As you already should know, Angola is becoming one of the most exciting territories for business in the whole African continent. The reasons behind such a trend are varied but simple, as both its citizens and political representatives have worked endlessly for the construction of a country that just calls for international investment.

Our Privatus Maximus Freedom Rating for Angola showed us how this country is one of the most thriving ones in Africa, due, among other things, to its uplifting political stability and its major economic advances in several business sectors. Moreover, the efforts being deployed by international financial organizations to provide Angola with all the necessary funding for it to reach its full potential have been remarkable.

That being said, it’s time for you to know which types of business you could start in Angola, starting with the more common one: the limited liability company (LDA)

Angolan Limited Liability Company (LDA)

This type of company is the most common one for foreigners to start when wanting to invest in Malta, as the overall legislative status promotes its creation. As will all countries, you can start either a Private Limited Company or a Public Limited Company, each of which will provide the investor with different kinds of benefits.

Private Limited Company

These companies, also called SQ (standing for Sociedades por Quotas de Responsabilidade Limitada), are commonly used by those investors with small to medium amounts of liquid capital, and it properly serves all the traditional intentions for everyone interested in the foundation of international corporations.

Capital Requirements

Foreign investors must deliver a minimum amount of capital for the foundation of an LDA, which in the case of Angola only adds up to $1,000. Shareholders will be able to defer up to 50% of the initial capital payment, only if such minimum is paid up before the official date of the company’s creation.

The division of the capital among the shareholders is called “quotas”, and the value of each one of these is subjected to the interests of the founders themselves. However, each quota must reach at least $100, which leads to each shareholder having a quota equivalent to the contributed capital.

Each LDA must present at least two official shareholders for the company to be eligible according to the current legislation. However, there are cases in which a company could present a single shareholder, specifics that can be addressed with our team of experts in the field.

The same principle applies to the management of the company, as the number of managers just has to be one or more. These managerial positions must be filled by natural persons that will ultimately have the full legal capacity within the company, and it’s not mandatory for them to possess capital quotas.

On the other hand, audits and accounting procedures are mandatory for the company to comply with current legislative standards. For that reason, a chartered accountant must be presented in the directory of the company especially when certain capital thresholds are reached.

Public Limited Company

These companies, also called Sociedade Anónima (SA), are generally the ideal financial structure for large investments. Unlike the aforementioned companies, the transfer of shares is perfectly possible among the founders and participants of the company, which demonstrates its greater flexibility when it comes to internal operations.

Capital Requirements

As said before, there is a larger amount of capital needed for the foundation of Public Limited Companies, adding up to the kwanza equivalent of $20,000. Of this amount, at least a third part must be paid the day in which the corporation becomes public.

According to current legislation, these structures must have at least 5 different shareholders (either natural or corporate entities), unless the company is eligible for a single-shareholder constitution. In cases where the majority of the capital is held by either a State-owned previously constituted entity or by the State itself, there must be at least two different shareholders.

Concerning shares, each one should be equal to at least $5 and have the same value, as will all public companies throughout the world. As mentioned before, the shares are perfectly transferable. The specific transfer mechanism to deploy will be based on the type of share to be transferred, either bearer shares or nominative ones.

Managerial Conditions

Three specific and mandatory governing bodies must be constituted when initiating a Public Limited Company in Angola: the deliberative body, which is composed of all of the company’s members to be gathered during general meetings, the management body, and the supervisory board.

The executive board of directors, aka the management body, must have an odd number of executives to be determined according to the company’s foundational structure. In relation to the supervisory board, it must be composed of legal auditors (at least three or five).

The appointment of all the members of the mentioned bodies should be in compliance with shareholder’s agreed resolutions to be discussed in the general meetings of the company. As long as all the legislative conditions are met, the members could, for example, address a single managing director instead of the typical two or three.

Moreover, if the members want the supervision of the company’s operations to fall under the jurisdiction of a statutory auditor, it could be settled during the meetings with no regulatory restrictions whatsoever. However, annual audits of the company’s performance are mandatory for all SAs in Angola.

Subsidiary Companies

Any international corporation has the possibility to extend its operations in Angola, with no need to officially incorporate the said company into Angola. This type of company is one of the most popular when it comes to foreign investments, as it allows each one of these corporations to carry out their regular operations in a fresh and thriving market as the Angolan.

