1) exchanged for one another or for money.

1)     
Describe
the procedures and documents required in registering business.

Meaning of Business

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Business
is an organization where goods and services are exchanged for one another or
for money. Every business requires some form of investment and enough customers
to whom its output can be sold on a consistent basis in order to make a profit.
Businesses can be privately owned, not-for-profit or state-owned. An example of
a corporate business is PepsiCo, while Bakhresa Food Products Ltd business is a
private company.

 Procedures and Documents in registering
business

Legally businesses registration and licensing is
done by organs like BRELA and TRA. In order to register for business, the
following are the procedures:

      
I.           
Application of clearance of the proposed
business name: by submitting three names (Fist name, Second and Sir Name).
Submitting three names aims to ensure that business name doesn’t coincide with
already existing business names. Business Registration and Licensing Authority
(BRELA) is responsible to register all businesses. After
business is registered, you will receive a notification confirming your
registration then the applicant is supposed to prepare a memorandum and
articles of association and submits to BRELA.

   
II.           
Obtain a notarized declaration of
compliance: an entrepreneur/business owner should visit the
notary for notarization of the declaration of compliance. Notaries do charge at
the range of TZS 10,000-50,000, for notarial services to normal documents. E.g.
Form 14bNB: Notary is a person authorized to perform certain legal formalities,
especially to draw up or certify contracts, deeds, and other documents for use
in other jurisdictions.

 III.           
Application for company incorporation
and obtain the certificate of incorporation: for apply a certificate of
incorporation done at Tanzania Investment Centre. A subscriber, secretary, or a
person named in the articles of association as a director must submit the
following to the Registrar of Companies:

1.      Form
14a (First Directors and Secretary and Intended situation of Registered Office)

2.      Form
14b (1) (Declaration of Compliance on Application for the Registration of a
Company)

After
the forms are filed, the certificate of incorporation is usually processed within
2-3 days.

NB:
The Memorandum and Articles of Association are also filed with the forms.

 

 IV.           
Application of  taxpayer identification number (TIN) at
Tanzania Revenue Authority: TIN registration is free of charge. It takes a
minimum of 1- 2 days to obtain a TIN number, depending on the number of
requests made to the Revenue Authority (TRA) at the time. The Certificate of
incorporation shall be attached to the TIN application enclosed with Memorandum
and Articles of Associations when a person makes application to TRA.

The limited company shall apply for TIN certificate
by filling TIN application forms as follows:

·        
Application for the company

·        
Application for each
shareholders/directors, in case any director has already issued with TIN
certificates for other purpose he/she cannot make another application. The same
TIN number will be used.

 

   
V.           
Application for business license at
Ministry of Industry and Trade (MIT) and Local Government authorizes (LGAs):
The
business license is either issued by the Ministry of Industry and Trade or the
Local Authorities depending on the nature of the business. Together with the
application, the following documents must be submitted: Certificate of
incorporation, Memorandum and Articles of Association, Proof of Tanzanian
Citizenship, Proof of a suitable company premises and Taxpayer Identification
Number (TIN).

 VI.           
Application of the VAT certificate at
the Tanzania Revenue Authority: To register for VAT
(Value Added Tax) someone has to go to the nearby TRA office to obtain papers
for registration. The registration applies to all with exception of those
businesses offering professional expertise services.

VII.           
Registering workers compensation
insurance at National Insurance Corporation (NIC) or an alternative insurance
provider: To register for workers’ compensation insurance,
employers must complete the Workmen’s Compensation Tariff Proposal Form. This
is done at Workers Compensation Fund (WCF) and Tanzania Insurance Regulatory
Authority (TIRA).

VIII.           
Obtain social security registration
numbers from all mandatory social security schemes: It
takes a week to obtain a social security registration number. Every employer in
the formal sector is required to register his/her employees with any of the
mandatory schemes, provided that it shall be the right of the employee to
choose the mandatory scheme to register under. These mandatory schemes are
established by law and guaranteed by the Government to provide social security
benefits to employees.

 

Documents required when registering
a business:

a)      Memorandum
of Associations: define the business companies’ objectives, powers and services
as a guideline to the outside public. its include;

i. Name of business.

ii. Objectives.

iii. Registered address.

iv. Authorized share capital (the
maximum amount of capital a business is allowed to raise)

v. List of directors.

 

b)      Articles
of Association: serve as a guideline to the internal management of open
business company

i. Internal management of the
company.

ii. Rights and responsibilities of
Directors and Shareholders. iii. Appointment of legal advisors and auditors.

iv. Quorum of Annual General
Meeting. v. Profit sharing.

 

c)      Certificate
of incorporation

A certificate issued to business to
act as a limited company.