Sole Proprietor Registration in Tanzania
Complete Step-by-Step Guide to Registering Your Business with BRELA
Introduction to Sole Proprietorship
A sole proprietorship is the simplest and most common form of business ownership in Tanzania. It is a business owned and operated by one individual, with no legal distinction between the owner and the business entity. This means the owner is personally liable for all business debts and obligations.
Registering your sole proprietorship with the Business Registrations and Licensing Agency (BRELA) is mandatory for formalizing your business operations. Registration provides legal recognition, enables you to open business bank accounts, and allows you to engage in formal business transactions. The process can be completed online through the BRELA e-services portal or in person at BRELA offices.
Step-by-Step Registration Process
Step 1: Business Name Search
Conduct a name search through the BRELA online system to ensure your proposed business name is available and doesn't conflict with existing registered businesses. You need to provide at least three name options in order of preference.
Step 2: Obtain TIN Certificate
Apply for a Tax Identification Number (TIN) from the Tanzania Revenue Authority (TRA). This is required for business registration and all tax-related matters. You can apply online through the TRA e-services portal or visit their offices.
Step 3: Prepare Required Documents
Gather all necessary documentation including completed application forms, identity documents, passport photos, and any relevant permits depending on your business activity.
Step 4: Online Registration
Create an account on the BRELA e-services portal (eservices.brela.go.tz) and complete the online application form. Upload scanned copies of all required documents and pay the registration fees electronically.
Step 5: Pay Registration Fees
Pay the required registration fees through the BRELA payment system. Fees vary depending on your business activities but typically range from TZS 50,000 to TZS 100,000 for name reservation and registration.
Step 6: Receive Certificate
Once your application is approved, you will receive your Certificate of Registration (Business Name Certificate) electronically through the BRELA portal. You can also request a physical copy if needed.
Required Documents
Essential Documentation
Form No. BN.1 - Application for Registration of Business Name, properly filled and signed
Copy of National ID (for Tanzanian citizens) or passport (for foreign nationals)
Two recent passport-sized photographs of the proprietor
Tax Identification Number certificate from Tanzania Revenue Authority
Rental agreement or utility bill for the business premises (if applicable)
Post-Registration Requirements
After Successful Registration
- Display your certificate: Prominently display your Business Name Certificate at your place of business
- Open a business bank account: Use your registration certificate to open a dedicated business bank account
- Register for VAT (if applicable): If your annual turnover exceeds TZS 100 million, you must register for Value Added Tax with TRA
- Obtain sector-specific licenses: Depending on your business activities, you may need additional permits from relevant authorities
- Comply with tax obligations: File regular tax returns and maintain proper accounting records
- Renew your business license: Business name registration is valid for five years and must be renewed before expiration
Important Government Agencies
| Agency | Role | Contact Information |
|---|---|---|
| Business Registrations and Licensing Agency (BRELA) | Business registration and regulation | www.brela.go.tz eservices.brela.go.tz |
| Tanzania Revenue Authority (TRA) | Tax registration and compliance | www.tra.go.tz eServices: tra.go.tz |
| Ministry of Industry and Trade | Business policy and development | www.mit.go.tz |
| Local Government Authorities | Business licenses and local permits | Varies by location |
Costs and Timeline
The total cost for registering a sole proprietorship in Tanzania typically ranges from TZS 70,000 to TZS 150,000, including name reservation fees, registration fees, and incidental costs. The BRELA registration fee for a business name is TZS 50,000, while name reservation costs TZS 5,000 per name.
The registration process typically takes 7-10 working days if all documents are in order and there are no complications with the proposed business name. The online registration system has significantly reduced processing times compared to the manual registration process.
Additional Costs to Consider
- Notarization of documents (if required): TZS 10,000 - TZS 30,000
- Transportation to government offices: Variable
- Professional assistance (if using an agent): TZS 100,000 - TZS 300,000
- Sector-specific licenses: Variable depending on business activity
- Local government business license: TZS 50,000 - TZS 200,000 annually
Contact SparkInvest for Business Registration Assistance
Get professional help with business registration, documentation, and compliance requirements
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