To be ready to launch operations following registration does not mean an endorsement to carry out commercial activities. Companies are required to comply with post-registration regulations for compliance, which comprise:
1. VAT Verification Number
The registration to register for VAT must be completed for companies that have a revenue of TZS100 million.
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2. Securing Business License
Before applying for a business license, the taxpayer Clearance Certificate for the business is required by Tanzania Revenue Authority. Tanzania Revenue Authority.
Based on the industry or sector in which the company plans to enter within, the company will need to seek permission from the appropriate authority, such as the Trade office located in the District Municipal, City, and the Ministry of Industry, Trade, and Investment according to the type of business the company plans to carry out.
3. Filing of Annual Returns
It is a mandatory requirement for any company incorporated on Tanzania mainland as well as in Zanzibar to make Annual Returns to the Registrar of Companies accompanied with Audited Accounts that are submitted until a date that is not more than the date of return. The date for return is when the anniversary of incorporation occurs. Each annual return date must be accompanied by the date on which it is constituted and include the following details:
- Address of registered office;
- The kind of company, whether it is private or public, and the central business activities of the company;
- Address and name of the Company Secretary’s address;
- The address and name of each director of the firm, and for each director his nationality, physical address, postal address, birth date, and business profession, as well as such specifics about other directorships as must be recorded in the company’s director’s register;
- In the event of an executive director of a company, the details of directorships that the director holds are required to be recorded in the register of the company;
- The member’s register and the register of members, if not kept at the registered office, the address where it is stored;
- The record of the debenture holders, and if not maintained at the Company’s registered office, the address in which it is kept.
- The names of the past and present shareholders, along with their current shareholdings or any changes that may have occurred to their shareholdings before the point of the report;
- Any modification that was completed prior until the date of the return or
- Each annual report of the specified year must be signed by the secretary or director of the business.
4. Keeping of Books of Accounts
It is required by the law that each company maintains in English or Swahili correct books of account sufficient to provide a clear explanation of the company’s transactions. The books of accounts must reveal with reasonable accuracy the financial situation of the business and allow directors to verify that the balance account or profit and loss statement and cash flow report prepared conforms to the requirements of the laws. The books of account must be kept in the registered corporate office, or any other location in Tanzania as directors think appropriate and will always be available for inspection by directors.
5. Immigration Process
Suppose the business directors are from abroad and plan to manage the business in Tanzania. In that case, as per the law, the company must get from the appropriate authorities the residency and work permits for their safety and work in Tanzania. If they don’t intend to stay in Tanzania, there’s no need to get these permits. Instead, they can apply for a Business Visa, which lasts for less time than permits.
How Shikana Group can Help
Shikana Group is a leading legal advice services provider in Tanzania. We advise our clients on the appropriate ownership entities for the business they need to set up, including enterprises, associations, limited liability companies and joint ventures. Our legal team provides an analysis of the benefits, expenses and risks related with the choice of a specific business entity, in light of our extensive experience assisting worldwide investors coming into the African market place.
For further information, please don’t hesitate to contact us.