Doing Business 2018 Angola Economy Pro le 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 Procedures, time and cost to complete all formalities to build a warehouse and the quality control and permits 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 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 rms. 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 e cient regulation; o ers 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 o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent 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 rst 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 bene ted 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. Page 2   for insolvency Doing Business Labor market 2018 regulation Angola Flexibility in employment regulation and aspects of job quality 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 rms. 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 e cient regulation; o ers 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 o ers detailed subnational reports, which exhaustively cover business regulation and reform in di erent 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 rst 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 bene ted 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 re ected 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) Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Angola Income Category Lower middle income 175 Population 28,813,463 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 3,440 0 100 41.49 City Covered Luanda DB 2018 Distance to Frontier (DTF) 0 100 76.84: Portugal (Rank: 29) 64.94: Botswana (Rank: 81) 64.89: South Africa (Rank: 82) 59.94: Namibia (Rank: 106) 50.43: Regional Average (Sub­Saharan Africa) Page 3   41.49: Angola (Rank: 175) aggregate distance to frontier scores, rounded to two decimals. More Doingabout 2018 (PDF, Doing Business Business 5MB) Angola Ease of Doing Business in Region Sub-Saharan Africa DB 2018 Rank 190 1 Angola Income Category Lower middle income 175 Population 28,813,463 DB 2018 Distance to Frontier (DTF) GNI Per Capita (US$) 3,440 0 100 41.49 City Covered Luanda 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 (Sub­Saharan 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 re ected 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 Change:+3.24 Change:+0.22 Change:0.00 Investors Change:-0.44 Borders Change:0.00 Change:0.00 Change:+0.42 Permits Change:0.00 Change:+8.06 Change:+2.29 Starting a Business Page 4   This topic measures the paid-in minimum capital requirement, number of procedures, time and cost for a small- to medium-sized a with Electricity Property Credit Minority Taxes across Contracts Insolvency Business Construction Change:+3.24 Change:+0.22 Change:0.00 Investors Change:-0.44 Borders Change:0.00 Change:0.00 Change:+0.42 Permits Change:0.00 Change:+8.06 Doing Business 2018 Angola Change:+2.29 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 start and operate a To make the data comparable across economies, several assumptions company (number) about the business and the procedures are used. It is assumed that any required information is readily available and that the entrepreneur will pay Pre-registration (for example, name verification no bribes. or reservation, notarization) Registration in economy’s largest business city The business: - Is a limited liability company (or its legal equivalent). If there is more than Post-registration (for example, social security one type of limited liability company in the economy, the most common registration, company seal) among domestic rms is chosen. Information on the most common form is Obtaining approval from spouse to start business obtained from incorporation lawyers or the statistical o ce. or leave home to register company - Operates in the economy’s largest business city and the entire o ce Obtaining any gender-specific permission that space is approximately 929 square meters (10,000 square feet). For 11 can impact company registration, company economies the data are also collected for the second largest business city. operations and process of getting national - Is 100% domestically owned and has ve owners, none of whom is a legal identity card entity; and has a start-up capital of 10 times income per capita and has a Time required to complete each procedure turnover of at least 100 times income per capita. (calendar days) - Performs general industrial or commercial activities, such as the production or sale of goods or services to the public. The business does Does not include time spent gathering not perform foreign trade activities and does not handle products subject information to a special tax regime, for example, liquor or tobacco. It does not use Each procedure starts on a separate day (2 heavily polluting production processes. procedures cannot start on the same day) - Leases the commercial plant or o ces and is not a proprietor of real Procedures fully completed online are recorded estate and the amount of the annual lease for the o ce space is equivalent as ½ day to 1 times income per capita. Procedure is considered completed once final - Does not qualify for investment incentives or any special bene ts. document is received - Has at least 10 and up to 50 employees one month after the commencement of operations, all of whom are domestic nationals. No prior contact with officials - Has a company deed 10 pages long. Cost required to complete each procedure (% of The owners: income per capita) - Have reached the legal age of majority. If there is no legal age of majority, Official costs only, no bribes they are assumed to be 30 years old. No professional fees unless services required by - Are sane, competent, in good health and have no criminal record. law or commonly used in practice - Are married and the marriage is monogamous and registered with the authorities. Paid-in minimum capital (% of income per capita) - Where the answer di ers according to the legal system applicable to the Funds deposited in a bank or with third party woman or man in question (as may be the case in economies where there before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Standardized Company Page 5   before registration or up to 3 months after is legal plurality), the answer used will be the one that applies to the incorporation majority of the population. Doing Business 2018 Angola Standardized Company Legal form Sociedade por Quotas de Responsabilidade Limitada (LDA) Paid-in minimum capital requirement AOA 0 City Covered Luanda Sub-Saharan OECD high Indicator Angola Africa income Overall Best 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 91.26: 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. Figure – Starting a Business in Angola – Procedure, Time and Cost Time Cost 16 35 14 30 ost (% of income per capita) 12 25 10 Time (days) 20 8 15 6 10 Page 6   4 starting a business. