SUMMARY: This guide aims to provide you with an overview of the steps to register a general trading company in Tanzania, from legal requirements and documentation to procedural formalities. By following these steps, you can navigate the registration process smoothly and set a solid foundation for your business operations in Tanzania’s vibrant market.
Brela Registration
Brela registration is a critical step for any new business in Tanzania, as it involves the official incorporation of a company or business name with the Business Registrations and Licensing Agency (BRELA). This process ensures that the business is legally recognized and can operate within the country’s legal framework. The registration involves submitting various documents, such as the Memorandum and Articles of Association, identification documents of directors, and proof of physical address. Once registered, the business is issued a Certificate of Incorporation or Registration, which is essential for accessing other legal and regulatory services, such as opening a bank account or obtaining necessary permits. Follow this link to read a post on how to do BRELA registration.
SN | CAPITAL RANGE (TZS) | REG. FEE | FILING FEE | STAMP DUTY* | TOTAL |
1 | 20,000 to 1mil | 95,000 | 66,000 | 6,200 | 167,200 |
2 | 1mil to 5mil | 175,000 | 66,000 | 6,200 | 247,200 |
3 | 5mil to 20mil | 260,000 | 66,000 | 6,200 | 332,200 |
4 | 20mil to 50mil | 290,000 | 66,000 | 6,200 | 367,200 |
5 | More than 50mil | 440,000 | 66,000 | 6,200 | 512,200 |
TRA Registration
TRA registration refers to the process of registering a business with the Tanzania Revenue Authority (TRA) for tax purposes. This registration is mandatory for businesses to comply with the country’s tax laws and involves obtaining a Taxpayer Identification Number (TIN). The TIN is used for all tax-related transactions, including the filing of tax returns, payment of taxes, and other statutory obligations. Depending on the nature and size of the business, it may also need to register for Value Added Tax (VAT) and other relevant taxes. Proper TRA registration ensures that the business is recognized as a taxpayer and avoids potential legal issues related to tax evasion.
Business License
Obtaining a business license is a vital requirement for operating legally in many jurisdictions. This license is issued by local authorities or relevant regulatory bodies and authorizes a business to conduct its specified activities within a certain area. The requirements for a business license can vary significantly depending on the type of business, location, and industry. Generally, businesses must provide proof of registration, tax compliance, and sometimes additional sector-specific certifications or inspections. The business license must be renewed periodically, and failure to obtain or renew it can result in fines, penalties, or closure of the business.
Other Registrations
Compliance with labor laws requires registration with social security and workers’ compensation schemes. Each of these additional registrations helps ensure that the business operates within the legal and regulatory frameworks of its industry, promoting safety, quality, and accountability.
Kessy Juma is the founder of Miamia Trading Company (miamiatz). He is a Techpreneur with roots in accountancy. He believes that any business is good as long it caters the right market using the right strategy. |