Compliance issues for foreign contractors in Tanzania
The construction industry is growing in Tanzania, with both local and foreign contractors involved in new construction projects across the country.
For a foreign company to perform any project or any of those construction works in Tanzania it needs to comply with regulatory laws of the construction industry, specifically registration with Contractors Registration Board [CRB].
The controlling Legislation is the Contractors Registration Act, 1997, as amended from time to time and its by-laws.
If a foreigner owns more than 50% of the shares, it will be regarded as a foreign company for the purpose of registration with CRB.
The law restricts any non-citizen to form a local contracting firm/company unless he proves that majority of the shares are owned by the citizens of Tanzania.
This article covers the extensive compliance issues relating to registration of a foreign company for a temporary basis/for carrying a special task only for a specified time.