Angola

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Additional copies of Doing Business 2011: Making a Difference for Entrepreneurs, Doing Business 2010:
Reforming through Difficult Times, Doing Business 2009, Doing Business 2008, Doing Business 2007: How to
Reform, Doing Business in 2006: Creating Jobs, Doing Business in 2005: Removing Obstacles to Growth and
Doing Business in 2004:Understanding Regulations may be purchased at www.doingbusiness.org.

ISBN: 978-0-8213-7960-8
E-ISBN: 978-0-8213-8630-9
DOI: 10.1596/978-0-8213-7960-8
ISSN: 1729-2638

Library of Congress Cataloging-in-Publication data has been applied for.

Printed in the United States
Current features
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http://www.doingbusiness.org/rankings/
Contents
Business reformers
Short summaries of DB2011 business reforms, lists of reformers Introduction
since DB2004 and a ranking simulation tool and Aggregate Rankings
http://www.doingbusiness.org/reforms/
5 - Year Measure of
Historical data Cumulative Change
Customized data sets since DB2004
http://www.doingbusiness.org/custom-query/ Starting a Business

Methodology and research Dealing with

The methodologies and research papers underlying Doing Business Construction Permits
http://www.doingbusiness.org/Methodology/
Registering Property
Download reports
Access to Doing Business reports as well as subnational and regional Getting Credit
reports, reform case studies and customized country and regional
profiles Protecting Investors
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Paying Taxes
Subnational and regional projects
Differences in business regulations at the subnational and regional
Trading Across Borders
level
http://www.doingbusiness.org/subnational-reports/
Enforcing Contracts

Law library Closing a Business

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Contributors
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Doing Business
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Business Planet
Interactive map on the ease of doing business
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 Doing Business 2011: Making a Difference for Entrepreneurs is the eighth in a series of annual reports investigating regulations
that enhance business activity and those that constrain it. Doing Business presents quantitative indicators on business regulations
and the protection of property rights that can be compared across 183 economies, from Afghanistan to Zimbabwe, over time.

A set of regulations affecting 9 stages of a business ’s life are measured: starting a business, dealing with construction permits,
registering property, getting credit, protecting investors, paying taxes, trading across borders, enforcing contracts and closing a
business. Data in Doing Business 2011 are current as of June 1, 2010*. The indicators are used to analyze economic outcomes and
identify what reforms have worked, where, and why.

The Doing Business methodology has limitations. Other areas important to business such as an economy ’s proximity to large
markets, the quality of its infrastructure services (other than those related to trading across borders), the security of property from
theft and looting, the transparency of government procurement, macroeconomic conditions or the underlying strength of
institutions, are not studied directly by Doing Business. To make the data comparable across economies, the indicators refer to a
specific type of business, generally a local limited liability company operating in the largest business city. Because standard
assumptions are used in the data collection, comparisons and benchmarks are valid across economies. The data not only highlight
the extent of obstacles to doing business; they also help identify the source of those obstacles, supporting policymakers in
designing reform.

The data set covers 183 economies: 46 in Sub-Saharan Africa, 32 in Latin America and the Caribbean, 25 in Eastern Europe and
Central Asia, 24 in East Asia and Pacific, 18 in the Middle East and North Africa and 8 in South Asia, as well as 30 OECD
high-income economies.

The following pages present the summary Doing Business indicators for Angola. The data used for this economy profile come
from the Doing Business database and are summarized in graphs. These graphs allow a comparison of the economies in each
region not only with one another but also with the “good practice” economy for each indicator.

The good-practice economies are identified by their position in each indicator as well as their overall ranking and by their capacity
to provide good examples of business regulation to other countries. These good-practice economies do not necessarily rank
number 1 in the topic or indicator, but they are in the top 10.

More information is available in the full report. Doing Business 2011: Making a Difference for Entrepreneurs presents the
indicators, analyzes their relationship with economic outcomes and recommends reforms. The data, along with information on
ordering the report, are available on the Doing Business website (www.doingbusiness.org).

* Except for the Paying Taxes indicator, which covers the period January to December of 2009.

Note: Doing Business 2010 data and rankings have been recalculated to reflect changes to the methodology.

1
Economy Rankings - Ease of Doing Business

Angola is ranked 163 out of 183 economies. Singapore is the top ranked economy in the Ease of Doing Business.

Angola - Compared to global good practice economy as well as selected economies:

Angola's ranking in Doing Business 2011

Rank Doing Business 2011

Ease of Doing Business 163

Starting a Business 164

Dealing with Construction Permits 128

Registering Property 174

Getting Credit 116

Protecting Investors 59

Paying Taxes 142

Trading Across Borders 166

Enforcing Contracts 181

Closing a Business 147

2
Summary of Indicators - Angola

Starting a Business Procedures (number) 8

Time (days) 68

Cost (% of income per capita) 163.0

Paid-in Min. Capital (% of income per capita) 28.7

Dealing with Construction Permits Procedures (number) 12

Time (days) 328

Cost (% of income per capita) 694.3

Registering Property Procedures (number) 7

Time (days) 184

Cost (% of property value) 11.5

Getting Credit Strength of legal rights index (0-10) 4

Depth of credit information index (0-6) 3

Public registry coverage (% of adults) 2.4

Private bureau coverage (% of adults) 0.0

Protecting Investors Extent of disclosure index (0-10) 5

Extent of director liability index (0-10) 6

Ease of shareholder suits index (0-10) 6

Strength of investor protection index (0-10) 5.7

Paying Taxes Payments (number per year) 31

Time (hours per year) 282

Profit tax (%) 24.6

Labor tax and contributions (%) 9.0

Other taxes (%) 19.5

Total tax rate (% profit) 53.2

Trading Across Borders Documents to export (number) 11

Time to export (days) 52

Cost to export (US$ per container) 1850

Documents to import (number) 8

Time to import (days) 49

Cost to import (US$ per container) 28403

Enforcing Contracts Procedures (number) 46

Time (days) 1011

Cost (% of claim) 44.4

Closing a Business Recovery rate (cents on the dollar) 8.4

Time (years) 6.2

Cost (% of estate) 22
The 5-year measure of cumulative change illustrates how the business regulatory environment has changed in 174 economies* from
Doing Business 2006 to Doing Business 2011. Instead of highlighting which economies currently have the most business friendly
environment, this new approach shows the extent to which an economy’s regulatory environment for business has changed compared
with 5 years ago.

