Doing Business in Angola

Drew Donnelly
Published March 24, 2025
June 2, 2026

Do you want to expand your business into Angola, or hire employees there? Find out the key things you need to know about Angolan expansion below.

Angola Services

Content

10 minutes read

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Angola Economy Overview

Currency

Angolan Kwanza (AOA)

Working hours

44 hours/week

Public/bank holidays

12 public holidays

Capital

Luanda

Languages

Portuguese, Chokwe, Kikongo, and others.

Population

36 million

Minimum hourly salary

Kz 397.73

Tax year

1st Jan – 31st Dec

Date format

DD/MM/YYYY

Misclassification penalties

Angola’s labor market laws require that workers be classified correctly. Employers who misclassify employees as independent contractors can face penalties, including back payment of taxes and possible fines.

Fun fact

While Portuguese is the official language, Angola boasts over 40 indigenous languages, reflecting its rich ethnic and cultural diversity.

If you’re thinking of doing business in Angola, you’ll be investing in an oil-rich nation with growing professional opportunities. Located on Africa’s West coast, Angola is classed as a middle-income country, but due to its thriving oil sector, the country reached an impressive GDP of $84.7 billion in 2023. Angola is ranked as Africa’s second-largest producer of oil, with over 90% of its exports attributed to the natural resources industry.

Angola has a high workforce participation rate, with more than 70% of its active population employed or seeking employment as first-time job seekers. Its inclusion of social and financial reforms has created a supportive business landscape and strengthened global investor confidence. Furthermore, Angola currently participates in the Southern African Development Community (SADC) and the African Union (AU), allowing businesses to pursue trade across regional markets. From a rapidly expanding economy and immense oil production to a hardworking labor force, discover the many reasons to do business in Angola and how you can expand in the country.

Overview of Angola's Economy

The major economic driver behind Angola’s rising GDP is the oil and gas sector. The oil-rich country has produced an average of 1.1 million barrels of oil per day since early 2024 and is expected to maintain this production level well into 2027. The country’s 2024 GDP per capita stood at $2.96 thousand, with its real GDP growth rate reaching 2.4% for the same year. In early 2024, Angola experienced its highest year-on-year GDP growth over the last nine years, at 4.1%. Angola is ranked 16th in the world as an oil producer and will continue to rely on oil exports to support and grow the economy.

Sector/Industry	Contribution/Significance
Oil & Gas	Accounts for 30-40% of GDP and over 90% of export earnings.
Mining	Significant diamond producer; expanding in gold, copper, and iron ore.
Agriculture	Employs more than 50% of the workforce; key crops include coffee and maize.
Fisheries	Growing sector contributing to food security and exports.
Construction & Infrastructure	Government investment in roads, bridges, and housing to boost economic growth.
Telecommunications	Rapid digital expansion and mobile penetration.
Banking & Financial Services	Reforms to modernize and stabilize the financial sector.
Renewable Energy	Hydropower projects and solar investments driving sustainable energy growth.

Despite its dominance in Africa’s oil and gas sector, Angola has also experienced success in emerging non-oil sectors. The West African country is rich in minerals, including copper, iron, and diamonds, and is a major exporter of diamonds and liquefied gas. Another favorable venture is the Single Investment Window that the government has developed for local and international business. The Single Investment Window makes the process of investing and integrating into the country easier and more efficient.

Taxes

Employer tax: 8%

Pension Fund

Health and Maternity Benefits

Unemployment Fund

1.5%

Occupational Hazard Insurance

0.5%

Employer tax: 3%

Pension Fund

2% of salary

Health and Maternity Benefits

1% of salary

Income tax

Angola employs a Personal Income Tax (PIT) is categorized into three groups, each with distinct taxation methods:

Group A: Pertains to employment income. Tax rates are progressive, ranging from 0% to 25%, based on monthly earnings.
Group B: Applies to self-employed individuals. Income is taxed at a 6.5% withholding tax if paid by entities with organized or simplified accounting. Otherwise, a 25% rate applies to taxable income determined through accounting records.
Group C: Covers individuals engaged in industrial or commercial activities listed in the minimum profits table. Taxable income is determined based on accounting records or deemed profits, with rates of 6.5% or 25%, depending on the presence of organized accounting and withholding tax applicability.

For Group A, income is taxed at progressive rates, reaching up to 25%.

Gross Income (AOA)

Up to 100,000

100,001 to 150,000

150,001 to 200,000

200,001 to 300,000

300,001 to 500,000

500,001 to 1,000,000

1,000,001 to 1,500,000

1,500,001 to 2,000,000

2,000,001 to 2,500,000

2,500,001 to 5,000,000

5,000,001 to 10,000,000

More than 10,000,001

Tax Rate

13% on the excess of 100,001

12,500 + 16% (excess of 150,001)

31,250 + 18% (excess of 200,001)

49,250 + 19% (excess of 300,001)

87,250 + 20% (excess of 500,001)

187,249 + 21% (excess of 1,000,001)

292,249 + 22% (excess of 1,500,001)

402,249 + 23% (excess of 2,000,001)

517,249 + 24% (excess of 2,500,001)

1,117,249 + 24.5% (excess of 5,000,001)

2,342,248 + 25% (excess of 10,000,001)

Overview of Angola's Business Regulation

To do business in Angola, businesses must abide by the General Labor Law of Angola. The new labor law was introduced on the 26th of March, 2024 to replace the 2015 Angolan General Labor Law. As the main employment law in the country, it governs the employer-employee relationship, work performed by nationals and foreign residents, and overall employee rights. Other laws that pertain to Angola’s business regulation include:

Investment laws

The Private Investment Law in Angola governs the principles of investments in the country and the infringements and penalties for failing to declare income, including the loss of concessions.

