Business Licensing in Tanzania
Are you a local or foreign business looking to obtain business licenses in Tanzania? At Mehta Integra International, we provide comprehensive consultation services to guide you through the process of securing the necessary licenses to legally operate your business. From gathering and preparing the required documentation to submitting applications and handling follow-ups, we ensure a smooth and efficient experience.
Understanding Business Licensing in Tanzania
In Tanzania, business licensing is governed by the Business Licensing Act No. 25 of 1972. The law mandates that no business can operate in Tanzania without holding a valid business license issued by the appropriate authority. Business licenses are issued by two primary authorities: the Business Registration and Licensing Agency (BRELA) for Class “A” licenses and Local Government Authorities (LGAs) for Class “B” licenses.
Requirements for Obtaining a Business License in Tanzania
To obtain a business license in Tanzania, the following criteria must be met:
- Secure a business premise through ownership or lease.
- Register your company or business name with BRELA.
- Obtain a Taxpayer Identification Number (TIN) from the Tanzania Revenue Authority (TRA).
- Acquire sector-specific permits from the relevant ministry or agency based on your business activities.
- Submit your business license application to the Ministry of Industry, Trade, and Investment or the Local Government Authorities.
- Pay the applicable business license fee based on your business type.
Application Requirements for Business Licenses in Tanzania
The application process for business licenses involves submitting the following documents:
- Completed Business License Application Form (TFN 211).
- Photocopy of the Certificate of Incorporation (for companies) or Certificate of Registration (for business names).
- Proof of Tanzanian citizenship (passport, birth certificate, or affidavit) or a residence permit for non-citizens.
- Powers of Attorney for non-resident shareholders authorizing local representation.
- Proof of business premises, such as a title deed or tenancy agreement.
- TIN Certificate and Business License Tax Clearance Certificates from the TRA.
Sector-Specific Licenses
Certain industries require additional licenses from sector-specific regulatory bodies. Some examples include:
Tourism License: Issued by the Ministry of Tourism and Natural Resources for businesses like tour operators, travel agents, and lodges.
Insurance License: From the Tanzania Insurance Regulatory Authority (TIRA) for insurance brokers and agents.
Banking License: From the Bank of Tanzania (BOT) for banking and financial institutions.
Telecommunications License: From the Tanzania Communications Regulatory Authority (TCRA) for businesses offering telecom and broadcasting services.
Mining License: From the Ministry of Minerals for companies engaged in mineral exploration and extraction.
Petroleum License: From the Energy and Water Utility Regulatory Authority (EWURA) for businesses dealing in petroleum products.
Benefits of Registering a Company in Tanzania
- Freedom to repatriate capital and profits with no foreign exchange restrictions.
- Cost-effective business environment with one of the lowest consumer cost indices in Sub-Saharan Africa.
- Access to Special Economic Zones offering tax incentives such as VAT exemptions and corporate tax holidays.
These are just a few examples; other industries, such as transport, aviation, gaming, and real estate, also have specific licensing requirements.