Private Company Limited by Shares (Ltd)
Kampuni Binafsi yenye Hisa
Company formation in Tanzania
The Ltd is best suited for: Mining and natural resource companies operating in Tanzania, Tourism and hospitality businesses, Agricultural companies and food processing operations, Logistics companies serving the East African interior. Private limited companies pay 30% corporate income tax on worldwide income for resident companies and on Tanzanian-source income for non-resident companies. VAT is 18% standard on most goods and services, with exemptions for unprocessed agricultural products and basic necessities. Withholding tax on dividends is 5% (resident) or 10% (non-resident). Interest and royalties attract 10% withholding tax for residents and 15% for non-residents. Tanzania has 11 double tax treaties. Special Economic Zones (EPZ and SEZ) offer corporate tax exemptions for the first 10 years for qualifying export-oriented and industrial operations. The mining sector is subject to additional royalties and specific tax rules under the Mining Act.
- Mining and natural resource companies operating in Tanzania
- Tourism and hospitality businesses
- Agricultural companies and food processing operations
- Logistics companies serving the East African interior
Key Facts
Step-by-Step Formation Process
Reserve a company name with BRELA
Submit a name reservation request through the Business Registrations and Licensing Agency (BRELA) online portal. The proposed name must be unique and not misleading. Name reservations are valid for 30 days and cost a nominal fee.
Prepare incorporation documents
Draft the Memorandum and Articles of Association, statement of nominal share capital, and particulars of directors and shareholders. The Companies Act 2002 (as amended) governs formation requirements. A single director and single shareholder are permitted for private companies.
File incorporation with BRELA
Submit the incorporation application through the BRELA online system, uploading the Memorandum and Articles of Association, director and shareholder particulars, and the registered office address. Pay the registration fee. BRELA issues the Certificate of Incorporation upon approval.
Obtain TIN and register for VAT
Apply for a Taxpayer Identification Number (TIN) with the Tanzania Revenue Authority (TRA). Register for VAT if annual taxable turnover exceeds TZS 200 million. Obtain a business licence from the relevant municipal authority.
Register with social security and obtain sector-specific licences
Register with the National Social Security Fund (NSSF) or other mandatory pension funds for employees. If operating in mining, tourism, or regulated sectors, apply for the relevant sector-specific licences from the respective authority.
Required Documents
- Passport copies or national ID for all shareholders and directors
- Memorandum and Articles of Association
- Statement of nominal share capital
- Particulars of directors and shareholders
- Registered office address confirmation
- TIN applications for directors
- Business licence application
Cost Overview
Tax Treatment
Private limited companies pay 30% corporate income tax on worldwide income for resident companies and on Tanzanian-source income for non-resident companies. VAT is 18% standard on most goods and services, with exemptions for unprocessed agricultural products and basic necessities. Withholding tax on dividends is 5% (resident) or 10% (non-resident). Interest and royalties attract 10% withholding tax for residents and 15% for non-residents. Tanzania has 11 double tax treaties. Special Economic Zones (EPZ and SEZ) offer corporate tax exemptions for the first 10 years for qualifying export-oriented and industrial operations. The mining sector is subject to additional royalties and specific tax rules under the Mining Act.
Pros & Cons
- East Africa's second-largest economy with 63 million consumers and rich natural resources
- EAC and SADC dual membership provides preferential trade access across East and Southern Africa
- No statutory minimum capital requirement for private companies
- Rich mining sector (gold, tanzanite, natural gas) attracting significant foreign investment
- Growing tourism industry centred on Serengeti, Kilimanjaro, and Zanzibar
- Strategic port of Dar es Salaam serves landlocked neighbours (DRC, Zambia, Malawi, Burundi, Rwanda)
- 30% corporate tax rate is the standard African rate but high by global standards
- 18% VAT adds to the overall tax burden
- Infrastructure outside Dar es Salaam and Dodoma is limited — road and power reliability vary
- Bureaucratic processes can be slow despite BRELA digitisation efforts
- Foreign exchange controls on repatriation of profits require proper documentation
- Work permit process for foreign employees can be lengthy and unpredictable
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Get StartedThis content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.