Compliance refers to complying with rules or commands. Globalization has made connectedness easier for businesses around the world. Whether their purpose is to earn profit or serve people, all companies are adapting to this change regardless of the goal.
Tanzania is one of the places where investors want to invest and run their business but like every other country, Tanzania also has some regulations that need to be followed. We are going to provide an overview of the compliance matters that need to be heeded when one intends to start a business in Tanzania.
Certificate Of Compliance/ Certificate Of Incorporation
A certificate of incorporation is issued to the company that is established as a local company. At the same time, a branch will have to apply for a certificate of compliance with the Business Registration and Licensing Agency (BRELA).
After BRELA issues the certificate to the company, they will need to get TIN certification by Tanzania Revenue Authority (TRA) within 15 days after starting the business. Without TIN certification, the company will not be able to pay taxes which is why this next step is essential for compliance in Tanzania.
Tax Clearance Certificate
TRA issues a tax clearance certificate to establish that the taxpayer has complied with the tax laws of the country. If a company wants to renew its business license, it will need to submit its tax clearance certificate to prove its compliance with tax law.
A business license is mandatory for operating a business in Tanzania. No company can perform as an agent without being a holder of a business license. It is issued by the Ministry For Industry And Trade or the local government authority depending on the line of business.
Value Added Tax Certificate
The registration of value added tax is mandatory after obtaining the registration brink where there is a ground that taxable supplies may be in excess of TZS 100 million in the next year or TZA 50 million in the next six months as per section 28 of the Value Added Tax Act Cap 148 R.E 2019.
Certificate From Health Authority
It is essential for the law to ensure that the premises are safe. The company needs to register itself before starting operations; once the chief inspector gets satisfied with the premises, they issue the registration of it is secure. Apart from registration, the occupier also has to get a compliance license which is issued after every 12 months upon fulfilling occupational and safety requirements.
Certificate Of Registration From Workers Compensation Fund
The employer needs to submit the particulars of the employee to the Director General of the Workers Compensation Fund within 30 days after the recruitment. After the attributes are submitted, a certificate will be issued, and it has to be displayed at the workplace, so it is visible. The aim of this registration is to ensure that employees get equitable compensation in case of occupational injuries.
Fire Safety Certificate
This certificate is issued by the Fire Rescue Force that permits the use of vehicles, vessels and other conveyance facilities after the fire safety inspection. This also has to be displayed in a conspicuous place to show that the place is not fire hazardous.
Some industries in Tanzania require sector-specific licenses that need to be issued by relevant government authorities. These sectors include telecommunication, banking, engineering, shipping, mining, etc. A business license for these industries cannot be obtained before getting a sector-specific permit issued by the relevant government ministers.
These were just a few certificates that a company must own before starting operations in Tanzania. Occupiers must have the basic know-how of how business works in the country and what permits should be obtained to avoid any kind of non-compliance activity.
If you want to know more about Tanzania’s compliance or tax and regulatory services, contact Shikana Group. They have a professional team of legal advisors who will guide you to the best of their ability.