- What is the Role of TIC?
- How do I register with TIC?
- What are the benefits/incentives of investing in Tanzania?
- How to register with Business Registration and Licensing Agency (BRELA)?
- How do we registar for Trade/Service Marks?
What is the role of TIC?
- To promote investment (both local and foreign) in the country, this is done by way of presenting our investment opportunities, providing brochures, flyers, investors’ guides.
- After they have decided to invest, we facilitate them from the very initial stage of their investment to the last. This is from identification of land, company registration, business licensing, work permit, residence permit, tax issues etc as we a one stop facilitation centre, all essential government departments that are essential for investors are located here at TIC house under one roof.
- After they have started operations, we give them an after care service, that is, we visit them and see if they have any problems that we can help so they can smoothly continue with business and eventually expand.
- We have also a task of advising the government on investment policy issues
How do I register with TIC?
The Centre Will Require The Following Basic Documents In Order To Process Your Application:
1. 3 copies of the project’s Business Plan/Feasibility Study
(The intended project should aim at foreign exchange generation and savings, import substitution, creation of employment opportunities, linkage benefits, transfer of technology, expansion of production of goods and services etc)
We expect your feasibility study to contain the following information, clear statement of the project objective, information regarding the investor (profile), details of investment costs (foreign and local expected capital expenditure), how the proposed investment will be financed, specific sources(s) of finance for the project, terms and conditions of the loan if applicable, sources of technology if applicable, project financial and economic analysis, market study, project capacity, production process if applicable, environmental impact assessment, expected employment generation, proposed implementation schedule, etc
2. 3 dully filled copies of TIC application forms which are issued by the Centre at a fee of US$ 100
3. Incase of expansion/rehabilitation, a copy of audited account for the past three years.
4. A copy of the company’s Memorandum and Articles of Association.
5. A certified copy of the Certificate of company Incorporation
6. A brief profile of investors(s)
7. Evidence of sufficient finance capital available to implement the project
8. Evidence of land ownership for the location of the project
9. Company Board Resolution to register the project with TIC
10. Project implementation schedule
11. An overall covering letter to which all the above are attached.
**** All applications are officially submitted to TIC Registry Department, located in Tanzania Investment Centre’s Office, along Shaaban Robert Street, Plot No. A & B, Dar es Salaam
You are further advised to prepare yourself for a fee of US$ 750 for the Certificate of Incentives in the event that you have qualified and been informed that your project shall be granted the Certificate of Incentives.
What are the benefits/incentives of investing in Tanzania?
The Incentives Guarantees Available To Holders Of Tic Certificates Of Incentives Are:
- The recognition of private property and protection against any non-commercial risks. Tanzania is an active member of the World Bank Foreign Investment Insurance wing, MIGA (Multilateral Investment Guarantees Agency). Likewise Tanzania is a member of The International Centre for Settlement of Investment Disputes (ICSID) also a body affiliated to the World Bank.
- Zero percent (0%) Import Duty on project capital goods, computers and computer accessories, raw materials and replacement parts for agriculture, animal husbandry and fishing, human and livestock pharmaceuticals and medicaments, motor vehicle in Completely Knocked Down (CKD) form and inputs for manufacturing pharmaceutical products.
- Ten percent (10%) - Import Duty for Semi-processed inputs and spare parts other than for motor vehicles.
- Fifteen percent (15%) - Import Duty for fully processed inputs and motor vehicle spares.
- Twenty five percent (25%) - Import Duty for final consumer goods.
- Abolition of the mandatory pre-shipment inspection on imported raw materials that have zero rate of Import Duty.
- Introduction of pay and refund scheme for excise duty paid on fuel purchased by eligible companies.
- 50% expensing of capital expenditure for all classes of assets. In subsequent years implement wear and tear allowance.
- VAT exemption on ground transport run by Tour Operators, milk packaging materials, computers, printers and accessories, hospital equipment and drugs used by victims of HIV/, Malaria and TB and locally produced yarn.
- Deferment of VAT payment on project capital assets
- Import Duty drawback on raw materials used to produce goods for exports and deemed exports. Deemed exports cover locally produced or manufactured goods, which are sold to foreign agencies or entities operating in Tanzania, which are exempt from payment of import duties.
- Locally procured building materials are deemed to be capital and therefore subject to VAT deferment.
- Zero-rated VAT on exports
- Straight line depreciation allowance on capital goods
- Indefinite carry forward of losses against future profits.
- Corporate Tax Rate of 30% and Withholding Tax Rates on dividends (10%) and (0%) on loan interest in both priority and lead sectors.
- The right to transfer outside the country 100% of foreign exchange earned, profits and capital
- The ease of obtaining other permits such as Residence/Work Permits, industrial license, trading license etc.
- Automatic permit of employing 5 foreign nationals on the project holding Certificates of Incentives
- Land Rent on commercial agricultural farms, Livestock ranches and forests Tshs. 200/= per acre per annum
How to register with Business Registration and Licensing Agency (BRELA)
All enterprises, whatever their legal forms, operating in Tanzania must register with the Business Registration and Licensing Agency (BRELA) of the Ministry of Industries and Trade. The first step is to obtain name clearance from BRELA. Private companies must have at least two directors.
The application process varies depending on the entity being registered. A local company will be issued with a Certificate of Incorporation while a Certificate of Compliance will be issued to a foreign-based company. A Certificate of Compliance costs US$ 1100 (registration fee is US$ 1000 and filling fee US$ 100) while the cost for a Certificate of Incorporation is TShs 345,000/= (registration fee is Tshs 300,000 and filling fee Tshs. 45,000)
How do we registar for Trade/Service Marks
Investors will be required to pay the registration fees and place the advertisement in the Official Gazette for 60 days before a Certificate is issued. Trade/Service marks’ protection is for seven years renewable for every ten years.