Branch offices are regarded as legal entities attached to the original company and are therefore called “non-autonomous” structures, as they are legal structures that couldn’t function by themselves. The original company becomes responsible for the operations of the subsidiary, as well as all legal and financial acts emanated from it.

Subsidiary companies aren’t forced to present executive bodies, as the management can be “outsourced” to local firms appointed by the governing body of the parent corporation. The process for its creation is simple:

1.Acquiring a naming certificate identical to the parent company.

2.Presenting the following documents to financial authorities:

a.Deposit form

b.Power-of-attorney to the representative of the branch

c.Identification of the legal representation

d.Deed of incorporation

e.Minutes adopting the parent’s foundational resolutions

f.Private Investment Registration Certificate

g.Import and Export licenses according to the company’s business sector

3.Statistical and Tax Registration

4.Commercial Registration and notarial certificate to be published in the local Gazette.

Representative Offices

These financial structures are thought to accompany and assist any parent company already settled in Angola. Technically, it isn’t allowed to conduct any kind of revenue-oriented activities within the territory, as it is a dependent legal structure under current legislation standards.

This kind of entity is recommended for those Private Limited Companies that started with medium-to-low capital investments, and those investors looking for larger participation within any Angolan business sector should consider other options.

These offices aren’t allowed to hire more than 6 members and at least 3 of them must be locals. Its certification process must be done through the National Bank of Angola and the conditions for its incorporation are basically the same as those of the Subsidiary Companies described above.

Joint Ventures and Privatus Maximus

Current Angolan legislation promotes international investment regardless of its focus and business sector. If you are looking to incorporate your company, either an already existing one or a brand new corporation, Angolan law allows multidimensional partnerships to facilitate the process.

Consortium agreements, for example, are one of the most popular structures. When introducing yourself to the natural resources sector through these kinds of entities, you’ll be one step away from constructing a financial instrument with great possibilities for success.

At Privatus Maximus, we know such a possibility exists thanks to our partners that understand the Angolan market more than anyone else in the region.

The multidimensional focus is to create an enhanced investment environment for clients to plan their strategic operations in countries often discarded due to ignorance or prejudice. Luckily for you, all the information on this thriving nation is at hand, and you are ready to begin a new chapter of financial success if you trust our services.

If you have been reading our reports about this African jewel, then you are probably urged for more information regarding its whole financial system. Angola, for those who don’t know, is qualified amongst the greatest thriving nations in the continent by the World Bank, as over 93% of its fertile territory for all types of economic production is yet to be discovered. Knowing that, how can anybody dismiss this country as an outstanding opportunity?

Well, if you’ve already made up your mind about this thriving nation, you must understand all the fundamentals of its banking system. While it’s important to highlight that Angola doesn’t present itself as a tax haven, there are several elements within its banking system that make it attractive to foreign investors.

Current Banking Situation in Angola

Let’s begin by painting a picture of the current situation for non-residents when it comes to requesting a brand new Angolan bank account. According to Order #02/2017 published by the Angolan National Bank, there is a whole new legislation that regulates the operative framework for foreigners when depositing their capital in the country.

The aforementioned legislation, which is attached to the Angolan Exchange Law provisions, makes it possible for any non-resident, either natural or legal figures, to open and manage local bank accounts in the country. These accounts, thought of as exchange instruments, can operate either in the national Angolan currency or in any foreign currency available in its system, of which the most popular ones are eligible for account holders.

This legislation applies to all Banking Financial Institutions registered in Angola. Regarding the most utilized ones by foreigners, whether by its operative practicality or accessibility, there is a list of such.

These banks are known for owning over 80% of the total amount of banking assets currently present in Angola, either in the form of deposits, loans or debts. Also, these institutions are considered by analysts as the more fruitful to do business with, as considering their current compound growth rates, there are just no better options in the country.

However, we always advise our clients to contact each institution and inquire about the current status of their financial benefits, as there are many options for foreigners to get great deals considering the national crusade led by the government at promoting external capital entering the country.

Of course, the utilization of a local bank account is not precisely urgent when it comes to managing your investment in Angola. You could perfectly transfer the revenues of your new company or corporation into a foreign account with little to no trouble, leaving the local account for other types of transactions.

