Angola is located in Southern Africa and has seen ample growth over the years. The annual GDP in the country touched 67 billion US dollars plus in 2021. While the FDI stands at a negative inflow figure of -4,150 US million dollars for 2021, the country’s number of Greenfield Investments stood at 17 in 2020 and 9 in 2021. These investments signify the fresh-from-scratch setting up of foreign companies’ operations in Angola.
Several companies are looking at making sizable investments across Angola because of its skilled workforce and well-versed in English as a business language. The Angolan government has been encouraging foreign investors. It introduced tax reforms, rebates, and incentives for offshore investments. The country leads in the diamond, mining, oil, and agriculture industries. The country also holds 177th rank for Ease of Doing business. This signifies that it is not highly complicated to register a self-employed Angola business.
Opening a business establishment by registering a sole proprietorship in Angola or otherwise is accessible in Angola thanks to the Private Investment Law that governs these companies. Check the process to register a sole proprietorship in Angola below.
Who can be a Sole Proprietor in Angola?
The individual business owner can choose to register a self-employed Angola business. The sole proprietorship model follows more straightforward rules as compared to other categories. A business owner, investor, freelancer, and or residents, as well as non-residents, may register a self-employed Angola business. There are a few things to remember if you plan to register a self-employed Angola business.
- Foreigners are welcome to register a self-employed Angola business; no restrictions apply.
- To open a sole proprietorship in Angola and register the same, the proprietor must register with the Company Registrar and the National Tax Office.
Benefits of Sole Proprietorship in Angola
If you need to register a self-employed Angola business, a few advantages follow-
- A sole proprietor in Angola is not a separate company or legal entity. The individual represents the business and vice versa for a sole proprietorship in Angola.
- No differences exist between a business income and the personal income of any proprietor.
- The sole proprietorship in Angola will not need any paid-up fixed capital or minimum shareholdings.
- Auditing for sole proprietorships is not mandatory, but it is practical to use records for a sole proprietorship in Angola.
- The business ambiance in Angola is such that the government encourages registered foreign businesses through sole proprietorships or otherwise.
- The government provides ample funds and accelerator programs that back these sole proprietors in Angola.
- Even as a foreign investor in Angola, doing business gets easy thanks to pro-investor legislation such as the Private Investment Law and a vast body of tax incentives.
- It makes sense to register a self-employed Angola business because the government has a separate body named the National Agency for Investment Promotion and Export that encourages economic growth and diversification across the private sectors.
Documents Required for Registering Your Business in Angola
Here is a list of documents you will need to register as a sole proprietor or to register a self-employed Angola business.
- Passport copy
- Photographs for identification
- Business permit based on the industry of operation
- Application for sole proprietorship registration duly signed and submitted to the Ministry of Public Administration
- Notarized deed for company incorporation and intent
- The period for company registration varies between a week to two
Other Criteria for Registering a Sole Proprietorship in Angola
To begin work and then engage in hiring as a sole proprietor in Angola, you must ensure the following are in place-
- A bank account with one of the local banks
- Registered tax ID
Post-registration compliances
- Register a self-employed Angola business as a sole proprietorship and then get a specific business license from the Ministry that governs your operational domain.
- Get an approved Alvará Comercial or commercial license after the initial company registration.
Taxation
The main business and personal taxes for a sole proprietorship in Angola are as below-
- Corporate tax: Angola’s Corporate Tax rate is 25%.
- VAT: A 14% VAT applies to goods and services in Angola.
- Personal income tax: Tax is applicable on income at a progressive scale in Angola, as under-
INCOME RANGE in Kz | TAX RATE |
Up to 70,000 | NIL |
70,001 to 100,000 | 3,000 and 10% on excess of 70,000 |
100,001 to 150,000 | 6,000 and 13% on excess of 100,000 |
150,001 to 200,000 | 12,500 and 16% on excess of 150,000 |
200,001 to 300,000 | 31,250 and 18% on excess of 200,000 |
300,001 to 500,000 | 49,250 and 19% on excess of 300,000 |
500,001 to 1,000,000 | 87,250 and 20% on excess of 500,000 |
1,000,001 to 1,500,000 | 187,250 and 21% on excess of 1,000,000 |
1,500,001 to 2,000,000 | 292,250 and 22% on excess of 1,500,000 |
2,000,001 to 2,500,000 | 402,250 and 23% on excess of 2,000,000 |
2,500,001 to 5,000,000 | 517,250 and 24% on excess of 2,500,000 |
5,000,001 to 10,000,000 | 1,117,250 and 24.5% on excess of 5,000,000 |
Above 10,000,001 | 2,342,250 and 25% upon the excess of 10,000,000 |
How to Register a Sole Proprietorship Company in Angola?
As a foreign businessperson, registering a sole proprietor in Angola might sound complicated without the right guide. Here is a look into how to register a sole proprietorship in Angola.
Step 1- Name approval
- The Ministry Of Justice oversees a Commercial Registry. This is available at the One-stop shop.
- Check the registry and search for a name you choose for the sole proprietorship.
- If the name is available, select the same and begin the formalities to register a sole proprietorship in Angola with this name.
- Request for the name issuance certificate.
Step 2- Registration
- Visit the One-stop shop agency and pay for a business certificate with an approved name.
- Visit the bank counter for a One-stop shop and make a fee payment of 29,040 Kz.
- Submit the documents needed as mentioned above, and use the Statues of Association available at the shop.
- Submit the documents to Notary Public.
- The approving authorities will send over four copies of the company approval cert to the Commercial registry, Imprensa National, Tax Office, National Institute of Statistics, and the Social Security Institute.
Step 3- Taxes and banking
- After verification of the documents, apply at the One Stop Shop’s National Tax Office.
- You get a National Identification Number that helps the sole proprietorship in Angola register for VAT.
- Use this tax number to apply for opening a local bank account in Angola.
- Use the account for all sole proprietorship-related transactions.
Conclusion
Multiplier is a dependable global employment solution that aids businesses, old and new, to set up a base abroad. It helps immensely when you register a self-employed Angola business. Multiplier makes adhering to all registration formalities, norms, and compliances a breeze. You may choose to outsource the same to Multiplier and sail through sole proprietorship formation in an instant.
When planning business operations and expansion in Angola, Multiplier brings reliable EOR solutions that make recruitment and operations easier. Businesses need not worry about setting up all the operational nitty-gritty and still enjoy the benefits of a sole proprietorship in Angola.