How do I register a company in Tanzania?

Reserve a name on BRELA ORS, prepare and sign MEMARTS and Form 14b, file incorporation on ORS, obtain TINs, then complete business licence and post-registration compliance.

How long does company registration take?

Typically 1–5 working days for incorporation once documents are in order, and 6–14 working days for full setup including tax, licences and bank account.

What documents are required for foreign shareholders?

Certified passports, recent photos, addresses, and—if the shareholder is a company—certified incorporation documents and a board resolution authorizing investment.

Do I need a physical office address?

Yes. A physical address is required for BRELA, TRA, and licensing. Virtual addresses are generally accepted for registration only.

What is the VAT registration threshold in Tanzania?

Businesses with annual taxable supplies meeting the TRA threshold must register for VAT. Many professional and cross-border services may require earlier registration; confirm with TRA based on your activity and projections.

What is the difference between TIC and TISEZA (SEZ/EPZ)?

TIC grants investment facilitation and incentives to qualifying projects across sectors, while TISEZA administers Special/Export Processing Zones with location-based incentives for export-oriented industries.

How do investors obtain Work and Residence Permits (Class A)?

Apply for Class A work permit through Labour authorities and a corresponding Residence Permit from Immigration, supported by incorporation documents, business plan and capital evidence.

What are typical costs for company setup?

Costs vary by share capital, sector licences, and whether foreign shareholders are involved. Budget for BRELA fees, notarization, TRA registrations, business licence, and service fees.

Can Zatra Consultants act as nominee shareholder or director?

Yes, where permitted by law and subject to KYC, escrow and service agreements that protect ownership, control and compliance.

What minimum capital is required for regulated sectors (e.g., microfinance)?

Minimum capital depends on licence class and regulator. For some microfinance categories, at least TZS 20 million may apply; always confirm current BoT rules for your specific licence.

Who needs a Work Permit in Tanzania?

Foreign investors and employees require a Work Permit (Class A for investors; Class B for professionals) and a corresponding Residence Permit.

What are the basic requirements for Class A (investor) permits?

Company incorporation documents, business plan, capital evidence, passport, photos, and supporting letters as required by authorities.

How long does Work/Residence Permit processing take?

Timelines vary by completeness and sector; most complete filings are processed within several weeks subject to approvals.

Can family members obtain dependent permits?

Yes. Spouses and dependents can apply for dependent Residence Permits with supporting documents.

Can permits be renewed?

Yes, subject to continued compliance, valid contracts, and timely filing before expiry.

Does Zatra handle end-to-end permits?

Yes—eligibility checks, document preparation, filings, follow-ups, and renewals.

What tax registrations are needed after incorporation?

Register for TIN (entity and directors). Depending on turnover and activities, register for VAT. Industry-specific taxes may also apply.

When should a company register for VAT?

Registration depends on taxable supplies thresholds and activity type. Many professional and cross-border services may require earlier registration—confirm with TRA based on projections.

What are typical ongoing tax filings?

Monthly/quarterly VAT where applicable, withholding taxes, provisional taxes, and annual corporate income tax returns with financial statements.

Are audited accounts required?

Yes for most companies; audited financial statements are filed and may be requested by regulators.

Does Zatra provide bookkeeping and compliance support?

Yes—bookkeeping, VAT and tax filings, payroll, annual returns, and audit coordination.

Can foreign companies claim tax incentives?

Eligible projects may access incentives under TIC or TISEZA depending on sector and location; Zatra assesses eligibility and manages applications.

Which licences are required for mineral trading or exports?

Depending on minerals and activities: Dealer Licences (e.g., gold, gemstones), export permits per shipment, and sector-specific approvals. EPZ/SEZ options may apply for processing.

What are the typical steps to obtain a Dealer Licence?

Company setup, compliance readiness, application submission to the Mining Commission, inspections, fee payments, and issuance upon approval.

Are royalties and government levies applicable on exports?

Yes. Royalties, inspection and regulatory levies apply by mineral type and transaction; official valuation and assays are typically required.

How does Kimberley Process Certification work for diamonds?

Diamond exports require KP certification following valuation, sealing and documentation as per the regulator’s procedures.

Can Zatra arrange compliance and logistics for shipments?

Yes—licensing, valuation coordination, assays, escrow frameworks and export clearances can be managed end-to-end.

Do SEZ/EPZ incentives apply to mineral processing projects?

Projects meeting export-orientation and location criteria may qualify for SEZ/EPZ incentives via TISEZA; Zatra assesses eligibility and manages applications.

Capital Requirements for Starting a Business in Tanzania

Joseph Magweiga Marwa
Oct 19
4 min read

Updated: Oct 29

Understanding Capital Requirements in Tanzania

For entrepreneurs and foreign investors looking to establish a company in Tanzania, understanding capital requirements is an essential first step. While some countries impose rigid minimum share-capital thresholds, Tanzania offers flexibility. The amount you declare largely depends on your sector, ownership composition, and whether you plan to register for investment incentives under the Tanzania Investment and Special Economic Zones Authority (TISEZA).

This 2025 update explains the distinction between BRELA’s flexible capital structure and TISEZA’s minimum investment thresholds, helping you plan your registration strategically.

Capital Requirements Under BRELA (Standard Registration)

Under the Companies Act, 2002, administered by BRELA, there is no fixed minimum share capital required to incorporate a private limited company in Tanzania. You may register a company with any reasonable amount of authorized and issued share capital depending on the intended scale of operations.