In that sense, is important now to specify how a non-resident is described by the current Angolan financial legislation:

• Individuals with habitual residency abroad,
• Foreign-based entities,
• Residents in Angola that leave the country for more than one year and
• Foreign-based affiliates or branches of Angolan-based companies.

Requirements for opening an Angolan Bank Account

Angola’s banking system is no different than any other country in terms of the requirements needed for opening an account. If you are not in the midst of embarking on a high-profile investment in Angola, which ultimately will lead to a due diligence process by the nation’s financial authorities, the requirements for a bank account are quite simple:

• Passport
• Valid Work Permit
• Employment Contract
• Residence Card or Visa Permit

Legislative conditions when managing Funds in Angolan Banks

According to the Angolan Exchange Law, which regulates any financial contract between a banking institution and a particular client, either legal or natural, or foreign or local, there are several elements attached to the management of capital.

If a non-resident decides to manage its funds through Angola’s local currency, such currency could be obtained and deposited by one or more of the following methods:

For Credit Bank Accounts:

1. Through the conversion of foreign currency into kwanza.
2. Through the acquisition of revenues from any particular business located in Angolan territory.
3. Through any form of financial compensation originated from investments made in any of the locally registered Banking Institutions.

For Debit Bank Accounts:

1. Local money wiring
2. Bank payments
3. Utilization of local debit cards
4. Charges attached to the maintenance of the account

If a non-resident decides to manage its funds through foreign currency, such capital could be obtained and deposited by one or more of the following methods:

Credit Bank Accounts:

1. Through the wiring of international funds into the country.
2. Through any form of financial compensation originated from investments made in any of the locally registered Banking Institutions.

Debit Bank Accounts:

1. Through the exchange of national currency between residents
2. Through financial orders issued under international transfers
3. Through interbank wiring or transfers made through entities based in Angola.

Credit, Debit, and Checks System

As a general warning, it must be said that Angola is lagging behind in terms of its acceptance of foreign currency within its consumer market. That means that if you are thinking of using your credit or debit card in the grocery store by your new house or hotel, there is a high probability of such an intention to fail.

As for Travelers Checks, there is also a low level of accessibility for them in Angola. It’s advisable to not rely on the said instrument for purchasing in the country, although there is a trend in Luanda, the capital, that seems to be expanding the number of businesses accepting both checks and international credit and debit cards.

All of the major banks listed above have ATMs available for both local and foreign clients of their institutions. However, as you might assume by now, most of them do not accept international cards for the retrieval of funds.

Therefore, being practical is the best advice we can give our clients when thinking of investing in Angola. Converting your capital into Angolan currency (kwanza) is more than often the smartest thing to do, at least the sufficient amount to avoid any logistical issue it might present when in the country.

You could transfer your money into Angolan banks through Western Union and other wiring platforms, always being aware of the common charges attached to such transfers.

At Privatus Maximus, we know first-handedly how Angola represents a tremendous investment opportunity for foreign investors throughout the world. Why? Thanks to our partners, one of the greatest financial consulting agencies currently working in Africa and offering capital holders fantastic opportunities.

Our team of professionals has the single largest investment portfolio in the region, focusing on presenting clients across the globe with impressive business options regardless of the business sector at hand. Among such options, we can highlight:

• Consulting partnerships
• Transaction services & funds
• Infrastructure projects
• Commodity trading
• Energy-related business
• Lobbying & Conferences

At Privatus Maximus, together with our partners, we are creating an enhanced investment environment for clients to plan their strategic operations in countries often discarded due to ignorance or prejudice.

Angola is a democracy with an executive presidency. The government is composed of the president of the republic, the national assembly, and the judiciary system.

Ministry of Finance: The mission of this Ministry is to promote the correct use of public resources for sustained development.

General Tax Administration: Its mission is to collect revenue for the state and ensure customs control for the benefit of the nation.

Government Asset and Equity Management Institute: The main responsibility is to regulate the Public Enterprise Sector and the execution of the privatization policy. Also oversees financial state participation.

National Financial Stability Board: The mission of this organism is to ease the articulation between the several bodies that may implement mechanisms for the promotion of financial stability in the country.

