Angola Economy Profile - Doing Business 2019
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
Doing Business 2019 Angola
Economy Profile
Angola
Page 1
Doing Business 2019 Angola
Economy Profile of Angola
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Angola
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Angola
Ease of Doing Business in
Region Sub-Saharan Africa DB 2019 Rank
190 1
Angola
Income Category Lower middle income 173
DB 2019 Ease of doing business score
Population 29,784,193
0 100
City Covered Luanda 43.86
DB 2019 Ease of Doing Business Score
0 100
76.55: Portugal (Rank: 34)
66.03: South Africa (Rank: 82)
65.40: Botswana (Rank: 86)
60.53: Namibia (Rank: 107)
51.61: Regional Average (Sub-Saharan Africa)
43.86: Angola (Rank: 173)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Angola
1
28
55
82 87 89
Rank
104
109
139
136
152
163 170 168
174
184 186
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Angola
100
80.52
80
68.93 69.54
Score
60 54.08 55.00
43.16
40 36.15
26.26
20
5.00
0.00
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Angola
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Angola
Starting a Business - Angola
Standardized Company
Legal form Sociedade por Quotas de Responsabilidade Limitada (LDA)
Paid-in minimum capital requirement AOA 0
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedure – Men (number) 7 7.4 4.9 1 (New Zealand)
Time – Men (days) 36 23.3 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 13.9 44.4 3.1 0.0 (Slovenia)
Procedure – Women (number) 7 7.6 4.9 1 (New Zealand)
Time – Women (days) 36 23.4 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 13.9 44.4 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 10.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Angola and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
90.89: Portugal (Rank: 57)
81.22: South Africa (Rank: 134)
80.52: Angola (Rank: 139)
78.52: Regional Average (Sub-Saharan Africa)
76.22: Botswana (Rank: 157)
69.06: Namibia (Rank: 172)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Angola
Figure – Starting a Business in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
14
35
12
Cost (% of income per capita)
30
25 10
Time (days)
20 8
15 6
10 4
5 2
0 0
1 2 3 4 5 6 *7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Angola
Details – Starting a Business in Angola – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a certificate of availability for the company name (certidão da firma) 1 day Kz 500
Agency : One-stop shop (Ficheiro Central de Denominações Sociais, Guichê
Único da Empresa)
The availability of the company name must be verified at the commercial registry
(Ficheiro Central de Denominações Sociais), affiliated with the Ministry of
Justice.
To obtain the company name certificate (certificado de admissibilidade da firma),
an application (with copy of identification attached) must be filed with the One-
stop shop (Guichê Único da Empresa), 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
A fee of Kz 500 applies for the form of the company name certificate. For name
changes or reservations without the incorporation of a new company, the
Certificate would have a cost of Kz 29,040.
2 Pay the registration fee 1 day Kz 12,000
Agency : One-stop shop (Guichê Único da Empresa)
Fees are paid at the bank counter within the one-stop shop (Guichê Único da
Empresa) 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.
The cost of incorporating a Sociedade por Quotas de Responsabilidade Limitada
(LDA) is Kz. 12,000 (10,000 for incorporation, 1,000 for GUE service fee and
1,000 for the publication in the official gazette).
3 Obtain the company's articles of association at the One-stop shop (Guichê 1 day included in procedure
Único da Empresa) 2
Agency : One-stop shop (Guichê Único da Empresa)
In order to prepare the company's articles of association to incorporate a new
company, there are have 2 options: either to resort to a lawyer's services to draft
the company documents or to fill in the standard documents offered by the One-
stop shop. If the business founder decides to use the standard Statutes of
Association from the One-stop shop or Guichê Único da Empresa (2 pages), it
can be done directly at the agency. The applicant must enter the required
information (associates` ID, address, activities of company) and confirm that the
articles are applicable to the type of company as the Guichê has 4 different types
of statutes. The business founder will then obtain the prepared documents. In the
case statutes are prepared by a lawyer, the process might take an additional time
for lawyers` review of the documents.
4 Obtain the company's tax ID (NIF) 1 day no charge
Agency : Tax authorities at the One-stop shop (Guichê Único da Empresa)
Once documents are verified and completed, applicants must apply at the
section of the National Tax Office (Direcção National dos Impostos) within the
One-stop shop to obtain the National Identification Number (NIF).
