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TYPES

A. TYPES OF BUSINESS IN MOZAMBIQUE

Cserve is the platform where any local or Foreign investors will be advised by us for any type of registration in Mozambique. Anyone that wish to carry on a commercial activity in Mozambique may choose between a range of commercial activities such as the company types listed below and other forms of commercial representation including branches in the form of agencies or delegations

The Mozambican Commercial Code, makes it possible for Mozambican or foreign individuals or clients to set up business in Mozambique in one of these different ways:

  • Individual Enterprise E.I.,
  • Quota company (Sociedade por Quotas);
  • Single person quota company (Sociedade Unipessoal por Quotas)
  • Share company (Sociedade Anónima).

Investors tend of to establish their business by setting up a ‘quota company’ (Sociedade por Quotas) or a ‘share company’ (Sociedad Anónima), or by registering one of the types of foreign commercial representation listed above.

TYPE 1

LLC Companies (Lda)

Limitada company is Mozambique, We will give you guidance How register private limited company in Mozambique Limited liability quota companies (Sociedades por Quotas de Responsabilidade Limitada) – must be held by a minimum of two quota holders and a maximum of thirty.

The only exception to this is the single person quota company (Sociedade Unipessoal por Quotas) which may be set up by a single quota holder who must be a private individual. The name of the quota company must be composed of the name of some or all of the quota holders, by a specific name or by a combination of both. In any case it must be followed by the word Limitada (Limited) and this word may appear in full or as the abbreviation Lda.

The quota holders may set the capital at a level that is adequate for the company to carry on its activity as the law does not establish a minimum.

TYPE 2

Public Limited Company (SA)

Register public limited company in Mozambique, The Public Limited Company (Sociedade Anónima) (SA), – usually adopted by larger companies. Its essential characteristic is a more complex organic structure and the fact that dealing with the share capital is more flexible because there are no special formalities for the transfer of shares.

SA companies must have at least three shareholders who may be Mozambican or foreign individuals or legal entities. There is an exception when the State, directly or through a state company or legally equivalent entity, is a shareholder, in which case these entities may be the sole shareholder.

The liability of shareholders towards third parties is limited by the value of the shares to which they have subscribed. Companies that wish to set up in Mozambique must bear in mind that the value of the share capital must always be adequate to achieving the corporate object and must always be expressed in the Mozambican currency.

Commercial law does not establish a minimum for the share capital. In this type of company, the capital is represented by nominative or bearer shares and the nominative shares may be book-entry or registered.If a legal entity is appointed to the position of director, this entity must appoint an individual to exercise the duties of director in their own name. As to supervision, this is done by an audit committee with 3 or 5 members or by a sole auditor that must be a registered auditor or audit company.

TYPE 3

COMMERCIAL REPRESENTATION AND BRANCH

Owners are always having question in mind that,How to open a branch in Mozambique, Foreign entities that wish to carry on activity of an economic nature in Mozambique through commercial representation must make an application to the Ministério da Indústria e do Comércio for the licensing of their branches, subsidiaries, delegations, agencies or other forms of representation that are legally established in Mozambique.

The representations are authorized to carry on activity in Mozambique subject to certain time limits. For example, agencies may operate for the duration of the respective agency agreement but delegations may carry on activity for a period of three years that is renewable.

A branch is deemed to be a permanent establishment of the company and it does not have legal autonomy or personality different to that of the parent company even when registered at the Mozambican Legal Entities Registry Office.

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