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Angola Figure – Starting a Business in Angola – Procedure, Time and Cost Time Cost 16 35 14 30 Cost (% of income per capita) 12 25 10 Time (days) 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 di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Details – Starting a Business in Angola – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Search for a unique company name and pick up the certi cate of 1 day Kz 500 availability (certidão da rma) Agency : One-stop shop (Ficheiro Central de Denominações Sociais, Guichê Único da Empresa) The availability of the company name must be veri ed at the commercial registry (Ficheiro Central de Denominações Sociais), a liated with the Ministry of Justice. To obtain the company name certi cate (certi cado de admissibilidade da rma), an application (with copy of identi cation attached) must be led with the One-stop shop (Guichê Único da Empresa), as follows: 1. State the company’s proposed name 2. Request the issuance of a certi cate, con rming 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 certi cate. For name changes or reservations without the incorporation of a new company, the Certi cate 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 di erent fees. Each agency and fees goes to a speci c account and payments can be made cash or by card. Page 7   The cost of incorporating a Sociedade por Quotas de Responsabilidade (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Doing Business 2018 Angola Details – Starting a Business in Angola – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Search for a unique company name and pick up the certi cate of 1 day Kz 500 availability (certidão da rma) Agency : One-stop shop (Ficheiro Central de Denominações Sociais, Guichê Único da Empresa) The availability of the company name must be veri ed at the commercial registry (Ficheiro Central de Denominações Sociais), a liated with the Ministry of Justice. To obtain the company name certi cate (certi cado de admissibilidade da rma), an application (with copy of identi cation attached) must be led with the One-stop shop (Guichê Único da Empresa), as follows: 1. State the company’s proposed name 2. Request the issuance of a certi cate, con rming 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 certi cate. For name changes or reservations without the incorporation of a new company, the Certi cate 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 di erent fees. Each agency and fees goes to a speci c 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 o cial gazette). 3 Obtain the company's articles of association at the One-stop shop 1 day included in (Guichê Único da Empresa) procedure 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 ll in the standard documents o ered 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 con rm that the articles are applicable to the type of company as the Guichê has 4 di erent 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 veri ed and completed, applicants must apply at the section of the National Tax O ce (Direcção National dos Impostos) within the One-stop shop to obtain the National Identi cation Number (NIF). Page 8   prepared by a lawyer, the process might take an additional time for lawyers` Doing review of the Business documents. 2018 Angola 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 veri ed and completed, applicants must apply at the section of the National Tax O ce (Direcção National dos Impostos) within the One-stop shop to obtain the National Identi cation Number (NIF). 5 Notarize the company's documents and register the company 2 days included in Agency : One-stop shop (Guichê Único da Empresa) procedure 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 ling. Copies are distributed to the representatives of the Commercial Registry, the National Press (Imprensa National), National Institute of Statistics, Tax o ce 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 les to his/her agency, but this doesn't impede on the process of registration. For Imprensa National, the receipt is su cient 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 Between 15-45 days see procedure Commerce 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 led with the representation of the Ministry of Commerce at the One-stop Shop (Guiché Único): (a) Commercial Registration Certi cate, with the enrollment of the company’s managers; (b) Identi cation 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 Page 9   place in some businesses. Guichê Único da Empresa with authority to deliver the accreditation that the Doing step has been Business accomplished. 2018 Angola 6 Obtain the Commercial Operations Permit from the Ministry of Between 15-45 days see procedure Commerce 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 led with the representation of the Ministry of Commerce at the One-stop Shop (Guiché Único): (a) Commercial Registration Certi cate, with the enrollment of the company’s managers; (b) Identi cation 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 USD 20 Agency : Commercial Registry (simultaneous with previous The Books for the General Assembly's minutes (livro de actas) must be procedure) legalized by the Commercial Registry. Applies to women only. Takes place simultaneously with previous procedure. 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 noti cations, 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 certi cation 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 (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Page 10   Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the Applies to women only. Takes place simultaneously with previous procedure. Doing 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 noti cations, 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 certi cation 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 (number) To make the data comparable across economies, several assumptions about the construction company, the warehouse project and the utility Submitting all relevant documents and obtaining connections are used. all necessary clearances, licenses, permits and certificates The construction company (BuildCo): Submitting all required notifications and - Is a limited liability company (or its legal equivalent) and operates in the receiving all necessary inspections economy’s largest business city. For 11 economies the data are also collected for the second largest business city. Obtaining utility connections for water and - Is 100% domestically and privately owned; has ve owners, none of whom sewerage is a legal entity. Has a licensed architect and a licensed engineer, both Registering and selling the warehouse after its registered with the local association of architects or engineers. BuildCo is completion not assumed to have any other employees who are technical or licensed Time required to complete each procedure experts, such as geological or topographical experts. (calendar days) - Owns the land on which the warehouse will be built and will sell the warehouse upon its completion. Does not include time spent gathering information The warehouse: Each procedure starts on a separate day— - Will be used for general storage activities, such as storage of books or though procedures that can be fully completed stationery. online are an exception to this rule - Will have two stories, both above ground, with a total constructed area of Procedure is considered completed once final approximately 1,300.6 square meters (14,000 square feet). Each oor will document is received be 3 meters (9 feet, 10 inches) high and will be