Since 2003, Healy Consultants Group has been efficiently and effectively assisting our Clients with establishing a business in Tanzania. Our services include with i) Tanzania business registration ii) government compliance iii) license registrations iv) visa applications v) work space rental solutions and vi) employee recruitment services in Tanzania.

Tanzania company registration summary

Press the link headings below to read detailed, relevant, up to date information.

• Advantages of Tanzania company registration

  

  1. It is easy to form a company in Tanzania because i) there is no paid-up capital requirement (all needed is issuance of two shares worth US$1 each) and our Clients only need to appoint ii) two shareholders and iii) two directors, who both can be foreigners and are not required to reside in the country or travel to complete the procedures;
  2. Tanzania offers fiscal incentives and low operational costs for manufacturing companies, because:
     • The Tanzanian Government refunds entrepreneurs 50% of the costs of i) plants ii) machinery and iii) vehicles purchased within the country;
     • Tanzania’s Special Economic Zones (SEZ) offer benefits including i) 10 year exemption from corporate tax and withholding tax ii) 100% VAT exemption on utilities and iii) local Government taxes;
     • Imported machinery and raw materials for production purposes are exempt of import duties;
     • Tanzania is home to 22 million unskilled workers costing an average monthly wage of only US$50 per month;
     • The average electricity tariff is only US$0.06 per kwh;
     • Tanzania is the 11^th the lowest consumer cost index in Africa. Consequently, Tanzanian business expenses are low.
  3. Tanzania’s membership of three regional trade blocs allows foreign companies i) absence of withholding tax on foreign payments ii) to hire workers from the partner countries without any employment restrictions and iii) giving it barrier-free access to an African market base of over 400 million people;
  4. Tanzania offers many tax incentives for resident companies, including:
     • Withholding tax on dividends is reduced to 5% if the entrepreneur owns at least 25% stake in the company issuing these dividends;
     • Tanzania has double taxation and bilateral investment treaties with 23 different countries including Canada, Germany, India, Norway and UK to reduce withholding taxes on foreign payments
     • All businesses are allowed to carry forward company losses indefinitely;
     • There are no foreign exchange controls to hinder repatriation of funds from Tanzania.
  5. Tanzania has significantly improved the business environment by developing its ICT infrastructure through i) construction of the national fibre optic cable; ii) implementation of e-government and e-commerce facilities; and iii) implementation of e-learning facilities in all educational institutions to make its workforce more competitive.

• Disadvantages of Tanzania company registration

  1. Doing business in Tanzania can be difficult because of:
     • The inefficient bureaucracy of the Government to approve i) business licenses ii) work visas;
     • Tanzania’s infrastructure is poorly ranked on the WEF’s Global Competitiveness Index. Problems such as frequent power failures and poor road transport lead to business delays;
     • Seaport and airport services in Tanzania, below average compared to other African countries;
     • Restrictions on foreign ownership, existing in a few sectors including telecommunications, mining and tourism.
  2. Foreign investors are nervous about the security of their investments in Tanzania because:
     • Intellectual and physical property rights in Tanzania are limited and unstable. Consequently, Tanzania is ranked 80^th out of 130 countries on the International Property Rights Index;
     • Tanzania ranks 111^th out of 117 countries on the Corruption Perceptions Index.
  3. It is difficult to employ skilled labor in Tanzania because:
     • The literacy rate is only 68% and ranks 164^th in the world;
     • English fluency rate is only 15%;
     • Only 1% of Tanzanians enroll in universities each year;
     • It is difficult to hire foreign employees.
  4. There are several hindrances by customs and port authorities to doing trade in Tanzania which affects manufacturing and exporting companies in the country. Further, these hindrances cause huge delays and also result in payment of huge levies by the foreign entrepreneur to the customs and port authorities.