{"id":2210,"date":"2020-02-23T18:33:57","date_gmt":"2020-02-23T18:33:57","guid":{"rendered":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/?p=2210"},"modified":"2020-02-23T18:33:57","modified_gmt":"2020-02-23T18:33:57","slug":"why-you-need-to-start-a-business-in-tanzania","status":"publish","type":"post","link":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/2020\/02\/23\/why-you-need-to-start-a-business-in-tanzania\/","title":{"rendered":"Why You Need to Start a Business in Tanzania?"},"content":{"rendered":"<p>In Tanzania, there are several opportunities that will encourage both new as well as existing entrepreneurs to invest in different business ventures. The focus of this article is to educate potential investors on why they need to start a business in Tanzania and how they can get started. So, what are some of the benefits of doing business in Tanzania?<\/p>\n<ul>\n<li>First, there are many investment incentives that are provided by the Tanzania government for both local and foreign investors through the Tanzania Investment Centre.<\/li>\n<li>New investors will always find both skilled and semi-skilled workers in the Tanzania labor market. They are always eager to work in different industries such as mining, agriculture, manufacturing, tourism, and several others.<\/li>\n<li>Tanzania is actually one of the developing countries in Africa. This implies that the market has several opportunities for different kinds of investments cutting across different industries \u2013 tourism, importation, agribusiness, manufacturing and several others.<\/li>\n<li>Some of the things that investors need to succeed in their business include economic stability, favorable government policies and peace. You will certainly enjoy these qualities when you decide to operate in the country. Tanzania is quite peaceful and this is the perfect environment for businesses to thrive and excel in the future.<\/li>\n<li>For those interested in agribusiness, then Tanzania is the ideal location because there is plenty of uncultivated arable land suitable for agribusiness investment.<\/li>\n<\/ul>\n<h2><strong>Step You Need to Take When Registering a Company in Tanzania<\/strong><\/h2>\n<p>Now that you know why you should do business in Tanzania, how do you set up a company? If you are interested in running a company in Tanzania, then it is crucial to know how to register a company. The process of registering your company in Tanzania is quite straightforward and we will cover all the steps below.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Step One: Choose Your Business Entity<\/strong><\/p>\n<p>When registering your company in Tanzania, the first thing you need to do is to choose the kind of business entity you are interested in forming. You can make your choice from three different types of business structures.<\/p>\n<ul>\n<li><strong>Sole Proprietorship:<\/strong>\u00a0This is the kind of business entity which is registered and operated by one person. You can register a sole proprietorship in Tanzania under the Business Names Registration Act. The sole proprietor makes all major and minor decisions of the company. The advantage of this kind of business structure is that the individual alone enjoys the profits of the business. On the other hand, when there are losses, then the business owner suffers it alone.<\/li>\n<li><strong>Partnership:<\/strong>\u00a0This is a type of business structure that involves more than one individual and the liability of the partners in the company is also limited to how much each investor contributed to the company. Unlike the sole proprietorship, all the profits and losses are shared amongst all partners.<\/li>\n<li><strong>Limited Liability Company (LLC):<\/strong>\u00a0In order to register an LLC in Tanzania, there must be at least two shareholders and two directors. The LLC can be public or private and unlike partnership or sole proprietorship; an LLC is a separate entity. This implies that the liability of the shareholders is limited.<\/li>\n<\/ul>\n<p><strong>Step Two: Create a Company Name<\/strong><\/p>\n<p>Now that you know the different categories, the next thing is to create a company name. Regardless of the legal form of your business, all businesses in Tanzania are expected to register with the Business Registration and Licensing Agency (BRELA). This agency is under the Ministry of Industries and Trade. As soon as you have completed the registration, then you need to acquire name clearance from BRELA too.<\/p>\n<p><strong>Step Three: You Need Notarization of Compliance<\/strong><\/p>\n<p>You have to get a notarized declaration of compliance, so you have to visit a notary for the notarization of the declaration of compliance.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Step Four: Certification of Incorporation<\/strong><\/p>\n<p>Now, you are ready to apply for a Certificate of Incorporation which you can do at the Tanzania Investment Centre. At this point, a secretary, subscriber or anyone whose name appears in the articles of association as a director will have to submit the information below to the Registrar of Companies:<\/p>\n<ul>\n<li>A declaration of compliance on the application for the registration of a company.