Options for registering companies in Mozambique
Positioned on the south-east coast of Africa, Mozambique is a nation rich in natural resources, including vast reserves of natural gas and coal, making it a key jurisdiction for extractive industries and large-scale infrastructure projects.
The country offers access to the Southern African Development Community (SADC) market and has streamlined its investment process through the One-Stop Shop (Balcão de Atendimento Único - BAU) to facilitate foreign direct investment.
Mozambique offers international companies the following legal structures for establishing a presence:
Private limited liability company (Sociedade por Quota - Lda)
- The Lda is the most widely adopted and common corporate vehicle in Mozambique, suitable for most small and medium-sized enterprises (SMEs) and foreign subsidiaries.
- The capital is divided into quotas (shares) and the liability of the quotaholders is limited to their capital contribution. While no legal minimum capital is stipulated, the amount must be adequate for the company's objective.
- The Lda can be formed with a minimum of one quotaholder (single-shareholder company) and is managed by one or more managers (Gerentes), who can be non-residents.
Branch office (Sucursal)
- A Mozambican branch is regarded as an extension of the foreign parent company and, critically, does not possess separate legal personality.
- The establishment of a branch requires prior approval from the Ministry of Industry and Trade and registration with the Legal Entities Registry.
- The foreign head office assumes full legal and financial liability for all the branch's operations and debts within Mozambique, which is why forming an Lda subsidiary is often recommended for liability protection.
Public limited liability company (Sociedade Anónima - SA)
- The SA is the corporate form generally chosen for large-scale investments, entities planning to raise capital publicly, or companies seeking a listing on the Mozambique Stock Exchange.
- The capital is represented by shares and there must be a minimum of one shareholder. At least 25% of the agreed share capital must be paid up at the time of incorporation.
- The SA is governed by a more complex structure, including a General Assembly, a Board of Directors and a mandatory Supervisory Body (either an Audit Committee or a Sole Auditor).
To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to set up or expand a business in Mozambique.
Comparison of the common types of companies in Mozambique
Information verified against Agency for Promotion of Investment and Exports (APIEX)
Need help deciding?
Choosing the right business structure is crucial. Speak to our Mozambique business setup experts today and get advice tailored to your plans.
