AngolaBusiness Opportunities in Angola
One of the best ways of expanding a business and taking it to a global platform is by starting a business overseas. As an attractive location for entrepreneurs, Angola is a great place to start. It stands in the sixth position in terms of the largest economy in Africa. Having a population of nearly 33 million with a GDP of USD 74 billion, Angola is a perfect location to start a business.
During 2022, the country saw a 2.9% economic growth. It indicates that setting up a company in Angola can also amp up your business. Angola’s large market and population make it easy for businesses and entrepreneurs to target potential customers. Besides, the Angolan government strongly invests in startups to expand its economy.
The cherry on the cake is the government schemes and policies for enterprises, irrespective of their sizes. However, to start a business in Angola, it is necessary to have in-depth knowledge of the rules and regulations of the country. Here is a detailed guide on company incorporation in Angola.
Benefits of Starting a Business in Angola
The advantages of doing business in Angola are listed below:
Hierarchical system of business operations
The business operations in Angola work in a hierarchical system, meaning the senior-most people are the organization’s decision-makers. It creates a practical path for the growth of the business. Also, people are responsible enough to carry on their tasks without interfering with each other’s duties.
Easy communication
Although the locals of Angola communicate in Portuguese, the working professionals of the country also use English for better communication and understanding. Therefore, the absence of a language barrier makes it easy for entrepreneurs to start a business in Angola, and smoothly run it.
Government assistance
The government of Angola provides grants to aid startups and start a business in Angola. Besides, the UK Trade and Investment Department assists investors and entrepreneurs in accomplishing their task of company registration in Angola.
Tax benefits
Businesses in Angola will have to pay a tax only on the profit generated in Angola. For organizations working outside Angola, an industrial tax is payable. The Angola Domestic Legislation takes care of taxation in Angola.
Requirements for Starting A Business in Angola
The requirements to do business in Angola are as follows.
Visa and work permit
One of the basic Angola company incorporation requirements is the work visa. All foreign entrepreneurs and investors should obtain a work visa to start a business in Angola. According to the work visas, all foreign nationals can stay in Angola for twelve months. However, you can extend the period of stay twice.
Foreigners can get either the type C or D visa, depending on the nature of the business. Before the visa, get the work permit from the Social Security, Ministry of Public Administration and Employment.
Company name
Business name registration in Angola is a must to make your business valid. Ensure to choose a unique company name. Also, the business or company name should not contain anything offensive or hurt religious sentiments.
Company address
For Angola new company incorporation, you must choose a business address located in Angola. Along with the company name, get the business address registered.
Business capital
The minimum capital share differs and largely depends on the type of business you set up. For setting up a public limited liability company, you need a minimum business capital of USD 20,000. On the contrary, entrepreneurs required USD 100 as a minimum business capital for a private limited liability company.
Taxation
All businesses must pay a corporate tax to set up an offshore company in Angola. Currently, the corporate income tax levied on businesses in Angola is 25%. This tax is payable on the profits earned by a company in Angola.
However, the tax system in Angola has two regimes:
- The general regime: The general tax regime is functional for businesses with yearly revenue of more than USD 250,000.
- The simplified regime: The simplified tax regime applies to businesses with yearly revenue of less than USD 250,000.
Director and company secretary
The number of directors and company secretaries to start a company in Angola depends on the business entity you establish. A public limited liability company must have at least two shareholders and one director. On the other hand, you need five shareholders and three directors to set up a public limited liability company.
Types of Business Structures in Angola
A vital step of the company registration process in Angola is to choose the type of business entity. Given below are the different types of business structures workable in Angola:
Private limited liability company
- Must have two shareholders
- Shareholders can transfer shares
- Shareholders are held liable for share capital
- Must form a supervisory body
- Must have at least one director
- Must have a minimum capital of USD 100
- Shareholders determine profit distribution
Public limited liability company
- Suitable for large enterprises
- Must have at least five shareholders and three directors
- Must have a minimum share capital of USD 20,000
- Must form a supervisory board
- 50% annual distribution of profits
Branch office
- May or may not conduct revenue-generating or commercial activities
- Not considered a legal entity
Company Registration Process
The steps to incorporate a company in Angola are as follows:
Step 1: Obtaining the necessary documents
Now that you have decided on the type of business entity, gathering all the documents required for Angola business incorporation is necessary.
Step 2: Paying a company registration fee
Considering the type of business you choose, pay the company registration fee to the Register of Trade. Here, you will get the article of association and company memorandum.
Step 3: Obtaining the tax ID of the company
The Register of Trade will provide a tax identification number for the effective registration of the company.
Step 4: Notarizing the company’s documents
The public notary will review all the documents and send them to the Ministry of Commerce for approval.
Step 5: Registering company
Once the Ministry of Commerce receives the company documents, it will approve and provide the registration certificate.
Step 6: Opening bank account
With the help of the tax identification number, entrepreneurs have to open a corporate bank account for professional transactions, once they start a business in Angola.
How Much Does It Cost to Incorporate a Company in Angola?
The cost of incorporating a company in Angola depends on the type of business entity you set up. However, the approximate cost of the company incorporation in Angola is USD 22,140 in the first year. The cost gets reduced to USD 9,590 from the second year.
Are Foreigners in Angola on Certain Passes Allowed to Start a Business in Angola?
Yes, foreigners can start a business in Angola only when they have a proper visa and work permit. People setting up a company in Angola concerning the industrial, commercial, or fishing industry need a type D visa. On the other hand, foreign nationals belonging to the construction or petroleum industry should possess a type C visa.
To get the work visa, one must submit specific documents to the Social Security, Ministry of Public Administration and Employment.
- Educational qualification certificates
- Employment contract
- Declaration to abide by the Angolan laws
- Professional certificates
- A curriculum vitae
- Proof of the company’s legal status
Government Assistance for Foreign-owned Businesses
The government provides beneficial grants for starting a business in Angola. The country has a Micro-grant program. This program aims to help entrepreneurs and provide them with monetary aid in business development.
How Multiplier Can Help?
The regulations related to starting a business might vary from one country to another, thus leading to a huge learning curve, every time. However, with Multiplier by your side, you can negate such a requirement. The efficient team of Multiplier takes care of your business needs and helps in its expansion abroad.
Multiplier helps in employing new talents as per your requirements. You get everything from employment contract generation to workforce management and insurance benefits under one platform. So, contact Multiplier today to set up a new business in Angola.
