There are a few different ways to register a business in Mozambique, but they all require some type of registration. In general, the level of registration and legal liability is determined by criteria such as the size of the company, whether it is small, medium, or large, and the number of owners or legal shareholders. Although forming a company in Mozambique may appear to be difficult in some respects, a set of changes is in the works to simplify various steps and speed up operations, making it easier for all entrepreneurs who want to create a business to do so. Along with these reforms, the Employees Law is introducing new requirements for hiring labor, and centers for labor dispute arbitration are being established.
Importance of registering a Business
Starting a business in Mozambique has been increasingly popular, particularly among young entrepreneurs, whether for those who work full-time and want to get out of the corporate world or for start-ups hoping to establish themselves and prosper on their own. As a result, one of the reasons why a company must be registered in Mozambique is that the entity must be legally recognized to ensure that it is fulfilling its legal obligations and paying taxes in the correct amount and on time. Other types of license registration may be necessary depending on the size of the company or may be considered as the company grows.
Companies that require registration
Any new business in Mozambique must be registered, albeit the process varies based on the type of business, as explained above. Below, we’ll go over the capabilities and responsibilities of various business structures. Keep in mind that this information is provided for informational purposes only; to meet your specific needs, you may need to consult with a specialist or government agency.
Business registration steps
The steps explained below are to be followed to register a business in Mozambique
Name Reservation
Reservations for names can be made at the Conservatória do Registo de Pessoas Jurdicas (Legal Entities Registry) or at the Balco de Atendimento Nico (One Stop Shops). To reserve a name, the partners or sole proprietors must show the company, its activity, and the sector in which it will operate, as well as the value of the investment. The company’s name must be decided ahead of time and examined at the Commercial Registry Office to ensure that the name in question or one that is extremely similar does not already exist. The name will always be followed by a description of the company’s legal structure. As an example, The acronym “Lda” is used in the case of limited.
Drafting of Statutes
A social contract will be written up with the help of an advisor, in which the company’s goal will be defined (the line of business that the company intends to pursue)
Opening a Bank Account
The creation of a bank account to deposit the share capital is one of the phases of business registration in Mozambique. A certified copy of the certificate of reservation of the company name, a draft of the company statutes, and a certified copy of the shareholders’ identification documents are required.
Final Certificate
After the social pact is signed and the bank deposit is made, this documentation must be submitted to the legal entities, where the partners’ wishes will be registered by the competent entity, with certified copies of the partners’ or the partner’s identifications accompanying the documentation in the city.
Tax Registration and Obtaining the Nuit
The firm must have a tax register and get the appropriate Tax Identification Number once it has been officially registered and the statutes have been published in the Official Gazette by the Conservatory (NUIT).
Publication in the Bulletin of the Republic
The statutes must be published in BR when the definitive certificate is issued so that the company’s existence becomes public knowledge. This activity is only feasible if a fee is paid, which fluctuates depending on how many bills the social pact has.
Issue of Permit
The company must first complete the aforementioned incorporation process before applying for a commercial license. A license request is sent to the Provincial Governor and filed to the appropriate Provincial Directorate of Industry and Commerce. The application must include the following information: the company name, the registered office address, and the type of commercial activity to be carried out, as defined by the Classification of Economic Activities (CAE).
Start of Activity
After receiving all of the above documents, travel to the Bairro Fiscal (Tax Authority Representation) in the area where the firm is located and fill out the relevant forms, as well as attach the company’s current documentation, for the Tax Authority to begin its activity.
Foreigners
Can you register a company in Mozambique as a foreigner?
Foreigners intending to invest in Mozambique are generally not subject to any restrictions.
