Company Registrations
SMA specializes in company registration services, catering to a diverse clientele that spans individual traders to small and medium-sized enterprises. Our approach is centered around empowering our clients with comprehensive information, enabling them to make informed decisions regarding the most suitable company type for their unique needs.
At SMA, we understand the significance of choosing the right business structure, as it sets the foundation for long-term success. That's why we go the extra mile to provide our clients with all the necessary details and insights. Our team of experts works closely with each client, taking the time to understand their specific requirements, industry dynamics, and growth objectives.
By leveraging our extensive knowledge of the Mozambican business landscape, we guide our clients through the various company types available, highlighting the benefits and considerations associated with each option. We believe in transparency and clarity, ensuring that our clients have a comprehensive understanding of the implications, legal requirements, and potential advantages or limitations of their chosen company structure.
At SMA, we understand the significance of choosing the right business structure, as it sets the foundation for long-term success. That's why we go the extra mile to provide our clients with all the necessary details and insights. Our team of experts works closely with each client, taking the time to understand their specific requirements, industry dynamics, and growth objectives.
By leveraging our extensive knowledge of the Mozambican business landscape, we guide our clients through the various company types available, highlighting the benefits and considerations associated with each option. We believe in transparency and clarity, ensuring that our clients have a comprehensive understanding of the implications, legal requirements, and potential advantages or limitations of their chosen company structure.
Type of Companies:
Sole Proprietorship (without limited liability):
This type of company is ideal for individuals seeking to pursue trading endeavors without the need for limited liability protection. Compared to a Ltd type company, the registration process for this company is simpler and more straightforward. From a taxation standpoint, if the annual turnover is below Mtn2.500.000 (approximately $40,000), the owner has the flexibility to choose whether or not to have an accountant sign off on the monthly and yearly accounts.
However, it's important to note that the owner of this type of company will still need to obtain a work and residence permit in order to legally work and trade in Mozambique. This permit ensures compliance with the country's regulations and allows the owner to conduct business activities within the Mozambican market.
This type of company is ideal for individuals seeking to pursue trading endeavors without the need for limited liability protection. Compared to a Ltd type company, the registration process for this company is simpler and more straightforward. From a taxation standpoint, if the annual turnover is below Mtn2.500.000 (approximately $40,000), the owner has the flexibility to choose whether or not to have an accountant sign off on the monthly and yearly accounts.
However, it's important to note that the owner of this type of company will still need to obtain a work and residence permit in order to legally work and trade in Mozambique. This permit ensures compliance with the country's regulations and allows the owner to conduct business activities within the Mozambican market.
Sole Proprietorship (with limited liability):
This type of company is designed for individual entrepreneurs who prioritize limited liability protection for their business endeavors and prefer not to have a partner. Setting up this type of company entails fulfilling additional requirements such as opening a bank account, securing company premises, and registering objectives through a company contract or articles of association. These steps help establish a solid legal framework for the business.
Regarding taxation, if the company's annual earnings are below Mtn2.500.000 (approximately $40,000), there is an option to choose a simplified form of accounting. However, if the earnings exceed this threshold, it is mandatory to engage a registered Mozambican accountant for financial reporting and compliance purposes.
This type of company is designed for individual entrepreneurs who prioritize limited liability protection for their business endeavors and prefer not to have a partner. Setting up this type of company entails fulfilling additional requirements such as opening a bank account, securing company premises, and registering objectives through a company contract or articles of association. These steps help establish a solid legal framework for the business.
Regarding taxation, if the company's annual earnings are below Mtn2.500.000 (approximately $40,000), there is an option to choose a simplified form of accounting. However, if the earnings exceed this threshold, it is mandatory to engage a registered Mozambican accountant for financial reporting and compliance purposes.
Limited Liability Company:
A partnership with limited liability is the prevailing choice for company registration in Mozambique. It offers entrepreneurs the benefit of limited liability protection for their business endeavors. This type of company allows for a maximum of 10 partners under the Lda classification.
To establish a partnership with limited liability, certain statutory requirements must be fulfilled. These include the preparation of articles of association or a notarized company contract, opening a bank account, and ensuring the availability of social capital, among other necessary steps. These measures help establish a solid legal foundation for the company.
In terms of taxation and accounting, if the company's annual revenue exceeds Mtn2.500.000 (approximately $40,000), it is mandatory to engage a registered Mozambican accountant. This accountant will be responsible for signing off on the monthly and yearly statutory accounting and tax obligations of the company, ensuring compliance with regulatory requirements.
A partnership with limited liability is the prevailing choice for company registration in Mozambique. It offers entrepreneurs the benefit of limited liability protection for their business endeavors. This type of company allows for a maximum of 10 partners under the Lda classification.
To establish a partnership with limited liability, certain statutory requirements must be fulfilled. These include the preparation of articles of association or a notarized company contract, opening a bank account, and ensuring the availability of social capital, among other necessary steps. These measures help establish a solid legal foundation for the company.
In terms of taxation and accounting, if the company's annual revenue exceeds Mtn2.500.000 (approximately $40,000), it is mandatory to engage a registered Mozambican accountant. This accountant will be responsible for signing off on the monthly and yearly statutory accounting and tax obligations of the company, ensuring compliance with regulatory requirements.
Foreign Representation (branch of foreign entity):
A fully owned subsidiary of a foreign enterprise, established in Mozambique, is an advantageous option for businesses looking to trade in the country. This type of company operates as an independent entity but is wholly owned by the parent company. It provides a legal framework for foreign companies to conduct their operations in Mozambique.
To operate as a fully owned subsidiary, the company must obtain a renewable yearly license known as an "Alvara." This license serves as official authorization for the subsidiary to conduct its business activities in Mozambique. It is essential to comply with the renewal requirements to maintain the validity of the license and ensure uninterrupted operations.
In terms of taxation, a fully owned subsidiary is subject to the same statutory obligations as other types of companies in Mozambique. This includes compliance with tax regulations, such as filing tax returns, maintaining accurate financial records, and fulfilling tax payment obligations.
At SMA, we specialize in assisting foreign enterprises in establishing fully owned subsidiaries in Mozambique. We provide comprehensive support throughout the licensing process, ensuring compliance with all legal requirements. Our team of experts will guide you through the necessary steps to obtain and renew the yearly license, enabling you to operate seamlessly in the Mozambican market.
A fully owned subsidiary of a foreign enterprise, established in Mozambique, is an advantageous option for businesses looking to trade in the country. This type of company operates as an independent entity but is wholly owned by the parent company. It provides a legal framework for foreign companies to conduct their operations in Mozambique.
To operate as a fully owned subsidiary, the company must obtain a renewable yearly license known as an "Alvara." This license serves as official authorization for the subsidiary to conduct its business activities in Mozambique. It is essential to comply with the renewal requirements to maintain the validity of the license and ensure uninterrupted operations.
In terms of taxation, a fully owned subsidiary is subject to the same statutory obligations as other types of companies in Mozambique. This includes compliance with tax regulations, such as filing tax returns, maintaining accurate financial records, and fulfilling tax payment obligations.
At SMA, we specialize in assisting foreign enterprises in establishing fully owned subsidiaries in Mozambique. We provide comprehensive support throughout the licensing process, ensuring compliance with all legal requirements. Our team of experts will guide you through the necessary steps to obtain and renew the yearly license, enabling you to operate seamlessly in the Mozambican market.