This snapshot reflects all cumulative changes in an economy’s business regulation as measured by the Doing Business indicators --
such as a reduction in the time to start a business thanks to a one-stop shop or an increase in the strength of investor protection index
thanks to new stock exchange rules that tighten disclosure requirements for related-party transactions.

This figure shows the distribution of cumulative change across the 9 indicators and time between Doing Business 2006 and Doing
Business 2011.

DB change score

0.12

0.10
Doing
business has
0.08
become
easier
0.06

0.04

Doing 0.02
business has
become
0.00
more difficult
or more
costly
-0.02
Angola Swaziland Botswana Lesotho South Africa Namibia

Note: This year's DB change score ranges from -0.1 to 0.54. More details on how the DB change score is constructed can be found
in the methodology section of the website.

* Bahrain, The Bahamas, Brunei, Cyprus, Kosovo, Liberia, Luxembourg, Montenegro and Qatar do not feature in the new metric
because they were included in the Doing Business report in years subsequent to the Doing Business 2005 report and hence, 5 years
of data are not yet available.
6
1. Benchmarking Starting a Business Regulations

Angola is ranked 164 overall for Starting a Business.

Ranking of Angola in Starting a Business - Compared to good practice and selected economies:

7
The following table shows Starting a Business data for Angola compared to good practice and comparator economies:

Good Practice Procedures Time (days) Cost (% of Paid-in Min.

(number) income per Capital (% of
Economies
capita) income per
capita)

Denmark 0.0

New Zealand 1 1 0.0

Selected Economy

Angola 8 68 163.0 28.7

Comparator Economies

Botswana 10 61 2.2 0.0

Lesotho 7 40 26.0 12.0

Namibia 10 66 18.5 0.0

South Africa 6 22 6.0 0.0

Swaziland 12 56 33.0 0.5

8
2. Historical data: Starting a Business in Angola

Starting a Business data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 164 164

Procedures (number) 12 8 8 8

Time (days) 119 68 68 68

Cost (% of income per capita) 343.7 196.8 151.1 163.0

Paid-in Min. Capital (% of income per capita) 50.5 39.1 29.0 28.7

3. Starting a Business sub indicators in Angola over the past 4 years

9
 4. Overview of the steps to Starting a Business in Angola

It requires 8 procedures, takes 68 days, and costs 162.97 % GNI per capita to start a business in Angola.

Time to complete
No: Procedure Cost to complete
(days)

1 Search for unique company name and pick up the relevant 1 KZ 500 + KZ 24,090
certificate

2 Deposit the legally required initial capital in a bank and 1 no charge

obtain deposit evidence; pay the registration fee

3 Verify the company documents at the Guichet Unico 1 the fees are included
in the company
registration fees

4 Obtain NIF at Guichet Unico 1 tax fees included in

next procedure

5 Notarize company draft documents, register the company 4 25,000 Kz Guichet

and pay registration fees at Guichet Unico Unico fees+
registration in the
conservatoria
100002 Kz+ 12000
Kz statistics institute
+ 20000 Kz Impresa
National ( fixed cost)
+ 10 Kz social
security + 132730
Notary fees + 25595
Kz taxes fee

10
 6 Obtain the Commercial Operations Permit from the Ministry 60 USD 1,000
of Commerce

7 * Legalize the inventory and diary books with the Tax Office 1 USD 3

8 * Legalize the inventory and diary books with the judge of the 1 USD 20
provincial court having jurisdiction over the area of the
company’s headquarters

* Takes place simultaneously with another procedure.

11
 5. Details on Starting a Business in Angola

This table summarizes the procedures and costs associated with setting up a business in Angola.

STANDARDIZED COMPANY
Legal Form: Sociedade por Quotas de Responsabilidade Limitada (LDA)
Paid-in Minimum Capital: 28.7 (% of income per capita)
City: Luanda

Procedure 1 Search for unique company name and pick up the relevant certificate

Time to complete(days): 1

Cost to complete: KZ 500 + KZ 24,090

Comment: The company name can be verified at the commercial registry (Ficheiro Central de Denominações
Sociais), affiliated with the Ministry of Justice.
To obtain the company name certificate, an application (with copy of identification attached) must
be filed with the one stop shop (Guiché Único das Empresas), as follows:
1. State the company’s proposed name.
2. Request the issuance of a certificate, confirming that such name is acceptable and is not similar
to any existing company name.

Fees for company name certificate:

- Form: AOA 500.
- Certificate: AOA 24,090.

Procedure 2 Deposit the legally required initial capital in a bank and obtain deposit evidence; pay the
registration fee

12
Time to complete(days): 1

Cost to complete: no charge

Comment: The Kwanza amount equivalent to USD 1,000 will soon become the minimum share capital
required for the incorporation of a limited liability company (Sociedade por Quotas de
Responsabilidade Limitada), according to the new Companies Law, recently approved by the
Angolan Parliament and due to be published in the Official Journal. For such corporate form,
notaries require an amount equivalent to about USD 135.