Service of Information and Communication Technologies and Finance: The main mission is to plan, modify and develop the financial systems and technological infrastructure under the Ministry of Finance and its subordinate bodies.

Capital Markets Commission: Its main mission is to regulate and protect the securities and derivatives markets. In addition, guarantee economic development in the country.

Ministry of Commerce and Industry: The mission of the Angolan Ministry of Commerce is to regulate the development of import and export policies.

Ministry of External Relations: The mission of the Ministry of External Relations is to regulate the foreign relations of the country.

Ministry of Economy and Planning: The mission of the Ministry of Economy and Planning is to formulate proposals and regulate the implementation of policies for the development of the economy within the territory.

National Bank of Angola: The mission of the Bank is to ensure a solid financial system and protect price stability.

National Private Investment Agency (ANIP): The agency has the responsibility to implement, regulate and supervise the policy related to private investment.

Agency of Private Investment and Exports Promotion (AIPEX): AIPEX has the mission to promote exports and the attraction of foreign investment to the country.

For capital owners throughout the world, deciding the next place for allocating new investments is always both a challenging and an exciting experience. And when searching for new markets in new landscapes, there is a region often forgotten by traditionalists that still offers investors with outstanding margins of revenue: Africa, most specifically, the ever-thriving Angola.

Amongst the key elements to look at when researching any possible opportunity, one thing that immediately comes to mind is that of a stable regulatory legal framework that is able to guarantee the security of all money entering the country. On top of that, having a robust group of judicial and financial institutions ready to enforce contracts, agreements and payments, is also a key characteristic to look for.

Whether your intention in Angola has to do with the metal industry, the food sector, or just local investments, you can rest assured that this country has developed a well-formed set of institutions that will be activated permanently for the safeguard of both public and private capital.

Angola’s Current Situation: a Rising Nation in a Post-COVID World

Angola’s economic performance during the last year and a half didn’t behave abnormally when compared to most countries. Its national debt rose, its productivity declined and oil, one of its most exported goods, also presented historic lows.

The political system has responded to these trends with a set of macroeconomic adjustments that include a more favorable foreign exchange rate, a conservative monetary approach and fiscal solidification.

Meanwhile, the country’s legal system has also been strengthened in the search for international capital to feel safe when trusting Angola for new opportunities. This includes a large-scale privatization initiative of many of the state assets (Oil, Mining and Telecommunications, for the most part) through an attempt to construct an Angolan capital market by a stock acquisition methodology.

In the midst of this governmental aim to create better conditions for investment, the executive has also stated its intention to solidify the country’s infrastructure through large public-private partnerships. These financial units are also becoming one of the most popular methods to participate in the Angolan investment wave.

The requalification of a major port, the rebuilding of a large oil refinery, to name a few, are some of the projects being financed by several capital owners, and that proves the viability of such a method. Even more, the Angolan national oil company is currently searching for a private partner to help finance the development of an oil storage unit in the north of Luanda.

Key Considerations when Investing in Angola

Every expert currently working in Angola will tell any investor the same thing: the most important thing to succeed in this market is proper financial planning topped with thorough knowledge of the country’s legal framework. And at Privatus Maximus, we surely agree with them!

One limiting condition that needs to be taken into account is that of regulatory measures related to foreign currency access. In order the retrieve income generated within Angolan territory, the investor is asked to own a private investment registered at the AIPEX, which is the local agency in charge of foreign investment regulations.

This issue, however, has a silver lining, and that is the fact that all the capital allocated in Angola will be protected by the Private Investment Law, which grants the possibility for the investor to recover the income once said private project is terminated.

There are high expectations regarding the government’s continuity in its pursuit of a more investor-friendly environment within Angola, which accounts for the possibility to implement a contractual legal regime that would allow capital owners to include themselves in large projects that are exempted from certain types of tax. Moreover, the country’s financial authorities have already announced their desire to include Angola in bilateral agreements with important markets like the Japanese and the Chinese.

The inclusion of Angola in these bilateral investment treaties will grant investors with unseen benefits and protection mechanisms, as for example, clauses for equal treatment and forbiddance of expropriation will be on the table.

