• Overview of Compliance and Governance in Tanzania
• Pre and Post Incorporation Requirements
• Ongoing Compliance Obligations
• Importance of Compliance and Governance
In Tanzania, the symbiotic relationship between adherence to compliance measures and governance practices lays the foundation for a flourishing business landscape. In the pursuit of attracting investments and nurturing sustainable economic growth, businesses operating within the country must prioritize an in-depth understanding and strict adherence to legal prerequisites.
This article aims to provide a comprehensive overview of the pivotal compliance requirements essential for businesses in Tanzania, with a specific focus on crucial certificates and licenses, encompassing both pre- and post-incorporation stages for maintaining lawful operations within the Tanzanian jurisdiction.

1. Pre-Incorporation Requirements:
   a. Certificate of Incorporation/Certificate of Compliance:
   When establishing a local company, obtaining a Certificate of Incorporation is requisite, while branches need to apply for a Certificate of Compliance with the Business Registration and Licensing Agency (BRELA).
   b. TIN Certificate:
   Subsequent to BRELA approval, businesses are obligated to procure a Tax Identification Number (TIN) Certificate from the Tanzania Revenue Authority (TRA) within 15 days of commencing operations. Furthermore, a Tax Clearance Certificate from TRA is obligatory for business license applications, attesting to compliance with tax laws.
   c. Business License:
   Every entity must possess a valid business license to conduct operations in Tanzania, issued by either the Ministry for Industry and Trade (Licensing Department) or Local Government Authorities.
   d. Value Added Tax Certificate:
   Mandatory registration for Value Added Tax (VAT) is triggered when business surpasses an annual taxable turnover exceeding TZS 200 million.
2. Post-Incorporation Requirements:
   a. Certificates from Occupational, Safety, and Health Authority, Workers’ Compensation Fund and Fire Safety:
   Ensuring workplace safety mandates factory or workplace owners to register and obtain a Compliance License from the Occupational, Safety, and Health Authority. Employers are compelled to register with the Workers’ Compensation Fund within 30 days of hiring the first employee. A prominently displayed Certificate of Registration ensures equitable compensation for occupational injuries or diseases. Issued by the Fire Rescue Force, the Fire Safety Certificate grants permission for facility use following inspection, guaranteeing safety and non-hazardous conditions.
   b. Sector Licenses:
   Specific licenses from relevant government authorities or ministries are requisite for sectors such as banking, mining, construction, telecommunications, and aviation. These sector licenses are prerequisites for obtaining the general business license.
3. Ongoing Compliance Obligations:
   a. Annual Return Filing at BRELA:
   Companies in Tanzania are required to file annual returns with BRELA to ensure that the company’s information is up to date.
   b. Tax Filings at TRA:
   Regular and accurate tax filings with the Tanzania Revenue Authority (TRA) are crucial to maintain compliance with tax laws and regulations.
   c. Renewal of Business Licenses and Sectoral Licenses:
   Business licenses need to be renewed periodically, and adherence to renewal timelines is essential to avoid legal complications. Sector-specific licenses must be renewed as per the regulations of the respective sectors to ensure continued lawful operations.
   d. Other Ongoing Compliance Matters:
   This includes adherence to labor laws, environmental regulations, and any other industry-specific compliance requirements. In Tanzania, the amalgamation of compliance and governance is indispensable for cultivating a business environment characterized by integrity, transparency, and responsible conduct. Businesses committed to both legal compliance and sound governance practices not only shield themselves against legal risks but also position for enduring success within Tanzania’s dynamic business ecosystem.

Disclaimer: This article is for informational purposes only and should not be construed as legal advice. It is recommended to consult with a qualified legal professional for advice specific to your situation.

Written by Ruwaida Manji.