Procedure 3 Verify the company documents at the Guichet Unico

Time to complete(days): 1

Cost to complete: the fees are included in the company registration fees

Comment: This procedure takes place in the Guichet Unico. The clerks and the Judges are sitting in cubicles
facing each other. Companies have 2 options; either to resort to lawyer services to draft the
company documents or to fill in the standards documents. If the company decides to use the
standard statutes of Association from the Guichet (2 pages), it takes 1 hour at most. the applicant
just enters the information (ID info of associates, address, activities of company) and confirms that
the articles are applicable to the type of company as the guichet has 4 different types of statutes. In
the case statutes are prepared by a lawyer, the process might take 1/2 to 1 day for lawyers to
review. However, in this case company documents are more detailed and thus documents' rejection
is unlikely.

Procedure 4 Obtain NIF at Guichet Unico

Time to complete(days): 1

Cost to complete: tax fees included in next procedure

Comment: Once documents are verified and completed, applicant apply to the station of the Direccao
National dos Impostos to obtain NIF, where all taxes and fees one must pay are calculated. This
service is free of charge and does not take more than 15 minutes. However, the tax fees is 25595
Kz.

Procedure 5 Notarize company draft documents, register the company and pay registration fees at
Guichet Unico

Time to complete(days): 4

Cost to complete: 25,000 Kz Guichet Unico fees+ registration in the conservatoria 100002 Kz+ 12000 Kz
statistics institute + 20000 Kz Impresa National ( fixed cost) + 10 Kz social security +
132730 Notary fees + 25595 Kz taxes fee
Comment: The applicant submits the dossier to the Notary Public at the Guichet Unico. Once the Notary
reviewes and notarizes the dossier, he will have a reading with the applicant present or the
accredited person to ensure there are no mistakes. There are 3 conference rooms with projectors
which allow all the associates to see the text and make modification. This service fee is included in
the Guichet fees and takes a day depending on room availability and complexity of the company’s
Articles of incorporation.After this lecture, the notary makes copies and send to each of the
agencies involved a copy for approval and filing. The centralized post distribute these to the
representatives of Impresa National, National Institute of Statistics, Tax office of the Ministry of
Finance, Social Security Institute and the Ministry of Public Administration, Employment, and
Social Security. Each agent from each institution is in charge of sending the files to his/her agency,
but this doesn't impede on the process of registration. For Impresa national, the receipt is sufficient
to continue the process. Despite the fact that law says docuements should be published before
getting the license to operate, the system at Impresa National makes it unlikely for daily or weekly
publication, therefore the Ministry of Commerce uses the receipt as proof. The fees for these
services are included in the Guichet Unico’s cost. The time for this process depends on the
presence of various agents and the complexity of the case. Each of the organizations sited above
have a representative within Guichet with authority to deliver the accreditation that the step has
13
 been accomplished. Obtaining the final document (except the publication in the Official Gazette)
would take 4 days (on average). Fees are paid at the bank counter of banco BAI within the Guichet
to facilitate payment of the different fees. Each agency and fees goes to a specific account and
payments can be made cash or by card.

Procedure 6 Obtain the Commercial Operations Permit from the Ministry of Commerce

Time to complete(days): 60

Cost to complete: USD 1,000

Comment: To carry out commercial activities in Angola, a company must obtain a commercial operations
permit (alvará) from the Ministry of Commerce. To apply for the issuance of the commercial
operations permit, the following documents must be filed with the Municipal Delegation of the
Ministry of Commerce: (a) company’s notary deed of incorporation; (b) copy of the tax
identification card; (c) commercial registration certificate; (d) statistical registration certificate; (e)
extracts from the criminal record of the founders; (f) opinion, by the relevant administrative
authority, on the company’s geographical location and social and economic feasibility; and (g) a
photocopy of ID or passport. For the issuance of the commercial operations permit, one
requirement is for the relevant administrative authorities to inspect the company’s premises to
confirm they are suitable for commercial activities.

Procedure 7 Legalize the inventory and diary books with the Tax Office

Time to complete(days): 1

Cost to complete: USD 3

Comment: The inventory and diary books are taken annually to the Tax Office for registration of the annual
accounts.

Procedure 8 Legalize the inventory and diary books with the judge of the provincial court having
jurisdiction over the area of the company’s headquarters

Time to complete(days): 1

Cost to complete: USD 20

Comment: The registration book of the minutes of the General Assembly meetings must be registered with the
Tax Office (USD 0.0125 cents per page) and the Provincial Court (USD 0.67 cents per page).
After the registration of any such minutes in the book, it should be registered with the notary public
(USD 17 per shareholder signature).

14
15
1. Benchmarking Dealing with Construction Permits Regulations

Angola is ranked 128 overall for Dealing with Construction Permits.

Ranking of Angola in Dealing with Construction Permits - Compared to good practice and selected economies:

16
The following table shows Dealing with Construction Permits data for Angola compared to good practice and comparator
economies:

Good Practice Procedures Time (days) Cost (% of

(number) income per
Economies
capita)

Denmark 6

Qatar 0.8

Singapore 25

Selected Economy

Angola 12 328 694.3

Comparator Economies

Botswana 24 167 264.5

Lesotho 15 601 1290.7

Namibia 12 139 113.0

South Africa 17 174 23.1

Swaziland 14 116 143.0

17
2. Historical data: Dealing with Construction Permits in Angola

Dealing with Construction Permits data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 119 128

Procedures (number) 14 12 12 12

Time (days) 337 328 328 328

Cost (% of income per capita) 1109.7 831.1 597.7 694.3

3. Dealing with Construction Permits sub indicators in Angola over the past 4 years

18
 4. Overview of the steps to Building a Warehouse in Angola

It requires 12 procedures, takes 328 days, and costs 694.32 % GNI per capita to build a warehouse in Angola.