Page 8Doing Business 2019 Angola
5 Notarize the company's documents and register the company 2 days included in procedure
Agency : One-stop shop (Guichê Único da Empresa) 2
The applicant must submit the company's documents to the Notary Public at the
One-stop shop or Guichê Único da Empresa. Once the Notary reviews the
dossier, he will have a reading with the applicant present or the accredited
person to ensure that there are no mistakes. This service fee is included in the
Guichê fees and this takes one day, depending on room availability and
complexity of the company’s Articles of incorporation.
Once the documents are reviewed, the notary makes 4 copies which are signed
and sent to each of the agencies involved for approval and filing. Copies are
distributed to the representatives of the Commercial Registry, the National Press
(Imprensa 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 Imprensa
National, the receipt is sufficient to continue the process. Despite the fact that law
says that documents should be published before getting the license to operate,
the system at Imprensa National makes it unlikely for daily or weekly publication,
therefore the Ministry of Commerce uses the receipt as proof.
For company and employee registration with Social Security, the required forms
must be downloaded, completed and presented to the One-stop shop, so that
they can be submitted to the relevant authority.
Each of the organizations mentioned above has a representative within Guichê
Único da Empresa with authority to deliver the accreditation that the step has
been accomplished.
6 Obtain the Commercial Operations Permit from the Ministry of Commerce Between 15-45 days see procedure details
Agency : Ministry of Commerce at the One-stop shop (Guichê Único da
Empresa)
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 representation of the Ministry of Commerce at the One-
stop Shop (Guiché Único):
(a) Commercial Registration Certificate, with the enrollment of the company’s
managers;
(b) Identification of the managers: copy of ID card for nationals; and copy of
residency permit or passport with updated work permit for foreign citizens.
(c) Number of mobile phone and email.
In order to obtain the license, some inspections to the facilities need to take place
in some businesses.
After the application for the Commercial Operational Permit, Ministry of
Commerce creates a username and password which enable the applicant to
check the status of the process online at SILAC (Sistema Integrado de
Licenciamento da Actividade Comercial).
The fee schedule is as follows:
199 square meters - Kz 10,000
200 - 499 square meters - Kz 35,000
500 - 999 square meters - Kz 75,000
1,000 - 1,999 square meters - Kz 200,000
Greater than 2,000 square meters - Kz 350,000
7 Legalize the company's minutes book with the Commercial Registry 1 day (simultaneous USD 20
Agency : Commercial Registry with previous
The Books for the General Assembly's minutes (livro de actas) must be legalized
procedure)
by the Commercial Registry.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2019 Angola
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 10Doing Business 2019 Angola
Dealing with Construction Permits - Angola
Standardized Warehouse
Estimated value of warehouse AOA 32,831,856
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 10 14.7 12.7 None in 2017/18
Time (days) 173 145.7 153.1 None in 2017/18
Cost (% of warehouse value) 0.4 8.8 1.5 None in 2017/18
Building quality control index (0-15) 6.0 8.5 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Angola and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
76.58: Botswana (Rank: 31)
73.17: Portugal (Rank: 60)
69.79: Namibia (Rank: 83)
68.93: Angola (Rank: 87)
68.25: South Africa (Rank: 96)
58.59: Regional Average (Sub-Saharan Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Angola – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
0.35
160
0.3
Cost (% of warehouse value)
140
0.25
120
Time (days)
100 0.2
80
0.15
60
0.1
40
0.05
20
0 0
1 2 *3 4 5 6 7 8 *9 * 10
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 11Doing Business 2019 Angola
Figure – Dealing with Construction Permits in Angola and comparator economies – Measure of Quality
15
12.0
10.5 11.0
Index score
10
8.5 8.5
6.0
5
0
Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa
Details – Dealing with Construction Permits in Angola – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a proof of title of property for the land 7 days AOA 4,500
Agency : Real Estate Registry of Luanda
Before obtaining the proof of title, BuildCo must also obtain the Usufruct of the
Land from the Instituto de Planeamento e Gestao Urbana de Luanda. This is
often a time-consuming procedure taking up to one year or more. However, it is
assumed in the case study that BuildCo already owns the land.
