Company Formation in Mozambique

Mozambique is a good destination to set-up your company to cater to the fast growing African market with a large population. YourGlobalPro can assist in Mozambique for Company Formation, Secretarial Compliance, Tax Registration, VAT Reclaim, Document Retrieval and Trademark Registration.

About the Country

Mozambique (officially known as the Republic of Mozambique) is a South African country bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west, and Swaziland and South Africa to the southwest. The county is endowed with rich and extensive natural resources. The below content will explain you in detail about the requirements for the company formation in Mozambique, know more about the process of trademark registration in Mozambique and understand the Mozambique Legal and Compliance requirements.


Doing Business Introduction

Mozambique has steadily built its economy that has led to an annual average growth rate of 8%. The country’s economy is based largely on agriculture, but other industries are growing, mainly food and beverages, chemical manufacturing, and aluminum and petroleum production as per Doing business report of The World Bank Mozambique have as an overall ranking of 137 for 2017 in terms of ease in doing business.


YourGlobalPro professionals can assist its client with any type of company formation in Mozambique, trademark registration in Mozambique and other recurring services for your business in Mozambique

Incorporation - Types of Business Entities

The Mozambican Commercial Code makes it possible for Mozambican or foreign individuals or clients to setup business in Mozambique in one of the following ways:

·       General Partnership (Sociedade em Nome Colectivo)

·       Limited Partnership (Sociedade em Comandita)

·       Capital and Industry Partnership (Sociedade de Capital e Indústria)

·       Quota Company (Sociedade por Quotas)

·       Single Person Quota Company (Sociedade Unipessoal)

·       Share Company (Sociedade Anónima)


Time Frame for Incorporation of Company in Mozambique varies from depending on the type of entity selected and each business type has its own advantages and disadvantages. YourGlobalPro professionals estimate the time required for Mozambique Company formation process to be completed is 18-20 working days.

Benefits of Registration of a Company

Below are the advantages of company formation in Mozambique:

·       Ease in starting businesses as there is no minimum share capital requirement.

·       Mozambique’s economy is one the fastest growing economy in East Africa.

·       Diversified economy and industries

·       Good duty-free access to markets abroad


·       Beneficial tax breaks offered by the country to companies in priority sectors

Tax Registration and Filing

The tax system applied in Mozambique is a modern tax system with a tripartite structure where the income, consumption and assets are taxed separately.

Corporate Income Tax Rate 32%
Capital Gains Tax 32%
Branch Profits Tax Rate 32%
Value Added Tax 17%
Withholding Tax Dividends - General 20%
Dividends - Listed Shares 10%
Interests and Royalties - 20%
Technical services - 10%
Fiscal Year 1 January to 31 December
Annual Tax Return To be filed by 31 May

Double Tax Treaty

Double Tax Agreements (DTA) regulates the tax treatment of income or capital gains in situations where the same taxpayer is taxed twice in two countries for the same subject. Mozambique has concluded DTA with Portugal, Italy, Mauritius, United Arab Emirates, Special Administrative Region of Macau, South Africa, India, Vietnam and Botswana.

Trademark registration

In Mozambique, for trademark registration application needs to be made to the Industrial Property Institute (IPI) is under the governance of the Ministry of Industry and Trade. It takes approximately 16-22 months’ timeframe to complete the trade mark registration process. The Trademark Registration is valid 10 years from the date of filing trademark and is renewable for similar period by paying the renewal fee by the expiration date.  A cancellation action may be brought by any interested party when a registered trade mark has not been used for an uninterrupted period of at least three years up to one month prior to the submission of the request.


YourGlobalPro professionals are fully equipped to assist you with the process of trademark registration in Mozambique for your business. For assistance or advice in the matter of the trademark registration or intellectual property – please feel free to write or contact us.

Secretarial Compliance

Below are some of the important points in relation to Company Secretarial Compliance in Mozambique:

·       The articles of incorporation should be published in the Official Gazette upon registration.

·       Companies must obtain a Unique Tax Identification Number upon registration.

·       Companies must declare the beginning of business activity should be declared to the tax department of Mozambique. For VAT and corporate income tax, the notification should be submitted 15 days before commencement.

·       Companies should register workers with the social security system within 30 days of the start of their employment agreements.

