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.