Frequently Asked Questions

ZDFZ is a digital-first special economic zone in Zanzibar that allows entrepreneurs worldwide to obtain digital residency and incorporate companies entirely online, without physical presence.

Yes. ZDFZ operates under the legal framework of Zanzibar, a semi-autonomous region of Tanzania with its own legislative authority. All registrations are legally recognized under Zanzibar law.

No. Everything from application to ongoing compliance is managed online. Physical presence is never required.

Anyone over 18 with a valid passport or government ID can apply, except residents of sanctioned countries (North Korea, Iran, Syria, Cuba, Russia, Belarus).

Typically 2-5 business days after completing KYC verification. Expedited processing (24 hours) is available for an additional fee.

No. Digital residency is a business status that allows you to form companies and conduct business in the free zone. It does not grant immigration, work permits, or citizenship rights in Tanzania.

The registration fee is $250 USD (one-time), with annual renewal at $150 USD per year.

Digital residency can be revoked for non-payment of renewal fees, providing false information, or engaging in prohibited activities.

ZDFZ offers two main structures: Free Zone Company (FZCO) for single founders or small teams, and Free Zone LLC (FZLLC) for partnerships and joint ventures.

Yes. At least one director must be a digital resident. Shareholders can be non-residents, including corporate entities.

No. You can start a company with any amount of capital.

Yes. A single person can own 100% of an FZCO and serve as the sole director.

FZCO registration is $750 with $500 annual license fee. FZLLC is $1,000 with $750 annual license fee.

Typically 5-7 business days after all documents are submitted and approved.

Companies operating primarily outside Tanzania qualify for 0% corporate tax within the free zone. Consult a tax advisor for your specific situation.

No withholding taxes on dividends, interest, or royalties for qualifying free zone companies.

Possibly. Tax residency rules vary by country. Forming a company in ZDFZ does not automatically exempt you from taxes in your home country. Consult a tax professional.

No VAT for services provided to customers outside Tanzania. VAT may apply for services within Tanzania.

Yes. Digital residents and companies can open accounts with our partner financial institutions. Account opening is subject to the bank's KYC requirements.

Multi-currency accounts are available including USD, EUR, GBP, and others. Cryptocurrency custody is also available through select partners.

Yes. Companies can send and receive wire transfers, accept card payments (via Stripe or similar), and process cryptocurrency transactions.

No. Profits can be freely transferred out of the free zone without additional taxes or restrictions.

Companies must file an annual return confirming company details and pay the annual license fee. There is no requirement for audited financial statements for most companies.

For digital residency: government ID, proof of address, and selfie verification. For companies: the same for directors plus company documentation.

Shareholder and director information is not publicly disclosed. Information is shared with authorities only as required by law.

Gambling, adult entertainment, weapons, tobacco, unlicensed financial services, pyramid schemes, and anything illegal under Tanzanian law.