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How to register a company in Tanzania — A guide for global employers

Grow your team in Tanzania
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Tanzania: Your strategic entry point to East African markets

Tanzania’s stable economy and investor-friendly policies make it an ideal base for expanding into East Africa. Its strategic location and straightforward company registration procedures simplify the process of establishing and managing operations across the region. With growth opportunities in key sectors like mining, agriculture, and tourism, Tanzania offers a solid platform for businesses aiming to scale in one of Africa’s fastest-growing areas.

The benefits of expanding your company to Tanzania 

Tanzania makes it easy for global employers to unlock opportunities in East Africa. With pro-business policies and a fast-growing economy, the country offers a strong foundation for expansion. For HR leaders and decision-makers, it’s an efficient, scalable option for entering one of Africa’s most dynamic regions.

Here’s why Tanzania stands out as a strategic choice for businesses exploring new markets:

  • Maximize profits with incentives in special economic zones (SEZs) and export processing zones (EPZs).
  • Simplify entry with a straightforward registration process through the Business Registrations and Licensing Agency (BRELA).
  • Operate in a stable and investor-friendly environment with clear legal frameworks.
  • Access East African markets via Tanzania’s membership in the East African Community (EAC).
  • Enjoy a competitive labor market with a skilled and diverse workforce.
  • Leverage tax breaks and exemptions available for specific industries.

Next, we’ll dive into your options for setting up a business—whether through direct registration, leveraging special zones, or using an Employer of Record (EOR)—to help you choose the right path for seamless expansion.

What is the difference between standard company registration and EOR in Tanzania?

In Tanzania, businesses have two primary options for establishing a presence: standard company registration and utilizing an Employer of Record (EOR). Here’s a comparison to help you decide which approach aligns best with your business objectives:

Aspect

Standard Registration

Employer of Record (EOR)

Purpose

Establishes a legal entity, granting full control over operations and finances.

Allows hiring in Tanzania without entity setup; the EOR manages compliance and employment.

Control

Provides complete operational and financial control.

Operational control over employees; EOR handles administrative and legal tasks.

Compliance

Full responsibility for adhering to Tanzanian labor laws, tax regulations, and reporting.

EOR ensures compliance with labor laws, taxes, and reporting on your behalf.

Setup Time

Longer, due to documentation and legal procedures.

Quick, enabling immediate hiring and operations.

Cost

Includes entity setup costs, legal fees, and operational expenses.

Service fees to the EOR, which are often more cost-effective than entity setup.

Scalability

Best for long-term, substantial physical operations.

Highly flexible for workforce scaling without the need for an entity.

While standard company registration offers full control and is ideal for long-term operations, an EOR provides a streamlined solution for effortless expansion and compliance management without the complexities of setting up a local entity.

Let’s explore how an EOR streamlines registration.

How an EOR simplifies Tanzania company registration

Expanding into Tanzania is easier than you might think—especially with the right partner. An Employer of Record (EOR) offers a hassle-free way to set up operations, hire talented locals, and stay compliant with all regulations, all without establishing a legal entity.

Here’s how an EOR helps businesses entering Tanzania:

  • Start operations quickly by skipping the lengthy entity setup process.
  • Reduce admin tasks by outsourcing payroll, taxes, and compliance.
  • Ensure full compliance with Tanzanian labor laws and regulations.
  • Save costs by avoiding the expenses of establishing a legal entity.
  • Scale your workforce flexibly to match market demands.
  • Access top Tanzanian talent without hiring complexities.
  • Attract talent with compliant, competitive benefits managed by the EOR.
  • Minimize compliance risks with the EOR handling all regulatory requirements.

An Employer of Record makes it straightforward to grow your team and expand your business in Tanzania, all while staying compliant and minimizing operational headaches. It’s a smart way to enter a promising market without unnecessary complications.

A step-by-step guide to starting your business in Tanzania

Setting up a business in Tanzania in 2025 involves a few essential steps. Follow this streamlined guide to get started:

Step 1: Pick the perfect business structure and name

Choose a business entity that aligns with your goals and defines your legal and tax responsibilities.

Popular options:

  • Private Limited Company (LTD): Ideal for small to medium-sized businesses with limited liability.
  • Public Limited Company (PLC): Perfect for larger companies looking to raise capital through public offerings.
  • Sole Proprietorship: A simple option for individuals, but it comes with unlimited personal liability.

Naming your business: Use the BRELA Online Registration System (ORS) to verify that your chosen name is unique and complies with local naming rules.

Alternatively, consider partnering with an Employer of Record (EOR) to bypass the need for entity setup entirely. An EOR lets you start operations, hire employees, and stay compliant without worrying about choosing a business structure or navigating the registration process. It’s a smarter, hassle-free solution for quick market entry.

Step 2: Submit your paperwork to BRELA

Gather and submit the necessary documentation to register your company.

Key documents include:

  • Memorandum and Articles of Association
  • Company registration forms
  • Identification for directors and shareholders (e.g., passports)
  • Proof of the company’s physical address in Tanzania

How to file:

  • Online: Submit via the ORS portal.
  • In-person: Deliver the documents directly to BRELA’s offices.

The Business Registrations and Licensing Agency (BRELA) oversees company registration in Tanzania. Ensure your Memorandum and Articles of Association, shareholder details, and notarized documents meet BRELA’s standards. Expect to pay a registration fee between $50–$100, depending on your entity type.

Step 3: Get your Tax Identification Number (TIN)

Register for a Tax Identification Number (TIN) with the Tanzania Revenue Authority (TRA).

