Angola, formally the Republic of Angola, is a nation on Southern Africa's west coast. It is the second-largest Lusophone (Portuguese-speaking) nation in terms of total territory and population (after Brazil), and the seventh-largest in Africa. It is bounded to the south by Namibia, to the north by the Democratic Republic of the Congo, to the east by Zambia, and to the west by the Atlantic Ocean. Cabinda, an exclave province of Angola, borders the Republic of the Congo and the Democratic Republic of the Congo. Luanda is the capital and most populous city.
Angola has been inhabited since the Paleolithic period. Its emergence as a nation-state stems from Portuguese colonialism, which started in the 16th century with coastal colonies and commercial ports. European settlers eventually started to establish themselves in the interior throughout the nineteenth century. Due to opposition from local tribes like as the Cuamato, Kwanyama, and Mbunda, the Portuguese colony that became Angola did not have its current boundaries until the early twentieth century.
Angola gained independence in 1975 as a Marxist–Leninist one-party republic after a lengthy anti-colonial struggle. The same year, the country descended into a devastating civil war between the ruling People's Movement for the Liberation of Angola (MPLA), backed by the Soviet Union and Cuba, and the insurgent anti-communist National Union for the Total Independence of Angola (UNITA), backed by the US and South Africa, and the militant National Liberation Front of Angola (FNLA), backed by the Democratic Republic of the Congo. Since attaining independence in 1975, the nation has been controlled by the MPLA. Angola emerged as a reasonably stable unitary, presidential constitutional republic after the conclusion of the conflict in 2002.
Angola has vast mineral and petroleum reserves, and its economy is among the fastest-growing in the world, particularly since the end of the civil war; however, economic growth is highly uneven, with the majority of the country's wealth concentrated in a disproportionately small sector of the population and heavily concentrated in China and the United States. Most Angolans continue to live in poverty; life expectancy is among the lowest in the world, and infant mortality is among the greatest. Since 2017, the administration of Joo Lourenço has made tackling corruption a priority, so much so that several former government officials are either imprisoned or awaiting prosecution. While foreign ambassadors have recognized this endeavor as legal, other critics believe the efforts are politically motivated.
Angola is a member of the United Nations, the Organization of Petroleum Exporting Countries, the African Union, the Community of Portuguese Language Countries, and the Southern African Development Community. Angola's population is expected to reach 32.87 million by 2021. Angola is a multiethnic and cosmopolitan country. Angolan culture shows centuries of Portuguese influence, including the dominance of the Portuguese language and the Catholic Church, interwoven with a wide range of indigenous customs and traditions.
After one year of service, employees are entitled to 22 days of paid vacation.
In Angola, there are twelve public holidays.
Employees at large to medium-sized companies are paid in full for the first two months of sickness and 50% for the third and twelfth months. Small company employees get 50% pay for 90 days.
Maternity leave lasts three months and will begin as early as four weeks before the due date. Maternity leave is shortened to four months for simultaneous births. The leave is limited to 45 days in the case of stillbirth.
Maternity leave pay is calculated using the cumulative earnings of the preceding six months.
Angola has no provisions in the law regarding paternity leave.
Angola has no provisions in the law regarding parental leave.
When an employer asserts fair cause for dismissal, the employee is entitled to a hearing. If a judge decides against the employer, the employee is entitled to reinstatement and reimbursement for any missed earnings.
Employers must submit a justification for layoffs of five or less employees in writing to the employee representative body, which has seven days to react. The request is subsequently forwarded to the Ministry of Labor, which has ten days to intervene in order to halt the layoff. Absence of response is interpreted as acquiescence.
Employers must inform employees' representative bodies and provincial offices of the Ministry of Labor in the case of a significant group layoff to explain the cause for the layoffs.
For senior or middle management, the notice period must be 60 days. For general employees, the notice period must be 30 days.
The probation period in Angola can go up to two months.
The severance pay is tantamount to a month's pay for each year of seniority, up to a maximum of five years. Following that, it's 50% of monthly salary for the remainder of the year.
The working time of an employee is defined as the period of time between when the employee begins his/her work and when the employee completes his/her tasks.
An employee is permitted to work a maximum of 44 regular hours per week. Daily work hours cannot exceed eight hours. The weekly limit may be increased to 54 hours in the case of shift, modular, or variable work hours, such as when work is intermittent or requires the employee's mere presence. Part-time employment cannot be less than 5 hours per day, not including overtime.
The daily working hour limit may also be increased to nine hours per day, excluding overtime, if the work is intermittent or requires the employee's sole presence and the employer limits the work week to five consecutive days. The workweek is typically 5.5 days long (i.e from Monday to half Saturday).
When work is intermittent or requires the employee's sole presence and the employer employs shift, modular, or variable work hours, the daily work hour limit may be increased to ten hours.
Overtime work is defined as work performed in excess of the normal working hours. The maximum duration of overtime is set at two hours per day, forty hours per month, and two hundred hours per year.
Employees who work overtime are entitled to additional compensation. For large companies, an employee shall be paid 50% more than his or her normal hourly wage, 30% more than his or her normal hourly wage for medium-sized companies, 20% more than his or her normal hourly wage for small companies, and 10% more than his or her normal hourly wage for micro-companies, up to a maximum of 30 hours of overtime work per month.
