Legal Entity

Apart from in some specific sectors there are no restrictions on foreign individuals or entities wishing to set up businesses in Mozambique.
There are two main forms of limited liability entity available under Mozambican Commercial Law: a branch or a limited company.
Branches have to be registered with Ministry of Commerce and Industry. The objective of a branch is usually to execute a specific contract and the activities permitted under the licence granted are restricted to the contract (s). The licence is valid for three years, renewable. A branch is more appropriate for short duration ventures.

 

Incorporation of limited liability companies.
The most commonly used limited liability Mozambican business vehicles are Sociedade por Quotas (Limitada = private companies) and Sociedade Anónima de Responsabilidade Limitada (SA = public companies) The main differences between the two types of companies are:  Founding members(minimum) – 2 for private and 3 for public companies .Public companies have to issue share certificates, and these are more easy to transfer . Public companies also have to have a Fiscal Council