This is an evolving document that may be changed over time based on legal and regulatory feedback and policy changes.
Last updated: 6th August 2019.
Contrary to what you might have heard, it’s not difficult to get started as a sole business owner in Tanzania. You only need 4 documents to get started!
1. Company registration document
This document makes the name of your organisation legal in the country. To start your company registration, you will need to engage with the Business Registration and Licensing Agency (BRELA). This agency can check your desired organisation name against its database and confirm or deny the existence of a similar name. A National Identification (NIDA) card is required for this process as well.
2. Business Tax Identification Number (TIN)
In order to complete your company registration, the Tax Revenue Authority (TRA) require a lease document. All businesses in Tanzania are required to have a place of business, ie: the office. To confirm this place of business, you need an agreement with your landlord to show that you are legally entitled to use the space as an office under certain terms. You also need to pay stamp duty and withholding tax on this lease agreement, and will need to stop by your local government office to confirm your place of business.
3. Lease document
For small organisations started and owned by one person, also known as a Sole Proprietorship, the Tax Revenue Authority (TRA) will issue a business TIN on the same document as your personal TIN. In this process, TRA will also calculate your quarterly tax dues based on a presumed revenue scheme, which you will reassess with TRA towards the end of your first year in business.
4. Business license
BRELA will also issue you a business license, based on having a name registered and a place of business. The business license will also require you to share the nature of your business, as there are different categories of businesses, which will then determine your tax regime.
And thanks it! We will update this post to include new information as we receive it, but from our consultation with various agencies and legal entities, this will get you going!
Note that as your business earns more money and grows, there is more paperwork required depending on your work, including:
- E-Fiscal Device (EFD) receipt machine
- Value Added Tax (VAT) registration
- National Social Security Fund (NSSF)
- Occupational Health and Safety Authority (OSHA)
- Fire Certificate
- Tanzania Bureau of Statistics (TBS)
Happy enterprising! Please consult a legal or government representative to get the most up-to-date information.
Thank you Assad Associates for helping us review this list!
