Tanzania

Ease of Doing Business in

Tanzania

This page summarizes Doing Business 2014 data for Tanzania. The first table lists the overall "Ease of Doing Business" rank (out of 189 economies) and the rankings by each topic. It also lists the economy's distance to frontier (DTF)** measure. The rest of the tables summarize the key indicators for each topic and benchmark against regional and high-income economy (OECD) averages.

Economy Overview

Region Sub-Saharan Africa
Income Category Low income
Population 47,783,107
GNI Per Capita (US$) 570
City covered Dar es Salaam
Doing Business 2014 Rank Doing Business 2013 Rank*** Change in Rank
145 136 down -9

Doing Business 2014 DTF** (% points) Doing Business 2013 DTF** (% points) Change in DTF** (% points)
56.73 56.51 down 0.22
Positive=Doing Business reform making it easier to do business. Negative=Doing Business reform making it more difficult to do business.
 

Starting a Business

Info

The challenges of launching a business are shown below. Included are: the number of steps entrepreneurs can expect to go through to launch, the time it takes on average, and the cost and minimum capital required as a percentage of gross national income (GNI) per capita.

DB 2014 Rank 119 DB 2013 Rank*** 115 Change in Rank down-4
DB 2014 DTF** (% points) 76.82 DB 2013 DTF** (% points) 76.32 Change in DTF** (% points) up0.50

Information on new business density and number of newly created firms with limited liability can be found at Entrepreneurship Database.

Indicator Tanzania Sub-Saharan Africa OECD

The total number of procedures required to register a firm. A procedure is defined as any interaction of the company founders with external parties (for example, government agencies, lawyers, auditors or notaries).

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Procedures (number)
9 8 5

The total number of days required to register a firm. The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments.

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Time (days)
26.0 29.7 11.1

Cost is recorded as a percentage of the economy’s income per capita. It includes all official fees and fees for legal or professional services if such services are required by law.

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Cost (% of income per capita)
27.7 67.4 3.6

The amount that the entrepreneur needs to deposit in a bank or with a notary before registration and up to 3 months following incorporation and is recorded as a percentage of the economy’s income per capita.

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Paid-in Min. Capital (% of income per capita)
0.0 125.7 10.4
No. Procedure Time to Complete Associated Costs
1 Apply for clearance of the proposed company name at the Business Registration and Licensing Authority (BRELA) 1 day no charge
2 Obtain a notarized declaration of compliance 1 day Notaries do charge at the range of TZS 10,000-50,000, for notarial services to normal documents such as form No. 14 b.
3 Apply for company incorporation and obtain the certificate of incorporation 4 days TZS 236,200
4 Apply for taxpayer identification number (TIN) at the Tanzania Revenue Authority 1 day no charge
5 Obtain taxpayer identification number (TIN) 1 day no charge
6 Apply for a business license from the regional trade officer (depending on the nature of business) 6 days TZS 1,000
7 Apply for the VAT certificate at the Tanzania Revenue Authority 4 days no charge
8 Register for the workmen’s compensation insurance at the National Insurance Corporation or an alternative insurance policy provider 1 day no charge
9 Obtain the registration number at the National Social Security Fund (NSSF) 7 days no charge

** The distance to frontier (DTF) measure shows the distance of each economy to the "frontier," which represents the highest performance observed on each of the topics including Getting Electricity across all economies included in Doing Business. An economy’s distance to frontier is indicated on a scale from 0 to 100, where 0 represents the lowest performance and 100 the frontier. Read more...

***Last year's rankings are adjusted: they are based on 10 topics and reflect data corrections.

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