Understand the Jurisdictions Setup Requirement Before Proceed Your Company Incorporate in Tanzania
Many people are probably familiar with the East African country named Tanzania because it is famous for Mount Kilimanjaro. Tanzania is actually the new country resulting from two countries merging together – Tanganyika and Zanzibar. Tanzania itself has gone through much political turbulence before it emerged as an independent country. Investors may find Tanzania interesting since it’s politically stable, in comparison to other African countries.
Other Reasons for a Company Incorporate in Tanzania
You may choose to have a company incorporate in Tanzania because their economy is thriving. The country is active in the import and export of goods to global trading partners. Some of these trade partners are China, Switzerland, South Africa, India, and Vietnam. Tanzania is also remarkable because this country is increasing its GDP faster than many other African countries. The World Bank has designated Tanzania as a “lower-middle-income country” as of 2020.
Importance of Agriculture When Considering Company Incorporate in Tanzania
The Tanzania economy is based mostly on the practice of agriculture. In fact, 50% of the country’s workforce is in the agriculture industry. Even if you do a company incorporate in Tanzania in another industry, you may find agriculture influencing your company’s performance. Agriculture products from Tanzania remain very much in demand. Examples of these are:
- Beef products
- Pork products
- Chicken products
- Lamb or mutton products
- Cashew nuts, among others.
Other Industries for Your Company Incorporate in Tanzania
You may also choose to do a company incorporate in Tanzania because there are other industries to seek entry to. Two of the top-performing industries are:
- Energy (due to natural gas production)
- Travel and tourism (due to existence of natural parks and conservation of wildlife habitats)
The Tanzanian government is bullish on agriculture though, since the majority of the population is dependent on this industry alone. It remains to be seen whether the government will also push for the development of other industries as well.
How to Do a Company Incorporate in Tanzania
If you intend to initiate a company incorporate in Tanzania, you have three options, namely:
- Set up a branch or representative office.
- Put up a public company.
- Choose a private limited liability company (also called LLC).
A branch or representative office generally has the same corporate powers as a stand-alone company. This means it will follow Tanzania laws and regulations. One requirement for a branch or representative office is you need to designate a definite business address within Tanzania.
A public company is different from an LLC since the former may sell its shares to the public. If you have an LLC, you may not sell any shares to the public. If you are setting up a public company, you need to have a minimum of seven members. On the other hand, if you are putting up an LLC, you can rest assured the company’s stability won’t be affected by the death of one director or shareholder.
You may be in need of guidance and assistance when it comes to procuring business services for your company in Tanzania. We at 3E Accounting will be glad to help you do your company incorporate in Tanzania for you. Simply contact us today.