Type of companies
Foreign investors can operate in Tanzania like Tanzanian investors about the corporate organization of their affairs. They can, therefore, constitute society without the sponsorship or participation by members tanzania, provided that they meet the legal requirements..
In this organizational form, an individual conducts business on its behalf, making oneself personally responsible in all respects, including any debts.
Are permitted by law societies in Tanzania is the collective noun is a
limited partnership which, moreover, are not a corporate form in
common use in Tanzania. The number of members provided range from a
minimum of two to a maximum of twenty for a commercial general or ten
If these limits are exceeded, require the registration of the society on the basis of the "Companies Ordinance". Even for this form is obliged to register the name on the basis of the "Business Names Ordinance".
They are so named corporations governed by the "Companies Ordinance".
Are recognized in Tanzania the following types of company:
- "Unlimited companies", in this type of company the partners are personally liable for all debts contracted by the company;
- "Limited companies", for social obligations responds only society with its heritage and can be private or public.
These companies, for which there is fixed a minimum of social capital,
can not be made up of more than fifty members.
The partnership limited by shares, though admitted as a corporate form Tanzanian law, is not practically in use.
Branches of foreign companies
According to the terms of the "Companies Ordinance", to foreign
companies are allowed to set up a subsidiary in Tanzania, "branch". To
this purpose should be contacted with the Business Registration and
Licensing Agency (BREL), which will require a detailed documentation
of the company. The BRELA, after having examined the statutory
requirements laid down, will issue a "certificate of compliance".
Appoint an accountant-auditor approved by the National Board of Accounts and Auditors, which each year must report on the entity's shareholders and management of the company. The subsidiaries of foreign companies are required to submit annually to BRELA also the parent company's financial statements.
The first contact of a foreign investor with reality is through the
bureaucratic Tanzanian Business Registration and Licensing Agency
(Brela), enactment of the local Ministry of Industry and Commerce.
Sole Proprietorship or partnerships will register only the name.
This is done through written request to BRELA.
As for a "limited company", the BRELA requires more detailed documentation on the regulations and corporate organization chart before issuing the so-called "certificate of incorporation" that allows the company to start business.
Once obtained, the "certificate of incorporation, it takes an additional company registration with the Income Tax Office will assign a reference number indicated that the company will permanently in its dealings with the tax authorities of the country.
In addition to the "certificate of incorporation" Tanzanian aforementioned complex legislation includes a number of specific licenses and permits, depending on the nature of the business that you intend to follow.