Doing Business 2018 Angola
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Doing Business 2018 Angola
Page 1
Doing Business 2018 Angola
Economy Profile of Angola
Doing Business 2018 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, 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 and total tax 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 2018 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 distance to frontier 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.
The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance
observed on each of the indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is
reflected on a scale from 0 to 100, where 0 represents the lowest performance and 100 represents the frontier. The ease of doing business
ranking ranges from 1 to 190. The ranking of 190 economies is determined by sorting the aggregate distance to frontier scores, rounded to
two decimals.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2018 Angola
Ease of Doing Business in DB 2018 Rank
Region Sub-Saharan Africa
190 1
Angola
Income Category Lower middle income 175
DB 2018 Distance to Frontier (DTF)
Population 28,813,463
0 100
City Covered Luanda 41.49
DB 2018 Distance to Frontier (DTF)
0 100
76.84: Portugal (Rank: 29)
64.94: Botswana (Rank: 81)
64.89: South Africa (Rank: 82)
59.94: Namibia (Rank: 106)
50.43: Regional Average (Sub-Saharan Africa)
41.49: Angola (Rank: 175)
Note: The distance to frontier (DTF) measure shows the distance of each economy to the “frontier,” which represents the best performance observed on each of the
indicators across all economies in the Doing Business sample since 2005. An economy’s distance to frontier is reflected on a scale from 0 to 100, where 0 represents the
lowest performance and 100 represents the frontier. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Angola
1
28
55
80 81
82
Rank
103
109
134
136
165 168
163 172
183 180
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
Distance to Frontier (DTF) on Doing Business topics - Angola
100
80.09
80
68.80 69.54
60 55.00
DTF
44.08
40.86
40
25.28 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 2018 Angola
Starting a Business
This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized limited
liability company to start up and formally operate in 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 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 distance to frontier score for each indicator is the average of the scores obtained for each of the component indicators.
The most recent round of data collection for the project was completed in June 2017. 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) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
â—
Submitting all relevant documents and obtaining
all necessary clearances, licenses, permits and
The business:
certificates
â—
Submitting all required notifications and receiving - Is a limited liability company (or its legal equivalent). If there is more than one type
all necessary inspections of limited liability company in the economy, the most common among domestic firms
is chosen. Information on the most common form is obtained from incorporation
â—
Obtaining utility connections for water and
lawyers or the statistical office.
sewerage
- Operates in the economy’s largest business city and the entire office space is
â—
Registering and selling the warehouse after its approximately 929 square meters (10,000 square feet). For 11 economies the data
completion are also collected for the second largest business city.
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
Time required to complete each procedure
and has a start-up capital of 10 times income per capita and has a turnover of at
(calendar days)
least 100 times income per capita.
â—
Does not include time spent gathering information - Performs general industrial or commercial activities, such as the production or sale
â—
Each procedure starts on a separate day (2 of goods or services to the public. The business does not perform foreign trade
procedures cannot start on the same day) activities and does not handle products subject to a special tax regime, for example,
liquor or tobacco. It does not use heavily polluting production processes.
â—
Procedures fully completed online are recorded
- Leases the commercial plant or offices and is not a proprietor of real estate and the
as ½ day
amount of the annual lease for the office space is equivalent to 1 times income per
â—
Procedure is considered completed once final capita.
document is received - Does not qualify for investment incentives or any special benefits.
â—
No prior contact with officials - Has at least 10 and up to 50 employees one month after the commencement of
operations, all of whom are domestic nationals.
Cost required to complete each procedure (% of - Has a company deed 10 pages long.
income per capita)
The owners:
â—
Official costs only, no bribes
â—
No professional fees unless services required by - Have reached the legal age of majority. If there is no legal age of majority, they are
law or commonly used in practice assumed to be 30 years old.
- Are sane, competent, in good health and have no criminal record.
Paid-in minimum capital (% of income per capita - Are married and the marriage is monogamous and registered with the authorities.
â—
Funds deposited in a bank or with third party - Where the answer differs according to the legal system applicable to the woman or
before registration or up to 3 months after man in question (as may be the case in economies where there is legal plurality), the
incorporation answer used will be the one that applies to the majority of the population.
