Tanzania
Corporate Guide

Can a company be wholly owned by foreigners in Tanzania?

Yes, a company generally can be owned wholly by foreigners, whether individuals or body corporates, as long as they submit their passports and parent company's certificates(s) of incorporation during the incorporation. However, in certain sectors, local contact requirements are mandatory. These sectors include:

Mining

• At least 20% of the equity of a company undertaking mining activities / operations must be owned by a Tanzania citizen. In any mining operations under a mining licence or a special mining licence, the Government of Tanzania must hold at least 16% of non-dilutable free carried interest shares in the capital of a mining company. This percentage may vary depending on the type of minerals and the level of investment.
• Additionally, the Government shall be entitled to acquire, in total, up to 50% of the shares of the mining company. It should be noted that where a special mining licence holder does not enter into an agreement with the Government offering free carried interest, then under the law, the special mining licence holder is required to offer 30% of its issued and paid-up share capital to the public.

Insurance

At least one-third of the controlling interest, whether in terms of shares, paid up capital or voting rights must be held by citizens of Tanzania.

Oil and gas

A Tanzanian citizen must have a minimum of 15% participating rights in a company undertaking petroleum business.

Telecommunications

Any person holding a National Facilities or National Services Licence must have at least 25% of its issued and paid-up share capital held by Tanzanian citizens, obtained through a public offer.

Any person holding a content licence must have at least 51% of its issued and paid-up share capital held by Tanzanian citizens.

Tourism

Under the regulations for undertaking business as a tour operator, a company should have as one of its shareholders a citizen of Tanzania having a shareholding of 50%.

Aviation

No undertaking shall provide airport ground handling services unless:

• its principal place of business and its registered office are located in Tanzania;
• the undertaking is owned by Tanzanian citizens by at least 35% of the total shares (except for aviation fuel providers); and 
• its main business is in one or more ground-handling activity in isolation or combined.

Public listing

The Dar es Salaam Stock Exchange Public Limited Company Rules 2022, promulgated under the CMSA Act, require every listed company or issuer to reserve at least 25% of its issued share capital to be held by the public. 

Please also note that a wholly foreign-owned company would only be able to own land in Tanzania for in-vestment purposes through the TIC and would obtain a lease known as a derivative title, which has its own cost and reporting obligations.