How To Start A Business in Mozambique

How to Start a Business in Mozambique - Step by Step Guide

Starting a business in Mozambique is a relatively straightforward process, but it is important to follow the required steps and meet all legal and regulatory requirements. Below is a step-by-step guide for both locals and foreign investors, including the associated fees and taxes.

Step-by-Step Guide for Mozambican Nationals

1. Choose Your Business Structure: Decide on the appropriate business structure, such as a sole proprietorship, partnership, or limited liability company.
2. Register the Business Name: Register your business name with the National Directorate of Registration Services (DNCR).
   National Directorate of Registration Services (DNCR)
3. Obtain a Tax Identification Number (NIF): Register for a Tax Identification Number (NIF) with the Mozambique Tax Authority (Autoridade Tributária de Moçambique).
   Mozambique Tax Authority
4. Register with the Social Security Institute (INSS): Register your employees with the Social Security Institute to ensure compliance with social security regulations.
   Social Security Institute (INSS)
5. Obtain a Business License: Depending on the type of business, you may need to obtain a business license from the relevant Ministry or local authority.
   Fees: Fees may vary depending on the sector (approximately MZN 5,000 to MZN 20,000).
6. Open a Business Bank Account: Open a business bank account with a commercial bank in Mozambique.
   Fees: Fees vary by bank and account type.

Step-by-Step Guide for Foreign Investors

1. Choose a Business Structure: Foreign investors typically opt for a limited liability company, joint venture, or representative office.
2. Obtain Investment Approval: Foreign investors must submit an investment application to the Mozambique Investment Promotion Centre (CPI) to receive approval.
   Mozambique Investment Promotion Centre (CPI)
3. Register the Business: After obtaining investment approval, register your business with the National Directorate of Registration Services (DNCR).
   National Directorate of Registration Services (DNCR)
4. Obtain a Tax Identification Number (NIF): Register with the Mozambique Tax Authority (Autoridade Tributária de Moçambique) for a Tax Identification Number.
5. Register for VAT (if applicable): If your business's annual turnover exceeds MZN 2 million, register for VAT.
   Fees: MZN 1,500 for registration.
6. Obtain Business Licenses and Permits: Depending on your business type, you may need additional licenses or permits from the relevant government departments or municipalities.
   Fees: Varies by sector and local authorities.
7. Register with the Social Security Institute (INSS): Register all employees with the Social Security Institute to comply with labor regulations.
8. Open a Business Bank Account: Open a business bank account with a local commercial bank in Mozambique.

Estimated Duration

• For Locals: 2-3 weeks
• For Foreign Investors: 6-8 weeks (includes investment approval process)

Useful Resources

• National Directorate of Registration Services (DNCR)
• Mozambique Tax Authority
• Social Security Institute (INSS)
• Mozambique Investment Promotion Centre (CPI)