Legal UpdateTanzania Issues New Business Licensing Procedure and Regulations

INTRODUCTION

On the 01^st of September 2023, the Minister for Industry and Trade (the Minister) issued the Business Licensing Regulations, 2023 (the New Regulations), vide the Government Notice No. 626 of 2023. The New regulations prescribe the procedure, requirements and set the terms and conditions for the issuance, validity and administration of the business licenses in Tanzania.

Therefor this update highlights the key aspects of regulations with the view of enlightening important regulatory and compliance requirements as well as provide necessary general legal information to our esteemed clients and the general public

APPLICATION FOR BUSINESS LICENSE

These Regulations require every application for a business license to be made to the relevant licensing authority in the area in which the business is/intended to be carried on. Further, regulation 3(1) requires the application to be made through Form No. TFN 211 as prescribed in the Schedule to the New Regulations. Notwithstanding the above requirement, applications for licenses relating to nightclubs are required to be accompanied by approval from the relevant authority confirming that the area where the business will be conducted conforms to the conditions set for protecting public health and safety.

POWERS OF THE BUSINESS LICENCING AUTHORITY

These Regulations empower the Business Licensing Authority to grant the application for the business license once the fee has been paid and issue a license in a form prescribed in the Schedule to this Regulation or to reject the application. and in case the Authority rejects the application then the applicant must be informed in writing within fourteen days and the reasons for rejecting must be stated

GENERAL CONDITIONS ANNEXED TO LICENSES

These Regulations stipulate certain conditions to be mandatory. The said conditions include: the requirement that the business premises must comply with the by-laws applicable in that particular area (including by-laws relating to the environment, hygiene, and public health); the requirement that the licensee shall, based on the notice issued by the Permanent Secretary Ministry of Industry and Trade (PS) or licensing authority, provides a return of his turnover for such period as specified in the notice; and where the license fee is charged based on turnover, the licensee should submit a duly consolidated and adjusted balance sheet for that purpose.

DUPLICATE OF LICENCE

The Regulations provide that where a license has been lost, destroyed, rendered illegible, or has become mutilated, a duplicate of the license may be issued upon satisfying the issuing Authority and payment of the required fee.

MAINTENANCE OF REGISTER AND INSPECTION

These Regulations oblige a licensing authority to maintain a register of issued licenses and specifically capture certain details such as the name and address of the licensee; type and registration number of a company; Taxpayer Identification Number (TIN); dates of issuance and expiry of a license; business sector; type of business; and nationality of the licensee.

 

Furthermore, every licensing authority is required to furnish a report with information in respect of business licensing to the Minister after every three months.

 

INSPECTION OF BUSINESS LICENSE

Regulation 10 allows the issuing Authorities to conduct inspection of Business license to verify the following

1. whether the business has a valid license,
2. the place where the business is conducted,
3. whether the business conforms with the license issued,
4. whether the business is done in accordance with the terms and conditions attached to the license,
5. the validity of license, or
6. anything that the licensing Authority may deem important to be inspected.

REFUND OF BUSINESS LICENCE FEE

As provided under Regulation 11, The Business Licensing Authority may refund the business license fee to the Applicant under the following circumstances:

1. Improper assessment.
2. Defects in the system.
3. Double payment.
4. Rejection of the application after payment.

The Business Licensing Authority shall not refund the licensing fee based on the negligence/defects of the Applicant.

PROCEDURE FOR REFUND OF BUSINESS LICENCE FEE

1. The applicant must apply in writing to be refunded his/her business license fee to the Business Licensing
2. Authority within 30 days from the date of payment.
3. The application must be accompanied by a claim document issued by the Authority and a proof of payment.

The Licensing Authority will determine the application for the refund and make payment and in case the application has been rejected then the applicant will be informed and the reason for the rejection.

APPEALS AGAINST DECISIONS OF LICENSING AUTHORITIES

Any person aggrieved by the decision of the Licensing Authorities may appeal against such decision. Appeals my be from the decision such as

1. refusal by a licensing authority to grant a business license;
2. a revocation of a business by the licensing authority;
3. aggrieved by the assessment by a licensing authority of any license fee

These Regulations require every appeal to be made within 30 days. Appeals may be done by lodging with the Appellate Authority in a Memorandum of Appeal as prescribed in the Schedule to these Regulations. Also, the time for lodging an appeal may be extended but there must be sufficient reasons for the extension of time.

CONCLUSION

The New Business Licensing Regulations of 2023 revoke the Business Licensing Regulations of 1972. Although the new regulation of 2023 prescribes various forms, as far as Business license is concerned, the application and processing of a business license is done through an online system.