Mozambique’s industry is expanding quickly, and it’s possible that in the not too distant future it may play a major role in coal and natural gas exports. Nonetheless, the mass of the population’s acute poverty limits market prospects. Still, Mozambique’s steady economic growth keeps firms interested in starting a business there.
Business structures
In Mozambique, foreign businesses can choose between two different types of corporate structures. Each of these organizational forms has particular benefits and drawbacks, and also varying demands for capital contribution, certification procedures, and the range of permitted business operations. Most often, it will depend on how committed a company is to Mozambique and the type of economic activity they have in mind. There are only these two categories of companies in the country:
Private limited company
A minimum of one and a maximum of three directors oversee the corporation. The public meeting and executive boards make up the company’s administrative framework. No minimum investment is necessary. Nevertheless, there must be at least two and a limit of thirty stockholders.
The common stock is split up into contributions known as “quotas,” each of which has a par value represented in local money. The establishment of a written agreement that is signed by all parties is necessary for the transfer of quotas between individuals. This agreement must be given to the corporation in written form and certified by the Commercial Registrar’s Office. Private companies do not need to be audited.
Public limited company
The general conference, executive board, and governing council or mandatory auditor make up the SA’s management structure. An audit team of three to five members, or a solitary auditor who must be a certified accountant or accounting firm, is in charge of overseeing the corporation. Law mandates that SAS be audited.
There are no minimum capital criteria, but 25 percent of the equity must be put up at the time of formation and the whole share capital must be fully committed. A minimum of three investors, who can be either citizens or immigrants, are required for the incorporation of a SA.
Branch office
International firms functioning in the country don’t need to register; they can just function as local branches. Given the multiple disadvantages of having a local branch, it is often recommended to start an LLC rather than open a branch in Mozambique.
A subsidiary is regarded as the company’s stable foundation. As a result, it lacks legal independence and is seen as a component of the parent corporation.
Requests for the authorization of their divisions, branches, or organizations must be submitted to the “Ministério da Industria e do Comércio” to create a branch.
Procedure of incorporation
Choosing to form a corporation in Mozambique? It is advised to choose a local agent to represent your business and handle the paperwork. Or follow the following steps:
- Obtain the approval for the unique and differing name
- Sign the articles of association
- Establish a corporate bank account in the country and pay the corporate registry fees.
- Request a business registration license by registering with the Legal Companies Registrar of Maputo.
- Apply for the tax identification number
- Obtain the business permit in Mozambique
- Register the employees in the national health care system.
Other corporation structures
Capital and industry company
For these firms, there are two different kinds of shareholders. Owners of shares who make a commitment to the creation of the shareholding and who limit their obligation to the amount of the investment they made. Additionally, some stockholders do not increase their shareholding. They take part in the firm’s operation and management, but they are not held responsible for its debts.
