The class is decided by your activity, not by you
Every business operating on the Tanzania Mainland needs a general business license. That license comes in two classes: Class A and Class B.
The difference sounds administrative, but it decides which office you deal with, what documents you need, and how far your license reaches. Get the class wrong and your application is rejected. Worse, you may be issued a license that does not cover what you actually do.
This article explains how the two classes work, how to tell which applies, and where businesses commonly go wrong. For the full picture of licensing in Tanzania, see our main article, Business Licenses in Tanzania.
What the business license is, and what it is not
The general business license is issued under the Business Licensing Act. It is the baseline permission to carry on business.
It is not the only approval you need. If your activity is regulated, such as tourism, telecoms, mining or financial services, you also need a sector license from that sector’s regulator. You may also need premises permits and staff permits.
Think of the business license as the floor, not the ceiling.
Class A and Class B at a glance
Class A | Class B | |
|---|---|---|
Scope | National or international | Local |
Issued by | BRELA (Business Registrations and Licensing Agency) | City, municipal, town or district council |
Typical activities | Importing, exporting, wholesale, manufacturing, and other activities listed for Class A | Retail, local services, restaurants and other activities not listed for Class A |
How to apply | BRELA’s online system | The council where the business operates |
Who can’t choose | Both: the activity decides the class |
Class A: national and international business
Class A licenses cover activities that operate at national or international scale. Common examples include importing and exporting, wholesale trade, manufacturing, and certain financial and professional services. The full list is set out in the licensing regulations.
Class A licenses are issued by BRELA, through its online registration and licensing system. Because they sit at the national level, the documentation is usually heavier. Expect to provide company documents, tax registration, proof of premises and, where relevant, sector approvals.
Class B: local business
Class B licenses cover activities that are not listed for Class A. These are generally local in nature: retail shops, restaurants, local service providers and similar businesses.
Class B licenses are issued by the local government authority where the business operates. That means the city, municipal, town or district council. Each authority runs its own process, so requirements and timing can differ from one district to another.
How to tell which class applies to you
Start with what the business will actually do, not what it is called.
- List every activity. Include activities you plan to start soon, such as exporting or online sales, not just today’s main activity.
- Check each activity against the Class A list. If any activity is listed for Class A, that activity needs a Class A license.
- Check for a sector regulator. Some regulated activities are licensed mainly through their own regulator, and the business license works alongside the sector license.
- Map each activity to each location. A license covers a place of business, so each branch needs its own coverage.
A business can need more than one license. A company that manufactures and also runs its own retail shops, for example, may need licenses of both classes.
Documents you will typically need
Requirements vary by activity and authority, but most applications ask for:
- Certificate of incorporation or business name registration
- The company’s constitution (memorandum and articles of association)
- TIN and tax clearance from TRA
- Proof of premises, such as a lease or title
- Sector license or approval, where the activity is regulated
- Identification of directors and shareholders
- For foreign owners and directors, residence or work permits and, in some cases, investment documents
Missing one document usually means a returned application, not a partial approval.
Where businesses get it wrong
Applying for the wrong class. A trading company applies to its local council for a Class B license. Its activity includes importing, which falls under Class A. The application has to start again at BRELA.
Outgrowing the license. A business licensed for local retail starts wholesaling or exporting. Its existing license does not cover the new activity, and it is now trading outside its license.
One license for many branches. A company opens a second branch in another district, assuming its first license covers it. It does not. Each place of business needs its own license.
Ignoring the sequence. A business applies for its license before getting the sector approval the authority requires. The application stalls until the sector license arrives.
Not sure which class covers your activities? We map every activity and location before you apply, so it’s done once. [Book a call]
Zanzibar works differently
The Class A and Class B system applies to the Tanzania Mainland. Zanzibar has its own business registration and licensing framework, handled through BPRA and other Zanzibar authorities. A Mainland license does not let you operate in Zanzibar. See our article Business Licensing in Zanzibar.
Keeping the license valid
A business license is not a one-time document. It needs renewing, usually every year, and must stay in line with what the business actually does. Changes such as new activities, new branches, a move to new premises or a change of ownership can require a new or amended license.
Frequently asked questions
Can a business hold both a Class A and a Class B license?
Yes. If a business carries on activities that fall under both classes, it may need licenses of both classes.
Can I apply for a Class A license if my business is small?
The class depends on the activity, not the size of the business. A small importer still needs a Class A license, and a large retailer may still fall under Class B.
Do I need a new license for each branch?
Generally, yes. A license covers a specific place of business, so each branch needs its own license.
Does a sector license replace the business license?
Not automatically. In most cases the sector license and the business license work together. The rules vary by sector, so check each one.
Is the Class A/B system used in Zanzibar?
- Zanzibar has its own licensing framework. Businesses operating in both places need to meet both systems.
How we handle business licensing
We start by mapping every activity and location you plan to run, then confirm which class and which authority applies to each. We prepare the documents, manage the applications and track renewals, so the license keeps pace with the business.
Tell us what you are building. We will send a fixed-price proposal within 24 hours.