Registration of a company in Tanzania is a good opportunity to create a profitable large or medium-sized business in Africa.
Tanzania (United Republic of Tanzania) is an independent agricultural state located in the eastern part of the African continent and has access to the Indian Ocean.
Among the closest neighboring countries are Mozambique, Malawi, DR Congo, Rwanda, Zambia, and Burundi.
The most important sectors of the economy are agriculture (coffee, nuts, fruits, tea, grains, cotton) and animal husbandry, industry (footwear, sugar, tobacco, beverage production), and mining (gas, iron, salt, gold, diamonds, tin ).
The capital of the state and the largest city is Dodoma (Dar es Salaam). The population is over 60.3 million people. The national languages are Swahili and English. The financial unit is the Tanzanian shilling (TZS). The climate is subequatorial.
Participation in international organizations: ICRC, WTO, Group of Six, Group of 77, Interpol, IOC, IAEA, IBRD, IFAD, and others.
The main business advantages of registering a company in Tanzania
The key reasons why you should register a company in Tanzania are as follows:
- Convenient geographical location;
- Smoothly developing economy;
- Good ecology;
- The constant need for foreign investment;
- Broad opportunities for opening any type of business;
- Availability of DTA agreements with more than 22 countries of the world;
- Labor force available;
- Flexible taxation.
Also, for those who are planning to set up a business in Africa, in particular, open a company in Tanzania, we advise you to choose any of the following business areas: tourism, IT, mobile communications, light industry, food industry, construction, transport, and medicine.
Types of companies in Tanzania
If you are going to register a company in Tanzania remotely, then we recommend that you carefully read the following forms of economic activity:
- Private Limited Liability Company (PLLC / LLC);
- Special Economic Zone Company (SEZ Company);
- Travel Company (TC);
- Limited Liability Partnership (LLP);
- Representative Office (RO).
For those wishing to start a profitable business in Africa, in particular, we recommend giving preference to such organizational and legal forms as a closed limited liability company (PLLC / LLC) and a special economic zone company (SEZ Company).
Conditions for setting up a company
If you are interested in registering a company in Tanzania, then we present to your attention a list of the key requirements of local authorities regarding business registration:
- The unique name of the enterprise (at the end, the full form or the abbreviation OPF is indicated);
- The allowable number of directors: 2 or more;
- The allowable number of shareholders: 2 or more;
- Resident status: not required;
- Enterprise management: carried out by both individuals and legal entities;
- The presence of a secretary: is required;
- The minimum authorized capital is 1 USD;
- Office registration: not required;
- Financial reporting: yes.
Taxation in Tanzania
Those wishing to register a company in Tanzania remotely should carefully study the features of the tax regime applicable to legal entities:
The basic corporate tax rate is 30%. A rate reduction of up to 25% for a period of up to 3 years is permissible for companies listed on the Dar es Salaam stock exchange. There are rates of 20% (pharmaceuticals, leather goods) and 10% (collection of vehicles, tractors, and fishing vessels) for 5 years. Free Zone Companies (SEZ Companies) are exempt from tax.
Value Added Tax – 18%. SEZ companies do not pay tax on export operations. Travel companies are exempt from tax.
Dividend tax – 20%. There is a 5% rate for mining companies.
Promising industries in which it is rational to register a company in Tanzania:
- agriculture (growing coffee, exotic fruits, tropical varieties of cereals, and nuts);
- industrial sector: mining and processing of raw materials (diamonds and other precious minerals, ferrous and non-ferrous metals);
- hydropower;
- gas production in Zafarani;
- half of the gross domestic product is the service sector;
- tourism;
- food production;
- export.
