Business Licenses in Tanzania

OBTAIN BUSINESS LICENSES IN TANZANIA

No company or individual person is permitted to operate a Business in Tanzania without being a Holder of a Valid Business License issued by the Respective Authority, this is a strict legal requirement as per the Business Licensing Act No. 25 of 1972 (as amended time to time). The danger of doing business without license in Tanzania include legal fine and/or imprisonment as the case may be.

Business License is a legal permit or permission issued by government agencies that allow individuals or companies to conduct business registered within the government’s geographical jurisdiction. In a simple language, Business License is the legal authorization to start and operate a business in Tanzania, of which, without it the doing of such business becomes illegal hence attracts legal Consequences – fine and/or imprisonment.

Law governing Business Licenses in Tanzania

In Tanzania, the Business Licensing Act No. 25 of 1972 (as amended time to time) is the Main Act for Business Licensing Process. The Act regulates general business licenses of two types namely: Business License Class ‘A’ which applies to any business of national or international nature or governed by policy, and Business License Class “B” which applies to any business which is not of national or international nature or not governed/preceded by policy, and is issued by Local Government Authorities (LGAs).

However, there are other statutory laws that govern and regulate issues of sectorial licenses in Tanzania. In case, in some incidence a company might need two or more licenses for one business depending on the requirements of a given case. Sectorial licenses are regulated by different laws; these include the following:

The Insurance Act No. 10 of 2009, for regulate insurance business licenses and other related matters
The Customs (Management and Tariff) Act No. 2 of 1963 (R.E 2019) for Customs Agency License and other related matters
The Gaming Act Cap 41, for gaming licenses and other related matters
The Bank of Tanzania Act No. 4 of 2006 for banking license and other related matters
The Mining Act Cap. 123 for Mining Licenses and other related matters

Types of Business License

The nature and kind of your business determines the types of ‘Business License.’ Generally, the Business Licensing Act No. 25 of 1972 provides for two Business Licenses that are issued by two Authorities namely: Business Licenses Class “A” and Business Licenses Class “B”, and there are other Business Licenses issued by different authorities/sectors formally known as ‘Sectorial Business Licenses’.

Business Licenses Class “A” or Schedule “A”

If your business has a national or international nature, or is governed by policy, it follows under the category of ‘Business License Class ‘A’’. This type of Business License is governed and regulated by the Business Licensing Act, and the authority responsible for issuing, regulating and supervising such license is BRELA (Business Registration and Licensing Agency) (BRELA). Application for ‘Business License Class ‘A” is presented to BRELA via Online application system.

Steps to be followed

Obtain and fill license application forms;
Submit filled documents for assessment;
Pay license fees;
Submit business license applications documents;
Obtain Business License Certificate

Documents Requirement for application of Business License Class “A” at BRELA

Business License application form (filled by representatives of the company)
Certified copy of memorandum and article of Association
Copy of Certificate of Incorporation (for local company) or Certificate of Compliance (for foreign company)
Copy of Tax Identification Number (TIN) Certificate
Bank Slip
Certified Copy of Lease agreement (for those who rent business premises) or Certified Copy of Title Deed (for those who owns the business premise)
Copy of Resident Permit class “A”/Business Visa (for Foreigners)
Copy of Power of Attorney
Clearance Certificate (this is for renewal)
Specific Sector License (if applicable)

In some cases, as you apply for Business License at BRELA you may be required to attach other license from specific sector. The specific license from specific sector gives confidence BRELA that you have met all the requirements from competent authority in the sector. The following are just example of the document you may be asked to attach from specific sector licenses as you apply for certain kind of business licenses:

Customs Agency license (for those who apply for clearing and forwarding business license)
Tourism Agency license (for those applying for licenses related to tourism business)
Copy of Professional certificate (for all professional business such as dispensaries, Pilots, Ship Captains, etc)
Copy of TFDA license (for food, drugs and cosmetics business)
Copy of Mining license (for mining business)
Business Licenses Class “B” or Schedule “B”

This category of license applies to any business which is not of national or international nature or not governed/preceded by policy, and is issued by Local Government Authorities (LGAs), so anyone wish to obtain. This Class of License is governed by the Business Licensing Act No. 25 of 1972 and the authority responsible to issue by Local Government Authorities (LGAs).

How to obtain License Class “B” from Local Government Authorities

The Business License Class “B” is applied for and obtained from the Local Government Authorities (LGAs) in the locality where business operates, in this case, LGAs can be either the District Council or Municipal Council. The steps to follow are:

Pay for license registration form
Assessment of documents and fees
Pay license fees
Obtain receipt
Submit Business License request documents
Obtain a Business License

Documents Requirement for application of Business License Class “B”

Business License application form
Certified copy of Memorandum and Articles of Association
Copy of Certificate of Incorporation/registration (for local company) or Certificate of compliance (for foreign company)
Copy of lease agreement or copy of Title Deed
Copy of Tax Identification Number (TIN) Certificate (for new application), or Confirmation taxpayer has paid all tax dues (Tax Clearance Certificate) for renewing the license
Copy of Payment receipt
Copy of Identification Card (for citizens) or Passport (for foreigners)
Power of Attorney (this applies to a foreign company);
Proof of citizenship (for citizen) and/or residence permit (for non-citizen) for Directors and Shareholders of the company
Other sectorial licenses in Tanzania

These are other Licenses basing on their unique nature are not issued by BRELA and LGAs, these types of licenses are called ‘Sectorial Business Licenses’ governed and regulated by different laws and regulations. In some cases, as you apply for Business License at BRELA you will be required to attach other license from specific sector. The specific license from specific sector gives confidence BRELA that you have met all the requirements from competent authority in the sector. The Following e

Gaming License

This License is given to an entity planning to provide gaming services or conduct gaming activities in Tanzania are required to obtain a relevant gaming license from the Gaming Board of Tanzania. Such license is also required to be applied in order to ensure the legal operations of casinos, slot machines, lotteries, and betting games, the manufacture of gaming equipment and the sale and distribution of gaming equipment and accessories. The Gaming License is governed by the Gaming Act Cap 41.