Chapter I - General Provisions

Article 1 - Scope
Article 2 - Promotion of Foreign Investment
Article 3 - Permissability of Foreign Investment
Article 4 - Definitions
Article 5 - Foreign Investment Operations
Article 6 - Forms of Investment

ARTICLE 1
(Scope)

This Law sets out the foreign investment regime and procedures to be applied in the Republic of Angola.

ARTICLE 2
(Promotion of Foreign Investment)

The Government should promote and provide incentives for foreign investment that is consistent with the country's economic and social development and the general well-being of the population.

ARTICLE 3
(Permissibility of Foreign Investment)

1. Foreign investments are allowed to be made by suitably recognized entities with acknowledged technical and financial capacity, provided the investments are not contrary to:

a) the economic and social developments strategies defined by the competent sovereign bodies

b) the strategic guidelines and objectives set out in the economic policy programs;

c) current law

2. Foreign investment is prohibited in the following areas:

a) defense, internal public order and State security:

b) banking activities involving central bank and issuing bank function;

c) other areas which are considered by law to be absolutely reserved for the State.

ARTICLE 4
(Definitions)

For the purposes of this Law the following definitions shall apply:

a)Foreign investment - the introduction into and utilization in national territory of capital, equipment and other assets or technology, or the use of funds with rights to transfer them abroad, or eligibility to do so, under existing foreign exchange legi slation, by non residents individuals or entities, for the purposes of creating new companies, or groups of companies, branches or other forms of corporate representation of foreign companies, as well as for the total or partial acquiring of existing Ango lan companies of companies.

b) Foreign investor - any non-resident individual or entity, regardless of their nationality,

c) National investor - any resident individual or entity, regardless of their nationality;

d) Competent body - The body referred to in Article 49 of the present Law.

2. Investment by Angolan companies, or those established in Angola, shall also be considered foreign under the terms of part a) of the previous section if, as a result of majority ownership of their capital or any other form, they may be considered, as d irectly linked to non-resident individuals or entities.

3. For the purposes of this Law the terms "resident" and "non-resident" shall be applied to individuals or entities who are considered as such under the foreign exchange legislation.

ARTICLE 5
(Foreign Investment Operations)

Under the terms and for the purposes of the present Law, the following acts and contracts are considered as foreign investment activities, even if they are not directly linked with capital importing operations:

a) setting up and expansion of branches or other forms of corporate representation of foreign companies, creation of new companies that belong exclusively to the investor, and acquiring of all or portion of already existing companies or groups of companie s;

b) the holding or acquisition of an interest in the equity of a new or already existing company or group of companies, regardless of the form this may take;

c) entering into or alteration of consortium or association contracts with third parties by quotas or other capital shares;

d) total or partial takeover of commercial or industrial establishments, by acquiring assets or through contracts involving the transfer of operations;

e) total or partial takeover of agricultural companies, through leasing contracts or any other agreement that implies ownership or engaging in operations on the part of the investor;

f) operation of property complexes, whether or not for purposes of tourism, and regardless of their legal status;

g) realization of supplementary capital contributions, advances from partners and, in general, loans related to profit-sharing;

h) acquiring property in national territory when such acquisition forms part of a foreign investment project.

ARTICLE 6
(Forms of Investment)

1. Foreign investments may be made, singly or cumulatively, in the following ways:

a) transfer of funds from foreign countries;

b) investment of funds from foreign currency bank accounts set up in Angola by non-residents;

c) importing of equipment, accessories and materials;

d) incorporation of credits and other resources into Angola by foreign investors, which are eligible for transfer abroad under the terms of foreign exchange regulations;

e) incorporation of technology.

2. Foreign exchange transactions deriving from the acts enumerated above will be subject to the regulations set out in foreign exchange legislation.

Return to Angola's Foreign Investment Law

Proceed to Chapter II - Rights and Obligations