Business entities in Mozambique

Mozambique different business entity setup proceduresSince 2003, Healy Consultants Group PLC provides our Clients with the best corporate structures for doing business in the Republic of Mozambique. There are several ways of doing business in Mozambique, the commonly used corporate structure being the limited liability company. Entrepreneurs may also establish a public limited company for larger investments or float shares to the public. Foreign entities may also set up a branch office or a representative office.

  • The Mozambique limited liability company (Lda)

    • The Mozambique limited liability company (LLC, also known as Lda) is the most commonly used corporate structure by entrepreneurs setting up small and medium-sized businesses in Mozambique;
    • A Lda requires at least 1 director and 1 shareholder of any nationality and who do not need to be resident in Mozambique. The shareholders may be individuals or corporate bodies;
    • Foreign directors of a local limited liability company must obtain a personal tax number. They are however not obliged to file tax returns in Mozambique unless they receive a salary locally;
    • Upon incorporation, an LLC must also appoint a local accountant who will file monthly VAT returns with the Mozambique Tax Office.
  • The Mozambique public limited company (SA)

    • The Mozambique public limited company (PLC, also known as SA) is recommended for companies looking to publicly list in the Mozambique Stock Exchange;
    • To be established, this entity requires at least 3 shareholders and 1 director who can either be individuals or legal entities and must not be resident in Mozambique;
    • A Mozambique public limited company may only appoint a single director when its share capital does not exceed US$17,500. Any company with share capital above this figure must appoint at least 2 directors;
    • This entity does not have a stated required minimum share capital, but at least 25% of the entire agreed share capital must be paid in during Mozambique company incorporation process;
    • The Mozambique PLC is required by law to appoint a statutory auditor or a board of auditors comprising of 3 or more auditors.
  • The Mozambique branch (commercial representation)

    • The Mozambique Commercial Code allows foreign legal entities looking to do business in Mozambique to establish branch offices;
    • To establish a branch office, a foreign company must first obtain approval from the Ministry of Industry and Trade and secure a business license;
    • A branch office is not considered a separate legal entity therefore the scope of its operations in Mozambique is defined and controlled by the parent company;
    • During Mozambique business setup, the parent company must appoint at least one resident individual of any nationality to be the company’s representative in Mozambique.
  • The Mozambique representative office (commercial representation)

    • Foreign entities are permitted to establish representative offices in Mozambique. Unlike a branch office, such corporate structure does not need to be registered for tax and VAT but is not allowed to engage in any commercial activities;
    • A representative office is permitted to operate in Mozambique for a renewable 3-year period and is only allowed to conduct i) market research and ii) promote activities of the parent company;
    • During the registration process, the parent company must appoint at least one representative in Mozambique, who can be of any nationality.
  • Comparison table between Mozambique business entities

     LLCPLCBranch officeRep office
    Also known asLdaSACommercial representationCommercial representation
    How long to set the company up?4 weeks6 weeks9 weeks9 weeks
    How long to open company bank account?4 weeks4 weeks4 weeks4 weeks
    Legal liability?LimitedLimitedUnlimitedUnlimited
    Wholly foreign owned?YesYesYesYes
    Minimum share capital?US$1US$1US$1US$1
    File annual tax return?YesYesYesNo
    Tax registration certificate required?YesYesYesNo
    Recommended corporate bank account?Barclays BankStandard BankBancABCFirst National Bank
    Does our Client need to travel?NoNoNoNo
    Resident director required?NoNoNoNo
    Resident shareholder required?NoNoNoNo
    Minimum directors allowed?1111
    Minimum shareholders?1311
    Tax identification code (TIN) needed?YesYesYesNo
    Mozambique resident company secretary required?NoNoNoNo
    Local accountant required?YesYesYesNo
    Corporate shareholders allowed?YesYesParent companyParent company
    Corporate director(s) allowed?YesYesYesYes
    Mozambique corporate tax rate?32%32%32%0%
    Annual financial statements required?YesYesYesNo
    Statutory audit required?NoYesYesNo
    Regulated by?Ministry of JusticeMinistry of JusticeMinistry of JusticeMinistry of Justice
    Allowed to issue sales invoices?YesYesYesNo
    Allowed to sign contracts?YesYesYesNo
    Allowed to import and export goods?YesYesYesNo
    Can rent an office space in Mozambique?YesYesYesYes
    Can buy Mozambique property?YesYesYesNo
    Can own equity in other Mozambique companies?YesYesYesNo
    Total Mozambique business setup costs in Yr. 1US$20,700US$21,700US$27,925US$26,975
    Subsequent annual costs (incl. accounting and tax fee)US$5,800US$5,800US$11,690US$9,390
    Sample engagement invoiceView invoice PDFView invoice PDFView invoice PDFView invoice PDF

Frequently asked questions

Contact us

For additional information on our business setup services in Mozambique, please contact our in-house country expert, Mr. Kunal Fabiani, directly:
client relationship officer - Kunal
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