Key tax requirements include:

  • Value Added Tax (VAT): Mandatory if your turnover exceeds TRA thresholds.
  • Pay As You Earn (PAYE): Required if you have employees to manage payroll taxes.

Step 4: Apply for the right licenses

To comply with Tanzania business license requirements, secure the necessary licenses based on your business type:

  • Class A Licenses: Issued by BRELA for large-scale operations.
  • Class B Licenses: Managed by Local Government Authorities (LGAs).

Key documents include the Certificate of Incorporation, TIN, and sector-specific permits. Applications can be submitted online via the Tanzania National Business Portal or in person at BRELA offices. License fees range from $50 to $500 annually, depending on your industry.

Step 5: Set up a business bank account

A local bank account is essential for managing finances, payments, and expenses.

Banking options include:

  • Traditional Banks: CRDB Bank, NMB Bank, and Standard Chartered offer business accounts.
  • Requirements: Registration certificate, TIN, identification documents, and proof of business activities.

However, you can partner with Multiplier’s global payroll solution to skip this step and seamlessly enter the market. Multiplier manages global payroll in multiple currencies, ensures compliance with Tanzanian tax laws, and eliminates tax risks—all without requiring you to open a local bank account.

Step 6: Keep your business compliant

Ensure your company follows Tanzanian laws and regulations by:

  • Maintaining accurate financial records
  • Submitting annual returns to BRELA
  • Adhering to employment laws

Partnering with an EOR can also simplify compliance by leveraging their local expertise to handle financial records, annual filings, and employment law adherence seamlessly.

The next step is understanding the costs associated with registering a company in Tanzania. Let’s break down the expenses to give you a clearer picture.

What you need to budget for a business expansion in Tanzania

For businesses planning to establish operations in Tanzania, here’s a breakdown of the costs to help you plan effectively:

  1. Registration costs
  • State fee: The fee for registering a company with the Business Registrations and Licensing Agency (BRELA) typically ranges from $50 to $100, depending on the type of entity.
  • Initial capital: While there is no minimum capital requirement for most entities, certain industries may require specified capital levels.
  • Legal services: Non-residents often hire local agents or legal firms to handle the process, which can cost between $300 and $1,000.
  • Business license: Depending on the industry, you may need a license, with fees ranging from $50 to $500 annually.
  1. Annual maintenance costs
  • Accounting services: Professional accounting services start at around $100 per month, depending on the complexity of your operations.
  • Tax filings: Filing taxes, including corporate and VAT returns, typically incurs a cost of $150 to $300 per year.
  • Compliance fees: Renewal of business licenses and other regulatory permits can cost $100 to $300 annually.
  • Corporate bank account fees: Maintaining a corporate bank account involves monthly charges that range from $10 to $30.
  1. Additional considerations
  • Work permits: For expatriate employees, work permits range from $500 to $1,000 annually.
  • Office space: If you choose to lease an office, rental costs vary widely based on location, averaging $300 to $1,500 per month in major cities.

An Employer of Record (EOR) cuts down costs and admin work by taking charge of payroll, compliance, and tax filings. With a single, transparent fee, it minimizes overhead and makes expansion effortless.

Let’s compare the cost of traditional registration to the advantages of using an EOR. 

Cost Comparison: Standard Registration vs. EOR

Let’s look at how the costs stack up when comparing traditional registration to partnering with an Employer of Record (EOR).

Cost Comparison: Standard Registration vs. EOR

With an EOR, you avoid the time, cost, and complexity of setting up a legal entity in Tanzania. Instead, you gain a reliable partner to manage payroll, compliance, and administrative tasks seamlessly. Transparent, all-inclusive pricing ensures there are no surprises, allowing you to stay focused on growing your business with confidence.

Next, we’ll show how Multiplier can simplify and accelerate your expansion into Tanzania, providing the expertise and support you need every step of the way.

Take the hassle out of expanding into Tanzania with Multiplier

Expanding into Tanzania shouldn’t be a maze of paperwork and compliance challenges. With Multiplier’s Employer of Record (EOR) solution, you can focus on scaling your business while we handle the complexities.

  1. Hire locally, grow globally

Tap into Tanzania’s diverse talent pool effortlessly. Multiplier’s global employment solution streamlines the process with compliant contracts and smooth onboarding. Our local HR experts ensure every hire aligns with Tanzanian regulations, so you can grow your team with confidence.

  1. Payroll that works like clockwork

Leave payroll headaches behind. Multiplier handles taxes, NSSF contributions, and PAYE with precision, keeping you compliant with Tanzanian regulations. Your team gets paid on time, and your operations stay seamless—because smooth payroll means smooth business.

  1. HR, all in one place

Manage onboarding, expenses, approvals, and leave requests from a single, easy-to-use global workforce management platform. Multiplier gives you complete visibility and control over your team in Tanzania. 

  1. Compliance made simple

Navigating Tanzania’s labor laws, tax rules, and employment policies has never been easier. From VAT thresholds to employee protections, Multiplier ensures your business stays compliant with local regulations every step of the way. 

  1. Benefits employees love

Attract and retain top talent with competitive benefits packages tailored to Tanzanian standards. Multiplier takes care of everything, ensuring your employees get the support they need. See how we simplify employee benefits management.

  1. Support you can count on

Get reliable, human-first support whenever you need it. With GDPR compliance, SOC 2 certifications, and AWS-backed security, Multiplier ensures your operations in Tanzania are safe and secure.

From payroll to HR and beyond, Multiplier’s solutions are designed to make growth effortless, meaningful, and impactful.

Multiplier can help you scale your workforce in Tanzania without the stress.

Book a demo today with Multiplier’s experts.

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