To do business in Mozambique, you must navigate the company registration process, understand the key legal structures, and focus on the country’s priority investment sectors.
Key to the registration process is the Balcão de Atendimento Único (BAÚ), or One-Stop Shop, which is designed to simplify interactions with various government agencies.
1. Choosing Your Business Entity
The most common legal forms for foreign investors are:
- Limited Liability Quota Company (L.D.A. – Sociedade por Quotas): This is the most common form, suitable for small and medium enterprises (SMEs).
- Capital: There is generally no mandatory minimum share capital (though MZN 100,000 is often cited).
- Liability: Shareholder liability is limited to their capital contribution.
- Structure: Can have one or more quotaholders (partners).
- Limited Liability Share Company (S.A. – Sociedade Anónima): Recommended for larger investments.
- Capital: Requires a higher minimum capital, typically MZN 5 million.
- Structure: Requires a minimum of two shareholders.
- Branch Office (Filial): A foreign company can establish a branch, which is treated as an extension of the parent company and does not have a separate legal personality. The parent company is liable for the branch’s activities.
2. Business Registration Procedure (Via BAÚ)
The registration process has been streamlined through the BAÚ (One-Stop Shop), which integrates the Legal Entities Registrar, Tax Authority, and other key departments.
- Name Reservation: Obtain a Certificate of Name Reservation (Certidão de Reserva de Nome) from the Legal Entities Registrar (Conservatória de Registo das Entidades Legais) or the BAÚ. This verifies that the chosen company name is unique.
- Drafting Statutes: Draft the company’s Articles of Association/Statutes (Commercial Code applies).
- Open Bank Account: Open a local bank account and deposit the initial share capital (if applicable).
- Registration and Notarization: Formalize the incorporation contract (statutes) and register the company at the BAÚ. Signatures on the incorporation agreement do not always require in-person notarization.
- Tax Registration (NUIT): Register with the Tax Authority (AT) to obtain a Unique Tax Identification Number (NUIT).
- Business License/Permit: Apply for a Business License (Licença). The type of license depends on the activity (e.g., commercial, industrial, service) and the authorizing authority (Minister, Provincial Governor, or Municipal Council).
- Publication: The company’s statutes must be published in the Government Gazette (Boletim da República).
- Labor Registration: Declare the beginning of activity and register employees with the Provincial Directorate of Labor, Employment, and Social Security (including the National Social Security Institute – INSS).
3. Key Investment Sectors and Incentives
Mozambique actively encourages foreign investment, particularly in sectors where it has significant natural resource wealth or high developmental needs:
| Sector | Opportunities |
| Energy & Power | Natural Gas (LNG) in the Rovuma Basin (major projects by TotalEnergies, ExxonMobil, ENI), as well as renewable energy (solar, hydro) and power transmission. |
| Mining | Coal, Graphite, Titanium, Tantalum, and other critical minerals. The country is looking to increase extraction and processing. |
| Infrastructure | Construction and modernization of ports (e.g., Nacala), roads, railways, and general public infrastructure to support the extractive industries. |
| Agribusiness | Commercial farming, agro-processing, and export of products like cashew nuts, sugar, and tropical fruits. |
| Tourism | Development of hotels, resorts, and leisure facilities along the coast and in wildlife areas. |
Investment Incentives: Foreign investors can apply for an Investment Authorization from the Investment and Export Promotion Agency (APIEX) to access specific tax and customs benefits, such as:
- Tax reductions for infrastructure projects.
- Exemptions from customs duties and VAT on imported equipment.
- The legal right to repatriate invested capital and profits (subject to registration with the Bank of Mozambique).
4. Business Culture and Practicalities
- Language: Portuguese is the official language for business and government. While English is spoken in major cities, engaging local partners who speak Portuguese is crucial.
- Local Content: Be aware of Local Content Requirements (LCR), especially in the oil and gas sector, which mandate a percentage of goods, services, and labor must be of Mozambican origin.
- Relationships: Business is hierarchical and strongly based on personal relationships and trust. In-person meetings are highly valued.
- Legal Guidance: The labor and regulatory environment can be complex. Consulting a local legal expert is essential for navigating compliance, taxation (general Corporate Income Tax rate is 32%), and employment laws.