Business Licence Fees Tanzania: Class A, Class B, USD Rows, Renewal and Penalties

This is Zatra's definitive reference on business licence fees in Tanzania. It covers who collects each fee, the principal and subsidiary columns, location tiers, the foreign-owned USD rows, GN 487A of 2025, renewal, the late penalty, offences, the separate service levy, Zanzibar and two worked examples.

What the law says about business licence fees

Every business carried on in Mainland Tanzania needs a business licence unless the law exempts it. The statute is the Business Licensing Act, Cap. 101 R.E. 2023, formerly Cap. 208 and originally Act No. 25 of 1972. We read the Revised Edition 2023 text on the Solicitor General's eLibrary. Four provisions set the money rules.

• Section 8(1): the fees payable "shall be as specified in the Schedule". No council may invent its own licence fee.
• Section 9: Part A fees go to BRELA and other fees to local government authorities. Fees for village premises go to the Village Council under section 8(4) (NEW-08-04).
• Section 4(2): trading at two or more places needs a separate licence for each place.
• Sections 7 and 11: a licence lasts twelve months, and a late licence attracts a penalty of 25 percent and more.

The Schedule was substituted by the Finance Act 2014 and amended in 2018. BRELA still publishes the 2014 fee schedule as its fee document. Each figure here carries its line in the Zatra fee register, such as F0869.

Two amending laws matter. The Written Laws (Miscellaneous Amendments) (No. 4) Act, 2023, Act No. 12 of 2023, inserted the definition of "foreign owned" and raised the fines. It is a Miscellaneous Amendments Act, not a Finance Act. The Finance Act, 2025 inserted section 14A, the power to close activities to non-citizens.

Procedure sits in the Business Licensing Regulations, 2023, GN 626 of 2023. Our earlier overview of business licensing in Tanzania gives the background; this guide goes deeper on the money.

Who is affected

• Every new business on the Mainland, from a village kiosk to a bank.
• Licence holders facing their twelve-month renewal.
• Foreign-owned businesses, which pay the USD rows where the Schedule prints one.
• Non-citizens in the fifteen reserved activities under GN 487A of 2025.
• Businesses with branches, which pay a subsidiary fee for every extra place.
• Investors expanding to Zanzibar, which licenses business under its own system.

Who collects the fee: Class A or Class B?

Part A of the Schedule is headed "Fees by Business Registration and Licensing Agency". Part B is headed "Fees to be Collected by Local Government Authorities". In practice these are Class A and Class B licences.

The portal page on how to obtain a business licence lists the prerequisites: premises, BRELA registration, a TIN and any sector permit. Class B applicants open a TAUSI account with a NIDA number.

Classification decides who you pay. A consultancy is a Part B "specified profession" and pays the council, even when foreign-owned. A real estate company is Part A and pays BRELA. Our sector licence finder maps the permits that sit beside the licence.

How do the principal and subsidiary columns work?

Column III of the Schedule is the fee for the principal licence and Column IV the fee for the subsidiary licence. Section 2 defines a subsidiary licence as one for "the same kind of business carried on by the same entity at any other place" (NEW-08-03).

• A supermarket chain with a city head store and two district branches pays TZS 500,000 for the head store and TZS 150,000 for each branch (F0870).
• A different kind of business at the same place needs its own licence under its own line.
• Where both columns show the same figure, a branch costs as much as the head office. Local business consultancy is TZS 200,000 in both (F0860).

A Dar es Salaam company with an Arusha branch pays the Arusha council the Column IV fee. Where a line has location tiers, Zatra's reading is that each branch pays the Column IV figure for its own tier. Confirm with the receiving council.

How do the location tiers change the fee?

Many Part B lines print four tiers: City or Municipal, District, Minor settlement and Village. A village licence can cost a tenth of the city fee. Figures are principal / subsidiary, a year.

