Business entities in Mozambique

Since 2003, Healy Consultants 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 establishing a public limited company for larger investments. Foreign entities may lastly set up a branch office or a representative office.

The Mozambique limited liability company (Lda)

Mozambique different business entity setup procedures

  • The Mozambique limited liability company (LLC, also known as Lda in the country) is the most commonly used corporate structure by entrepreneurs setting up small and medium businesses in Mozambique. A Lda requires at least 1 director and 2 shareholders of any nationality and who do not need to be resident in Mozambique. The shareholders may be individuals or corporate bodies;
  • The Mozambique LLC can also be established by a single shareholder. In such case, the shareholder must be an individual.

The Mozambique public limited company (SA)

  • The Mozambique public limited company (PLC, also known as SA in Mozambique) is recommended for larger investments in Mozambique. This entity requires at least 3 shareholders, who can either be individuals or legal entities, to be established. A Mozambique public limited company may only appoint a single director when its share capital does not exceed US$17,500. The director can be of any nationality and is not required to be resident in Mozambique. A Mozambique public limited company does not have a stated required minimum share capital, but at least 25% of the entire agreed share capital must be paid in at Mozambique company setup;
  • 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. 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. In order to be able to invoice its Clients, this entity must also register and obtain a business license from the Ministry of Industry and Trade.

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 then not allowed to engage in any commercial activities within the country. A representative office is permitted to carry on activity in Mozambique for a renewable 3 year period. During Mozambique business setup, the parent company must appoint at least one representative in Mozambique, who can be of any nationality. A representative office is only allowed to conduct i) market research and ii) promote activities of the parent company.

Comparison table between Mozambique business entities

 LLCPLCBranch officeRep office
Also known asLdaSACommercial representationCommercial representation
How long to set the company up?5 weeks7 weeks12 weeks11 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?2311
Tax identification code (TIN) needed?YesYesYesNo
Mozambique resident company secretary required?NoNoNoNo
Corporate shareholders allowed?YesYesYesYes
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 FinanceMinistry of FinanceMinistry of FinanceMinistry of Finance
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