Monday, April 14, 2014

The Functions, strength, and challenges of relevant authorizes for NGO amd Company registration and Supervision

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://legal-dictionary
Retrieved From: http://brela.go.tz


Written By AUSI CHIWAMBO (2014)-Teofilo Kisanji University





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