Having two or more owners makes a limited liability corporation a multi-member LLC, often known as an MMLLC. Owners of a business are referred to as members of an LLC business structure. MMLLCs may contain an unlimited number of members, who may be either natural persons, other LLCs, or corporations. MMLLCs combine a partnership’s freedom with a corporation’s asset protection. MMLLCs are independent legal entities from their members, shielding them from responsibility for the risks and debts of the business. Members do not have to worry about their assets, such as real estate or personal bank accounts, being subject to collections in the event of a lawsuit or action by creditors. A multi-member LLC is frequently seen in the following scenarios: married couples beginning a business, families owning enterprises, friends founding businesses together, and companies with numerous owners.
Tanzania business registration
In Tanzania, it is easy to register a corporate entity. The Business Registration and Licensing Agency (BRELA), a government body authorized by the legislation under Act No. 30 of 1997, is used to oversee and assist with business registration and post-registration concerns in Tanzania. All pre-registration, registration, and post-registration concerns must now be handled electronically through BRELA’s Online Registration System (ORS), which was launched on February 1st, 2018.
The current method of registering using the online registration system (ORS)
BRELA has finished creating a cutting-edge technological platform (ORS). The system consists of issuing patents and industrial licenses, as well as registering companies, business names, trade and service marks, and their respective post-registrations. Customers will be able to use the system at any time of day to access all BRELA services from wherever they are without having to go to BRELA facilities. The following data or papers are required by the ORS user before registering a corporation electronically:
- National Identification Number (NIN) from National Identification Authority (NIDA)
- the National Taxpayer Identification Number (TIN) provided by the Tanzania Revenue Authority (TRA)
- in the case of overseas nationals, a passport issued by their respective countries
- prepared and properly signed articles of incorporation and memorandum
- details concerning the business’s registered office
- Directors, company secretary, and shareholders’ physical, postal, email, phone, and postcodes.
The Procedure for registering
To proceed with creating an online account with BRELA on the ORS, one must meet the conditions given above. The system will then give the ORS user the ability to begin submitting applications for the registration of new companies. There are three steps involved in this:
Entering all relevant firm information into the online registration system.
According to the ORS, the registered user must fill out all information about the company itself, including its share structure, registered office, general aims according to the ISIC Rev. 4 classification, company secretary information, directors’ information, shareholders information, etc.
Scanning of the documents and uploading them to the online registration system
After the first step is finished, the system generates printable documents using the data that was entered during the first step above. The registered user is required to arrange for all directors and the company secretary to sign the document. Once scanned (in pdf format), it must be entered into the ORS for approval along with the Memorandum and Articles of Association and forms 14(a) and (b). After the documents have been properly uploaded, the system will produce the control number for payment at this stage. Payment options include using a mobile payment app or depositing the required fees in a bank.
Obtaining a Certificate of Incorporation via download and printing
This completes the process of incorporating a business in Tanzania via the online registration system. After approving all the system-uploaded files, the Registrar of Companies issues a Certificate of Incorporation and sends it electronically to the registered users’ accounts for printing.