BuildCo must obtain a proof of title of property for the land from the Real Estate
Registry in Luanda. An updated certificate of the property ("certidão predial") 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 on the property.
The total fee for the "certidão predial" includes: stamp duty (calculated according
to the Law on Stamp Duty); justice fees (calculated according to the Law on
Justice Fees); fees to justice officers (according to the set contributions for the
Justice budget); notary fees and other fees. The total fee is also dependent on
the current value of the fiscal unit (UCF).
2 Submit an environmental impact study 15 days no charge
Agency : Ministry of Environment
According to Article 5 of Decree No. 51/04 of July 23, 2004, every project (private
or public) must present an Environmental Impact Study ("Estudo de Impacte
Ambiental") to the Ministry of Environment for their approval.
3 Obtain permission to build from Fire Department 5 days AOA 1,500
Agency : Fire Department
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 by any official fee schedule.
4 Obtain environmental impact study clearance 30 days no charge
Agency : Ministry of Environment
Once the Environmental Impact Study is submitted, it is sent directly to the
concerned authority by the Ministry of Environment for further study. If the project
is approved, a license is issued to the applicant. This license must be presented
to obtain the building permit.
5 Request license to build from the Provincial Government 60 days AOA 13,200
Agency : Provincial Government
To obtain the license to build, BuildCo must file its application and all required
documents with the Provincial Government.
6 Receive on-site inspection from the Provincial Government 1 day no charge
Agency : Provincial Government
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.
7 Request and receive final inspection by provincial authorities 30 days AOA 2,000
Agency : Provincial Government
Once the building is completed, the Luanda provincial government conducts a
final inspection. Several departments (the fire department, the engineering
department, and the town services department) and provincial authorities
conduct the final inspection jointly and issue their technical opinions. After the
inspection, the occupancy permit will be issued.
8 Request and obtain occupancy permit 30 days no charge
Agency : Provincial Government
BuildCo. will request an occupancy permit authorizing it to use the warehouse.
Page 12Doing Business 2019 Angola
9 Register the building with the Real Estate Registry 21 days AOA 105,600
Agency : Real Estate Registry of Luanda
The Real Estate Registry charges building registration fees that are in line with
taxes assessed on the building by the tax authorities.
Request and obtain water and sewage connection 10 days no charge
10 Agency : Empresa Provincial de Agua de Luanda (EPAL)
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.
Takes place simultaneously with previous procedure.
Page 13Doing Business 2019 Angola
Details – Dealing with Construction Permits in Angola – Measure of Quality
Answer Score
Building quality control index (0-15) 6.0
Quality of building regulations index (0-2) 1.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 0.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer; Private
firm.
Quality control during construction index (0-3) 0.0
What types of inspections (if any) are required by law to be carried out during construction? No inspections 0.0
(0-2) are legally
required during
construction..
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 0.0
inspections are
not always done
in practice during
construction;
Mandatory
inspections are
done most of the
time during
construction.
Quality control after construction index (0-3) 2.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, final 2.0
with the approved plans and regulations? (0-2) inspection is
done by
government
agency; Yes, in-
house engineer
submits report for
final inspection;
Final inspection
is not required by
law.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 0.0
does not always
occur in practice;
Final inspection
occurs most of
the time.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Professional in
charge of the
supervision;
Construction
company; Owner
or investor.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 1.0
Page 14Doing Business 2019 Angola
What are the qualification requirements for the professional responsible for verifying that the University degree 1.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) in architecture or
engineering;
Being a
registered
architect or
engineer.
What are the qualification requirements for the professional who supervises the construction Being a 0.0
on the ground? (0-2) registered
architect or
engineer.
Page 15Doing Business 2019 Angola
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
kilowatt (kW).