located on a land plot of No prior contact with officials approximately 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the warehouse is valued at 50 times income per capita. Cost required to complete each procedure (% of - Will have complete architectural and technical plans prepared by a warehouse value) licensed architect. If preparation of the plans requires such steps as Official costs only, no bribes obtaining further documentation or getting prior approvals from external Building quality control index (0-15) agencies, these are counted as procedures. - Will take 30 weeks to construct (excluding all delays due to administrative Sum of the scores of six component indices: and regulatory requirements). Quality of building regulations (0-2) The water and sewerage connections: Quality control before construction (0-1) - Will be 150 meters (492 feet) from the existing water source and sewer Quality control during construction (0-3) tap. If there is no water delivery infrastructure in the economy, a borehole Quality control after construction (0-3) will be dug. If there is no sewerage infrastructure, a septic tank in the smallest size available will be installed or built. Liability and insurance regimes (0-2) - Will have an average water use of 662 liters (175 gallons) a day and an Professional certifications (0-4) average wastewater ow of 568 liters (150 gallons) a day. Will have a peak water use of 1,325 liters (350 gallons) a day and a peak wastewater ow of 1,136 liters (300 gallons) a day. - Will have a constant level of water demand and wastewater ow throughout the year; will be 1 inch in diameter for the water connection and 4 inches in diameter for the sewerage connection. Standardized Warehouse Page 11   and 4 inches in diameter for the sewerage connection. Doing Business 2018 Angola Standardized Warehouse Estimated value of warehouse AOA 26,086,177.20 City Covered Luanda Sub-Saharan OECD high Indicator Angola Africa income Overall Best 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 76.52: 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 Cost 0.45 160 0.4 140 Cost (% of warehouse value) 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. Page 12   component indicators. Doing Business 2018 Angola Figure – Dealing with Construction Permits in Angola – Procedure, Time and Cost Time Cost 0.45 160 0.4 140 Cost (% of warehouse value) 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 di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Dealing with Construction Permits in Angola and comparator economies – Measure of Quality 12 11.0 11.0 10.5 10 8.0 8 Index score 6.5 6.0 6 4 2 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Dealing with Construction Permits in Angola – Procedure, Time and Cost No. Procedure 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 certi cate 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 Page 13   charges, liens or encumbrances pending on the property. Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Details – Dealing with Construction Permits in Angola – Procedure, Time and Cost No. Procedure 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 certi cate 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 o cers (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 scal 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 re department. To estimate the fees, the re 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 le 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 con rm whether the applicant’s information is accurate. Page 14   To obtain the license to build, BuildCo must le its application and all Doing required Business 2018 with documents the Provincial Government. Angola 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 con rm whether the applicant’s information is accurate. 7 Request and receive nal inspection by provincial authorities 30 days AOA 2,000 Agency : Provincial Government Once the building is completed, the Luanda provincial government conducts a nal inspection. Several departments (the re department, the engineering department, and the town services department) and provincial authorities conduct the nal 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 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 certi cate of building location and a copy of the building permit. The connection fees vary according to warehouse size. Takes place simultaneously with previous procedure. 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 speci ed 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 rm. Page 15   Takes place simultaneously with previous procedure. Doing 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 speci ed 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 rm. Quality control during construction index (0-3) 0.0 What types of inspections (if any) are required by law to be carried out during No inspections 0.0 construction? (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 nal inspection required by law to verify that the building was built in Yes, nal 2.0 accordance with the approved plans and regulations? (0-2) inspection is done by government agency; Yes, in- house engineer submits report for nal inspection; Final inspection is not required by law. Do legally mandated nal inspections occur in practice? (0-1) Final inspection 0.0 does not always occur in practice; Page 16   Final inspection inspection is not Doing Business 2018 Angola required by law. Do legally mandated nal 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 aws or problems in the Architect or 1.0 building 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 No party is 0.0 possible structural aws or problems in the building once it is in use (Latent Defect required by law Liability Insurance or Decennial Insurance)? (0-1) to obtain insurance . Professional certi cations index (0-4) 1.0 What are the quali cation requirements for the professional responsible for verifying University 1.0 that the architectural plans or drawings are in compliance with existing building degree in regulations? (0-2) architecture or engineering; Being a registered architect or engineer. What are the quali cation requirements for the professional who supervises the Being a 0.0 construction on the ground? (0-2) registered architect or engineer. 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 tari s index measures reliability of supply, transparency of tari s 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 are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is Page 17   purchasing material for these works in an area with no physical constraints. For example, the property is not architect or engineer. Doing 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 tari s index measures reliability of supply, transparency of tari s 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 are (number) used. Submitting all relevant documents and obtaining The warehouse: all necessary clearances and permits - Is owned by a local entrepreneur and is used for storage of goods. Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the receiving all necessary inspections data are also collected for the second largest business city. Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is purchasing material for these works in an area with no physical constraints. For example, the property is not Concluding any necessary supply contract and near a railway. obtaining final supply - Is a new construction and is being connected to electricity for the rst time. Time required to complete each procedure - Has two stories with a total surface area of approximately 1,300.6 square (calendar days) meters (14,000 square feet). The plot of land on which it is built is 929 Is at least 1 calendar day square meters (10,000 square feet). Each procedure starts on a separate day Does not include time spent gathering The electricity connection: information - Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, Reflects the time spent in practice, with little when 1 kVA = 1 kilowatt (kW). follow-up and no prior contact with officials - Has a length of 150 meters. The connection is to either the low- or Cost required to complete each procedure (% of medium-voltage distribution network and is either overhead or income per capita) underground, whichever is more common in the area where the Official costs only, no bribes warehouse is located and requires works that involve the crossing of a 10- meter road (such as by excavation or overhead lines) but are all carried out Value added tax excluded on public land. There is no crossing of other owners’ private property The reliability of supply and transparency of because the warehouse has access to a road. tari s index (0-8) - Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service Duration and frequency of power outages (0–3) panel or switchboard and the meter base. Tools to monitor power outages (0–1) Tools to restore power supply (0–1) The monthly consumption: Regulatory monitoring of utilities’ performance - It is assumed that the warehouse operates 30 days a month from 9:00 (0–1) a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity Financial deterrents limiting outages (0–1) on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours Transparency and accessibility of tariffs (0–1) (kWh); hourly consumption is 112 kWh. Price of electricity (cents per kilowatt-hour)* - If multiple electricity suppliers exist, the warehouse is served by the Price based on monthly bill for commercial cheapest supplier. warehouse in case study - Tari s e ective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for * N o t e : Doing Business m e a s u r e s t h e p r i c e o f calculation purposes only 30 days are used. electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity. Page 18   Standardized Connection frontier score nor the ranking on the ease of getting electricity. Doing Business 2018 Angola Standardized Connection Price of electricity (US cents per kWh) 6.0 Name of utility Empresa Nacional de Distribuição de Electricidade (ENDE) City Covered Luanda Sub-Saharan OECD high Indicator Angola Africa income Overall Best 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 80.18: 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. Figure – Getting Electricity in Angola – Procedure, Time and Cost Time Cost 120 1200 100 1000 Cost (% of income per capita) 80 800 Time (days) 60 600 40 400 20 200 Page 19   getting electricity. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Angola Figure – Getting Electricity in Angola – Procedure, Time and Cost Time Cost 120 1200 100 1000 Cost (% of income per capita) 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 di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Getting Electricity in Angola and comparator economies – Measure of Quality 9 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 Details – Getting Electricity in Angola – Procedure, Time and Cost No. Procedure 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). Page 20   Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Details – Getting Electricity in Angola – Procedure, Time and Cost No. Procedure 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 xed and non- xed 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. Page 21   6 Receive internal wiring inspection by utility 7 calendar days AOA 0 contractor needs to buy. Someone from the customer’s side has to be Doing present. Business 2018 Angola 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 3 calendar days AOA 0 nal connection Agency : Empresa Nacional de Distribuição de Electricidade (ENDE) Once the external connection works are nished, 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. Details – Getting Electricity in Angola – Measure of Quality Answer Reliability of supply and transparency of tari 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 No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Page 22   Takes place simultaneously with previous procedure. Doing Business 2018 Angola Details – Getting Electricity in Angola – Measure of Quality Answer Reliability of supply and transparency of tari 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 No reliability of supply? Financial deterrents aimed at limiting outages (0-1) 0 Does the utility either pay compensation to customers or face nes by the regulator (or both) if outages No exceed a certain cap? Communication of tari s and tari changes (0-1) 0 Are e ective tari s available online? Yes Link to the website, if available online http://www.irsea.gov .ao/categoria/tarifas / Are customers noti ed of a change in tari 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 tari 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. 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 ve 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. Page 23   What the indicators measure Case study assumptions If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index. Doing 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 ve 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 immovable To make the data comparable across economies, several assumptions property (number) about the parties to the transaction, the property and the procedures are used. Preregistration procedures (for example, checking for liens, notarizing sales agreement, The parties (buyer and seller): paying property transfer taxes) - Are limited liability companies (or the legal equivalent). Registration procedures in the economy's largest - Are located in the periurban area of the economy’s largest business city. business citya. For 11 economies the data are also collected for the second largest Postregistration procedures (for example, filling business city. title with municipality) - Are 100% domestically and privately owned. Time required to complete each procedure - Have 50 employees each, all of whom are nationals. (calendar days) - Perform general commercial activities. Does not include time spent gathering information The property (fully owned by the seller): - Has a value of 50 times income per capita, which equals the sale price. Each procedure starts on a separate day - though - Is fully owned by the seller. procedures that can be fully completed online - Has no mortgages attached and has been under the same ownership for are an exception to this rule the past 10 years. Procedure is considered completed once final - Is registered in the land registry or cadastre, or both, and is free of title document is received disputes. No prior contact with officials - Is located in a periurban commercial zone, and no rezoning is required. Cost required to complete each procedure (% of - Consists of land and a building. The land area is 557.4 square meters property value) (6,000 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 Official costs only (such as administrative fees, good condition, has no heating system and complies with all safety duties and taxes). standards, building codes and legal requirements. The property, Value Added Tax, Capital Gains Tax and illicit consisting of land and building, will be transferred in its entirety. payments are excluded - Will not be subject to renovations or additional construction following the Quality of land administration index (0-30) purchase. - Has no trees, natural water sources, natural reserves or historical Reliability of infrastructure index (0-8) monuments of any kind. Transparency of information index (0–6) - Will not be used for special purposes, and no special permits, such as for Geographic coverage index (0–8) residential use, industrial plants, waste storage or certain types of agricultural activities, are required. Land dispute resolution index (0–8) - Has no occupants, and no other party holds a legal interest in it. Equal access to property rights index (-2–0) Standard Property Transfer Property value AOA 26,086,177.20 City Covered Luanda Page 24   Sub-Saharan OECD high Doing Business 2018 Angola Standard Property Transfer Property value AOA 26,086,177.20 City Covered Luanda Sub-Saharan OECD high Indicator Angola Africa income Overall Best 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 80.26: 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 Cost 2.5 180 160 2 Cost (% of property value) 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. Page 25   Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a di erent procedure list for registering property. These scores are the simple average of the distance to frontier scores for each of the component indicators. Doing Business 2018 Angola Figure – Registering Property in Angola – Procedure, Time and Cost Time Cost 2.5 180 160 2 Cost (% of property value) 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 di erent procedure list for men and women, the graph shows the time for women. For more information on methodology, see the Doing Business website (http://www.doingbusiness.org/methodology). For details on the procedures re ected here, see the summary below. Figure – Registering Property in Angola and comparator economies – Measure of Quality 25 21.0 20 Index score 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. Procedure Time to Complete Associated Costs 1 Obtain an updated tax certi cate from the Tax O ce 4 to 6 months AOA 1,500 Agency : Tax O ce (Repartição Fiscal) (simultaneous with procedure 2 and 3) An updated tax certi cate is obtained from the relevant Tax O ce, detailing the description of the property (Certidão Matricial). An important piece of information to obtain from the tax certi cate is whether the property was ever con scated by the State upon freedom from Portugal. Sometimes this information will not be included in the tax certi cate. In this case, the buyer or his/her lawyer has to search the records of the O cal Gazette (Diario da Republica) to con rm that there were no con scation dispatches covering the property. The Certidão Matricial contains the name of the current owner and an estimated value of the property. Page 26   Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Details – Registering Property in Angola – Procedure, Time and Cost No. Procedure Time to Complete Associated Costs 1 Obtain an updated tax certi cate from the Tax O ce 4 to 6 months AOA 1,500 Agency : Tax O ce (Repartição Fiscal) (simultaneous with procedure 2 and 3) An updated tax certi cate is obtained from the relevant Tax O ce, detailing the description of the property (Certidão Matricial). An important piece of information to obtain from the tax certi cate is whether the property was ever con scated by the State upon freedom from Portugal. Sometimes this information will not be included in the tax certi cate. In this case, the buyer or his/her lawyer has to search the records of the O cal Gazette (Diario da Republica) to con rm that there were no con scation 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 certi cate from the Registry 7 days AOA 4500 Agency : Real Estate Registry (Conservatória do Registo Predial) (simultaneous with Procedure 1 and 3) An updated certi cate of the property ("certidão predial") is obtained from the relevant 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 o cers (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 scal 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 no cost property (simultaneous with Agency : Tax o ce (Repartição Fiscal) 1 and 2) 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 o cial of the tax administration o ce 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 xed date for the execution of the required notary deed. 5 Execute the deed of transfer before a notary public 7 days Notary fees and Page 27   stamp duty (0.3% of Agency : Real Estate Registry (Conservatória do Registo Predial) with a notary public a xed date for the execution of the required notary Doing deed. 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 property value) are A notary public executes the deed of transfer. The 0.3% Stamp Duty is paid to paid at the Notary. the notary according to the property value stated on the transfer tax (Sisa) receipt, together with the notary fees (which depend on the value of the Notary fees are transaction, but also on the notary o ce and the number of pages being calculated according notarized). to Joint Executive After the signature of the deed, the buyer will be the legal owner of the Decree 52/03 of property. Registration is needed for publicity purposes and protection September 9, 2003 against third parties. (taking into account 1 UCF is AOA 88): (1) For each The documentation shall include: notarization, 80 UCF (2) For each page or • Proof of payment of transfer tax (obtained in Procedure 4) fraction, 10 UCF (3) Depending on the • Updated registry certi cate from Land Registry (obtained in Procedure 2) value of the property, the • Updated tax certi cate from Tax O ce (obtained in Procedure 1) following cost will be added: • Personal identi cation documents of the buyer and seller (passports, property value up to identity card, etc.) 60 UCF, plus 6 UCF; from 60 UCF to 400 • Registry of Companies' Certi cates if seller and buyer are companies, so as UCF, plus 9 UCF; to provide evidence that the o cer executing the deed on behalf of the from 400 to 4000 corresponding company has authority to do so. UCF, plus 10 UCF; over 4000 UCF, plus 0.05 UCF*((property value/UCF) - 4000)/30)). 