Sole Trader, Single-Shareholder, Lda. or S.A.: Which to Choose
Choosing the wrong legal form costs money and time later. This comparison summarises the differences that actually matter.
The sole trader is simplest and fastest, but personal assets answer for business debts — suited to small, low-risk activities.
The single-shareholder private company keeps one owner with liability limited to capital, and is today the most popular choice for individual entrepreneurs invoicing companies and bidding for tenders.
The Lda. allows two or more shareholders with defined shares, while the S.A. targets larger projects with high capital, a board of directors and room for investors.
Liability
Sole traders answer personally; companies limit liability to capital.
Number of owners
One for unipessoal; two or more for Lda.; shareholders for S.A.
Credibility
Companies are preferred by banks, tenders and large clients.
Formalities
Bigger structures bring heavier accounting and corporate duties.
Frequently Asked Questions
Can I move from sole trader to Lda. later?
Yes. A new company is incorporated and the business transferred; we support the whole transition.
Which regime do banks prefer?
Private limited companies, due to asset separation and complete corporate documentation.
Can foreigners choose any regime?
Yes, subject to documentation requirements, DIRE or legal representation in Mozambique.