How to Start a business in Tanzania as a foreigner?

 

Tanzania unlike many other countries such as European, U.S.A. and Canada, do not offer the same rules and laws for foreigners and citizens. In fact, various types of discrimination of foreigners is fixed in the laws.

For example, registering a foreign branch what should be cheaper then registering a new company is priced US $1,000 in dollars, instead of few hundred thousands in Tanzanian shillings.

If business is on Zanzibar, the travel to Zanzibar is priced in dollars to foreigner and may be as 3–4 times more than what citizens are charged.

Obtaining a work permit is priced US $1,000 and the delays in receiving it, clearly give the impression and invitation for bribe, corruption in Tanzania is number one crime, despite all of the Magufuli’s attempts to exterminate it.

Obtaining a license for local citizen for business of trade or consulting may cost just 200,000 Tsh, less than US $100, while same license for foreigner is priced US $3,000.

Unspoken of mineral licenses that are impossible to get for a foreigner, unless with very large investment and special permission outside of the scope of the mining law.

Obtaining the work permit is not necessary the guarantee for residency, that one has to pay additional US $3,000 depending of the type of business.

And in order to start the business one is supposed to have the best and well priced premises.

Now, interesting, before the work permit and residency is obtained, one has to show the investment in Tanzania and imported goods, and bank account, which cannot be opened without the residency permit.

Tanzania is discriminatory country towards foreigners and the discrimination is written in its laws and rules.

That is why foreigners are always welcome.

Karibu.