DOING BUSINESS
(summary authored by PwC Angola)
This Law applies to private investments of any amount – which means there is no minimum investment amount - and to both national and foreign private investors. It does not however apply to investments in sectors of activity specifically regulated (e.g. financial institutions, oil & gas, mining).
For benefits attribution purposes, the following sectors of activity are priority:
● Education, technical-professional training, higher education, scientific investigation and innovation;
● Agriculture, food, agroindustry;
● Health units and specialized services;
● Reforestation, industrial transformation of forest resources and forestry;
● Textile, clothing and footwear;
● Hotel, tourism and leisure;
● Construction, public works, telecommunications and information technologies, airport and rail infrastructures;
● Electric power production and distribution;
● Basic sanitation, solid waste collection and treatment. Implementation zones
For private investment purposes, investment locations are organized in the following implementation zones:
● Zone A – Luanda province, the capital municipalities of the provinces of Benguela and Huíla and the municipality of Lobito;
● Zone B – Provinces of Bié, Bengo, Cuanza-Norte, Cuanza-Sul, Huambo, Namibe and the remaining municipalities of the provinces of Benguela and Huíla;
● Zone C – Provinces of Cuando Cubango, Cunene, Lunda-Norte, Lunda-Sul, Malanje, Moxico, Uíge and Zaire;
● Zone D – Province of Cabinda.
Investment regimes
The Private Investment Law foresees the following investment regimes:
a) Prior declaration regime – in which the investment business vehicle (incorporated subsidiary or branch) is incorporated / registered before the registration of the investment project with AIPEX; and
b) Special Regime – is only applicable to investments in priority sectors, which should be registered with AIPEX before the incorporation of the investment business vehicle. Regardless of the investment regime, the investment project registration with AIPEX is concluded through the issuance of a Private Investment Registration Certificate (in Portuguese, CRIP – Certificado de Registo do Investment Privado) by said entity.
Investment execution and implementation
The execution of the investment project should be initiated within the deadline established in the Private Investment Registration Certificate (CRIP). The investment can be executed through the following:
● Transfer of funds from abroad;
● Investment of foreign currency funds deposited in bank accounts domiciled in Angola and held by non-residents;
● Importation of machinery, equipment, accessories and other tangible fixed assets;
● Importation of technology and know-how.
AIPEX will monitor the execution and implementation of the investment project and may apply penalties in case of unjustified lack of compliance.
Prior declaration regime – tax benefits
Special regime – tax benefits
Summary authored by PwC Angola Link to the full Decree
The Private Investment Law, approved by Law 10/18, of 26 June, establishes the benefits and facilities granted by the Angolan State to private investors, the criteria for their access, as well as the rights, obligations and guarantees of the private investors.
This Law applies to private investments of any amount – which means there is no minimum investment amount - and to both national and foreign private investors. It does not however apply to investments in sectors of activity specifically regulated (e.g. financial institutions, oil & gas, mining).
The Agency for Private Investment and Promotion of Exportations (in Portuguese, AIPEX – Agência de Investimento Privado e Promoção das Exportações) is the entity responsible for assessing the investment proposals and registering and supervising the investment projects.
1. Repatriation rights
Upon full completion of the private investment project, payment of due taxes and incorporation of legal reserves in the investment corporate vehicle, foreign private investors are entitled to transfer abroad:
● Profits and dividends;
● Proceeds resulting from the liquidation of the investment;
● Proceeds from the indemnities;
● Royalties and other earnings resulting from indirect investments related to the transfer of technology.
2. Tax and financial benefits and other facilities
● Tax benefits relate to Corporate Income Tax, Investments Income Tax, Stamp Tax and others. Detailed information is included in the Tax section.
● Financial benefits refer to access to credit through government programmes supporting the economy, such as microcredit, interest subsidies, State guarantee and venture capital in the obtainment of loans.
● Other facilities relate to simplified and priority access to public administrative services, namely for the obtainment of licenses.
● The benefits and facilities are attributed based on (i) the sector of activity and (ii) the investment implementation zone.