<\/li>\n<li>The intended location of the registered office, the first directors, as well as the secretary.<\/li>\n<\/ul>\n<p><strong>\u00a0Step Five: Prepare a Memorandum and Articles of Association<\/strong><\/p>\n<p>Basically, a Memorandum of Association refers to a detailed statement of the objects of the company. This is the next step in the process of registering your company. Also, the Articles of Association refers to a detailed statement disclosing the management structure as well as processes.<\/p>\n<p><strong>Step Six: You need to Apply for Taxpayer Identification Number<\/strong><\/p>\n<p>You can apply for TIN at the Tanzania Revenue Authority (TRA). You will attach the certificate of incorporation along with the TIN application which contains the Memorandum and Articles of Association when applying to TRA. This is how the limited liability company has to apply for the TIN certificate:<\/p>\n<ul>\n<li>Application for the company<\/li>\n<li>Application for every single shareholder\/director<\/li>\n<\/ul>\n<p><strong>Step Seven: Obtain Your Business License<\/strong><\/p>\n<p>At this point, you are closer to completing the whole process. You have to apply for a business license at the Ministry of Industry and Trade (MIT) as well as Local Government Authorities (LGAs). The MIT or LGAs often issue a business license based on the kind of business. While submitting the application, you need to also attach the following documents:<\/p>\n<ul>\n<li>Proof of suitable company premises<\/li>\n<li>Proof of Tanzania Citizenship<\/li>\n<li>Certificate of incorporation<\/li>\n<li>Taxpayer Identification Number (TIN)<\/li>\n<li>Memorandum and Articles of Association (MAA)<\/li>\n<\/ul>\n<p><strong>Step Eight: Get Your VAT Registration Done<\/strong><\/p>\n<p>You will apply for VAT registration at the Tanzania Revenue. For every business that aims to start their business with an initial capital of 50 million within the first six months and 100 million in one year, VAT registration is compulsory. To get the necessary papers for registration, you have to visit the TRA office.<\/p>\n<p>Note that VAT registration applies to all businesses except the ones offering professional expert services. Alternatively, you can visit the TRA\u2019s website to do an online VAT registration.<\/p>\n<p><strong>Step Nine: Workmen\u2019s Compensation Insurance<\/strong><\/p>\n<p>You are required to register for workmen\u2019s compensation insurance as well. You can do this at the National Insurance Corporation or any alternative insurance provider. This will require employers to complete the Workmen\u2019s Compensation Tariff Proposal Form. You can do this at the Tanzania Insurance Regulatory Authority (TIRA) and Workers Compensation Fund (WCF).<\/p>\n<p><strong>Step Ten: Get Social Security Registration<\/strong><\/p>\n<p>The next thing is to obtain Social Security Registration Numbers from all compulsory security schemes. All these mandatory schemes are actually made available by law and they are guaranteed by the government to ensure that employees are provided with social security service.<\/p>\n<p><strong>Step Eleven: Get your Company Registered with the Occupational Safety and Health Authority (OSHA)<\/strong><\/p>\n<p>One major step toward owning a company in Tanzania is to register with OSHA. You will complete the application form and also make the company registration documents available. Before you apply for inspection and health safety, the OSHA officials will visit your workplace\/factory. To complete the application, you require things such as:<\/p>\n<ul>\n<li>Address<\/li>\n<li>The complete number of employees<\/li>\n<li>The name of the occupier<\/li>\n<li>Nature of work<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In Tanzania, there are several opportunities that will encourage both new as well as existing entrepreneurs to invest in different business ventures. The focus of this article is to educate potential investors on why they need to start a business in Tanzania and how they can get started. So, what are some of the benefits&hellip;<\/p>\n","protected":false},"author":2,"featured_media":2202,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/posts\/2210"}],"collection":[{"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/comments?post=2210"}],"version-history":[{"count":0,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/posts\/2210\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/media\/2202"}],"wp:attachment":[{"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/media?parent=2210"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/categories?post=2210"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/integrity3d.co.uk\/portfolio\/consulting\/wp-json\/wp\/v2\/tags?post=2210"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}