6 Receive de nitive 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 UCF= AOA The notarized deed certi cate must be presented to apply for registration at 155,449.36) the Land Registry O ce. 7 Apply for de nitive registration at the Tax O ce 5 days AOA 175 Agency : Tax O ce (Repartição Fiscal) At the tax o ce, there is only nal registration. Provisional registration is no longer applicable, as nal registration has become considerably faster. Takes place simultaneously with previous procedure. Details – Registering Property in Angola – Measure of Quality Answer Score Quality of the land administration index (0-30) 7.0 Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Conservatoria do Registo Predial Page 28   de Luanda Takes place simultaneously with previous procedure. Doing Business 2018 Angola Details – Registering Property in Angola – Measure of Quality Answer Score Quality of the land administration index (0-30) 7.0 Reliability of infrastructure index (0-8) 1.0 What is the institution in charge of immovable property registration? Conservatoria do Registo Predial de Luanda In what format are the majority of title or deed records kept in the largest business city Computer/Scann 1.0 —in a paper format or in a computerized format (scanned or fully digital)? ed Is there an electronic database for checking for encumbrances (liens, mortgages, No 0.0 restrictions and the like)? Institution in charge of the plans showing legal boundaries in the largest business city: Repartição das Finanças de Luanda In what format are the majority of maps of land plots kept in the largest business city— Paper 0.0 in a paper format or in a computerized format (scanned or fully digital)? Is there an electronic database for recording boundaries, checking plans and providing No 0.0 cadastral information (geographic information system)? Is the information recorded by the immovable property registration agency and the Separate 0.0 cadastral or mapping agency kept in a single database, in di erent but linked databases databases or in separate databases? Do the immovable property registration agency and cadastral or mapping agency use No 0.0 the same identi cation number for properties? Transparency of information index (0–6) 2.0 Who is able to obtain information on land ownership at the agency in charge of Anyone who 1.0 immovable property registration in the largest business city? pays the o cial fee Is the list of documents that are required to complete any type of property transaction Yes, on public 0.5 made publicly available–and if so, how? boards Link for online access: Is the applicable fee schedule for any property transaction at the agency in charge of Yes, on public 0.5 immovable property registration in the largest business city made publicly available– boards and if so, how? Link for online access: Does the agency in charge of immovable property registration commit to delivering a No 0.0 legally binding document that proves property ownership within a speci c time frame– and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Page 29   Link for Doing online access: Business 2018 Angola Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the agency in charge of immovable property registration? Contact information: Are there publicly available o cial statistics tracking the number of transactions at the No 0.0 immovable property registration agency? Number of property transfers in the largest business city in 2015: Who is able to consult maps of land plots in the largest business city? Only 0.0 intermediaries and interested parties Is the applicable fee schedule for accessing maps of land plots made publicly available Yes, in person 0.0 —and if so, how? Link for online access: Does the cadastral or mapping agency commit to delivering an updated map within a No 0.0 speci c time frame—and if so, how does it communicate the service standard? Link for online access: Is there a speci c and separate mechanism for ling complaints about a problem that No 0.0 occurred at the cadastral or mapping agency? Contact information: Geographic coverage index (0–8) 0.0 Are all privately held land plots in the economy formally registered at the immovable No 0.0 property registry? Are all privately held land plots in the largest business city formally registered at the No 0.0 immovable property registry? Are all privately held land plots in the economy mapped? No 0.0 Are all privately held land plots in the largest business city mapped? No 0.0 Land dispute resolution index (0–8) 4.0 Does the law require that all property sale transactions be registered at the immovable Yes 1.5 property registry to make them opposable to third parties? Is the system of immovable property registration subject to a state or private Yes 0.5 guarantee? Is there a speci c compensation mechanism to cover for losses incurred by parties who No 0.0 engaged in good faith in a property transaction based on erroneous information certi ed by the immovable property registry? Does the legal system require a control of legality of the documents necessary for a Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? If yes, who is responsible for checking the legality of the documents? Notary. Page 30   Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 property transaction (e.g., checking the compliance of contracts with requirements of the law)? Doing Business 2018 Angola If yes, who is responsible for checking the legality of the documents? Notary. Does the legal system require veri cation of the identity of the parties to a property Yes 0.5 transaction? If yes, who is responsible for verifying the identity of the parties? Registrar; Notary. Is there a national database to verify the accuracy of identity documents? Yes 1.0 For a standard land dispute between two local businesses over tenure rights of a Luanda property worth 50 times gross national income (GNI) per capita and located in the Provincial Court largest business city, what court would be in charge of the case in the rst instance? How long does it take on average to obtain a decision from the rst-instance court for More than 3 0.0 such a case (without appeal)? years Are there any statistics on the number of land disputes in the rst instance? No 0.0 Number of land disputes in the largest business city in 2015: Equal access to property rights index (-2–0) 0.0 Do unmarried men and unmarried women have equal ownership rights to property? Yes 0.0 Do married men and married women have equal ownership rights to property? Yes 0.0 Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. 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 Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. Page 31   Do married men and married women have equal ownership rights to property? Yes 0.0 Doing Business 2018 Angola Getting Credit This topic explores two sets of issues—the strength of credit reporting systems and the e ectiveness of collateral and bankruptcy laws in facilitating lending. 