1.0.
INTRODUCTION
The registration of a company in the United Republic of Tanzania
is under Companies
Act, 2002 and NGO’s under Non-governmental organization Act No. 24/ 2002. The
registration of company in Tanzania is under BRELA and it work hand in hand
with TRA. BRELA is a Government Executive Agency established under the
Government Executive Agencies Act No. 30 of 1997. It was established on the
28th of October, 1999 by Government Notice No. 294 A published on the 8th
October, 1999 and it was officially inaugurated on the 3rd December, 1999,
(2002). And NGO is under Ministry of Development, Gender and Children.
1.1.
Definition
of the Key terms
Company
means a business organization that makes, buys, or sells goods or provides
services in exchange for money.
Company is
an organization of individuals conducting a commercial or industrial enterprise
or A corporation, partnership, association, or joint stock, (http://legal-dictionary).
''Non Governmental Organization''
("NGO')' means a voluntary grouping of individuals or organization which
is autonomous, non-partisan, non profit making which is Organized locally at
the grassroots, national or international levels for the purpose of enhancing
or Promoting economic, environmental, social or cultural development or
Protecting environment, lobbying or advocating on issues of public interest of
a group of individuals or organization, (URT, 2002).
Non-governmental organization
means voluntary grouping of individuals or organizations which is autonomous,
non-partisan, non-profit sharing, and it Organized at the local, national or
international level for the purpose of enhancing or promoting economic,
environmental, social or cultural development or protecting the environment,
lobbying or advocating on such issues, (Mmanda, 2012).
Non-governmental organization
refers to a private, volunteer organization established for the purpose of
fostering some objective determined by the founder. And the term “private”
means the entity is not governmental and in its daily routines it operates
outside the mainstream system of government bureaucracy, rules and regulation,
(Kiando, A, and Mtatifikolo, F, 1999).
2.0.
The
following are the Functions, Strengths, and Challenges of Relevant authorizes
for company registration and supervision such as BRELA, and TRA:-
2.1.
Function of Relevant authorities for
company registration and supervision including BRELA and TRA
To administer companies and
business names laws, BRELA under Company Act of 2002 given
power to register the new companies which needs to work and operate in
Tanzania. The requirement during the process of registration including name of
the designed company and all necessities needed by BRELA and after fulfill the
relevant authority pass it to be registered company to work in Tanzania.
To regulate business by
administering business and industrial licensing laws,
BRELA have the function of regulating business by administering business and
industrial licensing laws which help companies to work in accordance with rules
and regulation.
To encourage and facilitate local and
foreign business investment, BRELA as relevant authorizes for
registration and supervising companies have the function of encouraging the
growth of local investment and foreign investment in Tanzania. This investment
emphasized to work through opening and registering new companies in Tanzania
whereby the nation will expect to gain Taxes.
To stimulate scientific and
technological inventiveness and innovation and encourage technology transfer,
BRELA in Tanzania encourage and stimulate technologies transfer from outside
countries including from developed countries with the aim of increasing level
of technology in Tanzania together with increase of innovation and
creativity. Also, BRELA have to protect
the development of creativity in artistic, literary works, and expression of
folklore by protecting such work in conjunction with rights owners.
2.2.
Strength
of Relevant authorities for company registration and supervision
The authority for company
registration has a right to punish those companies goes against rules and
regulation of our country. BRELA and TRA have given a power
by Tanzania parliament to manage all companies by making sure those company
owners they don’t go against rules and regulation or working without
regulation. When a company as opposed the rules and regulation of the nation,
the company become prohibited by BRELA and TRA to conduct the business or to
provide certain services and sometime need to pay a fine for misbehaving or
being sent to the court.
TRA and BRELA have given a power to
arrange Taxes and correct taxes in those companies,
TRA have given a power to arrange Taxes and correct Taxes from various
companies registering before and after finish the process of registration under
the Company Act of 2002 of the United Republic of Tanzania.
2.3.
Challenges
to Relevant authorities for company registration and supervision
Politician interrupt the work of
relevant authorizes for registration, Even though BRELA have
given a lot of huge power by the Company Act of 2002 but they have a challenges
of being interfered by the politician whereby member of parliament interfere
its work hence become challenges for in the process of registration.
Most of companies registered
Changing names before five years and escaping to pay Taxes,
Most of company registered in Tanzania trying to escape payment of Taxes
especially those biggest companies from abroad whereby they change their name
every before five years. For example Airtel Network Company trying to change
its name from Celtel, Zain and now Airtel so as to escape from paying of Taxes
hence become challenges for relevant authorities for registration on collection
of Taxes and naming of the company.
Poor management of time to
authority and New company owner, The relevant
authorities have bureaucracy system whereby some leaders trying to make hindrance
on the process of registration of companies in Tanzania. Also it consume time
in the process and stages of registration whereby have procedures to follow in
order to register a company including; Apply for clearance of the proposed
company name at the Business Registration and Licensing Authority (BRELA), Apply
for a certificate of incorporation and of commencement at Registrar of
Companies, Apply for taxpayer identification number (TIN) with the Tanzania
Revenue Authority, Have income tax officials inspect the office site of the new
company, and last is to Obtain
registration number at the National Social Security Fund (NSSF), all these
stapes consume time.
