On the 21st of September 2021, the Minister for Trade and Industries Development of Zanzibar issued a public announcement that affects companies incorporated under the Companies law of Mainland Tanzania and thereafter issued with a certificate of compliance to operate in Zanzibar as a branch. Such companies have been provided with a Ninety (90) days’ notice to be “re-registered in Zanzibar as subsidiary companies. Once the re-registration process is complete the Companies shall be issued with certificates of incorporation. The consequences for failure to adhere with the notice shall lead to the removal of the company in the register of companies for its entirety.
The announcement was made by the Minister consequent to the Amendment of Section 238 of the Zanzibar Companies Act No. 15 of 2013 by Section 29 of the Finance Act, No.3 of 2021.
The amendment has a legal implication and compliance issues that companies should adhere. Initially companies operating with certificates of compliance i.e., branches, were not required to file annual returns to the registrar of companies (the Business and Property Registration Agency (BPRA)). However, with the introduction of the new requirements, after being incorporated as subsidiary Companies and issued with certificates of incorporation, they will be required to file annual returns together with audited financial statements.
We advise that all companies registered and operating in Zanzibar prior to this notice should adhere to the announcement to avoid unnecessary troubles to their businesses.
Important Notice:
This publication has been prepared for information purposes only, and it does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, Cymbell Attorneys, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
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