Page 5Doing Business 2018 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 Overall Best
Africa income Performer
Procedure – Men (number) 7 7.6 4.9 1.00 (New Zealand)
Time – Men (days) 36 24.0 8.5 0.50 (New Zealand)
Cost – Men (% of income per capita) 17.4 49.9 3.1 0.00 (United Kingdom)
Procedure – Women (number) 7 7.7 4.9 1.00 (New Zealand)
Time – Women (days) 36 24.1 8.5 0.50 (New Zealand)
Cost – Women (% of income per capita) 17.4 49.9 3.1 0.00 (United Kingdom)
Paid-in min. capital (% of income per capita) 0.0 25.6 8.7 0.00 (113 Economies)
Figure – Starting a Business in Angola and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
90.88: Portugal (Rank: 48)
80.09: Angola (Rank: 134)
79.97: South Africa (Rank: 136)
76.82: Regional Average (Sub-Saharan Africa)
76.22: Botswana (Rank: 153)
68.90: Namibia (Rank: 172)
Note: The ranking of economies on the ease of starting a business is determined by sorting their distance to frontier scores for starting a
business. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 6Doing Business 2018 Angola
Figure – Starting a Business in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
16
35
14
Cost (% of income per capita)
30
12
25
Time (days)
10
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 2018 Angola
Details – Starting a Business in Angola – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Search for a unique company name and pick up the certificate of 1 day Kz 500
availability (certidão da firma)
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 400 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 29,090.
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 2018 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 das Actividades
Comercais).
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 by the procedure)
Commercial Registry.
Takes place simultaneously with previous procedure.
Page 9Doing Business 2018 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 June 2017. 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.
â—
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
â—
Submitting all required notifications and receiving largest business city. For 11 economies the data are also collected for the second
all necessary inspections largest business city.
- Is 100% domestically and privately owned; has five owners, none of whom is a
â—
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
â—
Registering and selling the warehouse after its other employees who are technical or licensed experts, such as geological or
completion topographical experts.
- 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)
â—
Does not include time spent gathering information The warehouse:
â—
Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or stationery.
though procedures that can be fully completed - Will have two stories, both above ground, with a total constructed area of
online are an exception to this rule approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
â—
Procedure is considered completed once final meters (9 feet, 10 inches) high and will be located on a land plot of approximately
document is received 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
â—
No prior contact with officials
- Will have complete architectural and technical plans prepared by a licensed
Cost required to complete each procedure (% of architect. If preparation of the plans requires such steps as obtaining further
income per capita) documentation or getting prior approvals from external agencies, these are counted
as procedures.
â—
Official costs only, no bribes
- Will take 30 weeks to construct (excluding all delays due to administrative and
regulatory requirements).
Building quality control index (0-15)
â—
Sum of the scores of six component indices: The water and sewerage connections:
â—
Quality of building regulations (0-2) - Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Quality control before construction (0-1) 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
â—
Quality control during construction (0-3)
installed or built.
â—
Quality control after construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
â—
Liability and insurance regimes (0-2) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Professional certifications (0-4) 1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
gallons) a day.
- 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 2018 Angola
Dealing with Construction Permits - Angola
Standardized Company
Estimated value of warehouse AOA 26,086,177.20
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 10 14.8 12.5 7.00 (Denmark)
Time (days) 173 147.5 154.6 27.5 (Korea, Rep.)
Cost (% of warehouse value) 0.5 9.9 1.6 0.10 (5 Economies)
Building quality control index (0-15) 6.0 8.0 11.4 15.00 (3 Economies)
Figure – Dealing with Construction Permits in Angola and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
73.10: Portugal (Rank: 32)
72.27: Botswana (Rank: 59)
68.80: Angola (Rank: 80)
67.53: South Africa (Rank: 94)
66.10: Namibia (Rank: 107)
56.91: Regional Average (Sub-Saharan Africa)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their distance to frontier scores for
dealing with construction permits. These scores are the simple average of the distance to frontier scores for each of the component
indicators.
Figure – Dealing with Construction Permits in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
0.45
160
0.4
Cost (% of income per capita)
140
0.35
120
0.3
Time (days)
100
0.25
80 0.2
60 0.15
40 0.1
20 0.05
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 2018 Angola
Figure – Dealing with Construction Permits in Angola and comparator economies – Measure of Quality
15
10.5 11.0 11.0
Index score
10
8.0
6.0 6.5
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), currently at AOA 88.00, according to Despacho no. 174/11 of March 11, 2011.
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 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 and appear to be charged in a relatively random
fashion.
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
Page 12Doing Business 2018 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 2018 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; Fees
to be paid.
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 .
Page 14Doing Business 2018 Angola
Professional certifications index (0-4) 1.0
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 2018 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 June 2017. 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) construction company, the warehouse project and the utility connections are used.
â—
Submitting all relevant documents and obtaining
The construction company (BuildCo):
all necessary clearances and permits
â—
Completing all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the economy’s
receiving all necessary inspections largest business city. For 11 economies the data are also collected for the second
largest business city.
â—
Obtaining external installation works and possibly
- Is 100% domestically and privately owned; has five owners, none of whom is a
purchasing material for these works
legal entity. Has a licensed architect and a licensed engineer, both registered with
â—
Concluding any necessary supply contract and the local association of architects or engineers. BuildCo is not assumed to have any
obtaining final supply other employees who are technical or licensed experts, such as geological or
topographical experts.
