The Republic of Tanzania is a renowned business hub for local and international investors. The government provides immense support to SMEs and large corporations. Everything seems flawless and efficient, starting from business registration to taxation to marketing.

Tanzania is politically peaceful, enabling global and local investors to create long-term business projects. The country is undergoing digital transformation under the watchful guidance of the national government. Besides, the country has lucrative locations for start-ups, including the Kariokoo market.

The skilled labour market is growing quickly as the government creates learning opportunities for its citizens in all economic sectors. Tanzania has a simple business registration procedure. Read on to know how to open your first enterprise in Tanzania.

Accepted Business Structures in Tanzania

To open a physical store in Tanzania, first select a suitable business structure. Tanzania accepts these options:

• Sole proprietorship – As a sole proprietor, you will be your own boss. Choose this option if your capital sources are few or unreliable. The government will levy taxes on personal income.
• Partnership – A partnership is a venture involving two or more partners. It is easy to create and run because every partner shares responsibilities and losses. Partners also share profits, which is the main disadvantage.
• Limited Liability Company – An LLC and its owners are separate entities. It consists of shareholders who partake in ownership based on their share capital contributions. LLCs are ideal for foreigners due to their flexibility and scalability.
• Public Company – You should be a group of seven or more shareholders to open a public company in Tanzania. The smallest capital required is $300,000. Public companies should publicly declare and list their shares on the country’s stock exchange.
• Branch Office – Opening a branch office is another way to start a business in Tanzania. This means you have headquarters in your country and now want physical presence in Tanzania. A branch office operates under the leadership and financial backing of its parent company.

Business Registration Process in Tanzania

• Choose Your Ideal Business Structure – Tanzania allows you to explore the above business structures. You need to choose the one to start first.
• Register the Business Online – The body that registers organizations in Tanzania is known as the BREILA (Business Registration and Licensing Authority). Visit its website and register your business name. Select your business name carefully, ensuring it is short, informative, and easy to recall. BRELA provides a certificate of registration with your identity details.
• Get a Certificate of Incorporation – If you want to start a company, you need to obtain a Certificate of Incorporation. You can apply for it by visiting BRELA or the Tanzania Investment Centre. Carry your Memorandum of Association, Articles of Association, and Compliance Declaration documents.
• Obtain Your Taxpayer Identification Number (TIN) – Tanzania Revenue Authority is the TIN issuer. Partners should carry their Partnership Deed when applying for the TIN. Company directors should bring their Articles of Association, Memorandum of Association, and other relevant paperwork.
• Get a Business Permit – The Ministry of Industry and Trade issues licenses. Depending on the business structure, obtain a permit from the local government.
• Apply for Value Added Tax – The TRA requires all ventures with a capital value of $50,000 to register for Value Added Tax.
• Take out the Workers’ Compensation Insurance Cover – You must insure your workers by joining the Workers’ Compensation Fund.
• Register for NSSF – Businesses should join the National Social Security Fund by registering for it. It is a scheme that helps employees save money for retirement.
• Finish with OSHA – Tanzania expects every company to join the Occupational Safety and Health Administration. OSHA inspects the workplace to ensure the environment and working conditions favour the employees.

As a foreign investor in Tanzania, you must obtain the Certificate of Compliance from BRELA. You need a Tax Clearance Certificate, a TRA document that confirms you file taxes.