The proposal to revise the Private Investment Law that the Angolan government plans to submit to parliament removes the requirement for national partners to hold a stake of at least 35% in the share capital of the companies, a measure intended to improve the attraction of foreign direct investment, according to the document.
“It should be noted that the draft of the new law eliminates the mandatory limits of the participation of nationals in the capital stock stipulated in article 9 of the current law, because it is intended to highlight the freedom of shareholders to decide on the capital structure of their enterprises,” the Angolan government document said, quoted by Portuguese state news agency Lusa.
Article 9 of the Private Investment Law, which has been in force since 2015, expressly states that foreign investment in Angola “is only permitted in the case of partnership with Angolan citizens, public capital companies or Angolan companies, which hold at least 35% of the share capital and participate effectively in the management reflected in the shareholders’ agreement.”
The guarantee by the State of “non-public interference in the management of private companies” and “non-cancellation of licenses without administrative or judicial process” is also assumed.
With regard to the transfer of profits and dividends, article 16 of the draft law grants foreign investors “the right to transfer abroad” dividends or distributed profits, the proceeds of the liquidation of its investments, capital gains, the proceeds of indemnities and royalties, or other income from remuneration of indirect investments related to technology transfer.
The proposal keeps in place the regime for granting tax benefits to investors, such as reducing tax payments for up to 10 years, depending on the amount of investment, sectors of activity and development zones, but provides, as does the current law, for a minimum investment, in this case of US$1 million. (macauhub)