We read the retail shop and item 17 rows in the Act text itself. The tier follows where the premises sit, not the size of the business. The council's assessment settles it, and assessment appeals go to the Permanent Secretary (NEW-08-10).

What are the fees for the most common activities?

Fees are a year, principal / subsidiary. "Same" means the Schedule prints no foreign-owned row, so a foreign-owned business pays the shilling figure.

The Act text shows no location tiers on the business consultancy line, so one flat fee applies wherever the office sits.

Some businesses need no licence. Section 3(1) exempts farming, livestock, market gardening and dairy farming, and a farm's sale of its own unprocessed produce. It also exempts licensed trophy dealers and a miner holding "a valid licence granted to him under the Mining Act" (NEW-08-16). A mineral dealer or processing plant is a different business; check its line.

Who pays the foreign-owned USD rows?

Section 2, as inserted by Act No. 12 of 2023, defines "foreign owned" (NEW-08-13):

• a natural person who is not a citizen of Tanzania;
• a company incorporated outside Tanzania, such as a registered branch of a foreign company;
• a Tanzanian company in which more than 50 percent of the shares are held by non-citizens;
• a partnership whose controlling interest is owned by a non-citizen.

The test is shareholding, not management or residence. A company exactly 50 percent foreign-owned stays on the local row; one at 51 percent moves to the USD row. Check the share register before each renewal.

A foreign-owned business pays in USD only where its line has a USD row. A foreign-owned importer pays the shilling fee (F0864). Our guides on foreign-owned companies and on choosing a branch or subsidiary cover structuring.

Which activities are closed to non-citizens under GN 487A?

Section 14A bars a licensing authority from licensing a non-citizen for an activity the Minister closes by order. The Minister did so in the Business Licensing (Prohibition of Business Activities for Non-Citizens) Order, 2025, GN 487A, published on 28 July 2025, as Bowmans reports. The reserved activities are (NEW-08-14):

1. wholesale and retail trade, except supermarkets, specialised product outlets and wholesale centres for local producers;
2. mobile money transfers;
3. repair of mobile phones and electronic devices;
4. salons, unless in a hotel or for tourism;
5. home, office and environmental cleaning;
6. small-scale mining;
7. domestic postal and parcel delivery;
8. domestic tour guiding;
9. radio and television;
10. museums and curio shops;
11. brokerage or agency in businesses and real estate;
12. clearing and forwarding;
13. on-farm crop purchasing;
14. gambling machines outside casinos;
15. micro and small industries.

A non-citizen licensed for one of these on 28 July 2025 may continue until that licence expires, with no renewal (NEW-08-15). A convicted non-citizen faces a fine of not less than TZS 10,000,000 or up to six months, and loses visa and residence permit (F0889). A citizen who helps faces TZS 5,000,000 or up to three months (F0890).

Whether the Order reaches companies with foreign shareholders is unsettled. Clyde & Co's note of 29 July 2025 reads it as covering natural persons, but warns regulators may treat foreign-controlled companies as caught. Capital FM reported on 3 October 2025 a Kenyan statement that Kenyan businesses would not be affected. We found no amending notice, so treat that as an assurance, not law.

See our guides on the restricted list for foreigners and on renewal in a restricted activity.

When must a licence be renewed?

Section 7(1) makes a licence valid "for a period of twelve months from the date of issuance" (NEW-08-01). The old 30 June expiry no longer applies; each licence has its own anniversary.

• Grace period: the penalty bites only if the new licence is not taken within 21 days after expiry.
• Tax clearance: section 13(3) requires every renewal to be "accompanied by tax clearance certificate issued by the Tanzania Revenue Authority" (NEW-08-02). TRA charges no fee for it (NEW-02-18).
• Prepayment: section 7(2) allows payment for up to three consecutive years (F0859).
• Changes: cessation, liquidation, a move or a change of business must be notified (NEW-08-12).

Start the tax clearance early, because unfiled returns delay it. Our guides to the tax clearance certificate and to business licence renewal set out the steps.