For benefits attribution purposes, the following sectors of activity are priority:
● Education, technical-professional training, higher education, scientific investigation and innovation;
● Agriculture, food, agroindustry;
● Health units and specialized services;
● Reforestation, industrial transformation of forest resources and forestry;
● Textile, clothing and footwear;
● Hotel, tourism and leisure;
● Construction, public works, telecommunications and information technologies, airport and rail infrastructures;
● Electric power production and distribution;
● Basic sanitation, solid waste collection and treatment. Implementation zones
For private investment purposes, investment locations are organized in the following implementation zones:
● Zone A – Luanda province, the capital municipalities of the provinces of Benguela and Huíla and the municipality of Lobito;
● Zone B – Provinces of Bié, Bengo, Cuanza-Norte, Cuanza-Sul, Huambo, Namibe and the remaining municipalities of the provinces of Benguela and Huíla;
● Zone C – Provinces of Cuando Cubango, Cunene, Lunda-Norte, Lunda-Sul, Malanje, Moxico, Uíge and Zaire;
● Zone D – Province of Cabinda.
Investment regimes
The Private Investment Law foresees the following investment regimes:
a) Prior declaration regime – in which the investment business vehicle (incorporated subsidiary or branch) is incorporated / registered before the registration of the investment project with AIPEX; and
b) Special Regime – is only applicable to investments in priority sectors, which should be registered with AIPEX before the incorporation of the investment business vehicle. Regardless of the investment regime, the investment project registration with AIPEX is concluded through the issuance of a Private Investment Registration Certificate (in Portuguese, CRIP – Certificado de Registo do Investment Privado) by said entity.
Investment execution and implementation
The execution of the investment project should be initiated within the deadline established in the Private Investment Registration Certificate (CRIP). The investment can be executed through the following:
● Transfer of funds from abroad;
● Investment of foreign currency funds deposited in bank accounts domiciled in Angola and held by non-residents;
● Importation of machinery, equipment, accessories and other tangible fixed assets;
● Importation of technology and know-how.
AIPEX will monitor the execution and implementation of the investment project and may apply penalties in case of unjustified lack of compliance.
Prior declaration regime – tax benefits
Special regime – tax benefits
Summary authored by PwC Angola Link to the full Decree
(Summary authored by EY Angola)
The current Competition Law of Angola was recently approved by the Law n° 5/18, of May 10, 2018, with the intent of establishing the rules and regulatory principles of competition in the country. The present Law is applicable to all the exercised economic activities, permanently or occasionally, in Angola and to all the public and private companies, enterprise groupings, cooperatives, business associations and any legal entity with or without legal personality.
We would like to emphasize that the Competition Law provides the incorporation of the Competition Regulatory Authority, which will be governed by the public interest to promote and defend the competition.
In addition, the present Law determines the penalizations that might have to be applied in case of default. In fact, without prejudice to criminal and administrative liabilities that may be imposed, we emphasize that the Competition Regulatory Authority could potentially impose fines and additional penalties, namely the exclusion of the offender’s participation in procedures of public procurement for a period of up to three years.
Summary authored by EY Angola Link to the full Decree
The current Competition Law of Angola was recently approved by the Law n° 5/18, of May 10, 2018, with the intent of establishing the rules and regulatory principles of competition in the country. The present Law is applicable to all the exercised economic activities, permanently or occasionally, in Angola and to all the public and private companies, enterprise groupings, cooperatives, business associations and any legal entity with or without legal personality.
We would like to emphasize that the Competition Law provides the incorporation of the Competition Regulatory Authority, which will be governed by the public interest to promote and defend the competition.
In addition, the present Law determines the penalizations that might have to be applied in case of default. In fact, without prejudice to criminal and administrative liabilities that may be imposed, we emphasize that the Competition Regulatory Authority could potentially impose fines and additional penalties, namely the exclusion of the offender’s participation in procedures of public procurement for a period of up to three years.
Summary authored by EY Angola Link to the full Decree
(Summary authored by EY Angola)
The current General Labor Law was approved by the Law n° 7/15, of June 15, 2015 (rectified by the Rectification n° 15/15). This law is applicable to all workers who conduct remunerated activity dependent on others, within the organization and under its direction and authority, including public companies in Angola.
In addition, the General Labor Law is applicable to foreign workers who are nonresidents. In this regard, we reiterate that companies can only hire non-resident foreign workers to fill up to 30% of the workforce, with the remaining 70% constituted by national workers or foreign workers who reside in the country.
The General Labor Law establishes the rules and procedures applicable to the work relations, including its constitution, modification or termination, as well as obligations, rights and duties of workers and the employer. In addition, it reinforces that, for each year of service, besides the base salary and other obligatory benefits, all workers have the right to a minimum of 50% of the base salary as vacation subsidy, and a minimum of 50% of the base salary as Christmas allowance.