Time to complete
No: Procedure Cost to complete
(days)

1 Obtain a proof of title of property for the land 15 days AOA 3,000

2 Obtain permission to build from fire department 5 days no charge

3 Request license to build from the provincial governor 180 days AOA 13,200

4 * Receive on-site inspection from the provincial government 1 day no charge

5 * Obtain approval from telephone provider (Angola Telecom) 1 day no charge

6 Hire inspection firm 1 day AOA 632,640

7 Obtain occupancy permit and request inspection by 30 days AOA 2,000

provincial authorities

8 * Receive final inspection by provincial authorities 1 day no charge

9 Obtain electric power connection 16 days AOA 1,107,134

19
10 * Obtain telephone connection 15 days AOA 7,908

11 * Obtain water and sewage connection 10 days no charge

12 Register the building with the real estate registry 90 days no charge

* Takes place simultaneously with another procedure.

20
5. Details on Building a Warehouse in Angola

The table below summarizes the procedures, time, and costs to build a warehouse in Angola.

BUILDING A WAREHOUSE
Estimated warehouse value:AOA 102,942,082
City: Luanda

Procedure 1 Obtain a proof of title of property for the land

Time to complete: 15 days

Cost to complete: AOA 3,000

Agency: Real Estate Registry of Luanda

Comment: BuildCo must obtain this document from the Real Estate Registry in Luanda. The proof of
ownership is valid for 6 months.

Procedure 2 Obtain permission to build from fire department

Time to complete: 5 days

Cost to complete: no charge

Agency: Fire Department

Comment: The fees, varying according to project size and location, must be paid to the fire
department. To estimate the fees, the fire department requires details about the warehouse
location. The fees are not regulated and appear to be assigned in a relatively random
fashion.

21
Procedure 3 Request license to build from the provincial governor

Time to complete: 180 days

Cost to complete: AOA 13,200

Agency: Provincial Government

Comment: To obtain the license to build, BuildCo must file with the provincial government its
application and all required documents (listed in the procedures above).

Procedure 4 Receive on-site inspection from the provincial government

Time to complete: 1 day

Cost to complete: no charge

Agency: Provincial Government

Comment: After receiving the application for construction permit, the Urban Department (Luanda
Province) visits the prospective site to confirm whether the applicant’s information is
accurate.

Procedure 5 Obtain approval from telephone provider (Angola Telecom)

Time to complete: 1 day

Cost to complete: no charge

Agency: Angola Telecom

Comment: Angola Telecom sets the approval fee according to request processing time.

Procedure 6 Hire inspection firm

Time to complete: 1 day

Cost to complete: AOA 632,640

Agency: Private Inspection Firm

Comment: The company must hire an inspection firm to closely follow construction progress and to
ensure compliance with all statutory rules. The inspection firm’s fees usually vary
between 3% and 5% of the price provided in the agreement with the construction
contractor.

Procedure 7 Obtain occupancy permit and request inspection by provincial authorities

Time to complete: 30 days

Cost to complete: AOA 2,000

Agency: Provincial Government

Comment: Once construction is completed, several departments and provincial authorities must
inspect the building: the fire department, the engineering department, and the town

22
 services department.

Procedure 8 Receive final inspection by provincial authorities

Time to complete: 1 day

Cost to complete: no charge

Agency: Provincial Government

Comment: Once the building is completed, the Luanda provincial government conducts a final
inspection. Several departments and provincial authorities are involved in the final
inspection and issue their technical opinions. After the inspection, the occupancy permit
will be issued.

Procedure 9 Obtain electric power connection

Time to complete: 16 days

Cost to complete: AOA 1,107,134

Agency: Empresaa de Distribuicao de Electricidade (EDEL)

Comment: To request electric service, the building owner sends a letter to Luanda’s power company
(Empresa de Electricidade de Luanda, EDEL). Along with the letter, the owner submits a
certificate of building location and a copy of the construction permit. The connection fees
vary according to the warehouse size.

Procedure 10 Obtain telephone connection

Time to complete: 15 days

Cost to complete: AOA 7,908

Agency: Angola Telecom

Comment: To request a telephone connection, BuildCo must send a letter with a copy of the building
permit. The telephone service fees vary by warehouse size and the requested number of
phone lines.

Procedure 11 Obtain water and sewage connection

Time to complete: 10 days

Cost to complete: no charge

Agency: Empresa Provincial de Agua de Luanda (EPAL)

Comment: To request a water and sewage connection, BuildCo must send a letter to the public sector
water company in Luanda (Empresa Publica de Aguas de Luanda, EPAL). Along with the
letter, the developer must submit a certificate of building location and a copy of the
building permit. The connection fees vary according to warehouse size.

Procedure 12 Register the building with the real estate registry

Time to complete: 90 days

Cost to complete: no charge

23
Agency: Real Estate Registry of Luanda

Comment: The Real Estate Registry charges building registration fees that are in line with taxes
assessed on the building by the tax authorities.

24
25
1. Benchmarking Registering Property Regulations

Angola is ranked 174 overall for Registering Property.

Ranking of Angola in Registering Property - Compared to good practice and selected economies:

26
The following table shows Registering Property data for Angola compared to good practice and comparator economies:

Good Practice Procedures Time (days) Cost (% of

(number) property
Economies
value)

New Zealand 2

Norway 1

Saudi Arabia 0.0

Selected Economy

Angola 7 184 11.5

Comparator Economies

Botswana 5 16 5.0

Lesotho 6 101 8.0

Namibia 9 23 9.6

South Africa 6 24 8.8

Swaziland 9 44 7.1

27
2. Historical data: Registering Property in Angola

Registering Property data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 173 174

Procedures (number) 7 7 7 7

Time (days) 334 334 184 184

Cost (% of property value) 11.1 11.6 11.4 11.5

3. Registering Property sub indicators in Angola over the past 4 years

28
 4. Overview of the steps to Registering Property in Angola

It requires 7 procedures, takes 184 days, and costs 11.51 % of property value to register the property in Angola.

