STARTING BUSINESS

This page provides essential guidance on the fundamental steps required to establish a business as an individual, partnership, trust, or limited company.

What steps should you take to initiate a business?

Individual

Whether a resident or non-resident, an individual must visit the TRA website at www.tra.go.tz to obtain a Taxpayer Identification Number (TIN). To complete this process, the individual must possess an official  identification, such as a National ID, Passport ID, or Voter ID. The individual will need to fill out the Online TIN application form available at https://taxpayerportal.tra.go.tz and will receive instructions on how to answer the online questions and upload the necessary documents. For business TIN purposes, the individual is required to visit the TRA office with a letter from a local government leader and a lease agreement for the business location. Once the TIN certificate is issued, the taxpayer must undergo an assessment interview for tax evaluation. After fulfilling the tax obligations, the taxpayer will receive a Tax Clearance. In order to facilitating acquiring of Business License from the Trade office in District, Municipal, City and the Ministry of Trade and Industry depending on the type of business.
 

 

Who qualifies as a resident individual?
An individual is resident in the United Republic for a year of income if the individual-

• Has a permanent home in the United Republic and is present in the United Republic during any part of the year of income;
• Is present in the United Republic during the year of income for a period or periods amounting in aggregate to one hundred eighty three days or more;
• Is present in the United Republic during the year of income and in each of the two preceding years of income for periods averaging more than one hundred twenty two days in each such year of income; or
• Is an employee or an official of the Government of the United Republic posted abroad during the year of income.

 

Certificate of Registration:
An individual may opt to register the business name to the agency commissioned by Ministry of Trade and Industry known as Business Registration and Licensing Authority (BRELA). The registered name can be obtained before or after application for TIN. The registered business name shall be indicated on the TIN certificate together with an individuals’ name showing the owners name trading as (T/A).

 

A Corporation (limited Company)
To establish a corporation, an individual must apply for a Certificate of Incorporation from the Business Registration and Licensing Authority (BRELA). The company's Directors are required to prepare a Memorandum and Articles of Association and submit these documents along with the Certificate of Incorporation, a lease agreement or title deed, and an introductory letter from the local authority.

Once the registration with BRELA is complete, the Company Director must present all necessary documents to the nearest Tanzania Revenue Authority (TRA) office to register for tax purposes and obtain a Company TIN.

The limited company must register on the taxpayer portal system, conduct a tax assessment, and submit returns for Income, Pay As You Earn (PAYE), and Skills Development Levy (SDL).

Upon meeting tax obligations, the limited company will receive a Tax Clearance Certificate, allowing it to proceed to obtain license from other business authorities.

Partnership

The partners are required to register the firm with the Business Registration and Licensing Agency (BRELA) and obtain a certificate of registration. Once the certificate is issued, the partners must visit the Tanzania Revenue Authority (TRA) with the partnership deed, which outlines the names of the partners and their respective profit-sharing ratios.
To apply for a Tax Identification Number (TIN), the partnership firm must submit the certificate of registration obtained from BRELA, Partnership deed, Lease agreement or title deed, and an Introduction letter from the local authority.
Each partner must individually apply for a TIN; however, if all partner has already received a TIN for another purpose, they are not permitted to submit a new application. The existing TIN will be utilized.
 

Trust

Trust is a legal framework wherein trustees manage assets, distinct from partnerships and corporations. A trust must register with RITA to obtain a certificate of registration and create a trust deed that lists the names and addresses of the trustees. Each trustee is required to apply for a Tax Identification Number (TIN).

 If a trustee has previously received a TIN for another purpose, they are not permitted to submit a new application; the existing TIN will be utilized.

 

Aids Organisation

This organization will be classified as an aid organization for tax purposes. Once the applicant has obtained the necessary permit from the Ministry of Internal Affairs, they will be able to proceed with registration via the Taxpayer Portal account of one of their representatives.

 

Religious institutions and economic groups

Religious institutions and economic groups may apply for a Tax Identification Number (TIN) for tax purposes. They are required to obtain a permit or an introduction letter from their registered organization, or a certificate of group registration from the District or Municipal authority, and to proceed through the Taxpayer portal account of one of their representatives.