How is the late renewal penalty calculated?

Section 11(1) applies when a person fails to take the licence within 21 days of expiry or of first starting business. The person pays "in addition to the licence fee a penalty equal to twenty-five per centum of that unpaid fee". The rate rises "by two per centum for the second and every succeeding period of thirty days after the due date" (F0881).

Zatra reads the due date as the end of the 21 days. Paid within 30 days of it, the penalty is 25 percent. In the second 30-day period, or any part of it, it is 27 percent; in the third, 29 percent.

Section 11(2) lets the authority remit the penalty in whole or in part, so a written request with reasons is worth making. If an application is still undecided after 21 days, section 12 allows a trading permit at one tenth of the fee or TZS 100, whichever is larger (F0857).

What offences and fines apply?

Directors and officers concerned in management can be liable personally (F0888). Section 18 requires the licence to be displayed "in a conspicuous place" at the premises.

A refusal or revocation can be appealed within 30 days (NEW-08-10); see our guide to appealing a licence refusal or revocation. A charge or closure goes to an advocate.

Is the council service levy part of the licence fee?

No. The service levy is a separate charge under the Local Government Finance Act, Cap. 290. Sections 69, 70 and 72 of the Finance Act 2025 fixed it at 0.25 percent from 1 July 2025.

A Class A licence from BRELA does not remove the levy. Read our explainers on the service levy on turnover and on the levy versus the licence.

How does business licensing work in Zanzibar?

A Mainland licence from BRELA or a Mainland council does not authorise trading in Zanzibar. Zanzibar licenses business under its own laws, so a business on both sides needs a Zanzibar licence for its island premises.

The Zanzibar Business Licensing Management and Regulatory Bill, 2024, gazetted on 5 November 2024, repeals the Business Licensing Regulatory System Council Act, No. 13 of 2013. It creates the Business Licensing Management and Regulatory Authority (BLRA). The BLRA regulates the bodies that issue licences rather than issuing general licences itself (s.7(1)(a)). Only authorities on its gazetted list may license a business (s.21(2)). Fees are set through the Authority and published (ss.8(b), 39); the Bill prints no amounts.

We read the Bill but not the Act number under which it passed. Ask the BLRA or the Zanzibar Ministry of Trade for the current fee and issuing body. See our guides to registering with BPRA and to Mainland versus Zanzibar setup.

Worked example: a foreign consultancy and a district shop

Case 1: Kilele Advisory Ltd. A Tanzanian company owned 100 percent by a Kenyan parent, it runs a business consultancy in Dar es Salaam with a branch in Arusha. It is foreign owned under section 2, so it pays the USD row (F0860).

A Tanzanian-owned firm would pay TZS 200,000 for each office. Business consultancy is not on the GN 487A list, but brokerage or agency in businesses is, so describe the activity accurately.

Say the Dar es Salaam licence expired on 30 June 2026, so the 21 days ended on 21 July. Kilele pays on 5 September 2026, 46 days later, in the second period. The penalty is 27 percent of USD 2,000, which is USD 540, for a total of USD 2,540.

Case 2: Mama Neema's shop. A Tanzanian citizen runs a retail shop in a district headquarters town and a second shop in a minor settlement.

• Main shop, district tier, principal: TZS 50,000 (F0869).
• Second shop, minor settlement, subsidiary: TZS 15,000 (F0869).
• Annual licence cost: TZS 65,000.

Her main licence expired on 31 May 2026, so the 21 days ended on 21 June. Her tax clearance came late and she paid on 15 September, 86 days later, in the third period. The rate is 25 + 2 + 2 = 29 percent. The penalty is TZS 14,500, so she pays TZS 64,500.

Her shops turn over TZS 60,000,000 a year net of VAT. The service levy at 0.25 percent is TZS 150,000 (F0544), billed separately. A non-citizen could not hold either licence, because retail trade is item 1 of GN 487A.

