18 January 2023 Companies incorporated in Tanzania Mainland are no longer required to register a subsidiary company in Zanzibar
On 22 December 2022, the President of Zanzibar assented to the Written Laws (Miscellaneous Amendments) Act, 2022 that amended various laws that apply to Zanzibar. The Act amended the Companies Act, 2013 by removing the requirement for companies incorporated in Tanzania Mainland with a place of business in Zanzibar to register a subsidiary company in Zanzibar. Prior to 2021, Tanzania Mainland companies with operations in Zanzibar would either set up a branch or incorporate a company in Zanzibar. In 2021, Zanzibar introduced a requirement for registration of a foreign subsidiary company by all companies incorporated in Tanzania Mainland with a place of business in Zanzibar. The amendment was introduced through the Finance (Public Revenue Management) Act, 2021 that introduced Section 238(3) of the Companies Act, 2013 of Zanzibar. Through this amendment, a company incorporated in Tanzania Mainland was not permitted to set up a branch upon establishing a place of business in Zanzibar but rather incorporate a subsidiary company in Zanzibar. The requirement was abolished through the Written Laws (Miscellaneous Amendments) Act, 2022 that repealed Section 238 (3) of the Companies Act, 2013 of Zanzibar. Therefore, companies incorporated in Tanzania Mainland are no longer required to register a foreign subsidiary company upon establishing a place of business in Zanzibar. Such companies can operate through incorporating a local company in Zanzibar or setting up a branch in Zanzibar. Ernst & Young (Tanzania), Dar es Salaam
Document ID: 2023-0114 | |