Are you thinking of starting a business in Tanzania?
Having a business in Tanzania can have a powerful impact on your life, but before you jump into it blindly, you should know how to register your business there. This guide will provide you with all the details about company registration in Tanzania and mining in Tanzania.
Company Registration
Legal Requirements
The first and foremost step in starting your business in any country is to understand the legal requirements. It includes deciding the legal structure of your business and your business name, and you need to register it to the government to get a tax identification number so you can pay the applicable taxes. You also need a business license, and for that, you need to fulfill the legal requirements.
Complete Documents
You must have the following documents to register your business in Tanzania.
- List of all the employees and directors of the company.
- Full address of the company in Tanzania.
- Full address of the principal office.
- Certified copy of articles defining the constitution of the company, and if not available in English, you must submit the translated document.
- Name and address of the people living in Tanzania who will represent the company.
Business Name
You need to search for a business name that is available for registration to make sure your name isn’t rejected. If you find a name, you can apply it to the registry so they can give you the rights to own it.
Certificate Of Incorporation
Register your business name under Business Registration and Licensing Authority, also known as BRELA.
Taxpayer Identification Number (TIN)
After you are done registering your business name, you must get a tax identification number. With the taxpayer identification number, you will be able to pay the taxes that are applicable to your business.
Business License
Getting a tax clearance certificate is essential before applying for a business license. You will have to apply to the authority related to the industry you are setting your business in.
Mining
Mining refers to the process of extracting minerals from earth. Minerals like gold, coal, iron are all extracted from earth and this process of mining has been going on since prehistoric era. There are three methods of mining.
- Underground mining
- Open-pit mining
- Underwater mining
The private sector of mining is relatively new in Tanzania, being created in 1998. Before this legislation, the history of mining goes back to the time of German colonization, when the government was not involved, and the mining activities were primarily small-scale. The situation changed under British rule, and after independence, the mining activities were governed by legislation.
The mining act in Tanzania was last reviewed in 2017. Significant changes were made to the act, including the introduction of the mining commission, which is tasked with the mining industry. The changes also allowed the government to take 16% free carried interest from the capital of medium to large mining operators. Even though the percentage has been decided, the law doesn’t specify in what manner the share must be acquired.
Furthermore, the change in the review also suggested that the Tanzanians must be involved through shareholding in the running of mining operations. For a license, the Tanzanians must hold 5% interest to be issued. Mining operators also have to complete local mining requirements and make sure that the suppliers are Tanzanians.
Mining companies are also required to participate in the growth of the economy. They must not take part in any activity that affects the country’s integrity.
Mining operations are divided into large, medium, and small-scale mining operations. Tanzania has many minerals in various locations, including tanzanite, that cannot be found anywhere else in the world. While there are several valuable minerals mined in Tanzania, gold is the most mined mineral, and it makes the country the 4th largest producer of gold in the world. To know more about the company registration in Tanzania and mining in Tanzania, contact Shikana Group. Their professional team of lawyers provides legal and investment advisory.