF) and register eligible employees where applicable. NSSF states that employer and employee registration must be completed before contribution payments begin.
9. Obtain any additional sector-specific permits or approvals if the business operates in regulated sectors such as tourism, transport, food, construction, finance, telecom, mining, or import and export.

For local and foreign investors with qualifying projects, the Tanzania Investment Centre (TIC) may also facilitate investment procedures such as company registration support, TIN, VAT, business licences, work permits, residence permits, and access to a Certificate of Incentives for eligible projects. TIC says the certificate application is submitted through its project registration system, together with the required supporting documents.

Additional Documents You May Need

Depending on the size and type of business, you may also need to prepare supporting documents such as a business plan or feasibility study, a memorandum and articles of association, proof of premises such as a lease agreement or title deed, and immigration documents for foreign staff where required. TIC lists several of these among the documents used for investment registration and incentives processing.

You may also want to read more about Legal Forms of Business in Tanzania before deciding whether to register as a sole proprietorship, partnership, private company, or another legal structure.

Classification of Businesses by Size in Tanzania

According to Tanzania’s Small and Medium Enterprise Development Policy, 2003, businesses are commonly grouped by the number of employees and capital invested. Instead of using a table, the categories can be explained as follows:

• Micro enterprise: 1 to 4 employees, or capital investment up to TZS 5 million.
• Small enterprise: 5 to 49 employees, or capital investment above TZS 5 million up to TZS 200 million.
• Medium enterprise: 50 to 99 employees, or capital investment above TZS 200 million up to TZS 800 million.
• Large enterprise: 100 or more employees, or capital investment above TZS 800 million.

These classifications are still widely cited when discussing SME categories in Tanzania.

Further reading: Challenges in Starting a business in Tanzania.