Tanzania Overview
Business leaders considering market entry into Tanzania require a clear perspective on the operational, regulatory and employment requirements for a successful take-off. Here’s what you need to know…
Capital: Dodoma (Administrative)
Dar es Salaam (Commercial)
Area: 947,303 km2
Languages: Kiswahili, English, Arabic (only in Zanzibar)
Life expectancy: 66.41 years
Population: 61.7 million
37% increase over the last 10 years
President: Samia Suluhu Hassan
Type of Government: Unitary republic with multi-party democracy
Time zone: GMT + 3
Currency: Tanzania Shilling (TZS)
Calling code: +255
Economic drivers: The main sectors of Tanzania’s economy as per their contribution to the GDP are Construction (16%), Crops (14%), Manufacturing (9%), Wholesale and Retail Trade; Repairs (9%), Transport (8%), Livestock (8%), and Mining and Quarrying (5%).
Investment potential: Tanzania’s investment potential is rising rapidly. In February, the number of registered projects in the country increased by an impressive 128%, with a total of 41 projects registered nationwide.
Safety: According to the 2019 Global Peace Index, Tanzania is
the 7th safest country in Africa.
Sources: Demographic yearbook by the UN Statistics Division, Bank of Tanzania, TanzaniaInvest.
What we offer
Company set-up support
Forms of Incorporation
Under the Companies Act, 2002, Tanzania recognizes three types of companies: companies limited by shares, companies limited by guarantee (CLG), and unlimited companies. These companies can be classified as either private or public. Foreign investors commonly establish a presence in Tanzania by either registering a branch of a foreign company or incorporating a local company. The latter option is more prevalent due to advantages such as ring-fencing the subsidiary from the parent company and the familiarity of regulators with the subsidiary setup. This familiarity can streamline licensing procedures compared to setting up branches.
- Incorporation of subsidiary companies (limited liability companies)
Our support includes undertaking name reservation, preparing and certifying the required documents, executing incorporation papers and submitting applications to the Registrar of Companies.
- Branch registration
Our support includes providing an Adili nominee to act as the resident person in Tanzania authorized to accept on behalf of the foreign company service of process and any notices required to be served on the company. The Adili nominee also acts as the resident person in Tanzania authorised to represent the foreign company as its permanent representative for the place of business.
- CLG registration
Presently, an entity in Tanzania can only be registered as a CLG if it is formed with the objectives of promoting commerce, trade and investments or any other activity that is approved by the Minister of Trade as per the provisions of The Written Laws (Miscellaneous Amendments) (No.3) Act, 2019 (the “Amendments”). Our support includes providing the right advice regarding the incorporation of this form of entity.
- Set up of statutory records
We offer support in preparing and issuing of share certificates, preparing the first minutes and inaugural resolutions, establishing member registers, registers of directors and registers of secretaries, and purchasing company seals and stamps.
- Assistance in opening the company bank accounts
Our support includes preparing the necessary board resolutions and extracts for opening bank accounts, gathering supporting documents, and providing any required company secretary certifications requested by banks.
- Registered office address service
Our support will include providing the use of our office address as the registered office address of the company in Tanzania and the use of our postal address. We receive communications and notices on behalf of our clients and forward them to the company’s contact person for necessary action to be taken.
Regulatory compliance
- Application for Taxpayer Identification Number (TIN) certificate
After the certificate of incorporation/ compliance is issued by the Registrar of Companies, it is mandatory by law to apply for a TIN within 30 days. Our team is available to offer support throughout the TIN certificate application process, which involves:
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- Completing the application forms for submission to the Tanzania Revenue Authority (TRA).
- Collating all the required documents for the TIN application.
- Applying for confirmation from Serikali ya Mtaa (Local Government Authority).
- Arranging for at least one resident director to appear at the TRA Office, which is a mandatory requirement. In the event the company does not have a resident director, we provide an Adili nominee to hold a Power of Attorney on behalf of the non-resident directors in this regard.
- Following up with TRA and collecting the TIN Certificate.
Our support will also include registering the company on the TRA e-filing system for the purpose of filing tax returns and applying for a tax clearance certificate which is a pre-requisite for business license application. The registration process will require the company to have an e-filing system representative and a declarant, and we provide both services on behalf of our clients.
- Application for business licenses
It is mandatory by law to acquire business licenses before commencing any business activities. Our team is available to offer support throughout the business license acquisition process, which involves:
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- Collating the required company documents and making business license applications.
- Facilitating the assessment and payment of the license fees.
- Following up and collecting licenses.
- Application for Value-Added Tax (VAT) certificates
Registration for VAT is mandatory for every person upon attaining the registration threshold of TZS 100 million in the period of twelve months and above or TZS 50 million in a period of six months ending at the end of the previous months.
We offer support in applying for VAT registration numbers and acquiring Value Added Tax (VAT) certificates. We also facilitate the purchasing and registering of electronic tax devices.
- Registration with the National Social Security Fund (NSSF) and Workers Compensation Fund (WCF)
Our services include facilitating the registration process, following up on the applications, and ensuring that the registration certificates are issued.
- Beneficial ownership disclosures
Every company must identify and maintain a register of its ultimate beneficial owners, and submit their details to the Registrar of Companies in line with the Companies (Beneficial Ownership) Regulation of 2021. Adili is at hand to offer support in complying with regulations around beneficial ownership disclosures.
- Company secretarial services
It is mandatory by law for a company to have a company secretary during and after incorporation. Adili is at hand to act as your named company secretary and attending to the standard annual compliance and routine secretarial work. We also offer meeting support services for the board of directors and shareholders’ meetings.
- Tax Compliance Services
Adili will be happy to assist you with your tax filings including but not limited to, the filing of corporate income tax returns (preparing tax computations and statements of estimated tax payable and filing with the TRA, advising on the instalment tax to pay to the TRA, and preparing of tax computation and return of income and filing with the TRA). We also assist with withholding tax compliance and VAT compliance, if required.
Registration of Trademarks, Patents and Copyright
Adili is at hand to help you throughout the whole process of your trademark, patent and copyright registration. We provide both registration and post-registration support, including advising you on the information and documents required for each application, submitting the application on your behalf and following up for approval, renewal process, assignment process, applying for any changes in the particulars of the owner etc.
Employment and immigration matters
- Immigration support services
We provide professional immigration services based on the latest related country’s immigration laws, professional advice and guidance on the requirements and procedures.
- Payroll services
We offer end-to-end payroll services, supported by top-of-the-line technologies that are key to efficiency and compliance in any organisation.
- Accounting & bookkeeping services
We offer efficient, scalable, and cost-effective accounting and bookkeeping services, designed to seamlessly plug into your business systems. We take care of your accounting needs using reliable accounting systems and reporting tools. Our package comprises a dedicated team of professionals to provide end-to-end accounting services that match your needs.
Planning your market entry strategy
Talk to our experts
Adili Corporate Services Tanzania Limited,
Ground Floor, The Address 1 Bains Singh Avenue, Msasani Peninsula
P.O. Box 79651 Dar es Salaam, Tanzania
Tel: +255 22 2601212/2601151
Email: info@adiliafrica.co.tz
