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Doing Business in Mozambique


Apart from in some specific sectors there are no restrictions on foreign individuals or entities wishing to set up businesses in Mozambique. There are two main forms of limited liability entity available under Mozambican Commercial Law: a branch or a limited company.

A branch, which can be registered with Ministry of Commerce and Industry, is more appropriate for short duration ventures. The objective of a branch is usually to execute a specific contract and the licence is valid for three years, renewable.

Forms of Business Organisation

The most commonly used limited liability Mozambican business vehicles are Sociedade por Quotas (LDA; private companies) and Sociedade Anónima de Responsabilidade Limitada (SARL; public companies). The main differences between the two types of companies are:

founding members (minimum) – two for private and three for public companies;
public companies have to issue share certificates, and these are more easy to transfer;
public companies also have to have a Fiscal Council.

All companies require a operating license (“Alvará”), and this is normally not complicated. The following business sectors have more complex licensing processes because of specific requirements (e.g. financial capacity; minimum technical staff; minimum share capital):

• mining;
• oil and gas;
• civil construction;
• healthcare and laboratories;
• educational;
• media and telecommunications;
• banking and insurance.

Direct Foreign Investment

Proposal for Direct Foreign Investment projects must be submitted to the Centro de Promoção de Investimentos (CPI). The proposal must contain the following information:

• specific request by the investors for authorisation;
• particulars and curriculum vitae of all investors or, in a case when the investor is a company, the relevant financial statements;
• description of technical, commercial and financial viabilities and details of management, human resources structure, implementation schedule and operating methods of the implementing company;
• minutes of Articles of Association of the project implementing company.

The Government grants foreign investors the following guarantees:

• protection of property of rights and assets constituting the investment;
• repatriation of profits.

There are three types of incentives which depend on the nature, location and value of the investment:

• exemption on custom duties for the capital goods (equipment) imported under the project;
• tax reduction for a period not exceeding 10 years;
• special incentives not specifically mentioned in the law granted on a case by case basis, for projects of special importance for the national economy.





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