What to do now

1. Classify each activity. Match each line of business to its Part A or Part B item and note any USD row.
2. Check ownership. Apply the 50 percent test in section 2 before each renewal.
3. Screen against GN 487A. If any owner is a non-citizen, compare each activity with the reserved list.
4. List every place of business. Assign one principal licence and a subsidiary for each other place.
5. Diary the anniversaries. Set reminders 30 days before each expiry and start the tax clearance then.
6. Pay against the control number. Use only the TNBP or TAUSI control number and keep the receipt.
7. Budget the levy and Zanzibar separately. Provide for 0.25 percent of turnover, and license island premises in Zanzibar.

Key dates and deadlines

• Twelve months from issue: the licence expires (s.7(1)).
• 21 days after expiry or first trading: last day before the 25 percent penalty (s.11).
• Each further 30 days: the penalty rises by 2 percentage points.
• 14 days from application: issue or written refusal (GN 626 reg. 4).
• 30 days: to claim a refund from payment (NEW-08-08), or to appeal from a decision (NEW-08-10).
• 28 July 2025: GN 487A published.

How Zatra helps

Zatra's business licensing service classifies activities and files on TNBP and TAUSI. Our renewal service runs the annual cycle, including tax clearance, and our foreign investor setup service covers new entrants. Packages are on our pricing page.

Licence fees, penalties and the levy are paid by the client to the authority at the official rate against a control number, separately from Zatra's professional fee. Our government fees handbook lists the official figures. Zatra prepares and coordinates the file; it does not decide or guarantee any authority's outcome. A prosecution, closure, GN 487A dispute, appeal or formal legal opinion goes to an advocate on our team.

Sources and status

Accurate as at 12 October 2026. Fees are from the Zatra fee register at 26 September 2026.

• Business Licensing Act, Cap. 101 R.E. 2023: Office of the Solicitor General, issued 1 Jul 2025. Accessed 12 Oct 2026.
• Written Laws (Miscellaneous Amendments) (No. 4) Act, 2023, Act No. 12 of 2023: TanzLII, 1 Dec 2023. Accessed 12 Oct 2026.
• Finance Act, 2025, Act No. 11 of 2025: Parliament, published by TRA, in force 1 Jul 2025. Accessed 12 Oct 2026.
• Business Licensing Regulations, 2023, GN 626 of 2023: BRELA, 1 Sep 2023. Accessed 12 Oct 2026.
• Business licence fees: BRELA, document dated 11 Jul 2014. Accessed 12 Oct 2026.
• Obtain a business licence: Tanzania National Business Portal, live 2026. Accessed 12 Oct 2026.
• TAUSI portal: PO-RALG, live 2026. Accessed 12 Oct 2026.
• Zanzibar Business Licensing Management and Regulatory Bill, 2024: House of Representatives, 5 Nov 2024. Accessed 12 Oct 2026.
• Practical implications of the Order of 2025: Clyde & Co, 29 Jul 2025. Accessed 12 Oct 2026.
• Order prohibiting non-citizens from certain activities published: Bowmans, 30 Jul 2025. Accessed 12 Oct 2026.
• Tanzania exempts Kenyans from law that bars foreigners: Capital FM, 3 Oct 2025. Accessed 12 Oct 2026.

Figures to confirm before you act

• GN 487A: list and penalties from the register and law-firm notes; the Gazette text was not read this session, and its reach to companies is unsettled
• Penalty periods: Zatra reads the s.11 due date as the end of the 21 days; councils may count differently
• Branch tiers and USD billing: the Column IV tier for a branch, and whether a council bills USD rows in USD
• Consultancy tiers: the Act shows one flat fee; the register labels the line City/Municipal
• Zanzibar: the Act number of the 2024 Bill as passed, the issuing bodies and the fees
• Register lines: at 26 September 2026; the control number governs on the day of payment

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.