| LLC | PLC | Branch Office | Rep Office | |
|---|---|---|---|---|
| Local Name | Lda | SA | Filial | Escritório Representativo |
| Company Setup Time | 15 days | 20 days | 30 days | 30 days |
| Bank Account Opening | 15 days | 15 days | 15 days | 15 days |
| Government Grants Available | Yes | Yes | No | No |
| Government Contracts Bidding | Yes | Yes | No | No |
| Legal Liability | Yes | Yes | No | No |
| Client Required to Travel | No | No | No | No |
| Inquiry | Inquiry | Inquiry | Inquiry |
Corporate Structure Explained
Mozambique limited liability company (Lda)
- The Limited Liability Company (LLC), also known as Lda in Mozambique, is one of the most common options for establishing SMEs in Mozambique. There is a requirement for the Lda to have at least one director and two shareholders, who can be local or foreign residents. The shareholders can be legal entities or individuals.
- The LLC can be registered with one shareholder, in this case the shareholder must be an individual.
Mozambique public limited company (SA)
- The public limited company (PLC), also known as SA in Mozambique, is recommended for investors who intend to make larger investments. To complete the incorporation process, this company needs a minimum of three shareholders, who may be corporate entities or individual persons. The public limited company can only appoint one director if it doesn’t have more than $17,500 in share capital. The director may be a foreign resident or a local Mozambique resident.
- A PLC has no minimum capital requirement, but at least 25 percent of the total share capital must be deposited during the incorporation process. The PLC in Mozambique must appoint a legal auditor or a board of auditors including three or more auditors.
Mozambique branch (commercial representation)
- A branch is not recognized as a distinct corporate entity. Hence the holding company must define the extent of its operations. During the establishment of a business setup in Mozambique, the holding company must appoint a minimum of one director as the company’s representative, who can be local or foreign resident. The company must obtain a license to invoice its customers.
Mozambique representative office (commercial representation)
- Unlike a branch, there is no need to register a representative office for taxes and VAT. For a renewable three-year term, a representative office is authorized to operate in Mozambique. During the establishment of the business in Mozambique, the holding company must appoint a minimum of one representative, who may be local or foreign resident. A representative office is only allowed to perform market research and promote the holding company.