Operating a Business

flag Mozambique Mozambique: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labour | Social Partners

 

Setting Up a Company

Limited Liability Company (LLC or LDA)
Number of partners: At least 2 (may be individuals or other companies, foreigners or nationals), up to a maximum of thirty. In some cases can be also established by a single shareholder, that has to be an individual.
Capital (max/min): There is no legal requirement as to the amount of share capital. The share capital is divided into "quotas", which are nominative.
Shareholders and liability: Shareholders are jointly and severally liable for the whole of the share capital contributions. Claims of creditors are limited to the assets of the company for its debts.
Public Limited Company (SA)
Number of partners: Minimum of 3 shareholders, who may be natural or corporate persons, nationals or foreigners.
Capital (max/min): The amount of share capital must be appropriate to carry out the corporate objective, though there is no minimum legal requirement. The entire share capital must be fully subscribed and 25% of the capital must be paid up at the time of incorporation. Capital is divided into shares, which may be nominative or bearer shares, represented by certificates of shares.
Shareholders and liability: The liability of each shareholder is limited to the value of the shares subscribed, and claims of creditors are limited to the assets of the company.
Limited Partnership
Number of partners: At least two, individuals or other companies, foreigners or nationals.
Capital (max/min): There is no legal requirement concerning the amount of share capital.
Shareholders and liability: There are two types of partners: capitalist shareholders (who limit their liability to the value of the contribution that they paid up) and industry shareholders (who do not contribute to the share capital, but merely participate in the company with their work and are exempt from any liability for the  debts of the company)
The Competent Organisation
Registo de Sociedade
Company Directories
Mozambique Chamber of Commerce
 
Setting Up a Company Mozambique Sub-Saharan Africa
Procedures (number) 10.0 7.5
Time (days) 17.0 21.3

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in Mozambique.

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The Active Population in Figures

201820192020
Labour Force 12,771,95813,188,55013,310,127

Source: International Labour Organization, ILOSTAT database

 
201720182019
Total activity rate 78.73%78.52%78.33%
Men activity rate 79.41%79.08%78.77%
Women activity rate 78.11%78.02%77.93%

Source: International Labour Organization, ILOSTAT database

 

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Working Conditions

Legal Weekly Duration
Normal working hours cannot exceed 8 hours per day and 48 hours per week.
Retirement Age
An individual is entitled to the full pension benefits when they have completed 420 months of contributions irrespective of their age.
An individual is entitled to partial pension benefits when they reach the retirement age of 55 for women and 60 for men, and have at least 240 months of contributions.
Working Contracts
Contracts must be written, except for fixed-term employment contracts where the work to be carried out will not exceed 90 days.
Labour Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labour

Minimum Wage
In Mozambique, minimum wages varied from one branch of activity to another in 2019, here are a few examples :

  • For state employees and agents: MZN 4,467.75 (around EUR 56.64).
  • For mining companies: MZN 9,254 (around EUR 117.31).
  • For agriculture, livestock, hunting and forestry sector: MZN 4,390 (around EUR 55.65).
  • For financial services, banks and insurance sector: MZN 12,760.18 (around EUR 161.76).

(Source: the Mozambican law firm ABCC, latest data available)

Average Wage
High skilled labour wages in Mozambique averages MZN 28,471 per month in 2021 (WageIndicator).
Social Contributions
Social Security Contributions Paid By Employers: 4% of covered earnings.
Social Security Contributions Paid By Employees: 3% of covered earnings.

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Social Partners

Social Dialogue and Involvement of Social Partners
Chapter 5 of the Labour Law 23/2007 on "Collective rights and collective employment relations" protects the right of association for workers in Mozambique.
Unions
Organisation of Mozambican Workers (OTM)
Confederation of Free and Independent Trade Unions (CONSILMO)
Unionisation Rate
OTM organizes 23% of all formal workers in all sectors of the economy.
Labour Regulation Bodies
Ministry of Labor, Employment and Social Security

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Latest Update: April 2022