Time to complete
No: Procedure Cost to complete
(days)

1 * Obtain an updated ownership certificate from the Registry 7 days (simultaneous AOA 1,550
with procedure 2)

2 * Obtain an updated tax certificate from the Tax Office 7 days (simultaneous AOA 1,500
with procedure 1)

3 Pay conveyance tax (SISA) and stamp duty 1 day 10% of property
value (conveyance
tax) + 0.8% of
property value
(stamp duty)

4 Execute the deed of transfer before a notary public 15 days Already paid in
Procedure 3

29
 5 Apply for provisional registration at the Land Registry 5 days Value of property
Office Fee per 30 UCF
(UCF) Number
Amounta) up to 60
UCF = 6 = 6 * 2 =
12.00b) from 60
UCF to 400 UCF = 9
* ((400 -60))/30 =
102.00c) from 400
UCF to 4000 UCF =
10 * ((4000-400)/30)
= 1,200.00d) above
4000 UCF = 0.05 *
((property value -
4000)/30))
=327.42Total
registration fee
(UCF) 1,641.42Total
registration fee
(AOA) = 1 641.42 *
53 = 86,995.26

6 Receive definitive registration from the Real Estate Registry 150 days (5 months) Already paid in
Procedure 5

7 Apply for definitive registration at the Tax Office 5 days AOA 105

* Takes place simultaneously with another procedure.

30
 5. Details on Registering Property in Angola

This topic examines the steps, time, and cost involved in registering property in Angola.

STANDARDIZED PROPERTY
Property Value: AOA 12,716,632.41
City: Luanda

Procedure 1 Obtain an updated ownership certificate from the Registry

Time to complete: 7 days (simultaneous with procedure 2)

Cost to complete: AOA 1,550

Agency: Real Estate Registry (Conservatória do registo predial de Luanda)

Comment: An updated ownership certificate is obtained from the relevant Real Estate Registry. It sets out
a full description of the property, including information on its owner and any charges, liens or
encumbrances pending over the property.

Procedure 2 Obtain an updated tax certificate from the Tax Office

Time to complete: 7 days (simultaneous with procedure 1)

Cost to complete: AOA 1,500

Agency: Tax Office

Comment: An updated tax certificate is obtained from the relevant Tax Office, detailing the description
of the property.

31
Procedure 3 Pay conveyance tax (SISA) and stamp duty

Time to complete: 1 day

Cost to complete: 10% of property value (conveyance tax) + 0.8% of property value (stamp duty)

Comment: Typically, this is only paid when the parties have agreed between them and with a notary
public a fixed date for the execution of the required notary deed. A receipt will be issued by
the tax authorities, which will then be given to the notary public as part of Procedure 4 below.
The 0.8% Stamp Duty is payable on the SISA receipt.

The documentation shall include:

A statement by the seller setting out the sales value or a copy of the Promissory Agreement of
Sale and Purchase signed by both parties.

Procedure 4 Execute the deed of transfer before a notary public

Time to complete: 15 days

Cost to complete: Already paid in Procedure 3

Comment: A notary public executes the deed of transfer.

From this moment onwards, the buyer is the lawful owner of the property in light of the
transaction. Registration is needed for publicity purposes and protection against third parties.

The documentation shall include:

• Proof of payment of conveyance tax (obtained in Procedure 3)
• Updated registry certificate from Land Registry (obtained in Procedure 1)
• Updated tax certificate from Tax Office (obtained in Procedure 2)
• Personal identification documents of the buyer and seller (passports, identity card, etc.)
• Registry of Companies' Certificates if seller and buyer are companies, so as to provide
evidence that the officer executing the deed on behalf of the corresponding company has
authority to do so.

Procedure 5 Apply for provisional registration at the Land Registry Office

Time to complete: 5 days

Cost to complete: Value of property Fee per 30 UCF (UCF) Number Amounta) up to 60 UCF = 6 = 6 * 2 =
12.00b) from 60 UCF to 400 UCF = 9 * ((400 -60))/30 = 102.00c) from 400 UCF to
4000 UCF = 10 * ((4000-400)/30) = 1,200.00d) above 4000 UCF = 0.05 * ((property
value - 4000)/30)) =327.42Total registration fee (UCF) 1,641.42Total registration fee
(AOA) = 1 641.42 * 53 = 86,995.26
Agency: Land Registry Office

Comment: The notarized deed certificate must be presented to apply for provisional registration at the
Land Registry Office.
It is no longer necessary to apply for provisional registration at the Tax Office as final
registration with the tax office is processed much quicker than with the Real Estate Registry.

Procedure 6 Receive definitive registration from the Real Estate Registry

Time to complete: 150 days (5 months)

32
Cost to complete: Already paid in Procedure 5

Agency: Real Estate Registry (Conservatória do registo predial de Luanda)

Comment: This procedure is a conversion, not a new act of registration and it will take place
approximately 10 months after provisional registration. The procedure takes so long because
there is a backlog, all records are paper-based and the entire history of transactions relevant to
the property must be checked every time.

Procedure 7 Apply for definitive registration at the Tax Office

Time to complete: 5 days

Cost to complete: AOA 105

Agency: Tax Office

Comment: At the tax office, there is only final registration. Provisional registration is no longer
applicable, as final registration has become considerably faster.

33
34
1. Benchmarking Getting Credit Regulations

Angola is ranked 116 overall for Getting Credit.

Ranking of Angola in Getting Credit - Compared to good practice and selected economies:

35
The following table shows Getting Credit data for Angola compared to good practice and comparator economies:

Good Practice Strength of Depth of Public Private

legal rights credit registry bureau
Economies
index (0-10) information coverage (% coverage (%
index (0-6) of adults) of adults)

New Zealand 100.0

Portugal 67.1

Singapore 10

United Kingdom 6

Selected Economy

Angola 4 3 2.4 0.0

Comparator Economies

Botswana 7 4 0.0 57.6

Lesotho 6 0 0.0 0.0

Namibia 8 5 0.0 58.5

South Africa 9 6 0.0 54.9

Swaziland 6 5 0.0 35.7

36
2. Historical data: Getting Credit in Angola

Getting Credit data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 109 116

Strength of legal rights index (0-10) 4 4 4 4

Depth of credit information index (0-6) 3 3 3 3

Private bureau coverage (% of adults) 0.0 0.0 0.0 0.0

Public registry coverage (% of adults) 2.3 2.7 2.5 2.4

3. Getting Credit sub indicators in Angola over the past 4 years

37
 4. Details on Getting Credit in Angola

The following table summarize legal rights of borrowers and lenders, and the availability and legal framework of credit
registries in Angola.

