All Business owners must work within the confines of the laws of Tanzania.

There are several types of Business enterprises that may be used

- Sole Proprietorship
- Partnership
- Private Company
- Public Company
- Franchising

After reserving any of the above businesses you will need to reserve a business name and register with BRELA,for registering a private or public company you will need an accountant or attorney to help you.

You will also need to register to pay TAX with TRA.

If your turnover exceeds 40,000,000/- Tshs per year, you will need to register Value Added Tax (VAT) and pay over VAT to TRA every month by the end of the following month.

If you employ staff, you will need to register for employee tax - both PAYE and SDL with TRA,make deductions as per the current tax tables and pay this amount every end of the month.

If you employ more than 4 people you will need to register for and pay over Skills Development Levy (SDL) .This is 6% of total remuneration and is treated in your income statement as other expenses.

If you employ staff, you will need to register for and pay over NSSF of 20% of employee earnings.10% taken from employee earnings and other 10% from the company contribution.

The Following employment legislation needs to be adhered to if you employ staff in your business

- Empowerment and Labour Relations Act
- Occupational Health and Safety Act
- Vocational Education and Training Act


  1. In all cases where you are unsure where you stand legally,
    always seek expert advise, such as BRELA,TRA,TCCIA or an Attorney.
  2. Breaking the law could mean that you loose your business. Legal compliance
    is essential to the smooth operation of your business.

* Buy the SME Toolkit for all the Details