Financial Leasing Companies Licensing Requirements

FINANCIAL LEASING COMPANIES General information

1. Any financial leasing company shall be incorporated as a limited liability company under the laws of Tanzania;

2. The applicant to pay a non-refundable application fee of TZS 3,000,000 to be paid by banker’s cheque payable to Bank of Tanzania or by cash deposited to or direct transfer made to Bank of Tanzania: Account No: 9924DDBGHQT Account Name: Intermediary Account Banking

3. A financial leasing company shall commence operations with and maintain at all times a minimum paid up capital of not less than TZS 1,000,000,000 or such higher amount as the Bank may prescribe. Documents/information required for application

4. Dully completed application for a license in a manner described in the Second Schedule of the Banking and Financial Institutions (Financial Leasing) Regulations, 2011.

5. Proof of payment of non-refundable license application fee;

6. Application for license shall be accompanied by the following; (a) A copy of the Memorandum and Articles of Association registered by the Registrar of Companies; authenticated legal documents or board resolution authorizing the signatory; (b) Description of accounting system and information and communication technology in use or to be used in the operations of the financial leasing company and proposed future investment; (c) Number of employees, job descriptions of senior management positions and an organization chart; (d) Description of internal control procedures; and (e) Narrative description of shareholders, board members and senior management and strategy for the successful operation of the financial leasing company;

7. Business plan and financial projections prepared in accordance with the guidelines provided in the Third Schedule of the Banking and Financial Institutions (Financial Leasing) Regulations, 2011.

8. Policies and procedure manuals establishing that the financial leasing company shall operate in a manner consistent with international best practice shall accompany every application. The financial leasing operations policies shall be designed to promote directly or indirectly the financial or economic activities.

9. One copy of each of the following documents listed in the Fourth Schedule of the Banking and Financial Institutions (Financial Leasing) Regulations, 2011:- (a) Proposed Memorandum and Articles of Association. (b) Proof of source and availability of funds for investment as capital of the proposed financial leasing company. (c) A written confirmation that the total capital has been fully paid up. (d) List of subscribers and proposed members of board of directors and Chief Executive Officer. (e) Proof of citizenship of every subscriber and every proposed director and senior management officer. This includes detailed curriculum vitae, photocopy of the pages of the passport which contain personal information and two recent passport size photographs. (f) Audited balance sheet, income statement and cash flow for the last three years, of every subscriber who owns five per cent or more of the share capital of the proposed financial leasing company. (g) Certified copies of annual returns of every subscriber who owns five per cent or more of the share capital of the proposed company and every proposed member of the board of directors and CEO together with accompanying schedules or financial statements filed during the last three years with relevant Authority. (h) Certified copies of tax returns of every subscriber who owns five per cent or more of the share capital of the proposed company and every proposed member of the board of directors and Chief Executive Officer together with accompanying schedules or financial statements filed during

the last three years with relevant Tax authorities together with respective tax clearance certificates. (i) Statements from two persons who are not relatives vouching for the good moral character and financial responsibility of the subscribers who owns five per cent or more of the share capital of the proposed financial leasing company and the proposed directors and Chief Executive Officer. (j) Declaration that the funds to be invested have not been obtained criminally or associated with any criminal activity. (k) Business plans for the first four years of operations including the strategy for growth, branch expansion plans, dividend payout policy, career development programme for the staff and budget for the first year. (l) Projected annual balance sheets, projected annual income statements and projected annual cash flow statements for the first four years of operation.