However, in practice, most small and medium enterprises (SMEs) choose between TZS 1 million and TZS 10 million as their starting capital to reflect credibility during licensing and banking procedures.

Entity Types and Capital Requirements in Tanzania

Entity Type	Statutory Minimum Capital	Practical / Recommended Capital	Key Notes & Regulatory Guidance
Private Limited Company (LLC)	None specified by law	TZS 1 – 10 million	Flexible; ideal for SMEs and startups. Capital depends on business scope and investor credibility.
Public Limited Company (PLC)	None (subject to disclosure rules)	TZS 20 million+	Must comply with public reporting, auditing, and shareholder disclosure obligations.
Foreign Company / Branch Office	None specified	Equivalent to proof of capitalization by parent company	May require certified parent company financial statements or bank reference letter.
Sole Proprietorship / Partnership	None specified	TZS 1 – 5 million	Reserved for Tanzanian citizens; simple structure, limited scalability.
Microfinance Company	Minimum TZS 20 million	As per Bank of Tanzania (Microfinance Act, 2018)	Mandatory capitalization verified during licensing and supervision.

Note:

BRELA focuses on legal incorporation, not investment qualification.
The declared share capital becomes your company’s legal base for ownership allocation and annual-return filings.

When to Register Through TISEZA

If you wish to enjoy tax incentives, customs exemptions, and priority investor services, you must register your project through TISEZA, which governs the former TIC and EPZA frameworks. TISEZA applies minimum investment thresholds that determine eligibility for incentive certification.

Investment Thresholds & Incentive Eligibility in Tanzania

Investor Category	Minimum Investment Threshold (USD)	Purpose / Key Benefit
Local Investor	≥ 50,000	Qualifies for a TISEZA Certificate of Incentives for local enterprises investing in priority sectors.
Foreign Investor	≥ 500,000	Eligible for TISEZA Certificate of Incentives and related investment facilitation services.
Strategic Investment (Large-Scale Projects)	≥ 20 million (Local) / ≥ 50 million (Foreign)	Entitled to Special Incentives under the Investment and SEZ Bill, 2024, including land allocation, tax reliefs, and fast-track approvals.

These thresholds are only required for investors seeking TISEZA registration or fiscal incentives. Companies registering solely through BRELA without incentive applications are not bound by these figures.

Sector-Specific Considerations (2025)

While BRELA imposes no capital floor, sector regulators often define minimum financial capacities to ensure business viability.

Capital Requirements by Sector in Tanzania

Sector	Regulatory Authority / Source	Typical Minimum Capital Requirement
Microfinance & Financial Services	Bank of Tanzania (BoT)	From TZS 20 million and above for Tier II & III institutions
Banking	Bank of Tanzania (BoT)	Minimum TZS 15 billion for commercial banks
Mining & Mineral Trading	Mining Commission	Project-based; typically USD 100,000+ for mineral dealer licenses
Real Estate & Construction	Ministry of Industry & Trade (MIT) / Tanzania Building Agency (TBA)	No fixed minimum; depends on project valuation and scale
Manufacturing & Industrial	Tanzania Investment and Special Economic Zones Authority (TISEZA / EPZA)	USD 100,000 (local) or USD 500,000 (foreign) to qualify for incentives
Agriculture & Agro-Processing	Ministry of Agriculture (MAFC) / TISEZA	USD 50,000+ for investment projects seeking incentives
Tourism & Hospitality	Tanzania Tourist Board (TTB) / MIT	Minimum USD 50,000+ for mid-scale hotels, lodges, and tour operations
Education & Training	NACTE / Ministry of Education (MOE)	TZS 50–200 million, depending on level (primary, secondary, or tertiary)

Choosing the Right Path

If you are launching a small or medium enterprise, BRELA registration alone is sufficient.
If you are planning a large-scale, export-oriented, or manufacturing project, register under TISEZA to access incentives.
If you are entering a regulated sector, check the sector-specific regulator for mandatory capitalization.

Why Proper Capital Structuring Matters

A well-declared share capital:

Enhances banking credibility and loan eligibility.
Simplifies foreign-exchange compliance with the Bank of Tanzania.
Strengthens your company’s investment profile when applying for permits or incentives.
Reflects professionalism and operational seriousness during tenders or partnerships.

How Zatra Consultants Can Help

At Zatra Consultants, we tailor incorporation and capital-planning strategies for every investor type — from micro enterprises to large foreign ventures. Our team assists with:

Preparing compliant share-capital statements for BRELA or TISEZA filings.
Structuring foreign capital injections and verifying remittance certificates.
Applying for TISEZA Certificates of Incentives and strategic-investment recognition.
Aligning your capital plan with BoT, TRA, and sector regulator requirements.
Offering ongoing compliance and annual-return management.

Get Started with Zatra Consultants

Not sure how much capital your Tanzanian company should declare? Request a customized capital-planning advisory from Zatra Consultants — we’ll help you register efficiently, meet regulatory standards, and position your business for investor confidence and tax benefits.

📍 Sinza A, Sam Nujoma Road, First Floor, Mwenge Tower – Opp. Mlimani City

📞 +255 747 912 965 | ✉ sales@zatra.co | 🌐 www.zatra.co

By understanding the capital requirements and leveraging our expertise, you can navigate the complexities of starting a business in Tanzania with confidence.

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+255 788 466 212

Mwenge Tower, Opposite Mlimani City

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