Frequently Asked Questions

ZDFZ is a digital-first special economic zone in Zanzibar that allows entrepreneurs worldwide to obtain digital residency and incorporate Zone 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 through the Zone OS. Physical presence is never required.

Anyone over 18 with a valid passport or government ID can apply, provided they are not on any UN, EU, or US Government sanctions lists. Note that Tanzanian citizens are not eligible for the Zone's tax benefits.

No. Digital Residency is the digital identity of a User or Foreign Entity in the Zone OS. It does not grant immigration, work permits, or citizenship rights in Tanzania.

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

ZDFZ offers Zone Companies in four categories based on shareholder count: Single (1 shareholder), Start-up (2-5), Growth (up to 50), and Global Business (unlimited, can issue Digital Assets). Zone Cooperatives are also available.

Yes. At least one director must be a Digital Resident. Only Regulated Entities (Digital Residents, Foreign Entities, or other Zone Companies) may hold Shares.

Share Capital must equal the total nominal value of issued Shares and be kept in the company's Official Wallet. You determine the amount based on your share structure.

Yes. A single Digital Resident can form a Single Zone Company and serve as the sole director.

Only Global Business Zone Companies are authorized to issue Digital Assets. No other Zone Enterprise may issue Digital Assets.

5% for entities with no physical residence in Zanzibar (less than 183 days per year). 15% for Zanzibar residents. Ventures created by OWZ Venture Creator enjoy 0% for 10 years. Tanzanian citizens are not eligible for these benefits.

No. All Zone Entities are exempt from capital gains tax, wealth tax, and VAT on services provided outside Tanzania.

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.

Tax liability is assessed quarterly by the Registrar based on Certified Accounting Records. Payment is made in Digital Assets through your Official Wallet.

Zone Entities must maintain an Official Wallet through the Zone OS. Share Capital must be kept in the company's Official Wallet. Transactions within the Zone are conducted through the Zone OS.

Fees and taxes must be paid in Digital Assets as directed by the Regulator (typically USDC or USDT). The Zone OS supports various digital asset transactions.

Yes. Zone Companies can transact with Regulated Entities inside the Zone and with persons outside the Zone. Smart Contracts are legally binding.

Zone Companies must certify Accounting Records (prepared per IFRS), pay quarterly tax assessments, and submit any director/shareholder/share capital changes within 7 days.

For digital residency: government ID, proof of address, and selfie verification. For companies: KYC for all directors and beneficial owners (25%+ ownership).

Confidential Information is protected and not released without consent, except as required by law or judicial order. However, data recorded on blockchain carries no expectation of privacy by nature.

Activities illegal under Tanzanian law, weapons, sanctioned activities, and anything contrary to public order or morality in Zanzibar.