DOING BUSINESS IN ANGOLA IN 2023
Since 2003, Healy Consultants Group has assisted our Clients with business registration in Angola. Our services include i) Angola company incorporation ii) gaining foreign investment approval from the National Agency for Private Investment (ANIP) iii) business bank account opening iv) employee recruitment v) visa strategies and vi) office rental solutions.
| Compare different Angola entities | Tax resident LLC | Joint Venture | Free trade zone company | Representative office | Branch office |
|---|---|---|---|---|---|
| Also known as | Sociedades por Quotas de Responsabilidade Limitada | Sociedade em comandita por acções | Special economic zone company | Escritório de representação | Sucursal |
| Best use of company? | All products and services | Professional Services | Global trading | Marketing & research | Specific projects |
| How soon can you invoice Clients\sign sales contracts? | 4 months | 4 months | 4 months | 5 months | 5 months |
| How soon can you hire staff? | 4 months | 4 months | 4 months | 5 months | 5 months |
| How soon can you sign a lease agreement? | 1 week | 1 week | 1 week | 1 week | 1 week |
| How long to supply corporate bank account numbers? | 5 months | 5 months | 5 months | 6 months | 6 months |
| How long to supply company registration \ tax numbers? | 4 months | 4 months | 4 months | 5 months | 5 months |
| Corporate tax rate on annual net profits? | 25% | 25% | 0% | None | 25% |
| Limited liability entity? | Yes | Yes | Yes | No | No |
| Government grants available? | Yes | Yes | Yes | No | Yes |
| Government approval required for foreign owners? | Yes | Yes | Yes | Yes | Yes |
| Resident director/partner/manager/ legal representative required? | No | No | No | Yes | Yes |
| Minimum paid up share capital? | None | US$20,000 | US$100,000 | None | US$60,000 |
| Can bid for Government contracts? | Yes | Yes | Yes | No | Yes |
| Corporate bank account location? | National Bank of Angola | BAI | BCA | Banco Sol | BFA |
| Can secure trade finance? | Yes | Yes | Yes | No | Yes |
| VAT payable on sales to local customers? | 10% | 10% | 10% | Cannot trade | 10% |
| Average total business set up engagement costs? | US$78,340 | US$81,340 | US$79,290 | US$79,340 | US$79,340 |
| Average total engagement period? | 5 months | 5 months | 5 months | 6 months | 6 months |
Angola company registration summary
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Advantages of Angola company registration
- Angola is one of the fastest growing countries in the world, averaging 11.1% growth per year over the past decade;
- Angola has abundant natural resources, which fuels their export-based economy. Angola’s reserves of oil, gas and diamonds are some of the largest in the world;
- Companies investing in Luanda-Bengo special economic zone will be entitled to benefits including i) exemption from payment of import duties on raw materials (5 years) and machinery (10 years) and ii) exemption from payment of custom duties on exports from the zone;
- An Angola Limited Liability Company (LLC) requires a minimum of 2 shareholders and can be entirely foreign owned;
- An Angolan LLC requires a minimum share value of only US$1,000.
- Angola is one of the largest producers of oil in Africa, manufacturing approximately 1.53 million barrels of oil per day (as per 2018). Additionally, the country is rich in its diamond reserves, hydroelectric potential, and agricultural land. Therefore, it is a resource-rich country for the investors to conduct their business in.
Disadvantages of Angola company registration
- Angolan companies with any foreign ownership are subject to approval by the National Agency for Private Investment (“ANIP”). The minimum investment amount (per investor) in order to be able to repatriate profits abroad is US$1,000,000. Registering an Angola company is therefore time consuming, requiring an average of over 4.5 months to fully complete incorporation;
- An Angola LLC is liable for a corporate tax rate of 25% and may also register for VAT, which is charged at 14%;
- Angola was negatively ranked as the 154th freest economy in the Heritage Foundation’s 2020 Index of Economic Freedom, a measure of freedom enjoyed in business, trade, monetary, financial, investment and labour markets. High corruption and a lack of protection for property rights were the main reasons behind Angola’s low rank;
- Angola is negatively ranked as the 146th least corrupt country in the world, according to the 2019 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
- Angola is negatively ranked as the 177th easiest country to do business in. The International Finance Corporation study lists difficulties enforcing contracts and registering property as the main barriers to business;
- Opening global corporate bank accounts to assist the company registration process can be complicated, due to the lack of internationally recognized banks in Angola.
- Angola’s economy is highly dependent on its oil production. However, the corporate tax rates for mining and oil industries are as high as 50% (to even 65.75% for some cases) in Angola. This makes doing business in Angola as one of the most expensive business undertakings in the world.
