Private Investment Law (Summarize)

Law No. 20/11, May 20, Regulating Private Investment in Angola.

Under the terms of the Act, the investment can be internal or external. The foreign investment can be carried out by a singular or collective persons, resident or non-resident in Angola, regardless of their nationality, since these persons use in the national territory, capital, technologies and know-how, equipment and other goods, with right to transfer profits and dividends abroad.

WHAT IS THE COST TO INVEST IN ANGOLA

USD 1,000,000 (one million US dollars)

APPROVED BY

Up to 10,000,000 (ten million US dollars)-ANIP

Over 10,000,000 (ten million US dollars) – Decision of the President of the Republic (cabinet council)

PRIORITY PROJECTS
  • Enhance the capacity of the national productivity;
  • Job Creation;
  • Increase the country’s exports;
  • Reduce regional disparities.
HOW CAN IT BE ACHIEVED
FOREIGN FUNDS
  • Transfer of funds from the exterior;
  • Utilization of funds in foreign currency in a bank domiciled in Angola by non-residents;
  • Reinvestment of funds generated by operations of foreign investment;
  • Importation of machinery and equipment;
  • The Merger of technology and know-how from abroad.
DOMESTIC FUNDS
  • Allocation of funds domiciled in Angola;
  • Allocation of machinery and equipment located in Angola;
  • Merger of technology and know-how in Angola.
DECISION CRITERIA
  • Investment amount;
  • Complexity;
  • Period of investment concession;
  • Reinvestment in promoting economic growth;
  • Development of the most poorest regions;
  • Increase the capacity of domestic production;
  • Creation of partnerships between foreign investors and Angola;
  • Creation of skilled jobs for the local workforce.
INFRASTRUCTURE REHABILITATION
REQUIREMENTS
  • Legal status, fiscal and social security regularized;
  • Nonexistent debt with the financial system;
  • Accounting records up-to-date and certified by an external auditor.
INVESTOR RIGHTS
  • Equal treatment as a national investor;
  • Repatriation of capital;
  • Monetary restitution in event of expropriation;
  • Transfer of salary abroad to non-resident workers.
DUTIES BEFORE THE GOVERNMENT
  • Fulfillment of approved project;
  • Promote job creation and formation of the Angolan Workforce;
  • No discrimination against national workers or expatriates;
  • Annual Rendering of information to ANIP.
STEPS OF THE PROCESS
  • Presentation of proposal to ANIP;
  • Acceptance of Proposal;
  • Presentation and negotiation of contract by the CNFI( Commissão de Negócios de Facilidades e Incentivos)- 30 days;
  • Registry with the Ministry of Finance- 10 days;
  • Authorization of foreign capital transaction-5 days;
  • Final decision;
  • Signature of the contract with ANIP;
  • Registry and emission of certificate of registration of private investment-15 days;
  • Authorization of foreign capital transaction by the BNA-15 days;
  • Finalization of Process-Total of 90 days.
INCENTIVES

ZONE A- (Luanda, principal municipalities of Benguela, Cabinda, Huila and Malange);

ZONE B- (Remaining municipalities of Benguela, Cabinda, Huila, Bengo, Cuanza Norte, Cuanza-Sul, Malange, Namibe and Uíge);

ZONE C- (Bié, Cunene, Huambo, C. Cubango, Lunda-Norte, Lunda-Sul, Moxico, and Zaire).

INDUSTRIAL TAXATION

ZONE A- Exemption or reduction of 1 to 5 years

ZONE B- Exemption or reduction of 1 to 8 years

ZONE C- Exemption or reduction of 1 to 10 years

Note: Exemption or reduction is only starting from the elaboration of at least 90% of the workforce and the reduction rate cannot exceed 50%

REPATRIATION OF DIVIDENDS

ZONE A-Investments less than 10 million-3 years

Investments between 10 and 50 million- 2 years

ZONE B- Investments less than 5 million-2 years

Other cases there are no limitations.

The President of the Republic can in any case determine to suspend dividend transfers to the exterior when the amount is susceptible to serious perturbations of payments.

SISA TAXATION

Maximum limit of exemption

ZONE A- Investments above 50 million or that generate 500 or more domestic jobs
ZONE B- Investments above 20 million or that generate 500 or more domestic jobs

In any zone as long as two or more of the requirements are fulfilled

  • Projects are important for the Angolan Economy;
  • Contribute to innovation;
  • Contribute to Technology and investment;
  • Generate annual exports above 50 million.

Note: Exemption or reduction in the acquision of land and real estate affect the project.

TAXATION OF CAPITAL

ZONE A- Exemption or reduction up to 3 years

ZONE B- Exemption or reduction up to 6 years

ZONE C- Exemption or reduction up to 9 years.