Company Types

LEGAL STRUCTURES

Company Types

Choose the right legal structure for your business based on ownership, size, and operational needs.

Types by Ownership Structure

Tanzanian company law recognizes four main types of companies based on ownership and establishment method.

Private Company

Kampuni Binafsi

A private company is established by 2-50 people who are founding directors. Their shares cannot be sold outside the owners except by agreement through a Resolution that must be accepted by the company's Memart.

Shareholders: 2 to 50 people
Share Trading: Cannot be sold publicly
Transfer Rules: Requires Resolution & Memart approval

Public Company

Kampuni ya Umma

Public companies are established by 7 or more founding directors. After completing BRELA registration, they register at the Stock Exchange to allow the public to buy shares through the Dar es Salaam Stock Exchange (DSE).

Shareholders: 7 or more founding directors
Share Trading: Public via DSE
Regulation: BRELA + Capital Markets Authority

Foreign Company

Kampuni za Kigeni

This type of company has the same standard establishment procedures, but the founders are non-citizens with investment qualifications only. The law requires at least one Tanzanian citizen in the foreign company during registration.

Founders: Non-citizens with investment qualifications
Requirement: At least one Tanzanian director
Investment: Minimum investment capital required

Government Institutions

Mashirika ya Kiserikali

Public institutions with all company features but established by a special Act of Parliament. These companies are 100% government owned. Their establishment does not go through BRELA but is created by an Act of Parliament, with managers appointed by the President of Tanzania.

Ownership: 100% Government owned
Establishment: Special Act of Parliament
Leadership: Appointed by the President

Examples: STAMICO, TANESCO, TAZARA, TPA, and other public corporations.

Quick Comparison

Compare key features across different company types

Feature Private Company Public Company Foreign Company Government
Minimum Directors 2 7 1 Tanzanian + Foreign Appointed
Share Trading Private only Public via DSE Restricted N/A
Registration Body BRELA BRELA + DSE BRELA + TIC Act of Parliament
Annual Compliance Annual returns Strict reporting Annual + Investment Government audit

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