Mozambique company registration

DOING BUSINESS IN MOZAMBIQUE IN 2018

Mozambique is a rapidly growing economy with the likely possibility of being a world-leading exporter of coal and natural gas in the near future. However, extreme poverty affecting the majority of the population causes limited market opportunities and also plays a role in widespread corruption. Yet, consistent economic growth still makes registering a new business in Mozambique an attractive, albeit risky, prospect for entrepreneurs.

Summary table of Mozambique company registration

SummaryLLCFast business setup solutionPLCBranchRO
Also known asLDAFast solutionSACommercial RepresentationCommercial Representation
Best use of company? a small- to medium-sized businessClose a customer deal nowInvestmentSpecific projectsMarketing & research
How soon can you invoice Clients\sign sales contracts?2 months3 weeks2 months3 monthsNo sales allowed
How soon can you hire staff?2 months3 weeks2 months3 months3 months
How soon can you sign a lease agreement?2 months3 weeks2 months3 months3 months
How long to supply corporate bank account numbers?5 weeks3 weeks5 weeks5 weeks5 weeks
How long to supply company registration / tax numbers?2 months3 weeks2 months3 months3 months
Corporate tax rate on annual net profits, from local income?32%32%32%32%0%
Limited liability entity?YesYesYesNoNo
Government grants available?YesYesYesNoNo
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/trustee/representative required?NoNoNoYesYes
Minimum paid up share capital?US$1US$1US$1NoneUS$1
Minimum investment required?NoNoNoNoNo
Can bid for Government contracts?YesYesYesNoNo
Corporate bank account location?BarclaysBancABCStandard BankBancABCFirst National Bank
Can secure trade finance?YesYesYesNoNo
VAT payable on sales to local customers?17%17%17%17%No sales allowed
Average total business set up engagement costs?US$20,700US$26,890US$21,700US$27,925US$26, 975
Average total engagement period?4 months2 months4 months6 months6 months

Mozambique business setup summary

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  • Advantages and disadvantages

    Advantages of Mozambique company registration

    Mozambique business registration advantages and disadvantages

    1. It is easy to start a business in Mozambique because:
      • Limited liability company registration in Mozambique requires only 1 shareholder and 1 director. Our Clients registering their company in Mozambique will not be required to comply with a minimum share capital requirement to complete incorporation;
      • Most industries are open to investment by foreigners. Starting a Mozambique company can be done without entering into a joint venture agreement with a shareholder of Mozambique nationality;
      • A foreign company can register a branch in Mozambique to i) invoice Mozambique customers ii) sign local sales contracts and iii) receive income from local customers. Additionally, foreign corporates are also able to register a representative office to engage in activities such as promoting the business of the parent company and market research.
    2. Mozambique boasts important market opportunities, including:
      • Mozambique is the economy growing at the fastest pace in East Africa, with an GDP growth expected at an annual average of 8% until 2020, according the International Monetary Fund;
      • The Mozambique economy has diversified over the past few years, with the telecommunications industry in particular growing greatly after the introduction of 3G in 2010. The manufacturing and financial sector are also expected to experience significant growth over the next decade;
      • Mozambique is rich in natural resources, with natural gas reserves estimated to be the 4th largest in the world. Mozambique is also rich in coal, and expected to be the world’s largest exporter of coal by 2020;
      • Infrastructure in Mozambique is currently undergoing significant expansion and major rehabilitation with i) US$34 billion being invested in Mozambique’s infrastructure over the next decade and ii) US$22 billion dollars earmarked for developing in the transport sector;
      • Companies exporting from Mozambique have good duty-free access to markets abroad. The country has been a member of the World Trade Organization since 1995, enjoying all the benefits provided by such membership;
      • Mozambique offers beneficial tax breaks to companies operating in priority sectors. Companies meeting selected requirements pay no taxes for the first 10 years and reduced tax rates for every year after.

    Disadvantages of Mozambique company registration

    1. A Mozambique limited liability company is liable for a corporate tax rate of 32%. The tax rate increases by up to 10% for projects dealing with the mining and oil & gas industries;
    2. Mozambique is negatively ranked as the 133th most competitive economy in the world in the Global Competitiveness Report 2014 – 2015;
    3. Mozambique is negatively ranked as the 127th easiest country to do business by the World Bank. This organization lists difficulties getting electricity and registering property as the main barriers to business;
    4. Mozambique is ranked as the 119th least corrupt country in the world, according to the 2014 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
    5. It can be difficult to open global corporate bank accounts to register a Mozambique company. Healy Consultants works with internationally recognized banks to provide corporate bank account services;
    6. Portuguese is the official language in Mozambique and is spoken by more than 50% of the population. Therefore, non-Portuguese speaking foreign investors interested in Mozambique subsidiary company registration will find it difficult to communicate with employees, customers and suppliers. Only half of the population speaks fluent Portuguese, which increases difficulties in dialect speaking rural areas.
  • Best uses for a Mozambique company

    1. Resource exploitation: Like many countries in the region, Mozambique is rich in natural resources and requires investment and know-how to convert these assets into economic growth.
    2. Processing and distribution: With a long coastline facing the Indian Ocean and a relatively low-cost labour base, our Clients can use Mozambique’s special economic zones to import, process and export goods.

Company registration

  • Time to incorporate: Five weeks
  • Cost to set up: US$20,700
  • Minimum capital: US$1
  • Physical office required: Yes

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 32%
  • Corporate tax base: Worldwide
  • Shelf companies: Available
  • Main company type: Limited company

Select corporate structure
Business set up guide
Mozambique corporate bank account
Business set up strategy
Frequently asked questions
Compare similar Southern African countries
Corporate support services

Frequently asked questions

Contact us

For additional information on our business registration services in Mozambique, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal
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