Time required to complete each procedure
- Owns the land on which the warehouse will be built and will sell the warehouse
(calendar days)
upon its completion.
â—
Is at least 1 calendar day
The warehouse:
â—
Each procedure starts on a separate day
â—
Does not include time spent gathering information - Will be used for general storage activities, such as storage of books or stationery.
- Will have two stories, both above ground, with a total constructed area of
â—
Reflects the time spent in practice, with little
approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
follow-up and no prior contact with officials
meters (9 feet, 10 inches) high and will be located on a land plot of approximately
Cost required to complete each procedure (% of 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
warehouse is valued at 50 times income per capita.
income per capita)
- Will have complete architectural and technical plans prepared by a licensed
â—
Official costs only, no bribes architect. If preparation of the plans requires such steps as obtaining further
â—
Value added tax excluded documentation or getting prior approvals from external agencies, these are counted
as procedures.
The reliability of supply and transparency of - Will take 30 weeks to construct (excluding all delays due to administrative and
tariffs index (0-8) regulatory requirements).
â—
Duration and frequency of power outages (0–3)
The water and sewerage connections:
â—
Tools to monitor power outages (0–1)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
â—
Tools to restore power supply (0–1)
is no water delivery infrastructure in the economy, a borehole will be dug. If there is
â—
Regulatory monitoring of utilities’ performance no sewerage infrastructure, a septic tank in the smallest size available will be
(0–1) installed or built.
â—
Financial deterrents limiting outages (0–1) - Will have an average water use of 662 liters (175 gallons) a day and an average
wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
â—
Transparency and accessibility of tariffs (0–1)
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
Price of electricity (cents per kilowatt-hour)* gallons) a day.
- Will have a constant level of water demand and wastewater flow throughout the
â—
Price based on monthly bill for commercial
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
warehouse in case study
the sewerage connection.
*Note: Doing Business measures the price of
electricity, but it is not included in the distance to
frontier score nor the ranking on the ease of getting
electricity.
Page 16Doing Business 2018 Angola
Getting Electricity - Angola
Standardized Company
Price of electricity (US cents per kWh) 6.0
Name of utility Empresa Nacional de Distribuição de Electricidade (ENDE)
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 7 5.3 4.7 2 (United Arab
Emirates)
Time (days) 121 115.3 79.1 10 (United Arab
Emirates)
Cost (% of income per capita) 990.1 3737.0 63.0 0.00 (Japan)
Reliability of supply and transparency of tariff 0 0.9 7.4 8.00 (28 Economies)
index (0-8)
Figure – Getting Electricity in Angola and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
86.45: Portugal (Rank: 58)
78.12: Namibia (Rank: 68)
63.21: South Africa (Rank: 112)
59.38: Botswana (Rank: 124)
45.91: Regional Average (Sub-Saharan Africa)
44.08: Angola (Rank: 165)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their distance to frontier scores for getting
electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Page 17Doing Business 2018 Angola
Figure – Getting Electricity in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
120 1200
Cost (% of income per capita)
100 1000
80 800
Time (days)
60 600
40 400
20 200
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
3
2
0.9
1
0 0 0
0
Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa
Page 18Doing Business 2018 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 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 during or at
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 activate the customer in the Customer Management
System database and, consequently, to also activate the meter.
Takes place simultaneously with previous procedure.
Page 19Doing Business 2018 Angola
Details – Getting Electricity in Angola – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 0
Total duration and frequency of outages per customer a year (0-3) 0
System average interruption duration index (SAIDI) 5.2
System average interruption frequency index (SAIFI) 2.3
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 15.0
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) 0
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of No
supply?
Financial deterrents aimed at limiting outages (0-1) 0
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages No
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/categoria/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 2018 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 June 2017.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.
â—
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).
â—
Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. For 11
business citya. economies the data are also collected for the second largest business city.
- Are 100% domestically and privately owned.
â—
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.
â—
Does not include time spent gathering information
- Is fully owned by the seller.
â—
Each procedure starts on a separate day - though - Has no mortgages attached and has been under the same ownership for the past
procedures that can be fully completed online are 10 years.
an exception to this rule
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
â—
Procedure is considered completed once final - Is located in a periurban commercial zone, and no rezoning is required.
document is received - Consists of land and a building. The land area is 557.4 square meters (6,000
â—
No prior contact with officials square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
located on the land. The warehouse is 10 years old, is in good condition, has no
Cost required to complete each procedure (% of heating system and complies with all safety standards, building codes and legal
property value) requirements. The property, consisting of land and building, will be transferred in its
â—
Official costs only (such as administrative fees, entirety.
duties and taxes). - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
â—
Value Added Tax, Capital Gains Tax and illicit
any kind.
payments are excluded
- Will not be used for special purposes, and no special permits, such as for
Quality of land administration index (0-30) residential use, industrial plants, waste storage or certain types of agricultural
activities, are required.
