How to Start a Business in Mozambique

Mozambique is a country located in the Sub-Saharan Africa with a population of almost 29 million habitants.

The country is rich in mineral resources and has great potential for agriculture and agro industry. Mozambique has a long coast that benefits not only its population but also the neighbouring countries.

Investing in Mozambique is a great opportunity for entrepreneurs and companies who are willing to build sustainable business with powerful impact in the local communities.

Kindly find below the requirements to set-up a business in Mozambique and we look forward to helping you to register your Mozambique company:

1. Obtain certification of uniqueness name (certidão de reserva de nome)

Agency: Legal Entities Registry of Maputo (Conservatória do Registo das Entidades Legais)

Is necessary to verify the availability of the company name. The Registry Office’s administrative system is electronic and in a day is possible to do the name verification.

2. Signature of the contract by all partners before the notary

According to Article 90 of Commercial Code, the Articles of Association are issued by written document signed by all partners before a notary. This can be done at the notary’s office, the one-stop-shop (Balcão de Atendimento Único) or the Legal Entities Registry (Conservatoria do Registo das Entidades Legais).

3. Open a provisional bank account at a local commercial bank and pay registration fees

The bank account is opened to deposit the share capital. A payment for the registration fees is done. This bank account can only accept deposits. Credits/payments using this account are only done when all documents requested by the bank are delivered and validated.

4. Register the company, request a commercial registry certificate, and publish company statutes in the official gazette (Boletim da República)

The registration of the company is done at the Legal Entities Registry of Maputo, and the following costs charged:

– The amount of the share capital will determine the cost of the registration fees;

– Is necessary to publish the articles of association. A fee must be paid.

The company statute are published online by the Official Gazette and all process is managed by the Legal Entities Registry.

5. Register for taxes and obtain a Unique Tax Identification Number (NUIT)

The registration is done at the tax department (Repartição de Finanças).

6. Apply for a simplified operating license at the One-Stop-Shop of Maputo

Entrepreneurs in the beginning of their journey or operators from the informal market willing to migrate to the formal market are recommended to get the simplified operating license (lincenciamento simplificado).

This license can be obtained by some sectors, following these steps:

i) Filling in the license application form;

ii) Attach the following documents:

  • A copy of a valid Identification Document or Passport or Driving License or Professional Registration Card or Voter Registration Card (for Mozambican citizens).
  • A copy of the DIRE or temporary residence permit, with a validity of at least 6 months (for foreign citizens);
  • A legal entity registration certificate or copy of the publication of the articles of association in the Government Gazette (Boletim da República) and proof of the quality of the applicant, for legal persons;
  • Copy of the proof of issuance of the NUIT (Unique Tax Identification Number).

Information and document review by the relevant authority. If all is correct, the fee is paid and the license is issued. The license cost may vary each year, depending on the updates of the minimum wage per sector, which happen every April.

Nine economic sectors (agriculture, commerce, industry, civil construction, communications, culture, fishing, services and tourism) can benefit from the Simplified Licensing regime, as per the Decree 5/2012.

7. Declare the beginning of activity at the tax department (Repartição de Finanças)

For VAT and corporate income tax:

  • Fifteen days before the beginning of the business activities, a notification must be delivered at the Tax Department.
  • Is required to fill the Modelo 6 and together with this notification submit to the tax department of the fiscal district where your company/business will operate.
  • To conclude the process, is required to fill the Modelo 5 (in triplicate) and present the documents together with a notarised copy of the operating license. 

8. Declare the beginning of activity and register job candidates at the provincial employment centre

Once the company have identified the future employees, is necessary to register at the employment centre at a provincial level.

All employees must have signed agreements. Work cards for all employees must be requested within 30 days of the start of employment agreements, indicate the schedule of work hours, and present the declaration of the employment of national workers in 30 days of the start of their respective employment agreement.

When the company will employ more than 10 employees, all of them need to have individual files (processo individual). Files must be updated and approved annually by the Ministry of Labour.

The company’s annual holiday’s plan (plano de férias) is also presented to the Employment Centre, together with each employee’s work card, including the  identity information and the employee’s signature. When all process is validated by the Employment Centre, is stamped and returned to the company. Each employee receives the identification card.

9. Register workers with the social security system

The employer must register the company within 15 days of the start of business activity and register employees within 30 days of the start of their employment agreements. A special form (boletim de identificação de beneficiários) must be filled out for each employee and submitted to the Social Security Institute (Instituto Nacional de Segurança Social) within 15 days of signing the labor contract, accompanied by an authenticated copy of that employee’s identity card, an authenticated copy of the operational license, and the company’s tax ID or número único de identificação tributária (NUIT). A special form (ficha da empresa) must be filed for each company.

10. Subscribe to a workers’ compensation insurance coverage

Companies must provide their workers with life insurance for risks not covered by social security system. The life insurance (seguro colectivo) is required by Article 231 of the Decree 21, 2007 (Lei do Trabalho).

Source: http://www.doingbusiness.org/data/exploreeconomies/mozambique

In case you need an assistance from DCK side, kindly let us know and we will be happy to assist you.

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