Setting Up a Foreign-Owned Company in Mozambique
Foreign groups entering Mozambique choose between a subsidiary and a branch. The decision affects liability, licensing, accounting and how contracts are signed locally.
A subsidiary is a Mozambican company owned by the foreign parent. It has its own legal personality, contracts in its own name and limits exposure to the capital invested. It is the usual choice for ongoing trading operations and local hiring.
A branch is an extension of the foreign entity. It has no separate legal personality, so the parent remains liable, and it is generally chosen for defined, contract-bound engagements rather than open-ended operations.
In both cases, the parent's corporate documents must be legalised and translated, and a local representative with clearly defined powers must be appointed. We prepare the file in the order that keeps the two jurisdictions moving in parallel.
Content prepared by the Empresas.co.mz legal team in Maputo.
Subsidiary vs. branch
Liability
Subsidiary limits exposure; a branch keeps the parent liable.
Legal personality
Subsidiary contracts in its own name; a branch acts for the parent.
Typical use
Subsidiary for ongoing operations; branch for defined projects.
Local governance
Both require a representative with registered powers.
Documents from the parent company
Certificate of incorporation
Legalised and translated into Portuguese.
Articles of the parent
Required to evidence corporate capacity.
Board resolution
Approving the Mozambican entity and appointing the representative.
Power of attorney
Granting the local representative specific powers to act.
Frequently asked questions
Which is faster to set up, a subsidiary or a branch?
Timelines are broadly comparable; both depend mainly on how quickly legalised parent documents arrive.
Can the parent company be the sole shareholder?
Yes, using the single-shareholder company form.
Does the representative have to be resident?
Practical operation — banking, filings, inspections — normally requires a representative present in Mozambique.
Can we convert a branch into a subsidiary later?
Restructuring is possible but is a separate project with its own filings; it is worth choosing correctly at the outset.
Related services
- Company Registration in MozambiqueRegister your Lda, Unipessoal, sole trader or S.A. in Mozambique online. Name reservation, deed, NUIT and licences handled by our legal team.
- Corporate AmendmentsChange shareholders, share capital, company name, activity or registered office in Mozambique with full legal support.
- Certificates and Corporate DocumentsRequest commercial registry certificates, tax clearance, certified copies and extracts for your Mozambican company online.
Related guides
- How a Foreigner Can Open a Company in MozambiqueDocument requirements, foreign ownership, investment and legal representation to incorporate a company in Mozambique as a foreigner.
- Articles of Association: How They Are DraftedWhat your company's articles must include in Mozambique: capital, shares, management, financial year and clauses that prevent disputes.
- DIRE and Work Authorisation for ForeignersHow to obtain a DIRE and work authorisation in Mozambique: foreign worker quotas, documents and timelines.
- Opening a Corporate Bank Account in MozambiqueDocuments required by Mozambican banks, KYC requirements and how to speed up opening your company account.
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