For each hour worked in excess of 30 hours in a month, an employee shall be compensated at a rate of 75% of the normal hourly wage in large companies, 145 percent in medium-sized companies, 20% in small companies, and 10% in micro-companies.
If the overtime work is less than 15 minutes in duration, no payment at the overtime rate is required. Overtime work that exceeds 15 minutes but does not exceed 44 minutes will be counted as a half hour of work. Between 45 and 60 minutes of overtime work is considered one hour of work. For the purpose of calculating overtime pay, the weekly day or half-day of rest is considered a normal working day.
Angola's labor laws require employers to pay a monthly minimum wage that varies by industry. As of 2019, employees in the transportation, services, and manufacturing industries should earn at least 26,817 kwanza per month, while those in the extractive industry and trade should earn at least 32,181. Each of the other economic sectors generates a minimum of 21,454 kwanza per month.
Typically, employees who have worked for your company for at least one year are entitled to two bonuses: a holiday bonus and a Christmas bonus. The holiday bonus is equal to 50% of the employee's base salary, multiplied by the amount earned during the holiday period. The Christmas bonus is equal to 50% of the employee's December base salary.
The employer contributes 8% of the cost of healthcare via social security.
Legal entities in Angola are imposed a corporate tax rate of 30 percent.
Individuals in Angola are imposed income tax rates ranging from 0 to 17 percent. The actual percentage depends on the income bracket of the individual.
The value-added tax (VAT) or goods and sales tax (GST) in Angola is 10 percent.
Before you travel, make sure you have a pre-approved visa. Visas on arrival are not available without prior online pre-approval and payment to an Angolan embassy or consulate. For the most up-to-date information, go to the Angolan Embassy's website or the Angolan Migration Service's website for visas and visa pre-approval, or contact the nearest Angolan Embassy or Consulate. Visa processing or visa pre-approval can take several weeks. If you are traveling to Angola with minor children via South Africa, please be aware that additional documentation is required.
Foreign workers in Angola must have a valid work visa and must keep it current. Otherwise, you risk fines and arrest. Arrange for dependable and secure ground transportation from the airport ahead of time.
Foreigners have been detained without cause at the airport by immigration and customs officials, who have demanded gratuities before allowing them to enter or leave Angola. If you are harassed at a port of entry, request to speak with a an official.
Letter from the Angolan entity applying for a work permit
Application forms duly filled
A photocopy of the applicant’s passport with a validity of at least 18 months
Declaration by the applicant to abide by the laws of Angola
Declaration of no existence of family relations with Angola or foreign citizens living in Angola
Two passport-size photographs
Contract of employment or contract of the promise of employment
Extract from the criminal registry issued by authorities in the applicant’s country of residence
Certificate of good health issued by an official health institution in the applicant’s country of residence
Academic and professional certificates translated into Portuguese authenticated by a notary and the Consular and Diplomatic Mission of Angola
Curriculum vitae (CV)
Proof of the legal status of the contracting institution
Employment contracts in Angola allow foreign nationals to work on a fixed-term contract only. The general threshold is from three to thirty-six months
Angolan Kwanza (AOA)
While Angola is usually receptive to international investment, several areas require the establishment of a firm with a majority of Angolan owners. When determining how to incorporate a subsidiary in Angola, we suggest considering these considerations and determining the industry and kind of business you will perform prior to incorporation.
Additionally, it is essential to choose the appropriate place for your incorporation. Different cities or areas may have their own pricing structures, availability of services, and Angola supplementary legislation. If you are unfamiliar with the region, you should consult a specialist who can assist you in determining the most advantageous site for foreign subsidiaries.
Additionally, Angola permits businesses to establish as a limited liability corporation (LLC), branch office, or representative office. Each organization has its own set of pros and cons, but many businesses choose to organize as an LLC to maximize their operating flexibility in Angola.
The following are the processes for establishing your Angola subsidiary as an LLC:
1. Choosing a distinctive business name and obtaining the necessary certificates
2. Establishing a bank account in your own country, depositing your first money, and paying the registration charge
3. At the Guiche Unico, you may verify your company's documentation.
4. Obtaining the National Identification Number at the Guiche Unico
5. Notarizing and registering your business's draft papers
6. Obtaining a permit from the Ministry of Commerce to conduct commercial operations
7. Legalizing the inventory book with the Tax Department and the judge of the provincial court that has authority over the region around your business's headquarters
LLCs are subject to a slew of Angola subsidiary rules that must be adhered to in order to be compliant. To begin, you must fulfill the $1,000 minimum capital requirement. Historically, LLCs required at least two shareholders who were personally liable for their contributions to the business. However, the government recently established a legislation allowing single-shareholder firms with either natural or corporate shareholders.
Additionally, you will need a unique management structure to comply with Angola's subsidiary rules. A minimum of one management who is a natural person with full legal power is required for an LLC. The management does not have to be a stakeholder. After electing a management, you must convene a general meeting and elect a board of directors. While you are not needed to form an audit committee, you may be required to hire a chartered accountant depending on your annual revenue.
