Apiex

At Serviços Moçambique, we assist Businesses seeking to invest in the country with all the paperwork and legal requirements which start with registrations and authorization with the following government entities:

• Company registration: (BAU)
• Authorization for investment incentives: Investment and Exports Promotion Agency (APIEX)
• Registering to pay tax: BAU or Tax Authority (AT)
• Registration with a central bank: Bank of Mozambique (BoM)
• Obtaining Work Permits for Foreign Nationals: Ministry of Labor, Employment and Social Security
• Apply for the right to use land (if required): Ministry of Land, Environment and Rural Development (MITADER)

Type of Business

There are the following type companies recognized for business in Mozambique:

• Partnerships
• Limited partnerships
• Private limited liability company (Sociedade por Quotas) (2-30 quota holders)
• Limited liability share companies (Sociedade Anónima) (more than three shareholders)
• Permanent representation/branch: foreign companies represented in Mozambique through branches, agencies, delegations, etc.

All foreign investors, employees and employers shall have the same rights and duties as Mozambican nationals, as established in the national law and with Serviços Moçambique experienced professionals along with a deep knowledge of local procedures.

Moreover, there are several benefits and tax incentives granted by the Mozambican State in certain sectors or activities, notably provided by Tax Incentives Code, approved by Law no. 4/2009, of 12 January 2009, as amended by Notice no. 21/05/2009, of 30 April 2009, for investments and projects directed at: (i) creation of basic infrastructures; (ii) trade and industry in rural areas; (iii) manufacturing and assembly industries; (iv) agriculture and fishing; (v) hotel and tourism; (vi) science and technology parks; (vii) mega projects; (viii) fast-development zones; (ix) industrial free trade zones (“IFTZs”); and (x) special economic zones (“SEZs”).

• Direct investment must take one of the following forms:
• Freely convertible foreign currency;
• Equipment and respective accessories, materials and other assets (imported or not); and/or
• Granting, in specific cases and pursuant to the terms provided by the competent authorities, of the right to use patented technologies and trademarks, the remuneration of which shall be limited to sharing in the profits of the company which undertakes the activity in which such patented technology or trademark is used.

Indirect investment may take one of the following forms:

• A loan
• A shareholder loan
• Complementary contribution of capital
• Patented technology
• Technical procedures
• Industrial secrets and models
• Franchising
• Trademarks
• Technical assistance; or
• Other forms of access for the use or transfer of technology and trademarks geographically or otherwise restricted by an exclusive or licensed use.

As for the monetary thresholds, it is established a minimum threshold of MZN 2,500,000 (two million, five hundred thousand Meticais) as well as other criteria for investment projects to be eligible for specific incentives granted thereby.

Therefore, there is a set of incentives that are generally granted to all investors in Mozambique, there are also special tax, VAT  and customs duties exemptions for imported goods as per the referred investment which are covered by Tax Incentives Code/specific legislation of an economic activity that may be available: location of the investment and the area where investors are interested in should be considered for this purpose.

Approval of foreign investments is not mandatory under Mozambican law.  However, in order for foreign investors to benefit from the guarantees and incentives, notably the right to repatriate the invested capital and profits obtained from investments, tax and customs incentives, and the State’s guarantee of security and protection of the investments and private property, the foreign investment shall comply with the procedure.

Specifically, for profits as well as for the investment amount to be transferred out of the country/re-exported, the threshold is MZN 2,500,000 (two million, five hundred thousand Meticais) as indicated above.  However, foreign investors that are in one of the following situations may also be granted with this right:

have an annual turnover of no less than MZN 7,500,000 (seven million, five hundred thousand Meticais) from the third year of activity;

• Present annual exports of goods or services in the minimum amount of MZN 1,500,000 (one million, five hundred thousand Meticais); or
• Have created/maintained direct employment for at least 25 Mozambican nationals, duly registered before the national social security system from the second year of activity.

The APIEX charges a fee for each investment project, calculated on the total amount to be invested by the foreign investors, at a rate of 1/1000.

Common practice is for foreign investors to submit a foreign investment project.  We note further that the transfer or repatriation of funds originating from the proceeds of investments from Mozambique to abroad by investors must be processed through a commercial bank and licensed by the Mozambican central bank. The central bank will in principle not license payments out under these circumstances where the investment in question was not approved by APIEX.

Avoid failure to comply and let Serviços Moçambique experts assist you!

Requirements to Transfer of funds abroad: Subject to compliance with the applicable requirements (including the applicable foreign exchange provisions), the investor is allowed to transfer abroad funds related to the following operations:

1. a) Exportable profits resulting from investments eligible for export of profits under the Investment Law Regulation
2. b) Royalties or other income on indirect investments associated with the assignment and transfer of technology;
3. c) Amortization and interest on loans taken out on the international financial market and applied in investment projects carried out in Mozambique;
4. d) Product of compensation for nationalization or expropriation of property and rights constituting authorized investment, and re-exportable foreign capital invested, irrespective of the eligibility of the respective project for export of profits in accordance with the Investment Law Regulation.

At this level Serviços Moçambique will assist you in applying the rapidly changing legal and regulatory requirements in Mozambique in order to enhance strategic and operational agility throughout your organization.

Moreover, understanding the regulatory landscape will help you to avoid and resolve compliance gaps, remediate examination findings and respond to regulatory inquiries. We have experience and local know-how on how assist and avoid the non-compliance with the legal framework below:

Registering for Tax

NUIT covers both corporate income tax (IRPC), personal income tax (IRPS), and VAT. Applicants can apply for the NUIT at their local BAU offices, where they will complete a single form to request registration for INSS, IRPC and VAT.

Visa Requirements

Non-nationals coming to Mozambique require a visa. Individuals may apply for an entry visa from Mozambican embassies and consulates in various countries and in Mozambique. A single entry is valid for 30 days and it is renewable while multi entries are valid for 90 days and is nonrenewable.

Investor’s Work/Residence Permit

To apply for a Foreigners’ Identification and Registration Document (Documento de Identificação e Residência para Estrangeiros; DIRE), applicants must submit an application to the Ministry of Labor, Employment and Social Security.

Access To Land

Mozambican law does not recognize the private ownership of land and the private sale of land is considered a crime. Therefore, in order to utilize land, investors need to apply for land use permits. In order to secure land in Mozambique investors must apply for a DUAT.