Registering a project with the Zanzibar Investment Promotion Authority (ZIPA) is the key step for any significant investment in Zanzibar, as it grants access to important incentives and streamlines regulatory processes. ZIPA operates as a “one-stop center” for investors.
The registration process involves two main stages and requires meeting specific minimum capital thresholds.
1. Minimum Investment Thresholds
To qualify for ZIPA registration and the associated benefits, your project’s capital must meet or exceed these government-mandated minimums, which vary by sector and investor origin (based on the Zanzibar Investment Act, 2023):
| Investor Type | Sector | Minimum Investment Capital |
| Foreign Investor | Hotel & Real Estate | US$2.5 million |
| Foreign Investor | Other Sectors | US$500,000 |
| Citizen Investor | All Sectors | US$100,000 |
2. The Registration Process (Two Stages)
The process is initiated once your company is legally incorporated (or at least in the final stages of incorporation) with the Business and Property Registration Agency (BPRA).
A. Stage One: Investment Intention and Concept Note
This initial stage determines the viability and eligibility of the project.
- Submit Investment Intention: The investor submits a formal letter or Investment Intention Form to the Executive Director of ZIPA.
- Submit Concept Note/Project Profile: A concise outline of the proposed investment, including the sector, location, estimated capital, and projected employment.
- Approval and Notification: Upon approval of the concept note, ZIPA issues a Notification Letter allowing the investor to proceed to the formal application stage.
B. Stage Two: Formal Application for Investment Certificate
This stage requires detailed documentation and is where the investment is officially registered.
- Obtain and Pay for Application Form: The investor pays a non-refundable fee for the official ZIPA application form (historically around US$200).
- Submit Application with Documents: The filled-out application form is submitted to ZIPA along with a comprehensive package of supporting documents.
3. Key Required Documents
The application must be supported by numerous documents, typically submitted in multiple copies:
- Company Registration Documents:
- Certificate of Incorporation (from BPRA).
- Memorandum and Articles of Association (M&A).
- Proof of business address (e.g., Virtual Office or Lease Agreement).
- Project and Financial Documents:
- Business Plan / Feasibility Study (often required in up to ten copies).
- Proof of Funds Availability (e.g., bank reference letter and recent bank statements to demonstrate the required capital).
- Investor/Director Documents:
- Passport copies and passport-sized photographs.
- Curriculum Vitae (C.V.) for all directors/shareholders.
- Police Clearance Certificates from the country of origin and residence for all shareholders.
- Fee Payment: Payment of the Investment Certificate Fee, which varies based on the capital size of the project (e.g., up to US$1,500 for projects with capital of US$4,000,001 and above).
4. Benefits of ZIPA Registration
Once the project is approved, the investor is issued a Certificate of Investment (later an Investment Service License) which unlocks significant incentives:
- Fiscal Incentives: Eligibility for corporate tax exemptions for an initial period, exemption from import duties on capital goods, and VAT relief on locally purchased goods for the project’s construction/development phase.
- Non-Fiscal Incentives:
- Immigration Services: Facilitation of Work Permits and Residence Permits (Class A for investors) through the One-Stop Centre.
- Land Access: Assistance in securing a Government Lease for investment land (up to 99 years) with clear legal backing.
- 100% Foreign Ownership: Full foreign ownership is generally allowed across most sectors.
Disclaimer
The content of this update is intended for general informational purposes only and does not constitute legal advice. It should not be relied upon without seeking specific legal counsel on any particular matter.
Author Details
The author is Sunday Ndamugoba , Partner, RIVE&Co he can be reached at sunday@rive.co.tz