Astertax: Your Expert Guide to Company Setup in Angola

Business Entities in Angola:

1. Limited Liability Company (LDA): The LDA is commonly used by foreign entrepreneurs in Angola. It requires at least 1 director and 2 shareholders, with a minimum paid-up share capital of US$1,000. Shareholders can defer 50% of the minimum share capital as long as it’s paid in full by the company’s incorporation date.
2. Public Limited Company (SA): For larger businesses, the SA requires a minimum of 5 shareholders and 3 directors. The minimum paid-up share capital is US$20,000, with 30% fully paid before incorporation. Annual audits are mandatory, and a board of auditors with at least three members must be appointed.
3. Branch Office (Sucursal): A branch office setup in Angola requires a local resident to be appointed as the registered representative. Operations are defined by the parent company, and the branch office has an independent management team and a corporate bank account in Angola.
4. Representative Office (Escritório de Representação): This office is established for market research and promoting the foreign firm’s business. It cannot engage in production or commercial activities, has a maximum of 6 employees (with a 50% quota on foreign employees), and requires a performance bond deposit in an Angolan corporate bank account of US$60,000.

Angola Company Registration Procedures:

1. Company Name (Certidão da Firma): Obtain a company name certificate by filing an application with Guichê Único da Empresa.
2. Registration Fee: Pay the registration fees at Guichê Único da Empresa. The cost for incorporating an LDA is Kz. 12,000.
3. Articles of Association: The articles of association can be drafted by a lawyer or filled using standard documents provided by Guichê Único da Empresa.
4. Company Tax Number (NIF): Apply for the National Identification Number (NIF) at the National Tax Office section within Guichê Único da Empresa.
5. Notarize Documents and Register the Company: Submit company documents to the Notary Public at Guichê Único da Empresa. The notary makes copies for various agencies’ approval and filing.
6. Licenses: Obtain a commercial operations permit (Alvará) from the Ministry of Commerce to conduct commercial activities in Angola.
7. Legalize the Company’s Minutes Book: The “livro de actas” must be legalized by the Commercial Registry.
8. Registration of Employees with the National Social Security Institute: Register employees with the National Social Security Institute (INSS) within 30 days of commencing activities.

Accounting & Tax:

• Corporate Tax: Corporate tax in Angola is 35% on net profits, with reduced rates of 20% for agricultural, forestry, and livestock activities, and 30% for real estate activities. Annual returns must be filed by May 31st each year.
• VAT: The standard VAT rate in Angola is 10%. VAT is filed monthly, and payment is due by the last business day of the following month.
• Capital Gains: Capital gains are taxed as business income and subject to corporate tax.
• Losses: Companies can carry forward losses for three years, but carry-back of losses is prohibited.
• Withholding Tax: Non-resident companies in Angola are subject to withholding tax on dividends (10%), interest (15%), and royalties (10%). There is no withholding tax on branch remittances.
• Social Security: Employers must remit social security contributions at a rate of 8% on all salaries.
• Capital Duty: A capital duty of 0.5% is paid on the initial capital of a company, and additional stamp duties at 1% are levied on monthly turnover.
• Property Transfer Tax: The tax rate on the transfer of land or buildings is 10%, paid by the purchaser.
• Tax Treaties: Angola has not signed any tax treaties to eliminate double international taxation.

Please note that business regulations and tax laws may change over time, so it’s crucial to consult legal and financial experts or government authorities for the most up-to-date information when establishing a business in Angola.