The main difference between a traditional “Company Limited” and a company under ZIPA lies in their legal framework and specific requirements.
A “Company Limited” is a company where shares are held by shareholders, including a local partner. This system is quite similar to that of Bali, Indonesia.
In contrast, a company under ZIPA (Zanzibar Investment Promotion Authority) is designed for investors with a larger capital investment (exceeding 2.5 million dollars).
- The investment (ZIPA) must also be completed within a specific timeframe. As of today (June 25, 2025), authorities intend to reduce it from 5 years to 3 years.
- This status offers specific fiscal and administrative benefits to encourage large-scale investments in special economic zones, with a dedicated regulatory framework and particular incentives.
Therefore, choosing between these two forms depends on the size of the project, investment objectives, and the type of activity planned in Zanzibar.