Getting Credit Indicators (2010) Indicator

Private credit Public credit

Private bureau coverage (% of adults) 3
bureau registry

Are data on both firms and individuals distributed? No Yes 1

Are both positive and negative data distributed? No Yes 1

Does the registry distribute credit information from retailers, trade No No 0

creditors or utility companies as well as financial institutions?

Are more than 2 years of historical credit information distributed? No No 0

Is data on all loans below 1% of income per capita distributed? No Yes 1

Is it guaranteed by law that borrowers can inspect their data in the No No 0

largest credit registry?

Coverage 0.0 2.4

Number of individuals 0 214,000

Number of firms 0 31,000

38
Strength of legal rights index (0-10) 4

Can any business use movable assets as collateral while keeping possession of the assets; and any financial Yes
institution accept such assets as collateral ?

Does the law allow businesses to grant a non possessory security right in a single category of movable assets, No
without requiring a specific description of collateral?

Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without No
requiring a specific description of collateral?

May a security right extend to future or after-acquired assets, and may it extend automatically to the products, No
proceeds or replacements of the original assets ?

Is a general description of debts and obligations permitted in collateral agreements, so that all types of obligations Yes
and debts can be secured by stating a maximum amount rather than a specific amount between the parties ?

Is a collateral registry in operation, that is unified geographically and by asset type, as well as indexed by the No
grantor's name of a security right ?

Do secured creditors have absolute priority to their collateral outside bankruptcy procedures? No

Do secured creditors have absolute priority to their collateral in bankruptcy procedures? No

During reorganization, are secured creditors' claims exempt from an automatic stay on enforcement? Yes

Does the law authorize parties to agree on out of court enforcement? Yes

39
40
1. Benchmarking Protecting Investors Regulations

Angola is ranked 59 overall for Protecting Investors.

Ranking of Angola in Protecting Investors - Compared to good practice and selected economies:

41
The following table shows Protecting Investors data for Angola compared to good practice and comparator economies:

Good Practice Strength of

investor
Economies
protection
index (0-10)

New Zealand 9.7

Selected Economy

Angola 5.7

Comparator Economies

Botswana 6.0

Lesotho 3.7

Namibia 5.3

South Africa 8.0

Swaziland 4.3

42
2. Historical data: Protecting Investors in Angola

Protecting Investors data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 57 59

Strength of investor protection index (0-10) 5.7 5.7 5.7 5.7

3. The following graph illustrates the Protecting Investors index in Angola compared to best practice
and selected Economies:
9.7

8.0

6.0

5.7

5.3

4.3

3.7
a

a
an
a

ol

ia
nd

o
nd
ic

th
w

ng

ib
fr
a

la

so
ts
al

am
A

i
Bo

az

Le
Ze

Sw
ut
ew

So
N

Note: The higher the score, the greater the investor protection.

43
 4. Details on Protecting Investors in Angola

The table below provides a full breakdown of how the disclosure, director liability, and shareholder suits indexes are
calculated in Angola.

Protecting Investors Data (2010) Indicator

Extent of disclosure index (0-10) 5

2
What corporate body provides legally sufficient approval for the transaction?
0
Whether immediate disclosure of the transaction to the public and/or shareholders is
required?
2
Whether disclosure of the transaction in published periodic filings (annual reports) is
required?
1
Whether disclosure of the conflict of interest by Mr. James to the board of directors is
required?
0
Whether an external body must review the terms of the transaction before it takes place?
Extent of director liability index (0-10) 6

1
Whether shareholders can hold Mr. James liable for the damage that the Buyer-Seller
transaction causes to the company?
1
Whether shareholders can hold the approving body (the CEO or board of directors) liable for
the damage that the Buyer-Seller transaction causes to the company?
2
Whether a court can void the transaction upon a successful claim by a shareholder plaintiff?
1
Whether Mr. James pays damages for the harm caused to the company upon a successful
claim by the shareholder plaintiff?

44
 0
Whether Mr. James repays profits made from the transaction upon a successful claim by the
shareholder plaintiff?
0
Whether fines and imprisonment can be applied against Mr. James?
1
Whether shareholders can sue directly or derivatively for the damage that the Buyer-Seller
transaction causes to the company?
Ease of shareholder suits index (0-10) 6

4
Whether the plaintiff can obtain any documents from the defendant and witnesses during
trial?
1
Whether the plaintiff can directly question the defendant and witnesses during trial?
0
Whether the plaintiff can request categories of documents from the defendant without
identifying specific ones?
0
Whether shareholders owning 10% or less of Buyer's shares can request an inspector to
investigate the transaction?
0
Whether the level of proof required for civil suits is lower than that of criminal cases?
1
Whether shareholders owning 10% or less of Buyer's shares can inspect transaction
documents before filing suit?
Strength of investor protection index (0-10) 5.7

45
46
1. Benchmarking Paying Taxes Regulations

Angola is ranked 142 overall for Paying Taxes.