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 Strength of legal rights index (0–12) Doing Business assesses the sharing of credit information and the legal rights of borrowers and lenders with respect to secured transactions Rights of borrowers and lenders through through 2 sets of indicators. The depth of credit information index collateral laws (0-10) measures rules and practices a ecting the coverage, scope and Protection of secured creditors’ rights through accessibility of credit information available through a credit registry or a bankruptcy laws (0-2) credit bureau. The strength of legal rights index measures the degree to Depth of credit information index (0–8) which collateral and bankruptcy laws protect the rights of borrowers and lenders and thus facilitate lending. For each economy it is first determined Scope and accessibility of credit information whether a unitary secured transactions system exists. Then two case distributed by credit bureaus and credit scenarios, case A and case B, are used to determine how a nonpossessory registries (0-8) security interest is created, publicized and enforced according to the law. Credit bureau coverage (% of adults) Special emphasis is given to how the collateral registry operates (if Number of individuals and firms listed in largest registration of security interests is possible). The case scenarios involve a credit bureau as a percentage of adult population secured borrower, company ABC, and a secured lender, BizBank. Credit registry coverage (% of adults) In some economies the legal framework for secured transactions will allow Number of individuals and firms listed in credit only case A or case B (not both) to apply. Both cases examine the same set registry as a percentage of adult population of legal provisions relating to the use of movable collateral. Several assumptions about the secured borrower (ABC) and lender (BizBank) are used: - ABC is a domestic limited liability company (or its legal equivalent). - ABC has up to 50 employees. - ABC has its headquarters and only base of operations in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city. - Both ABC and BizBank are 100% domestically owned. The case scenarios also involve assumptions. In case A, as collateral for the loan, ABC grants BizBank a nonpossessory security interest in one category of movable assets, for example, its machinery or its inventory. ABC wants to keep both possession and ownership of the collateral. In economies where the law does not allow nonpossessory security interests in movable property, ABC and BizBank use a fiduciary transfer-of-title arrangement (or a similar substitute for nonpossessory security interests). In case B, ABC grants BizBank a business charge, enterprise charge, floating charge or any charge that gives BizBank a security interest over ABC’s combined movable assets (or as much of ABC’s movable assets as possible). ABC keeps ownership and possession of the assets. Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Strength of legal rights index (0-12) 1 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 3.0 6.6 8.00 (34 Economies) Page 32   Credit registry coverage (% of adults) 1.9 6.3 18.3 100.00 (3 Economies) possible). ABC keeps ownership and possession of the assets. Doing Business 2018 Angola Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Strength of legal rights index (0-12) 1 5.1 6.0 12.00 (4 Economies) Depth of credit information index (0-8) 0 3.0 6.6 8.00 (34 Economies) Credit registry coverage (% of adults) 1.9 6.3 18.3 100.00 (3 Economies) Credit bureau coverage (% of adults) 0.0 8.2 63.7 100.00 (23 Economies) Figure – Getting Credit in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 60.00: Namibia (Rank: 68) 60.00: South Africa (Rank: 68) 55.00: Botswana (Rank: 77) 5.00: Angola (Rank: 183) 45.00: Portugal (Rank: 105) 40.73: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of getting credit is determined by sorting their distance to frontier scores for getting credit. These scores are the distance to frontier score for the sum of the strength of legal rights index and the depth of credit information index. Figure – Legal Rights in Angola and comparator economies 6 5 5 5 5.1 5 4 Index score 3 2 2 1 1 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Legal Rights in Angola Strength of legal rights index (0-12) 1 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Page 33   Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Details – Legal Rights in Angola Strength of legal rights index (0-12) 1 Does an integrated or uni ed legal framework for secured transactions that extends to the creation, publicity and No enforcement of functional equivalents to security interests in movable assets exist in the economy? Does the law allow businesses to grant a non possessory security right in a single category of movable assets, without No requiring a speci c description of collateral? Does the law allow businesses to grant a non possessory security right in substantially all of its assets, without requiring No a speci c description of collateral? May a security right extend to future or after-acquired assets, and does it extend automatically to the products, proceeds No or replacements of the original assets? Is a general description of debts and obligations permitted in collateral agreements; can all types of debts and No obligations be secured between parties; and can the collateral agreement include a maximum amount for which the assets are encumbered? Is a collateral registry in operation for both incorporated and non-incorporated entities, that is uni ed geographically No and by asset type, with an electronic database indexed by debtor's name? Does a notice-based collateral registry exist in which all functional equivalents can be registered? No Does a modern collateral registry exist in which registrations, amendments, cancellations and searches can be No performed online by any interested third party? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a debtor defaults outside an insolvency No procedure? Are secured creditors paid rst (i.e. before tax claims and employee claims) when a business is liquidated? No Are secured creditors subject to an automatic stay on enforcement when a debtor enters a court-supervised No reorganization procedure? Does the law protect secured creditors’ rights by providing clear grounds for relief from the stay and/or sets a time limit for it? Does the law allow parties to agree on out of court enforcement at the time a security interest is created? Does the law Yes allow the secured creditor to sell the collateral through public auction or private tender, as well as, for the secured creditor to keep the asset in satisfaction of the debt? Figure – Credit Information in Angola and comparator economies 8 7 7 7 6 6 Index score 4 3.0 2 0 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Credit Information in Angola Page 34   0 0 Angola Doing Business 2018 Botswana Angola Namibia Portugal South Africa Sub-Saharan Africa Details – Credit Information in Angola Credit Credit Depth of credit information index (0-8) bureau registry Score Are data on both firms and individuals distributed? No No 0 Are both positive and negative credit data distributed? No No 0 Are data from retailers or utility companies - in addition to data from banks and financial institutions - No No 0 distributed? Are at least 2 years of historical data distributed? (Credit bureaus and registries that distribute more No No 0 than 10 years of negative data or erase data on defaults as soon as they are repaid obtain a score of 0 for this component.) Are data on loan amounts below 1% of income per capita distributed? No No 0 By law, do borrowers have the right to access their data in the credit bureau or credit registry? No No 0 Can banks and financial institutions access borrowers’ credit information online (for example, No No 0 through an online platform, a system-to-system connection or both)? Are bureau or registry credit scores offered as a value-added service to help banks and financial No No 0 institutions assess the creditworthiness of borrowers? Score ("yes" to either public bureau or private registry) 0 Note: An economy receives a score of 1 if there is a "yes" to either bureau or registry. If the credit bureau or registry is not operational or covers less than 5% of the adult population, the total score on the depth of credit information index is 0. Coverage Credit bureau Credit registry Number of individuals 0 256,342 Number of firms 0 18,603 Total 0 274,945 Percentage of adult population 0.0 1.9 Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. 