Summary authored by EY Angola Link to the full Decree
The current General Labor Law was approved by the Law n° 7/15, of June 15, 2015 (rectified by the Rectification n° 15/15). This law is applicable to all workers who conduct remunerated activity dependent on others, within the organization and under its direction and authority, including public companies in Angola.
In addition, the General Labor Law is applicable to foreign workers who are nonresidents. In this regard, we reiterate that companies can only hire non-resident foreign workers to fill up to 30% of the workforce, with the remaining 70% constituted by national workers or foreign workers who reside in the country.
The General Labor Law establishes the rules and procedures applicable to the work relations, including its constitution, modification or termination, as well as obligations, rights and duties of workers and the employer. In addition, it reinforces that, for each year of service, besides the base salary and other obligatory benefits, all workers have the right to a minimum of 50% of the base salary as vacation subsidy, and a minimum of 50% of the base salary as Christmas allowance.
Summary authored by EY Angola Link to the full Decree
(Summary authored by EY Angola)
The legal regime of creation and execution of Public Contracts in Angola is provided by the Law n° 9/16, of June 16, 2016 (rectified by the Rectification n° 23/16). This Law is applicable to public work contracts, lease or acquisition of movables, and acquisition of services provided by a hiring public entity, as well as contracts to be concluded by the hiring public entities that are not subjects to a special legal regime, to the contracts that are implemented through a public-private partnership, and also to contracts entered by the defense, security and internal law order, without prejudice to the other exceptions provided for by the law.
Under the terms of this mandate, the economic operators taking part in the process of creation or execution of the herein cited contracts, must observe the principles and rules of corporate governance, particularly: to provide information regularly; to maintain organized accounting; to possess internal control systems and to follow the rules of social and environmental responsibility.
Notwithstanding the specificities provide for by the law, the hiring public entities wishing to enter contracts, must adopt, according to the estimated contract value, one of the following procedures: public tender; restricted by previous qualification tender; limited invitation to tender; or simplified hiring.
Summary authored by EY Angola Link to the full Decree
The legal regime of creation and execution of Public Contracts in Angola is provided by the Law n° 9/16, of June 16, 2016 (rectified by the Rectification n° 23/16). This Law is applicable to public work contracts, lease or acquisition of movables, and acquisition of services provided by a hiring public entity, as well as contracts to be concluded by the hiring public entities that are not subjects to a special legal regime, to the contracts that are implemented through a public-private partnership, and also to contracts entered by the defense, security and internal law order, without prejudice to the other exceptions provided for by the law.
Under the terms of this mandate, the economic operators taking part in the process of creation or execution of the herein cited contracts, must observe the principles and rules of corporate governance, particularly: to provide information regularly; to maintain organized accounting; to possess internal control systems and to follow the rules of social and environmental responsibility.
Notwithstanding the specificities provide for by the law, the hiring public entities wishing to enter contracts, must adopt, according to the estimated contract value, one of the following procedures: public tender; restricted by previous qualification tender; limited invitation to tender; or simplified hiring.
Summary authored by EY Angola Link to the full Decree
(Summary authored by EY Angola)
In Angola, it is the Land Law (Law n° 9/04, of November 9, 2004) that determines the legal regime of integrated lands in the property originating in the State, including the land rights that may be applicable to them, and the general regime of transmission, constitution, exercise and extinction of the respective affecting rights.
The transmission, constitution and exercise of land rights over lands that the State can grant, must comply with the following principles: principle of original ownership of land from the State; principle of transmissibility of integrated land under the private sphere of the State; principle of useful and effective utilization of land; principle of the ability to be taxed; principle of respect for the land rights in rural communities; principle of natural resources ownership by the State and principle of non-reversibility of nationalization and confiscation.
This way, we reaffirm that the land constitutes property originating in the State. Nevertheless, and without prejudice of exceptions determined by the law, the State may transmit or encumber the property of integrated grounds in its private domain; however, businesses violating the public order are null and void.
We would like to emphasize that the transmission of the property rights and the constitution of land rights over integrated grounds in private domain of the State can only exist with the objective of ensuring their useful and effective utilization.
Summary authored by EY Angola Link to the full Decree
In Angola, it is the Land Law (Law n° 9/04, of November 9, 2004) that determines the legal regime of integrated lands in the property originating in the State, including the land rights that may be applicable to them, and the general regime of transmission, constitution, exercise and extinction of the respective affecting rights.