Taxation

Income tax rates include a minimum 17% levy for businesses and 20% for unincorporated businesses. Employees must pay income tax based on their income bracket, with a personal income tax rate of 25% since 2004.

Company Registration Process

In Angola, the Commercial Companies Law controls the legal status of companies in the country and protects the rights of minority shareholders.

Benefits of Doing Business in Angola

Doing business in Angola provides the benefits of investor-friendly policies, a robust economy, and a fairly stable political environment since the civil war ended in 2002. What is most favorable about the country is its abundance of natural resources, such as gas and oil reserves. As a major producer of crude oil in Africa, Angola’s exports have allowed the economy to grow and strengthen year-on-year. This includes the export of machinery and chemicals to the U.S.

Along with its diamond and oil exports, Angola is strategically located in Southern Africa, making it easier to trade between Europe and Africa. Businesses can benefit from tax incentives on savings, pension funds, and individual deposits. Companies registered in Angola’s Free Zones can further benefit from reductions in customs and property tax.

In Angola, employees are progressively taxed based on their income brackets. The overall tax regime is fairly simple and consists of corporate tax at a standard rate of 25% and personal income tax based on earnings. Individuals who earn less than 70,000 AOA are tax-exempt.

Downsides of Doing Business in Angola

While Angola offers a multitude of promising business opportunities, the country is still plagued by infrastructure challenges, corruption, and a complex bureaucracy. Because Angola is heavily dependent on oil, it experiences significant downturns when external economic factors impact the market.

Despite the country making significant strides in establishing a multi-party political regime, it remains democratically restricted, requiring ongoing reforms to uphold the rights of citizens.

Successfully doing business in Angola can be time-consuming and expensive, particularly when you are unfamiliar with local customers, business processes, and employment regulations. As Portuguese is predominantly spoken in Angola, employees require Portuguese and English translations.

The best way to invest and expand in the country is to partner with service providers such as an Employer of Record (EOR) in Angola to guide you through the legal steps of expansion and hiring a workforce.

International Expansion into Angola

If you wish to expand internationally into Angola, take some time to consider the location, as each region has its own set of business regulations and accompanying costs. The following legal entities are the most common types of businesses to register in Angola:

Angola Employer of Record (EOR)

For quick market entry without having to establish a legal entity, an EOR in Angola is recommended. EORs serve as the legal employer on behalf of your company in the country. They can onboard employees, help with drafting employment contracts, and they can manage payroll, tax, and HR functions.

Recruitment Agencies

Recruitment agencies in Angola help businesses expand by connecting them with skilled local talent across various industries.

RemotePeople provides recruitment solutions that simplify hiring and ensure compliance with Angolan labor laws.

For businesses looking to grow in Angola, RemotePeople offers the expertise and resources needed to build a local workforce quickly and effectively, making it a practical solution for market expansion.

Angola Professional Employment Organization (PEO)

A PEO in Angola will act as your co-employer as they advise on compliance measures, and they tend to your HR needs. Hiring a PEO is a good idea when you’ve just launched a business in Angola and require professional assistance with employment matters such as recruitment and payroll while you focus on your business’s core objectives.

Subsidiary Incorporation

You can set up subsidiaries such as Private Limited Liability Companies (LLCs), also known as Sociedades por Quotas, and Public LLCs in Angola. The registration process includes a minimum capital investment of $1000, two shareholders, if not a single shareholder company, and a uniquely registered name.

Subsidiary registration in Angola requires the submission of the Articles of Association and Memorandum. The company must register for VAT and open a corporate banking account. The Commercial Company and Registration Portal in Angola provides a breakdown of processes to follow when setting up a subsidiary.

Branch office / Representative Office Registration

For companies expanding operations without full incorporation, branch registration is an option. This process involves the selection of a branch name, the verification of documents with the Guiche Unico, and obtaining a commercial permit from the Ministry of Commerce. You must register for social security and tax with the Angolan Tax Administration.

Business Opportunities in Angola

Angola is recognized as one of Africa’s leading oil and natural mineral exporters, and it has business and tax incentives for expansion into the country. With an active workforce, growing GDP, and low startup costs, more international investors are finding opportunities to start businesses in the country.

Angola’s wealth of natural resources, large youth population, and strategic location along the Atlantic coast provide a fertile environment for business opportunities. As the country continues to diversify beyond oil, sectors such as agriculture, infrastructure, energy, and technology present significant investment potential. The government is actively encouraging foreign direct investment (FDI) through tax incentives, public-private partnerships (PPP), and streamlined business regulations.

Business Opportunity	Reason for Opportunity
Agriculture & Agribusiness	Large arable land; focus on food security and reducing imports.
Renewable Energy	Expanding hydropower and solar initiatives to boost electricity access.
Infrastructure Development	High demand for roads, ports, and housing projects.
Mining & Natural Resources	Untapped reserves of gold, copper, and diamonds.
Telecommunications & ICT	Growing mobile market and investment in fiber optic networks.
Logistics & Transport	Port expansions and development of regional trade corridors.
Healthcare	Demand for hospitals, medical equipment, and pharmaceuticals.
Tourism & Hospitality	Increasing potential in eco-tourism and cultural tourism.

However, apart from the benefits of its business environment, some consideration must be made for Angola’s challenges in political stability and tackling corruption. While Angola primarily relies on oil to keep the country economically afloat, today, the West African country’s economy is driven by diamond, fish, and coffee exports.

To help you establish and expand your workforce in Angola, why not hire a professional EOR who can maintain legal compliance, hire a remote workforce, and oversee payroll and tax registrations? To simplify this process, you can rely on RemotePeople to find the perfect EOR partnership in Angola, ensuring that you maximize your business investment and long-term success.