Includes steps involved in establishing a local office.

Working with a well vetted local distributor or representative can ease entrance into the complex Angolan market. Establishing a formal presence through a direct representative office or a direct investment is complex. The World Bank Ease of Doing Business Ranking (2018) places Angola as one of the most difficult countries for conducting business with a ranking of 175 among 190 countries assessed.  In the “Starting a Business” category Angola ranks 135 among the countries analyzed, moving up nine places from the previous year, but still remaining in the bottom 30th percentile.   The average time required to start a business in Angola is 36 days, compared to 24 days on average for the sub-Saharan Africa region, but a great improvement from the 66 days required just three years ago.   The bulk of this time relates to securing a commercial operations permit from the Ministry of Commerce, which takes 30 days on average.  More information can be found on the World Bank Doing Business website.

Angolan law restricts ownership to the Angolan government with respect to activities related to defense, internal public order and state security, Central Bank and national currency related matters, seaports, airports, and national telecommunications network infrastructure.  Majority Angolan government ownership is required for local telecommunications infrastructure and mineral exploration activities.

Legal options for establishing a direct presence in Angola include:
Representative Office: A representative office oversees the interests of the foreign firm it represents, following up on and providing assistance to that firm’s business operations in Angola.  A representative office has no independent legal authority to do business in its own name and is limited to a maximum of 6 employees.

Branch Office: Branch offices are the most common form of representation for foreign firms in Angola, because they enable foreign investors to do business in Angola on the same terms and under the same conditions as firms legally established in Angola.  A branch office lacks an independent legal identity, although it is considered a legal person and can go to court or be the target of legal action under certain circumstances.

Incorporation under Angolan Law: Under the jurisdiction of Law Nº 1/04, Diário da República Nº 13, foreign investors in Angola may choose from among five types of corporate or business entities established by law: Corporations, Limited partnerships, Limited co-partnerships, General partnerships, Limited co-partnerships by shares. In most cases, international investors can incorporate as a sole ownership, but some areas such as minerals extraction operations and services require Angolan government and/or private partners.

The Angolan Government determines eligible incentives including repatriation, tax deductions, and exemption from certain taxes and duties for investors on a case-by-case review of the investment proposal for those investing in the special economic zones defined in the new law. No minimum capital is required to qualify for these incentives.  Interested investors may apply for these incentives through the Angolan Trade and Investment Agency, AIPEX.

Foreign companies are restricted from operating directly in petroleum, diamond and financial sectors.  Angolan owned companies subcontract out business in these industries to international companies.  In the petroleum sector, international companies must enter into an association with the National Concessionaire, the National Petroleum, Gas and Biofuel Agency, (ANPG).  For petroleum service and equipment provider companies, basic activities are restricted to Angolan companies, as per 2003 Executive Order 127/03 (“Exclusivity Regime”).  For more complex work, a partnership (either incorporated or unincorporated) with an Angolan company is required for international companies to be able to provide goods and services (“Semi-Competition Regime”).  Only in the case of the most complex work are international companies able to provide services directly to the petroleum industry in Angola (“Competition Regime”).  Regardless of the complexity of the work, local companies majority owned by Angolans always have a right of first refusal provided their prices are less than or equal to 10 percent of that of foreign competitors.  Additional details on operating in the petroleum industry in Angola are outlined in the section: “Leading Sectors for U.S. Exports – Oil and Gas Equipment”. 
 

Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.