â—
Reliability of infrastructure index (0-8) - Has no occupants, and no other party holds a legal interest in it.
â—
Transparency of information index (0–6)
â—
Geographic coverage index (0–8)
â—
Land dispute resolution index (0–8)
â—
Equal access to property rights index (-2–0)
Page 21Doing Business 2018 Angola
Registering Property - Angola
Standardized Company
Property value AOA 26,086,177.20
City Covered Luanda
Indicator Angola Sub-Saharan OECD high Overall Best
Africa income Performer
Procedures (number) 7 6.2 4.6 1.00 (4 Economies)
Time (days) 190 59.3 22.3 1.00 (3 Economies)
Cost (% of property value) 2.9 7.8 4.2 0.00 (5 Economies)
Quality of the land administration index (0-30) 7.0 8.6 22.7 29.00 (Singapore)
Figure – Registering Property in Angola and comparator economies – Ranking and DTF
DB 2018 Distance to Frontier (DTF)
0 100
79.43: Portugal (Rank: 28)
65.45: Botswana (Rank: 81)
58.43: South Africa (Rank: 107)
51.71: Regional Average (Sub-Saharan Africa)
40.86: Angola (Rank: 172)
38.35: Namibia (Rank: 175)
Note: The ranking of economies on the ease of registering property is determined by sorting their distance to frontier scores for registering
property. These scores are the simple average of the distance to frontier scores for each of the component indicators.
Figure – Registering Property in Angola – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
2.5
180
160 Cost (% of income per capita)
2
140
120
Time (days)
1.5
100
80
1
60
40 0.5
20
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 22Doing Business 2018 Angola
Figure – Registering Property in Angola and comparator economies – Measure of Quality
30
25
Index score 20.0
20
15 13.5
10.0
10 8.5 8.6
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 4 to 6 months AOA 1,500
Agency : Tax Office (Repartição Fiscal) (simultaneous with
An updated tax certificate is obtained from the relevant Tax Office, detailing the procedure 2 and 3)
description of the property (Certidão Matricial). An important piece of information to
obtain from the tax certificate is whether the property was ever confiscated by the State
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 Offical
Gazette (Diario da Republica) to confirm that there were no confiscation dispatches
covering the property. 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 4500
Agency : Real Estate Registry (Conservatória do Registo Predial) (simultaneous with
An updated certificate of the property ("certidão predial") is obtained from the relevant Procedure 1 and 3)
Real Estate Registry. It sets out a 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 Tax Authority conducts an inspection to determine the value of the 1 day (simultaneous no cost
property with 1 and 2)
Agency : Tax office (Repartição Fiscal)
An inspection needs to be conducted by the tax authority in order to evaluate the value of
the property.
4 Pay transfer tax (Sisa) 7 days 2% of property value
Agency : Tax Authority (Repartição Fiscal) (transfer tax, Sisa)
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 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 2018 Angola
5 Execute the deed of transfer before a notary public 7 days Notary fees and
Agency : Real Estate Registry (Conservatória do Registo Predial) stamp duty (0.3% of
A notary public executes the deed of transfer. The 0.3% Stamp Duty is paid to the notary property value) are
according to the property value stated on the transfer tax (Sisa) receipt, together with the paid at the Notary.
notary fees (which depend on the value of the transaction, but also on the notary office
and the number of pages being notarized).
Notary fees are
calculated according
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. to Joint Executive
Decree 52/03 of
September 9, 2003
The documentation shall include: (taking into account 1
UCF is AOA 88):
• Proof of payment of transfer tax (obtained in Procedure 4) (1) For each
notarization, 80 UCF
• Updated registry certificate from Land Registry (obtained in Procedure 2) (2) For each page or
fraction, 10 UCF
• Updated tax certificate from Tax Office (obtained in Procedure 1)
(3) Depending on the
value of the property,
• Personal identification documents of the buyer and seller (passports, identity card, etc.)
the following cost will
• Registry of Companies' Certificates if seller and buyer are companies, so as to provide be added:
evidence that the officer executing the deed on behalf of the corresponding company has property value up to
authority to do so. 60 UCF, plus 6 UCF;
from 60 UCF to 400
UCF, plus 9 UCF;
from 400 to 4000
UCF, plus 10 UCF;
over 4000 UCF, plus
0.05 UCF*((property
value/UCF) -
4000)/30)).
6 Receive definitive registration from the Real Estate Registry 3 weeks Cost set by decree
Agency : Real Estate Registry (Conservatória do Registo Predial) 116/11 (1766.47*88
The notarized deed certificate must be presented to apply for registration at the Land UCF= AOA
Registry Office. 155,449.36)
7 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.
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