Ranking of Angola in Paying Taxes - Compared to good practice and selected economies:

47
The following table shows Paying Taxes data for Angola compared to good practice and comparator economies:

Good Practice Payments Time (hours Total tax rate

(number per per year) (% profit)
Economies
year)

Maldives 3 0

Timor-Leste 0.2

Selected Economy

Angola 31 282 53.2

Comparator Economies

Botswana 19 152 19.5

Lesotho 21 324 19.6

Namibia 37 375 9.6

South Africa 9 200 30.5

Swaziland 33 104 36.8

48
2. Historical data: Paying Taxes in Angola

Paying Taxes data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 135 142

Total tax rate (% profit) 53.2 53.2 53.2 53.2

Payments (number per year) 31 31 31 31

Time (hours per year) 272 272 272 282

3. Paying Taxes sub indicators in Angola over the past 4 years

49
4. Details on Paying Taxes in Angola

The table below addresses the taxes and mandatory contributions that a medium-size company must pay or withhold in
a given year in Angola, as well as measures of administrative burden in paying taxes.

Tax or mandatory Payments Notes on Time Statutory tax Tax Totaltax rate Notes on
contribution (number) Payments (hours) rate base (% profit) TTR

Consumption tax 12 82 10.0% sales

stamp duty on contracts 1 various rates contract value

Property transfer tax 0 10.0% contract value 0.00

(turnover)

Circulation fee 1 AOA 9000 fixed fee 0.10

Fuel tax 1 50.0% fuel price 1.70

Social security 12 125 8.0% gross salaries 9.00

contributions

Stamp tax 0 paid jointly 1.0% contract value 17.70

(turnover)

Corporate income tax 4 75 35.0% taxable profit 24.60

Totals 31 282 53.2

50
51
1. Benchmarking Trading Across Borders Regulations

Angola is ranked 166 overall for Trading Across Borders.

Ranking of Angola in Trading Across Borders - Compared to good practice and selected economies:

52
The following table shows Trading Across Borders data for Angola compared to good practice and comparator economies:

Good Practice Documents to Time to Cost to Documents to Time to Cost to

export export (days) export (US$ import import (days) import (US$
Economies
(number) per (number) per
container) container)

Denmark 5

France 2 2

Malaysia 450

Singapore 4 439

Selected Economy

Angola 11 52 1850 8 49 2840

Comparator Economies

Botswana 6 28 3010 9 41 3390

Lesotho 6 31 1680 8 35 1610

Namibia 11 29 1686 9 24 1813

South Africa 8 30 1531 9 35 1807

Swaziland 9 18 1754 10 27 1849

53
2. Historical data: Trading Across Borders in Angola

Trading Across Borders data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 167 166

Cost to export (US$ per container) 1450 1850 1850 1850

Cost to import (US$ per container) 1925 2925 2840 2840

Documents to export (number) 12 12 11 11

Documents to import (number) 8 8 8 8

Time to export (days) 64 68 65 52

Time to import (days) 58 62 59 49

3. Trading Across Borders sub indicators in Angola over the past 4 years

54
55
4. Details on Trading Across Borders in Angola
These tables list the procedures necessary to import and export a standardized cargo of goods in Angola. The documents
required to export and import the goods are also shown.

Nature of Export Procedures (2010) Duration (days) US$ Cost

Documents preparation 25 550

Customs clearance and technical control 5 400

Ports and terminal handling 14 400

Inland transportation and handling 8 500

Totals 52 1850

Nature of Import Procedures (2010) Duration (days) US$ Cost

Documents preparation 25 790

Customs clearance and technical control 7 400

Ports and terminal handling 14 650

Inland transportation and handling 3 1000

Totals 49 2840

56
Documents for Export and Import

Export

Bill of lading

Cargo release order

Certificate of origin

Commercial Invoice

Customs export declaration

Foreign exchange authorization

Inspection report

Packing list

Tax certificate

Technical standard/health certificate

Terminal handling receipts

Import

Bill of lading

Certificate of origin

Clean inspection report of findings

Commercial invoice

Customs import declaration

Import authorization from Conseil National des Chargeurs

Angolais

Packing list

Terminal handling receipts

57
58
1. Benchmarking Enforcing Contracts Regulations

Angola is ranked 181 overall for Enforcing Contracts.

Ranking of Angola in Enforcing Contracts - Compared to good practice and selected economies:

59
The following table shows Enforcing Contracts data for Angola compared to good practice and comparator economies:

Good Practice Procedures Time (days) Cost (% of

(number) claim)
Economies

Bhutan 0.1

Ireland 20

Singapore 150

Selected Economy

Angola 46 1011 44.4

Comparator Economies

Botswana 29 625 28.1

Lesotho 41 785 19.5

Namibia 33 270 35.8

South Africa 30 600 33.2

Swaziland 40 972 56.1

60
2. Historical data: Enforcing Contracts in Angola

Enforcing Contracts data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 181 181

Procedures (number) 46 46 46 46

Time (days) 1011 1011 1011 1011

Cost (% of claim) 44.4 44.4 44.4 44.4

3. Enforcing Contracts sub indicators in Angola over the past 4 years

61
4. Details on Contract Enforcement in Angola
This topic looks at the efficiency of contract enforcement in Angola.

Court information: Luanda Provincial Court ("Tribunal provincial de Luanda")

Nature of Procedure (2010) Indicator

Procedures (number) 46

Time (days) 1011

Filing and service 86.0

Trial and judgment 485.0

Enforcement of judgment 440.0

Cost (% of claim)* 44.40

Attorney cost (% of claim) 22.2

Court cost (% of claim) 22.2

Enforcement Cost (% of claim) 0.0

* Claim assumed to be equivalent to 200% of income per capita.

62
63
1. Benchmarking Closing Business Regulations

Angola is ranked 147 overall for Closing a Business.

