Register A Company in Mozambique by 3E Accounting
Registration of a company in a foreign land is no simple task, Mozambique included. It is a rapidly-growing economy with the likely possibility of being a world-leading exporter of coal and natural gas in the near future. However, extreme poverty affecting the majority of the population causes limited market opportunities. Yet, consistent economic growth still makes registering a company in Mozambique an attractive, albeit risky, the prospect for entrepreneurs.
Register A Company in Mozambique
There are two types of corporations that can be registered in Mozambique. The first would be a limited liability company (LLC) and the second is a branch of a corporation or company. A limited liability company (LLC) can be set up with a minimum of two shareholders and it does not require minimum share capital. An LLC can also be managed by one or more managers. Branches, however, have to be registered with the Ministry of Commerce and Industry. The objective of a branch is usually to execute a specific contract and the activities permitted under the license granted are restricted to the contracts.
A license is also required to operate in Mozambique, which can be acquired from the Permit issued by the one-stop solution (BAU) launched by the Ministry of Industry and Trade. The time frame needed for incorporation is 5 to 8 weeks. The time taken to open a corporate bank account would be 2 to 3 days. It’ll cost approximately USD20,700 to set up. A physical office isn’t required. A few key points to take note of is the corporate tax rate is 32%. Under Mozambique law, foreigners can own 100% of the company. Memorandum and Articles of Association will be required as well as a tax registration certificate.
Why Invest in Mozambique?
The growing economic situation in Mozambique is a huge benefit for entrepreneurs and business owners alike. A growing economy is an ideal situation for potential entrepreneurs. The oil and gas industry is also a pretty good reason to invest. They are the third-largest holder of liquefied natural gas (LNG) in Africa. Investment opportunities around natural gas abound in areas such as the supply of equipment and infrastructure required in manufacturing LNG. Not forgetting about the mining industry, Mozambique has commercially important deposits of coal, ruby, graphite, etc. It also holds some of the world’s largest untapped coal deposits. Currently, a company from Brazil has made major investments in a coking coal mine, which has led to further investments from Australia and India.
Mining and refinery equipment, maintenance services and machinery, automation equipment and other efficiency-improving services will be in demand, thus providing investment opportunities for companies with such expertise. Tourism is and always has been an important source of inclusive business and poverty reduction in Mozambique. This sector boosts competitiveness, expand economic opportunity and provide a pathway to a greater and better future. This can be utilized to channel resources from rich to poor. Besides that, Mozambique applies the unilateral method for the avoidance of double taxation of income to resident companies and the permanent establishment of non-resident companies. This makes the trading environment very favourable for companies.
The process to register a company in Mozambique is quite simple when broken down but it can also be quite tedious and complicated. We provide these services to simplify your integration into the economy in Mozambique, should require any assistance or services.