SERVICES TO INVESTORS

Zanzibar Investment Promotion Authority (ZIPA) is the first point of call for all potential investors. It is the primary authority of the government of Zanzibar responsible for promoting, facilitating investment and provision of aftercare services to investors.

ZIPA operates under the one stop centre basis, whereby investors get all the services to register their projects under one roof. The one stop facilitation centre facilitates access to certificate of investment, tax registration and tax incentives, company registration, business license, access to land for investment, immigration services and export processing zones services.

Requirements include minimum investment capital of US $300,000 for foreign investors and US $100,000 for local investors. Investors in hotels and real estate sectors need a minimum capital investment of US $2,500,000 for foreigners and US $300,000 for local investor.

Investment Certificate is issued at the beginning of the project then after one year the investor is issued with Investment Service License , which is renewed every year.

ZIPA is mandated under the Zanzibar Investment Promotion and Protection Act no. 14 of 2018 and all government departments and agencies are required to cooperate fully with ZIPA in efforts to fulfill its mandate.

Obtain Certificate of Investment

Investors who qualify and who apply to register their project with ZIPA are finally given the Certificate of Investment. The certificate provide investors with opportunities to enjoy both fiscal and non-fiscal incentives for projects in and outside the free economic zones.

Click on the link above to see the application procedure

Obtain work permit and resident permit

Issuance of work permit and residence permit for foreign investors and employees is governed by the Employment Act no. 11 of 2005 and the Immigration Act no. 7 Cap 54.

The Zanzibar Investment Promotion and Protection Act provide an opportunity for approved projects to employ expatriates in key positions that are determined by ZIPA. The number of foreign employees allowed is based on type of investment and capital injected. However, recruitment of non-citizen in any project should not exceed 15% of the total labour force of the project.

Click on the links below to see application procedures

Work permit and residence permit Class A (for investors)

Class A work permit and resident permit are applicable to foreign directors and or Shareholders of the company.

Work permit and residence permit class B (for employees)

Class B of work and resident permit are applicable to foreign employees of the company. The company should apply to ZIPA while the foreign employee is still abroad.

Obtain tax incentives

Approved investors are entitled to tax incentives and allowances as provided by ZIPA Act, Tax laws and other laws applicable in Zanzibar. The major tax incentives provided by ZIPA include corporate tax exemption, Import duty exemption and Value Added Tax (VAT) exemption on local purchased.

Click on each heading to see the application procedure

Corporate tax exemption

Approved investors may apply for corporate tax exemption after fulfilling the following conditions: 1. Invest not less than the approved capital specified in the investment certificate 2. Must have started business operations.

Application for corporate tax exemption should be made within first two years of business operations

Import duties exemption

Approved investors are eligible to apply for exemption of import duties and related taxes for list of capital goods to be imported. Application should be made 14 working days before arrival of goods in Zanzibar.

VAT exemption on local purchase

For every materials to be purchased locally, the approved investor may apply for the Value Added Tax (VAT) relief. For all goods exempted, investors shall pay 5% of total amount of exempted duties to ZIPA as service charge.

Obtain land lease agreement

Environmental impact assessment

Obtain construction permit

ZIPA supports investors to access land for investment as well as obtaining construction permit for the projects

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