• Does not include time spent gathering
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The monthly consumption:
The reliability of supply and transparency of
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 16Doing Business 2019 Angola
Getting Electricity - Angola
Standardized Connection
Price of electricity (US cents per kWh) 4.6
Name of utility Empresa Nacional de Distribuição de Electricidade (ENDE)
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 7 5.2 4.5 3 (25 Economies)
Time (days) 121 112.0 77.2 18 (3 Economies)
Cost (% of income per capita) 786.7 3456.5 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff 3 1.6 7.5 8.0 (27 Economies)
index (0-8)
Figure – Getting Electricity in Angola and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
86.45: Portugal (Rank: 32)
78.25: Namibia (Rank: 71)
68.79: South Africa (Rank: 109)
59.43: Botswana (Rank: 133)
54.08: Angola (Rank: 152)
49.00: Regional Average (Sub-Saharan Africa)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 17Doing Business 2019 Angola
Figure – Getting Electricity in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
120 900
800
Cost (% of income per capita)
100
700
80 600
Time (days)
500
60
400
40 300
200
20
100
0 0
1 *2 3 *4 5 6 7
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Angola and comparator economies – Measure of Quality
8
8
7
6
6
Index score
5
4
4
3
3
2 1.6
1
0
0
Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa
Page 18Doing Business 2019 Angola
Details – Getting Electricity in Angola – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Hire electrical contractor to obtain permits 14 calendar days AOA 30,712
Agency : Department of Supervision and Licensing of the Ministry of Energy /
Electrical contractor
The electrical contractor, hired by the client, must obtain an electrical permit
(license for electrical works) and a license for exploitation at the Department of
Supervision and Licensing. For that he/she must prepare the technical terms of
reference and send them to the Department of Supervision and Licensing
(Departamento de Licenciamento e Fiscalizacao) of the Ministry of Energy for
approval and signature along with the following documents: Electrical plans,
company license, tax number, ID of the person, and some general letters
(application forms).
2 Receive external and internal inspection by department of Ministry of 1 calendar day AOA 0
Energy
Agency : Department of Supervision and Licensing of the Ministry of Energy
The Department of Supervision and Licensing conducts a site inspection as well
as an internal wiring inspection before signing the technical terms of reference.
Someone from the customer’s party has to be present.
3 Submit application to distribution utility and await response 7 calendar days AOA 20,309.22
Agency : Empresa Nacional de Distribuição de Electricidade (ENDE)
Once the technical terms of reference and the permits from the Department of
Supervision and Licensing have been obtained, the customer sends a letter to
ENDE, the electricity distribution company, to request a new connection.
Documents requested for the application are:
• A document containing the project of the warehouse
• Plan of the warehouse including fixed and non-fixed pieces
• License of establishment
• License of exploration
• Commercial license
• Tax card copy
• Copy of ID
• Terms of reference signed by the Department of Supervision and Licensing
4 Receive external site inspection by utility 1 calendar day AOA 0
Agency : Empresa Nacional de Distribuição de Electricidade (ENDE)
The distribution utility is performing an external site inspection to determine the
technical requirements for the connection. After the inspection, the customer
receives a letter from ENDE with the materials the electrical contractor needs to
buy. Someone from the customer’s side has to be present.
5 Carry out external works in accordance with utility's design 90 calendar days AOA 5,114,457
Agency : Empresa Nacional de Distribuição de Electricidade (ENDE)
Once the inspection has been completed, the electricity distribution utility, ENDE,
will design the external connection works which will be done by the electrical
contractor.
6 Receive internal wiring inspection by utility 7 calendar days AOA 0
Agency : Empresa Nacional de Distribuição de Electricidade (ENDE)
The customer has to request the internal inspection from the utility in writing dat
the end of the external connection works. The utility has to check the security of
the wires as the utility is liable.
7 Notify utility when works are done and await meter installation and final 3 calendar days AOA 0
connection
Agency : Empresa Nacional de Distribuição de Electricidade (ENDE)
Once the external connection works are finished, the electrical contractor or the
customer himself has to notify the utility that the works are done. For this type of
connection, it is the direct responsibility of ENDE to log the customer's
information in the Customer Management System database and, consequently,
to also activate the meter.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2019 Angola
Details – Getting Electricity in Angola – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 3
Total duration and frequency of outages per customer a year (0-3) 1
System average interruption duration index (SAIDI) 0.9
System average interruption frequency index (SAIFI) 5.5
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 3.0
Mechanisms for monitoring outages (0-1) 0
Does the distribution utility use automated tools to monitor outages? No
Mechanisms for restoring service (0-1) 0
Does the distribution utility use automated tools to restore service? No
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 0
Are effective tariffs available online? Yes
Link to the website, if available online http://www.irsea.gov.