All of these measures are coherent with the executives’ crusade of making Angola one of the greatest financial markets in Africa, aiming to transition the country’s economy from a state-guarded one to a more market-oriented approach.

Opportunities in the Angolan Property Sector

The outstanding performance of the Angolan property sector was amongst the most remarkable ones in the whole African continent, as it saw impressive growth rates for at least a decade and a half. That was, at least, until the COVID-19 pandemic entered the room.

However, the incredible development of this particular field of Angolan economy marks an important element when forecasting the country’s future in this regard. It is safe to say that once the pandemic ends, local properties will recover and outperform the current market value.

According to Francisco da Cruz, executive director of the U.S.-Angola Chamber of Commerce in Angola, pursuing a loan to finance a property in Angola is as easy as in most Western countries. Of course, after undergoing due diligence processes, investors can finance these investments locally with little to low trouble.

Furthermore, one needs to reach out to the Angola National Private Investment Agency, establish the partnership acquiring the assets (either a multi-owner partnership, an association with a local company, among other options) and begin operating the market. As a recommendation, we always say that having a local partner will always facilitate all bureaucracy-related limitations to these kinds of governmental environments.

It is important to highlight how Angola, especially Luanda, is known for being one of the most expensive African cities. This fame is to do the high demand of properties by oil companies when settling their operations in the country and their ability to offer big money for these kinds of assets. This means that even when the Angolan property market might appear to be an unexciting field, its recovery is virtually done after local industry gets reactivated fully.

At Privatus Maximus, we know first-handedly how Angola represents a tremendous investment opportunity for foreign investors throughout the world. Why? Thanks to our partners, one of the greatest financial consulting agencies currently working in Africa and offering capital holders fantastic opportunities.

Our team of professionals has the single largest investment portfolio in the region, focusing on presenting clients across the globe with impressive business options regardless of the business sector at hand. Among such options, we can highlight:

• Consulting partnerships
• Transaction services & funds
• Infrastructure projects
• Commodity trading
• Energy-related business
• Lobbying & Conferences

At Privatus Maximus, together with our partners, we are creating an enhanced investment environment for clients to plan their strategic operations in countries often discarded due to ignorance or prejudice.

If there is one thing international investors can agree upon regarding how to calculate the possibilities for success is this: having the ability to find investment opportunities neglected by majorities is way more important than elements such as capital and taxation benefits.

The chances for a particular investment to pay dividends are closely related to its inherent ability to provide benefits regardless of the nature of the business, a fact that becomes more relevant if such an opportunity is bluntly overlooked by everybody else.

The aforementioned principles can (and should) be applied to the case of Angola, an African thriving nation with a tremendous potential that is being left out of most traditional consulting portfolios. According to the World Investment Report for 2020, this nation’s Foreign Direct Investments improved for three consecutive years, only finding a slight decrease during the COVID-19 pandemic catastrophe.

When trying to understand the reasons behind this fresh interest in Angola, the question that arises is why investors didn’t come earlier. A country that has the third-largest Sub-Saharan market on top of being an absolutely rich nation in a wide variety of natural resources ranging from hydrocarbons, mineral, and agricultural goods will always be appealing for those willing to create and expand their wealth.

Until 2018, and according to the World Bank, up to 93% of the country’s exploitable land lacks proper investment mechanisms. Luckily, the national government quickly detected the problem: its former legislative structure.

That’s why in 2018 a brand new private investment law was deployed, looking for fresh ways to attract Foreign Direct Investments by reducing the minimum capital requirement, lowering requirements for the repatriation of capital, and eliminating much of the unattractive bureaucracy of the former legislation (in which, for example, local investors had to have a 35% stake in all new corporations).

Furthermore, both competition law and privatization laws were approved in late 2019, looking to promote even more strongly the way in which foreign capital entered the country. Under the creation of the National Agency for Investment Promotion and Export, the objective of succeeding in the stimulation of internal productivity while diversifying the economy and enlarging the private sector’s share within the country seems to be right on track.

If we consider that there is an enormous potential found in basically every non-oil business sector, and added to the fact of having one of the largest and youngest labor forces in Africa, the elements required to succeed seem to be aligned. Let’s dive in on the specifics of investing in Angola, how to manage your funds and which considerations are applicable for any Foreign Direct Investment.

