According to the World Bank “Ease of Doing Business” report, a company will need to go through the following steps to incorporate and register a new firm in Tanzania:
1) Apply for clearance of the proposed company name at the Business Registration and Licensing Authority (BRELA).
2) Obtain a notarized declaration of compliance.
3) Apply for incorporation of a company and obtain a certificate of incorporation (an industrial license will be obtained upon application and submission of a certificate of incorporation/compliance or TIC certificate of incentives)
4) Apply for and obtain Taxpayer Identification Number (TIN) with the Tanzania Revenue Authority (TRA).
5) Apply for a business license from the regional trade officer (depending on the nature of the business)
6) Apply for VAT certificate with the Tanzania Revenue Authority (TRA).
7) Register for the workmen’s compensation insurance at the National Insurance Corporation or other alternative insurance policy
8) Obtain a registration number at the National Social Security Fund (NSSF).
Also read: Legal Forms of Business in Tanzania
On the other hand, According to Tanzania Investment Center’s Investment Guide, a company will also need to:
1) Have a business plan or feasibility study
2) Have a memorandum and articles of association
3) Have a certificate of incentives (for projects approved by TIC)
4) Have a lease agreement or title deed
5) Arrange for a Class A or B resident permit for their foreign employees
Classification of businesses by size in Tanzania
According to Tanzania SME development policy 2003, the common classes of business by size are:
|#||Category||Employees||Capital (in million TShs.)|
|1||Micro enterprise||1 - 4||Up to 5mil.|
|2||Small enterprises||5 – 49||Above 5 mil. to 200 mil|
|3||Medium enterprises||50 – 99||Above 200mil.to 800 mil|
|4||Large enterprises||100 +||Above 800 mil.|
Further read: Challenges in Starting a business in Tanzania