How To Become A Contractor In Tanzania

To reap substantial reward from the many prestigious projects emerge in Tanzania, becoming a contractor is the wise decision to pursue. No wonder
If you have expertise and some physical experience, the set up your contractor business would help you make the most of the opportunity in Tanzania

Who Is A Contractor?
A contractor is any person/ business with the capability to perform contract work such as fixing electrical system, construction of roads, building, welding the pipelines and so on.

Decide Kind of Contract work you want to be involved
There are five contractor specializations in Tanzania. So the first thing first is to figure out the type of contract work you want to perform. For example in Tanzania, you can choose from these types contractor specializations:

1.Building Contractors
2.Civil Works Contractors
3.Mechanical Contractors
4.Electrical Contractors
5.Specialist Contractors

Determine the type of license Classes
The next step is to determine the kind of classes you want to involve. Pick the classes should be done with careful handling because these classes are the restricted to the specific project. For a class one contractor is allowed to perform all contractors work in their specializations. But the person who picks class three or four is limited to a specific project. Also, the tax rates are higher as you take a high class. If you are someone starts out I suggest you go for lower classes such as six or five classes
Foreign contractors are restricted only to opt class one and two. Here are the classes for a contractor in Tanzania.
Class one Class two, Class Three Class four, Class Five, Class 6, Class Seven

Identify the Category of Contractor
Once you have determined your contractor specializations, you should identify the categories of contractors in Tanzania. Here are the categories
1. Local contractor
2. Foreign Contractor

Local contractors – Are the kind of contractors in which Tanzanian citizens have the biggest stake in the company. Otherwise will be regarded as foreign contractor

Requirements To Become A Contractor In Tanzania
Any person with a desire to perform contract works in Tanzania must register with contractor registration board (http://crb.go.tz) This is an agency empowered by the government to register all types contractors in Tanzania
• Such a person has a Certificate of Registration from the Registrar of Companies either as a Limited Company, partnership or sole proprietorship.
• In the case of Limited Liability Company, the Certificate must be accompanied with a certified copy of Memorandum and Articles of Association.
• Partnership and sole proprietorship firms must submit certified copy of Extract from the Registrar of Companies
• At least one of the shareholders or partners must have the minimum technical qualifications stipulated in Schedule and should not be employed elsewhere.
• The Board will review the curriculum vitae of each shareholder or partner as the case may be to ensure that they are persons of the good profession and general conduct.
• The registration of Partnership and Sole Proprietorship are limited up to class six only.
• Procedure for Registration or Upgrading of Contractors
Conclusion
Those are the basic requirement to become a contractor in Tanzania. However, to complete all the process need dedication and patience as it is little time-consuming. Depending on the classes you will choose Before you granted a license, the official from contractor registration board (CRB) they will visit your offices to inspect whether you have the equipment required to perform that type of contracts
http://crb.go.tz

 

What are your thoughts on how to become a contractor in Tanzania? Let me know by leaving a comment below.

Hussein Boffu runs a consultancy helping elite entrepreneurs reach their goals through actionable business planning. Contact him via email at hussein.boffu@tanzanapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.