Investing in Angola: What You Should Take into Account

The Private Investment Act is the legal instrument that regulates any Foreign Direct Investment entering Angola, and demonstrates the intention of the local government of facilitating the entrance of all kinds of external capital to the country. Even when it doesn’t explicitly cover the economic rights in specific sectors of the economy, like oil and diamonds, it does present foreigners with a wide array of financial options in all the other business markets.

The coordination of all investment funds’ procedures is led by the National Private Investment Agency, an organization that has widely expressed its desire to promote, encourage and facilitate investments in Angola during the past decade. Its representatives will be in charge of approving any potential investment as well as mediating any negotiation between them and the Angolan government.

As said before, the minimum amount of capital needed to invest in Angola was lowered in 2018, and now, when a non-resident or international financial entity is willing to import at least $500,000, it will be eligible to create a new corporation in the country. In other cases, and depending on the desired business sector, the minimum amount of capital must reach $1 million, after which the National Private Investment Agency will be responsible for guiding the group of investors into the best methodologies to introduce such capital in Angola.

There are two types of private investments under Angolan law: domestic or foreign.

Domestic Private Investments

The individuals are responsible for the allocation of their own funds. Includes the creation of brand new corporations, the expansion of already existing ones, or the acquisition of all or part of shares of companies. The capital allocation must be done in Angola banks, even when part of the capital is the result of international loans.

Foreign Private Investments

The individuals are responsible for the transfer of funds from other countries into Angola. Includes the constitution of new companies or the partial or complete acquisition of already existing ones. Capital must be allocated within Angolan banks regardless of its origin Individuals are responsible for the allocation of machinery and accessories required as well as for the incorporation of new technology and its correspondent pedagogic procedures for internal workers. It’s important to highlight that any investment that reaches the $10 million must be approved by the Board of Directors of the National Private Investment agency while taking into consideration the posture of the current Minister of Finances. This specification is in place as elements such as tax incentives and other administrative benefits must be discussed by the country’s highest authorities on the matter.

For those investments exceeding the $50 cipher, the President of the country could compose an ad-hoc group (often called a Facilities and Incentives Negotiation Committee) for the proper negotiation of all administrative details attached to such a large amount of capital.

Once the investment plan is approved by authorities, the issuing of a registration certificate is in order. This registration includes:

Current identification document of the investor Financial methodology utilized The exact amount of capital being used Deadline for the constitution of the project Specific location

Mixed Investment Funds

Under the current Angolan Law, the constitution of a Public-Private partnership is in order. Aiming a full decentralization of how some economic sectors are being managed, the local government believes this instrumental instrument can appeal to foreign investors with a reduced amount of capital that still want to compete within the Angolan market.

The aforementioned legislation states that public partners that could be included in these instruments are the State of Angola, Local governmental institutions, the Autonomous Funds and Services (either national or local) and any public entity regulated and registered within Angola.

According to recent investigations, the business sectors that have become more appealing under this type of financial figure are highway concessions, the energy sector, infrastructure projects, and agricultural investments.

Real-Estate Funds

After the Presidential Decree of July 27 was enacted, many of the legislative contradictions within the Angolan Real-Estate market and its investment conditions were settled and clarified. This update allowed properties purchased by the State to be sold to private entities for their development while guaranteeing property rights formerly in jeopardy.

Moreover, a brand new Real-Estate Investment Funds legislative instrument is close to being deployed in Angola, and it aims at being even friendlier for all investors looking to create real-estate investment funds. All funds fueled by international investors are often managed by fund companies within Angola, although foreign consulting is in order.

At Privatus Maximus, we know first-handedly how Angola represents a tremendous investment opportunity for foreign investors throughout the world. Why? Thanks to our partners, one of the greatest financial consulting agencies currently working in Africa and offering capital holders fantastic opportunities.

Our team of professionals has the single largest investment portfolio in the region, focusing on presenting clients across the globe with impressive business options regardless of the business sector at hand. Among such options, we can highlight:

Consulting partnerships Transaction services & funds Infrastructure projects Commodity trading Energy-related business Lobbying & Conferences Privatus Maximus, together with our partners, is creating an enhanced investment environment for clients to plan their strategic operations in countries often discarded due to ignorance or prejudice.