Mozambique is characterized by its richly diverse culture, natural resources, and significant economic growth. Situated on the southeastern coastline of Africa, it boasts a vibrant mix of business opportunities. The country’s economy is primarily-based on agriculture, but also features significant sectors in services, manufacturing, and mining. There are several types of companies in Mozambique that facilitate these various sectors.
1. Public Limited Companies (S.A.)
Public Limited Companies or Sociedades Anónimas (S.A.) are companies that have their capital divided into transferable shares. These companies require at least three shareholders, and there is no limitation on the maximum number of shareholders. Shareholders in these companies are only liable for the amount they invested.
2. Private Limited Companies (LDA)
Private Limited Companies or Limitadas (LDA) are companies in which the capital is divided into quotas. These companies require at least two and no more than 30 quota holders. LDAs in Mozambique are analogous to LLCs (Limited Liability Companies) in the United States. Quota holders are liable up to the amount of their quota.
3. Partnerships
In Mozambique, partnerships can be either general or limited. In general partnerships, the partners have unlimited liability. In limited partnerships, one or more partners have limited liability (limited partners), while other partners have unlimited liability (general partners).
4. Branch of a Foreign Company
Foreign companies are encouraged to establish operations in Mozambique. They may do this through the creation of branches. Although these company branches have no separate legal personality from the head office, they must be registered as a Mozambican company, and are subject to Mozambican taxes.
5. Individual Establishment of Limited Liability (EIRL)
An Individual Establishment of Limited Liability (EIRL) is a company constituted by a single individual who chooses not to incorporate as a sole trader. The individual is not collectively responsible for the company’s debts, but only up to the limit of the company’s assets.
6. Cooperative
Cooperatives are another important type of company in Mozambique. This type of organization is run and owned by its members who have equal voting rights, and share the profits or benefits.
7. State-Owned Enterprises
The Mozambican government owns and operates several companies in strategic sectors such as energy, transport and communications, water supply, and insurance. These state-owned enterprises play a significant role in the country’s economy.
Doing business in Mozambique can be challenging yet rewarding. The country has experienced strong economic growth in recent decades and has a range of natural resources that provide potential for future development. Successful business operation in Mozambique requires an understanding and application of the regulations of the different types of companies present in the country. Through this understanding, one can effectively navigate the business landscape of this beautiful and diverse country.
Here are some suggested related links about company types in Mozambique:
World Bank
Deloitte
PwC
KPMG
EY
Investopedia
UNDP Mozambique
African Development Bank
International Monetary Fund (IMF)
Doing Business
Trading Economics
Multilateral Investment Guarantee Agency (MIGA)
Federal Ministry for Economic Cooperation and Development (BMZ)
UNIDO
Southern African Development Community (SADC)