·       Proper minutes books and records for the Company must be maintained


·       Proper book of accounting records needs to be maintained

Accounting Services

The Mozambican accounting system is based on the French accounting Model. The financial institutions and certain foreign business entities (namely multinational enterprises) are governed by a system which follows the IFRS.


YourGlobalPro professionals assist you with the entire bookkeeping and accounting services for your Mozambique Business Setup as per your business needs including implementation of financial accounting software, accounting records preparation and time to time preparation of budgets, forecasts.

Auditing service

In Mozambique, annual statutory accounts must be prepared by all entities, as taxable income is based on the profits shown on the accounts. Reports of all Mozambican entities must be in Portuguese. All public companies are required by law to be audited. The Bank of Mozambique, the country’s central bank, must approve external auditors before they can be used by finance companies.


Based on the size of the business – the companies are required to prepare and file financial statements with the Authority. YourGlobalPro professionals provide auditing services as required by your business in Mozambique.


The documentation requirement needed to open a bank account in Mozambique differs from bank to bank.  The major banks in Mozambique are Banco Austral ABSA, Banco Commercial de Investimentos (BCI), Standard Bank, National Investment Bank and United Bank of Africa. All banks are stable, reliable and offer the same level of services.


YourGlobalPro professionals facilitate all the paper work in relation to banking need and can assist you in opening bank account for your business plan in Mozambique.

Legal and Compliance

In Mozambique, the responsibility of legal compliance is not a one-time affair, but a continuous process. Below is the various Mozambique legal and compliance requirement to be followed by incorporated entities:

·       Limited liability quota companies must be held by a minimum of 2 quota holders and a maximum of 30.

·       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. The capital must correspond to the sum of the nominal values of the each of the quotas and must be expressed in the Mozambican currency.

·       Share companies must have at least three shareholders who may be Mozambican or foreign individuals or legal entities. There is no minimum share requirement established by the law.

·       The share company will only be incorporated when the whole of its share capital has been subscribed and at least 25% has been paid up


·       YourGlobalPro professionals can assist you in Mozambique legal and compliance requirements.

HR and Employment Law and Immigration / VISA

Below are some of the important points in relation to HR & employment law in Mozambique:

·       All promises of employment for 90 days or longer are required to be in writing regardless of the nature of the work and type of employment.

·       The maximum length of a single fixed-term contract is 2 years. Furthermore, the maximum length of fixed-term contracts including renewals is 6 years.

·       The Company needs to offer 50%of hourly pay for overnight rate.

·       Paid annual leaves are as follows: Workers with 1 year tenure: 12 days Workers with 5 years tenure: 30 days

·       The mandated paid maternity leave is minimum 60 days with 100% of the wages paid.

·       Other leave granted includes unpaid family leave of 30 days and bereavement leave of 5 days.

·       Business visa issued by the country serves as the de facto short-term work permit. It is issued as either as a single entry valid for 30 days or a multi entry visa valid for 90 days.

·       Holder of a Mozambican business visa can perform work of a temporary nature. Business visa can be processed within 1 day.

·       A work visa us required when hiring foreign employees. Validity of this permit is up 2 years renewable for an additional 2 years.

·       Mozambique works with a quota system for issuing long term work permits. The quota system essentially grants a company permission to employ a certain number of foreigners. The percentage of allowed foreign employees is dependent on the company’s size: Small companies (1-10 employees) – 10% Medium size companies (10-100 employees) – 8% Large companies (100+ employees) – 5%


·       Work visa can be processed within 2-8 months depending on the quota status of the company.

Country Statistics

Capital Maputo
Largest City Maputo
Total Area 801,590 Sq. Km.
Population 24,692,144
Density 28.7 / Sq. Km.
Currency Mozambican Metical (MZN)
Government Unitary Semi-Presidential Republic
Official Language Portuguese
Religion Christian: 56.1
Muslim: 17.9%
None: 18.7%
Other: 7.3%
Government Office Hours Mon-Fri (0730 to1530 Hrs)
Business Office Hours Mon-Fri (0800 to1700 Hrs)
Banks and Exchange Houses Hours Mon-Fri (09.00 to 16.00 Hrs)

Get a FREE Quote for Company formation in this country

Download this Country Factsheet