The transmission, constitution and exercise of land rights over lands that the State can grant, must comply with the following principles: principle of original ownership of land from the State; principle of transmissibility of integrated land under the private sphere of the State; principle of useful and effective utilization of land; principle of the ability to be taxed; principle of respect for the land rights in rural communities; principle of natural resources ownership by the State and principle of non-reversibility of nationalization and confiscation.
This way, we reaffirm that the land constitutes property originating in the State. Nevertheless, and without prejudice of exceptions determined by the law, the State may transmit or encumber the property of integrated grounds in its private domain; however, businesses violating the public order are null and void.
We would like to emphasize that the transmission of the property rights and the constitution of land rights over integrated grounds in private domain of the State can only exist with the objective of ensuring their useful and effective utilization.
Summary authored by EY Angola Link to the full Decree
(Summary authored by EY Angola)
The legal regime for foreigners in Angola is regulated by Law n° 2/07, of August 31, 2007, and by the Presidential Decree n° 108/11, of May 25, 2011, with the alterations introduced by the Presidential Decree n° 151/17, of July 4, 2017.
These mandates establish the rules and Angola’s visa procedures, including the applicable rules to consular visa, which in general must be granted by the Diplomatic and Consular Missions. There are ten consular visa categories: work visa; ordinary visa; short stay visa; temporary stay visa; privileged visa; tourist visa; transit visa; student visa; medical treatment visa and residency.
The foreign citizens who wish to work in Angola must request a work visa, for which it is necessary to previously obtain the favorable permission from the supervisory authority of the activity, in case of companies or private entities, or the Ministry of Public, Labor and Social Security Administration in case of public companies or institutions.
On the other hand, the ordinary visa must be requested by those who wish to visit Angola for family reasons or business prospection, and that, as a rule, is valid for 30 days and may be extended twice, for the same period. Summary authored by EY Angola Link to the full Decree
The legal regime for foreigners in Angola is regulated by Law n° 2/07, of August 31, 2007, and by the Presidential Decree n° 108/11, of May 25, 2011, with the alterations introduced by the Presidential Decree n° 151/17, of July 4, 2017.
These mandates establish the rules and Angola’s visa procedures, including the applicable rules to consular visa, which in general must be granted by the Diplomatic and Consular Missions. There are ten consular visa categories: work visa; ordinary visa; short stay visa; temporary stay visa; privileged visa; tourist visa; transit visa; student visa; medical treatment visa and residency.
The foreign citizens who wish to work in Angola must request a work visa, for which it is necessary to previously obtain the favorable permission from the supervisory authority of the activity, in case of companies or private entities, or the Ministry of Public, Labor and Social Security Administration in case of public companies or institutions.
On the other hand, the ordinary visa must be requested by those who wish to visit Angola for family reasons or business prospection, and that, as a rule, is valid for 30 days and may be extended twice, for the same period. Summary authored by EY Angola Link to the full Decree
(Summary authored by EY Angola)
The Business Activities Law, approved by the Law n° 1/07, of May 14, 2007, establishes the applicable rules to the exercise of business activity in Angola. Under this law, the following activities are considered commercial: wholesale trading, retail trading, general trading, precarious trading, market trading, street trading, representation trading, provision of market services, import and export.
The Presidential Decree n° 193/17, of August 22, 2017, which approved the regulation on the licensing of establishments and the commercial activity and market services, complements the mandate and adapts it to the current needs. According to the aforementioned mandates, the exercise of commercial activities such as wholesale trading, retail trading, general trading and market services, when subject to licensing, require obtaining the respective commercial license, precarious commerce license, marketer card, street vendor card or market stall vendor card.
In turn, we reinforce that importers and exporters must be registered as such in the previously mentioned Importer and Exporter Record.
Summary authored by EY Angola Link to the full Decree
The Business Activities Law, approved by the Law n° 1/07, of May 14, 2007, establishes the applicable rules to the exercise of business activity in Angola. Under this law, the following activities are considered commercial: wholesale trading, retail trading, general trading, precarious trading, market trading, street trading, representation trading, provision of market services, import and export.
The Presidential Decree n° 193/17, of August 22, 2017, which approved the regulation on the licensing of establishments and the commercial activity and market services, complements the mandate and adapts it to the current needs. According to the aforementioned mandates, the exercise of commercial activities such as wholesale trading, retail trading, general trading and market services, when subject to licensing, require obtaining the respective commercial license, precarious commerce license, marketer card, street vendor card or market stall vendor card.
In turn, we reinforce that importers and exporters must be registered as such in the previously mentioned Importer and Exporter Record.
Summary authored by EY Angola Link to the full Decree