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Angola Investment Guides

Angolan investment profile

GENERAL INVESTMENT STEPS IN ANGOLA

STEP 1: Locate a Project in Angola, either in partnership with an Angolan Existing Company or a new one project


STEP 2: Apply for an investment Certificate by submitting a proposal to ANIP. The approved investors conduct business in Angola by registering a subsidiary, forming a partnership or incorporating

STEP 3: Register the company, publish the company by laws in the official journal, obtain a business license and register with fiscal authorities

STEP 4: Do the following Registration and Licensing:

  • Tax Registration
  • Commercial Registration
  • Statistical Registration
  • Commercial Operations Permit and/or industrial Permit
  • Registration as Importer/Exporter
  • Social Security Registration

ANGOLAN GOVERNMENT INVESTMENT GUIDELINES

Financial Requirements for Investors: To be eligible for the Angolan Government Investment Incentives, the following should be obeyed:

  • Minimum Investment Capital for Angolan National Citizen: US$50.000:00
  • Minimum Investment Capital for Foreign Nationals: US$100.000:00
  • Non Asset and Non Capital Investors need to satisfy other requisit

Private Investment The Angolan Government has established a policy and legal framework that:

  • Establishes a legal regime of incentives;
  • Is sufficiently attractive to prospective investors;
  • Offers credible legal protection and stability to their investments

Private Investment Protection Scheme

To facilitate and to protect Investors both nationals and foreigners, the Angolan Government has established legal procedures such as:

  • The Government of Angola guarantees private investors due legal process
  • The assets of private investors cannot be nationalize
  • The Government guarantees private corporations full protection
  • Angolan Law protects private investors without prejudice to any other rights

The Ernst & Young Investment Profile was compiled to assist potential investors. Investors are cautioned against using the information without seeking up to date advice from the Ernst & Young practice in Angola. The information in this investment guide is correct as of August 1996.

  • A branch has no legal entity and thus, obligations entered into by the branch are binding on the foreign company (if the company fails to comply with the registration requirements, the directors and the company will be jointly liable). All mandatory regulations (e.g. labour and tax laws) apply to the activities of a branch.
  • A branch does not offer the protection of limited liability, and the assets of the operating company are therefore subject to any legal claims arising through the Angolan operations. This could cause serious problems in cases of insolvency or payment of fiscal debts.
  • The foreign investment regulation requirements also apply to the registration of a branch in Angola.
  • From a legal point of view, a subsidiary has its own legal entity and remains independent of its shareholders.
  • For the incorporation of an Angolan company, compliance with the Commercial Law and registration requirements is imposed by Angolan foreign investment regulations.
  • A subsidiary company can be set up in different ways. Angolan Commercial Law provides for different kinds of legal structures, of which the most important are Limited Liability Partnerships (Sociedade por Quotas-LDA) and share companies (Sociedade Anonima-SARL). Both are limited liability company structures and both have to be formed by notarial deed and subsequently registered in the Commercial Registry.
  • The minimum capital legally required was established some years ago in Kwanza 50.000. With the strong devaluation of the Kwanza this number is not used for foreign investors for whom an approximate amount of USD 3.000 is used as minimum.
  • One of the solutions to consider is to split specific projects and/or contractor services agreements between the incorporated company and the foreign company operating through the branch. Another company could be formed for the rendering of services, in which foreign personnel would be concentrated.
  • This would imply that the investing company operates both with a structure established in Angola and with an offshore occasional participation of the mother company, for specific projects or contractual co-operation.

Taxation

  • Companies carrying out industrial and commercial activities in Angola are subject to Industrial Tax (Income Tax) on all profits derived from Angola. If the company has its head office or effective management control in Angola, it is subject to Industrial Tax on its profits derived from Angola and one-third of its gross income earned abroad.
  • Under the new tax legislation, all the income obtained abroad by an Angolan company operating overseas will be fully taxable.
  • Foreign entities with a permanent establishment in Angola are subject to Industrial Tax only on profits derived from the permanent establishment.
  • All companies, regardless of whether they have a permanent place of business in Angola, that perform contracts or subcontracts or render services in Angola, are subject to Industrial Tax if the amounts paid to such companies are considered expenses for Industrial Tax purposes.
  • This provision is likely to be changed, as a consequence of the new definition of permanent establishment. This new definition also considers, as permanent establishment, the mere rendering of services, if made by the presence in Angola of hired personnel, for more than 90 days within a year. This implies that those companies that render services will be taxable under the general rules of the Industrial Tax Code.
  • The Capital Income Tax imposed on taxable dividends was raised to 10% under the new legislation. An exemption, on the same conditions as the exemption from Industrial Tax, can be obtained from the Minister of Finance for new industries and investment projects in fundamental areas.
  • The tax year is the calendar year. Companies other than Angola companies operating abroad must file tax returns together with their financial statements by 31 May in the year following the tax year. Angolan companies operating abroad must file by 31 July. Advance payments of, at least 50% of the prior year s tax liability must be made by 10 December of the tax year. Final payment of tax is due on 15 September of the following year.

Personal income tax

  • All individuals receiving employment income for duties performed in Angola are subject to income tax.
  • Under the new legislation, the personal tax liability is clarified. Personal Income Tax will be payable by all Angolan residents and on all the income obtained from an activity in Angola.
  • Taxable income includes all employment income, such as wages, salaries, leave payments, fees, gratuities, bonuses and premiums or allowances paid or granted by reason of employment, in cash or in kind.
  • Directors fees are ordinarily treated as individual taxable income, regarded in the same way as remuneration income. Under the tax reform, members of any of the boards of Angolan companies will always be considered as residents in Angola for tax purposes.
  • Income taxes on employees are satisfied by employer withholding, and employees need not file returns.
  • No resident individuals are assessed on only Angolan-source income. The employer or other payer withholds the amount due and is liable for the tax.

Exchange control

  • All the exchange operations are subject to Banco Nacional de Angola supervision.
  • All the imported funds (for instance, for start-up expenses) shall be converted into NKz in Angola.
  • The contracts signed by a branch or subsidiary must be made in Nkz. However, this obligation does not forbid the parties from entering into a splitting contract in which the head office/mother company is paid directly in another currency and the branch or the subsidiary is paid in NKz.

Visa requirement

  • All foreign workers performing duties in Angola shall obtain visas after justification is made for their stay. If the workers are hired by an Angolan company or allocated to a permanent establishment of a foreign company, they should also obtain work permits.
Last Updated on Tuesday 15th December 2009

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