They facing with problem of
corruption, Because process of registering involves
12 procedures, some leaders receive corruption from the people who want to
register their company for faster. Due to that, the new company register owner
they decide to use that short way to finish the process of registration of a
company’s hence it’s become challenges to authorities to stop receiving
corruption.
3.0.
The
following are the Functions, strength, and challenges of relevant authorizes
for NGO registration and Supervision:-
3.1.
Functions of Relevant authorities for
NGO’s registration and supervision
To prepare, review and supervise
the implementation of National NGOs Policy, laws, regulations and guidelines on
NGOs,
The authorities for registration have the function to prepare and review,
supervision and implementation of National NGO policies and Laws, regulation
and guideline so as to force NGO’s registered to provide services to the people
including Economic support, Education services and Political assistance.
To prepare and implement public
awareness raising programs on National NGOs Policy of 2001 and the NGOs Act,
No. 24 of 2002, the authorities for registration
responsible for providing awareness to the public based on the existence of
these registered NGO’s and how these NGO’s work to help people within the
community they live under the Act, No. 24 of 2002.
To coordinate the signing of
Agreements of Cooperation between International NGO’s and the Government of the
United Republic of Tanzania, the authorities for
registration of NGO’s in Tanzania have the function of creating coordination
and cooperation between international organization and the government of United
Republic of Tanzania whereby various agreement being signed as a result largest
International organization including USAID, and VJIF work with Tanzania
NGO’s.
The following are other function of
relevant authorities for registration; To facilitate the
National Council of NGO’s to develop and implement NGOs Code of Conduct for NGO’s
Self Regulation, To review the applications for Certificate of NGOs
Registration and Compliance from international, national, regional and district
levels, To prepare and submit proposals for registration and de-registration of
NGOs to the National NGOs Coordination Board To monitor and evaluate NGOs
activities, To collect, analyze and provide information on Sources for NGOs’
Financial resources and Technical support.
To
prepare and submit to the Board reports on the implementation of the National
NGOs Policy of 2001, NGOs Act No. 24 of 2002 and guidelines for approval ,
decision making and advice, To facilitate partnership between NGOs and other institutions
at district, regional and national levels, To facilitate the Regional and
District NGOs Assistant Registrars to effective facilitate registration and
coordination of NGOs at their respective levels, To maintain and update the
National NGOs Coordination Database and the National Coordination website, To
ensure NGOs programs reach the beneficiaries, and To liaison with sectoral
Ministries and NGOs for purpose of identifying NGOs contribution to social and
economic development
3.2.
Strengths
of Relevant authorities for NGO’s registration and supervision
The relevant authorities for
registration have a power to stop the work of NGO goes against rules and
regulation under Act of 2002, The relevant
authorities have given the huge power to stop the work of NGO and sent the
leaders of NGO to the court when they misbehave or they use tools/ equipment
and funding of NGO for self interest. Generally, these pave a way for NGO’s to
have transparence and accountability.
3.3.
Challenges
of Relevant authorities for NGO’s registration and supervision
Most of NGO’s are for profit
oriented. Most of NGO’s registered in Tanzania they look for
self interest behind and maximization of self person, as a result the work of
relevant authorities for NGO’s registration and supervision seen failed to
achieve its goals and function explained above.
Misuse of Fund,
In Tanzania we have a lot of NGO’s but have the problem of misuse of fund
whereby fund given by donors and government they put into person pocket as a
result failed to implement its goals for provision of wellbeing in the society
hence become challenges for the Ministry responsible for registration and
supervision. Also, these registered
NGO’s cooks data and presenting to the register authority and challenging the
relevant authority on issue of transparence and accountability.
Lack of fundraising,
The relevant authorities for registering NGO’s they register a new
Non-governmental organization but these NGO’s have no self source of fund
whereby they depend much aid and grants from donors. And these donors they
provide aids and grants for conditionality and many of them lack fund hence the
relevant authorities fail to work properly especially the role of supervising
NGO’s.
4.0.
Conclusion
One
of the biggest challenges facing relevance authorities for registration and
supervision of company and NGO’s is corruption and whom you know is most
important. If you as a new founder of a company you want to register for a
company, you must use whom you know is most important that what he know and if
not you must use corruption so as your request to be taken into consideration
as a result some of companies and NGO’s registered early than the other who
started the process of registration. The impact of it is failure to provide
services to clients and relevant authorities for registration of company and
NGO’s lost the trust in front of people.
5.0.REFERENCES
Kiando, and
Mtatifikolo, (1999), Developing and Sustaining NGO’s in Tanzania, Challenges
and Opportunities in the New Millennium, Dar es Salaam, University of
Dar es Salaam
Press
Mmanda, (2012), NGO’s Working in Tanzania,
Highlights of relevant facts, Policies and Laws,
Dar es Salaam, Kepa’s Publisher
URT, (2001), The National policy of Non-governmental
Organizations (NGO’s), Dar es Salaam,
Government Paper.
URT, (2002), Procedures for registration of NGO’s
under the Non-Governmental Organization
Act No. 24/2002, Dar es Salaam, Government Paper.
Retrieved
From: http://www.merriam-webster.com/dictionary/company
Retrieved
From: http://legal-dictionary
Retrieved
From: http://brela.go.tz
Retrieved
From: http://ajobstanzania.blogspot.com/compony-registration.
Written By AUSI CHIWAMBO (2014)-Teofilo Kisanji University
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