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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
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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.

Fast Incorporations