ao/tarifas/
Are customers notified of a change in tariff ahead of the billing cycle? No
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 20Doing Business 2019 Angola
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 21Doing Business 2019 Angola
Registering Property - Angola
Indicator Angola Sub-Saharan OECD high Best Regulatory
Africa income Performance
Procedures (number) 6 6.2 4.7 1 (4 Economies)
Time (days) 190 53.9 20.1 1 (New Zealand)
Cost (% of property value) 2.8 7.6 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 7.0 8.8 23.0 None in 2017/18
Figure – Registering Property in Angola and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
78.36: Portugal (Rank: 36)
65.43: Botswana (Rank: 80)
59.32: South Africa (Rank: 106)
52.62: Regional Average (Sub-Saharan Africa)
43.16: Angola (Rank: 170)
40.19: Namibia (Rank: 174)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Angola – Procedure, Time and Cost
Time (days) Cost (% of property value)
2.5
180
160
Cost (% of property value)
2
140
120
Time (days)
1.5
100
80
1
60
40 0.5
20
0 0
1 *2 3 4 5 6
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 22Doing Business 2019 Angola
Figure – Registering Property in Angola and comparator economies – Measure of Quality
30
25
Index score 20.0
20
15.0
15
10.0 9.5
10 8.8
7.0
5
0
Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa
Details – Registering Property in Angola – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain an updated tax certificate from the Tax Office 150 days AOA 1,500
Agency : Tax Office (Repartição Fiscal)
An updated tax certificate is obtained from the relevant Tax Office, detailing the
description of the property (Certidão Matricial). An essential piece of information
to get from the tax certificate is whether the State has ever confiscated the
property upon freedom from Portugal. Sometimes this information will not be
included in the tax certificate. In this case, the buyer or his/her lawyer has to
search the records of the Official Gazette (Diario da Republica) to confirm that no
confiscation dispatches were covering the property.
The time for obtaining the Certidão Matricial could vary from 7 days to 150 days,
based on the records of the property kept at the Tax Authority. If the Tax
Authority has all the information and description of the property, and only an
update of information is needed, to expedite the certificate could take between 1
or 2 weeks. However, for cases where the Tax Authority doesn't have any
records of the property, an inspection must be conducted in order to establish the
value of the property and to generate the Certidão Matricial. Given that still many
properties have not been registered, the second case scenario applies to most
situations in Luanda, which can take up to 150 days.
The Certidão Matricial contains the name of the current owner and an estimated
value of the property.
2 Obtain an updated ownership certificate from the Registry 7 days AOA 4,500
Agency : Real Estate Registry (Conservatória do Registo Predial)
An updated certificate of the property ("certidão predial") is obtained from the
relevant Real Estate Registry. It sets out full description of the property, including
information of its owner and any charges, liens or encumbrances pending over
the property.
The total fee for the "certidão predial" includes: (i) Stamp duty (calculated
according to the Law on Stamp Duty); (ii) Justice fees (calculated according to
the Law on Justice Fees); (iii) Fees to justice officers (according to the set
contributions for the Justice budget); (iv) Notary fees and (v) other fees. The total
fee is also dependent on the current value of the fiscal unit (UCF), currently at
AOA 88, according to Despacho No. 174/11 of March 11, 2011.
3 Pay transfer tax (Sisa) 7 days AOA 656,637.12; (2%
Agency : Tax Authority (Repartição Fiscal) of property value
A statement by the seller setting out the sales value or a copy of the Promissory
(transfer tax, Sisa))
Agreement of Sale and Purchase signed by both parties has to be presented to
the tax authorities. The chief official of the tax administration office has to agree
to the value of the transaction. If the tax authorities deem it necessary, an
inspector may go to evaluate the property for tax purposes. Once the value of the
transaction has been agreed to by the tax authorities, the Sisa tax will be applied
to that value. The tax authorities will issue a receipt upon payment of the transfer
tax (Sisa), which will be given to the notary public as part of Procedure 5.
