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Investment & Legal Framework
c) Application of funds qualified as reinvestment
d) Importation of machinery, equipment, tools and
other fixed assets
e) Importation of technology and know-how, provided
that these represent a value added to the project and
are quantified in monetary terms
3. Investment value and main requirements
This law is only applicable for investments of at least
one million US dollars, or its equivalent in local cur-
rency, applicable for internal investments.
The repatriation of profits and dividends overseas will
be proportionally allowed if related to external invest-
ments, provided that the beneficiary has invested at
least one million US dollars.
For investments of an amount less than that minimum,
this law is not applicable and therefore the investor will
not have the right to transfer dividends and profits, nor
any of the other tax benefits that are specified in this
law. According to the law, these smaller investments
will be ruled by the normal trading legislation and by
the legislation of the applicable company.
The Company Law does not prohibit foreign compa-
nies to be registered in Angola. However up until now,
it was common for all notaries and registrar officers to
request prior investment authorization before proceed-
ing with the incorporation of companies, share trans-
fers and branch registration. We are not aware if this
practice will still be applied but the new law 20/11 is
clear that the Company Law will be applied, and does
not refer to any potential for further regulation on this
subject.
4. Investment operations
Law 20/11 defines, in articles 10 and 12, internal and
external investment operations. We understand that
these operations consist in legal acts that materialize
national and foreign investments.
Such operations are:
a) Utilization of national currency or freely convertible
currency within the national territory, for internal invest-
ments, and foreign currency for external investments
only
b) Acquisition of technology and know-how. For exter-
nal investments, this operation should bring value to
the project and be quantifiable in monetary terms;
c) Acquisition/importation of equipment and machin-
ery, whenever it relates to internal or external invest-
ments
d) Conversion of credits resulting from any type of con-
tracts (only applicable to internal investments)
e) Participation in the capital of Angolan registered
companies
f) Application of financial resources resulting from
loans, including loans obtained overseas, where prior
approval of the respective contract is required (only
applicable to internal investments)
g) Creation of new Angolan registered companies
owned by private investors (internal or external)
h) Improvement of existing companies (only applicable
to internal investments)
i) Acquisition of shares in companies or groups of com-
panies (existing or new) irrespective of their nature
j) Signing of consortiums, associations, joint ventures
k) Acquisition of industrial or commercial establish-
ments, through the acquisition of assets or through
the signing of cession agreements (cessão de ex-
ploração)
l) Acquisition of agricultural plots of land, through leas-
es or any other land rights
m) Exploration of immovable property or tourist pro-
jects, irrespective of their legal nature
n) Realization of additional capital infusions
(prestações suplementares), advances from share-
holders, and in general, all loans connected with the
participation in profits
o) Acquisition of immovable property, whenever this
acquisition is aligned with private investments
p) Acquisition of a right to utilize land, licensed technol-
ogy and trademarks, whose compensation is restrict-
ed to the distribution of profits as a result of the activity
for which such licenses were granted, (only applicable
to internal investments)
q) Assignment of the exploration of rights concerning
the concession, licensing and rights of an economic,
commercial or technological nature (only applicable to
internal investments)