Ranking of Angola in Closing Business - Compared to good practice and selected economies:

64
The following table shows Closing Business data for Angola compared to good practice and comparator economies:

Good Practice Recovery rate Time (years) Cost (% of

(cents on the estate)
Economies
dollar)

Ireland 0.4

Japan 92.7

Singapore 1

Selected Economy

Angola 8.4 6.2 22

Comparator Economies

Botswana 63.7 1.7 15

Lesotho 36.4 2.6 8

Namibia 41.5 1.5 15

South Africa 34.4 2.0 18

Swaziland 37.6 2.0 15

65
2. Historical data: Closing Business in Angola

Closing a Business data Doing Business Doing Business Doing Business Doing Business
2008 2009 2010 2011

Rank .. .. 144 147

Time (years) 6.2 6.2 6.2 6.2

Cost (% of estate) 22 22 22 22

Recovery rate (cents on the dollar) 10.8 10.0 10.0 8.4

3. Closing Business sub indicators in Angola over the past 4 years

66
Since 2004 Doing Business has been tracking reforms aimed at simplifying business regulations, strengthening property
rights, opening access to credit and enforcing contracts by measuring their impact on 10 indicator sets . * Nearly 1,000
reforms have had an impact on these indicators. Doing Business 2011, covering June 2009 to June 2010, reports that 117
economies implemented 216 reforms to make it easier to start a business. 64% of economies measured by Doing Business
have reformed this year, focusing on easing business start-up, lightening the tax burden, simplifying import and export
regulations and improving credit information systems.

The top 10 most-improved in Doing Business 2011

Dealing with Construction

Trading Across Borders

Positive Change
Registering Property

Enforcing Contracts
Protecting Investors
Starting a Business

Closing a Business
Negative Change
Getting Credit

Paying Taxes
Permits

Economy

Kazakhstan

Rwanda

Peru

Vietnam

Cape Verde

Tajikistan

Zambia

Hungary

Grenada

Brunei Darussalam

* For Doing Business 2011 the Employing Workers indicator is not included in the aggregate ease of doing
business ranking.

67
Summary of changes to business regulation in top 10 most improved economies in Doing
Business 2011 and selected comparator economies.

Angola Angola reduced the time for trading across borders by making investments in port infrastructure and
administration.

Brunei Darussalam Brunei Darussalam made starting a business easier by improving efficiency at the company registrar
and implementing an electronic system for name searches. Brunei Darussalam reduced the corporate
income tax rate from 23.5% to 22% while also introducing a lower tax rate for small businesses,
ranging from 5.5% to 11%. The introduction of an electronic customs system in Brunei Darussalam
made trading easier.

Cape Verde Cape Verde made start-up easier by eliminating the need for a municipal inspection before a business
begins operations and computerizing the system for delivering the municipal license. Cape Verde eased
property registration by switching from fees based on a percentage of the property value to lower fixed
rates. Cape Verde abolished the stamp duties on sales and checks.

Grenada Grenada eased business start-up by transferring responsibility for the commercial registry from the
courts to the civil administration. The appointment of a registrar focusing only on property cut the time
needed to transfer property in Grenada by almost half. Grenada’s customs administration made trading
faster by simplifying procedures, reducing inspections, improving staff training and enhancing
communication with users.

Hungary Hungary implemented a time limit for the issuance of building permits. Hungary reduced the property
registration fee by 6% of the property value. Hungary simplified taxes and tax bases. Amendments to
Hungary’s bankruptcy law encourage insolvent companies to consider reaching agreements with
creditors out of court so as to avoid bankruptcy.

Kazakhstan Kazakhstan eased business start-up by reducing the minimum capital requirement to 100 tenge ($0.70)
and eliminating the need to have the memorandum of association and company charter notarized.
Kazakhstan made dealing with construction permits easier by implementing a one-stop shop related to
technical conditions for utilities. Kazakhstan strengthened investor protections by requiring greater
corporate disclosure in company annual reports. Kazakhstan speeded up trade through efforts to
modernize customs, including implementation of a risk management system and improvements in
customs automation.

Peru Peru eased business start-up by simplifying the requirements for operating licenses and creating an
online one-stop shop for business registration. Peru streamlined construction permitting by
implementing administrative
reforms. Peru introduced fast-track procedures at the land registry, cutting by half the time needed to
register property. Peru made trading easier by implementing a new web-based electronic data
interchange system, risk-based inspections and payment deferrals.

Rwanda Rwanda made dealing with construction permits easier by passing new building regulations at the end
of April 2010 and implementing new time limits for the issuance of various permits. Rwanda enhanced
access to credit by allowing borrowers the right to inspect their own credit report and mandating that
loans of all sizes be reported to the central bank’s public credit registry. Rwanda reduced the number of
trade documents required and enhanced its joint border management procedures with Uganda and other
neighbors, leading to an improvement in the trade logistics environment.

Swaziland Swaziland strengthened investor protections by requiring greater corporate disclosure, higher standards
of accountability for company directors and greater access to corporate information for minority
investors. Swaziland reduced the time to import by implementing an electronic data interchange system
for customs at its border posts.

Tajikistan Tajikistan made starting a business easier by creating a one-stop shop that consolidates registration with
the state and the tax authority. Tajikistan strengthened investor protections by requiring greater
corporate disclosure in the annual report and greater access to corporate information for minority
investors. Tajikistan lowered its corporate income tax rate.

68
Vietnam Vietnam eased company start-up by creating a one-stop shop that combines the processes for obtaining
a business license and tax license and by eliminating the need for a seal for company licensing.
Vietnam made dealing with construction permits easier by reducing the cost to register newly
completed buildings by 50% and transferring the authority to register buildings from local authorities to
the Department of National Resources and Environment. Vietnam improved its credit information
system by allowing borrowers to examine their own credit report and correct errors.

Zambia Zambia eased business start-up by eliminating the minimum capital requirement. Zambia eased trade by
implementing a one-stop border post with Zimbabwe, launching web-based submission of customs
declarations and introducing scanning machines at border posts. Zambia improved contract
enforcement by introducing an electronic case management system in the courts that provides electronic
referencing of cases, a database of laws, real-time court reporting and public access to court records.

69
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