Typically, the transfer tax 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.
Page 23Doing Business 2019 Angola
4 Execute the deed of transfer before a notary public 7 days AOA 98,495.57;
Agency : Real Estate Registry (Conservatória do Registo Predial) (Notary fees and
A notary public executes the deed of transfer. The 0.3% Stamp Duty is paid to
stamp duty (0.3% of
the notary according to the property value stated on the transfer tax (Sisa)
property value) are
receipt, together with the notary fees (which depend on the value of the
paid at the Notary.)
transaction, but also on the notary office and the number of pages being
notarized).
After the signature of the deed, the buyer will be the legal owner of the property.
Registration is needed for publicity purposes and protection against third parties.
The documentation shall include:
• Proof of payment of transfer tax (obtained in Procedure 4)
• Updated registry certificate from Land Registry (obtained in Procedure 2)
• Updated tax certificate from Tax Office (obtained in Procedure 1)
• Personal identification documents of the buyer and seller (passports, identity
card, etc.)
• Registry of Companies' Certificates if seller and buyer are companies, to
provide evidence that the officer executing the deed on behalf of the
corresponding company has authority to do so.
5 Receive definitive registration from the Real Estate Registry 21 days AOA 155,449.36;
Agency : Real Estate Registry (Conservatória do Registo Predial) (Cost set by decree
The notarized deed certificate must be presented to apply for registration at the
116/11 (1766.47*88
Land Registry Office.
UCF= AOA
155,449.36))
6 Apply for definitive registration at the Tax Office 5 days AOA 175
Agency : Tax Office (Repartição Fiscal)
At the tax office, there is only final registration. Provisional registration is no
longer applicable, as final registration has become considerably faster.
Takes place simultaneously with previous procedure.
Page 24Doing Business 2019 Angola
Details – Registering Property in Angola – Measure of Quality
Answer Score
Reliability of infrastructure index (0-8) 1.0
What is the institution in charge of immovable property registration? Conservatoria do
Registo Predial
de Luanda
In what format are the majority of title or deed records kept in the largest business city—in a Computer/Scann 1.0
paper format or in a computerized format (scanned or fully digital)? ed
Is there an electronic database for checking for encumbrances (liens, mortgages, restrictions No 0.0
and the like)?
Institution in charge of the plans showing legal boundaries in the largest business city: Repartição das
Finanças de
Luanda
In what format are the majority of maps of land plots kept in the largest business city—in a Paper 0.0
paper format or in a computerized format (scanned or fully digital)?
Is there an electronic database for recording boundaries, checking plans and providing No 0.0
cadastral information (geographic information system)?
Is the information recorded by the immovable property registration agency and the cadastral Separate 0.0
or mapping agency kept in a single database, in different but linked databases or in separate databases
databases?
Do the immovable property registration agency and cadastral or mapping agency use the No 0.0
same identification number for properties?
Transparency of information index (0–6) 2.0
Who is able to obtain information on land ownership at the agency in charge of immovable Anyone who 1.0
property registration in the largest business city? pays the official
fee
Is the list of documents that are required to complete any type of property transaction made Yes, on public 0.5
publicly available–and if so, how? boards
Link for online access:
Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5
immovable property registration in the largest business city made publicly available–and if boards
so, how?
Link for online access:
Does the agency in charge of immovable property registration commit to delivering a legally No 0.0
binding document that proves property ownership within a specific time frame–and if so, how
does it communicate the service standard?
Link for online access:
Is there a specific and separate mechanism for filing complaints about a problem that No 0.0
occurred at the agency in charge of immovable property registration?
Contact information:
Are there publicly available official statistics tracking the number of transactions at the No 0.0
immovable property registration agency?
Number of property transfers in the largest business city in 2017:
Who is able to consult maps of land plots in the largest business city? Only 0.0
intermediaries
and interested
parties
Is the applicable fee schedule for accessing maps of land plots made publicly available— Yes, in person 0.0
and if so, how?
Link for online access:
Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0
specific time frame—and if so, how does it communicate the service standard?
Page 25You can also read
