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Compliance Software Solutions in Tanzania: A Guide to Obtaining Essential Certificates and Licenses

As Tanzania continues to attract foreign investment and grow its economy, it is essential for businesses to understand the compliance requirements necessary to operate successfully in the country. In this article, we provide an overview of the crucial certificates and licenses required by companies seeking to establish themselves in Tanzania.

Certificate of Incorporation/Certificate of Compliance

A company intending to operate as a local entity must apply for a certificate of incorporation with the Business Registration and Licensing Agency (BRELA), while a branch office must obtain a certificate of compliance. This is in accordance with the Companies Act Cap 212 R.E 2002.

Tax Identification Number Certificate (TIN Certificate)

After obtaining a certificate from BRELA, companies must apply for a TIN certificate from the Tanzania Revenue Authority (TRA) within 15 days of commencing business operations. This is necessary to pay taxes as required by the Income Tax Act Cap 332 R.E 2019.

Tax Clearance Certificate

The TRA issues tax clearance certificates to certify that taxpayers have complied with tax laws. Regulation 103 of the Tax Administration (General) Regulations G.N. 101 2016 requires a tax clearance certificate be submitted when renewing a business license.

Business License

Every entity is required to obtain a business license, which can be obtained from:

  • The Ministry for Industry and Trade (Licensing Department)
  • Local government authority (depending on the company’s line of business)

Value Added Tax Certificate

Companies must register for value added tax if they anticipate making taxable supplies exceeding TZS 100 million in the next 12 months or TZS 50 million in a period of six months ending at the end of the previous month, as per section 28 of the Value Added Tax Act Cap 148 R.E 2019.

Additional Certificates and Licenses

  • Certificate from Occupational, Safety and Health Authority: Companies must register their factories or workplaces with the Occupational, Safety and Health Authority before starting operations. A compliance license is also required every 12 months to demonstrate fulfillment of occupational health and safety requirements.
  • Certificate of Registration from Workers Compensation Fund: Employers must submit particulars of registration to the Director General of Workers Compensation Fund within 30 calendar days of recruiting their first employee. Upon verification, a certificate of registration will be issued and displayed at a conspicuous place in the workplace.
  • Fire Safety Certificate: The Fire Rescue Force issues fire safety certificates after inspecting premises to ensure they are safe for use. This certificate must be displayed on a widescreen or other conspicuous place.
  • Sector Licenses: Certain sectors, such as banking, mining, construction, and telecommunications, require sector-specific licenses obtained from relevant government authorities or ministries. Companies intending to operate in these sectors must first obtain the specific sector license before applying for a general business license.

Conclusion

Companies seeking to do business in Tanzania must understand the compliance requirements necessary to avoid penalties for non-compliance with the law. By obtaining these essential certificates and licenses, businesses can ensure successful operations in this dynamic economy.