Options for registering companies in Tanzania
Tanzania serves as a primary commercial hub in East Africa, providing strategic access to landlocked neighboring countries through the Port of Dar es Salaam. The nation attracts significant foreign investment in mining, tourism, agriculture and manufacturing.
The Business Registrations and Licensing Agency (BRELA) oversees corporate registration under the Companies Act. Recent regulatory updates have modernized the process through an Online Registration System (ORS), streamlining the steps for foreign entities to enter the market.
Tanzania offers international companies the following legal structures for establishing a local presence:
Limited liability company (LLC)
- The LLC is the standard vehicle for foreign investors in Tanzania. It exists as a separate legal entity, ensuring that shareholder liability is limited to their capital contribution.
- The entity requires a minimum of two shareholders and two directors of any nationality. While 100% foreign ownership is generally permitted, certain sectors like mining or telecommunications may require local participation.
- There is no statutory minimum share capital for a private LLC. However, foreign-owned companies seeking investment incentives through the Tanzania Investment Centre (TIC) must show a minimum investment of US$500,000.
- In Zanzibar, new 2025 directives mandate a minimum share capital of TZS 100,000,000 for all foreign-owned entities that involve transactions of large financial magnitude.
Free zone company (EPZ / SEZ)
- The Export Processing Zones Authority (EPZA) manages special zones designed for export-oriented businesses. To qualify as an EPZ user, a company must export at least 80% of its goods.
- Foreign investors in these zones must meet a minimum capital threshold of US$500,000. Local investors qualify with US$100,000.
- Incentives can include up to 10 years of corporate tax holiday, duty-free imports of raw materials and machinery and an exemption from Value Added Tax (VAT) on local utility and service purchases.
- These zones provide a "one-stop service" center, simplifying the acquisition of all necessary business permits and labor licenses.
Representative office (Liaison office)
- A Representative Office acts as a non-trading presence used primarily for market research, promotional activities and liaison between the foreign parent and local partners.
- This entity type is strictly prohibited from engaging in direct commercial transactions, signing sales contracts or generating any local revenue.
- Registration results in a Certificate of Compliance rather than incorporation. While it does not pay corporate income tax on trading profit, it must still register for a Tax Identification Number (TIN) for payroll and other administrative compliance.
To help you choose the right structure, we have created an 'at a glance' summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Tanzania.
Comparison of the common types of companies in Tanzania
Information verified against Business Registrations and Licensing Agency (BRELA)