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 Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it is assumed that Buyer is a large private company with multiple Page 35   transactions; Available legal remedies (damages, Percentage of adult population 0.0 1.9 Doing Business 2018 Angola Protecting Minority Investors This topic measures the strength of minority shareholder protections against misuse of corporate assets by directors for their personal gain as well as shareholder rights, governance safeguards and corporate transparency requirements that reduce the risk of abuse. 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 Extent of disclosure index (0–10): Review and To make the data comparable across economies, a case study uses several approval requirements for related-party assumptions about the business and the transaction. transactions; Disclosure requirements for related-party transactions The business (Buyer): Extent of director liability index (0–10): Ability of - Is a publicly traded corporation listed on the economy’s most important minority shareholders to sue and hold interested stock exchange. If the number of publicly traded companies listed on that directors liable for prejudicial related-party exchange is less than 10, or if there is no stock exchange in the economy, it transactions; Available legal remedies (damages, is assumed that Buyer is a large private company with multiple disgorgement of profits, fines, imprisonment, shareholders. rescission of the transaction) - Has a board of directors and a chief executive o cer (CEO) who may legally act on behalf of Buyer where permitted, even if this is not speci cally Ease of shareholder suits index (0–10): Access to required by law. internal corporate documents; Evidence - Has a supervisory board (applicable to economies with a two-tier board obtainable during trial and allocation of legal system) on which 60% of the shareholder-elected members have been expenses appointed by Mr. James, who is Buyer’s controlling shareholder and a Extent of conflict of interest regulation index member of Buyer’s board of directors. (0–10): Simple average of the extent of disclosure, - Has not adopted any bylaws or articles of association that di er from extent of director liability and ease of default minimum standards and does not follow any nonmandatory codes, shareholder indices principles, recommendations or guidelines relating to corporate Extent of shareholder rights index (0-10): governance. Shareholders’ rights and role in major corporate - Is a manufacturing company with its own distribution network. decisions Extent of ownership and control index (0-10): The transaction involves the following details: Governance safeguards protecting shareholders - Mr. James owns 60% of Buyer and elected two directors to Buyer’s ve- from undue board control and entrenchment member board. Extent of corporate transparency index (0-10): - Mr. James also owns 90% of Seller, a company that operates a chain of Corporate transparency on ownership stakes, retail hardware stores. Seller recently closed a large number of its stores. compensation, audits and financial prospects - Mr. James proposes that Buyer purchase Seller’s unused eet of trucks to expand Buyer’s distribution of its food products, a proposal to which Buyer Extent of shareholder governance index (0–10): agrees. The price is equal to 10% of Buyer’s assets and is higher than the Simple average of the extent of shareholders market value. rights, extent of ownership and control and - The proposed transaction is part of the company’s ordinary course of extent of corporate transparency indices business and is not outside the authority of the company. Strength of minority investor protection index - Buyer enters into the transaction. All required approvals are obtained, (0–10): Simple average of the extent of conflict of and all required disclosures made (that is, the transaction is not interest regulation and extent of shareholder fraudulent). governance indices - The transaction causes damages to Buyer. Shareholders sue Mr. James and the other parties that approved the transaction. Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.3 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 4.0 6.4 Page 36   9.00 (Kazakhstan) and the other parties that approved the transaction. Doing Business 2018 Angola Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Extent of conflict of interest regulation index (0- 5.3 4.8 6.4 9.3 (New Zealand) 10) Extent of shareholder governance index (0-10) 5.7 4.0 6.4 9.00 (Kazakhstan) Figure – Protecting Minority Investors in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 70.00: South Africa (Rank: 24) 60.00: Portugal (Rank: 57) 56.67: Botswana (Rank: 76) 55.00: Angola (Rank: 81) 53.33: Namibia (Rank: 89) 43.72: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the strength of minority investor protections is determined by sorting their distance to frontier scores for protecting minority investors. These scores are the simple average of the distance to frontier scores for the extent of con ict of interest regulation index and the extent of shareholder governance index. Figure – Protecting Minority Investors in Angola and comparator economies – Measure of Quality Angola 4 6 4 6 7 6 Botswana 7 8 7 3 6 3 Namibia 8 5 5 3 4 7 Portugal 8 5 6 6 4 7 South Africa 4 8 8 6 8 8 OECD high income 7.3 5.6 6.5 5.2 6.3 7.4 Sub-Saharan Africa 4.2 3.5 5.5 3.3 4.6 5.6 0 5 10 15 20 25 30 35 40 45 Sub-Indicator Score Extent of corporate transparency index (0­10) Extent of director liability index (0­10) Extent of disclosure index (0­10) Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Details – Protecting Minority Investors in Angola – Measure of Quality Answer Score Page 37   Extent of ownership and control index (0­10) Extent of shareholder rights index (0­10) Ease of shareholder suits index (0­10) Doing Business 2018 Angola Details – Protecting Minority Investors in Angola – Measure of Quality Answer Score Extent of con ict of interest regulation index (0-10) 5.3 Extent of disclosure index (0-10) 4 Which corporate body is legally su cient to approve the Buyer-Seller transaction? (0-3) Board of 2.0 directors excluding interested members Must an external body review the terms of the transaction before it takes place? (0-1) No 0.0 Must Mr. James disclose his con ict of interest to the board of directors? (0-2) Existence of a 1.0 con ict without any speci cs Must Buyer disclose the transaction in published periodic lings (annual reports)? (0-2) Disclosure on 1.0 the transaction only Must Buyer immediately disclose the transaction to the public and/or shareholders? (0- No disclosure 0.0 2) obligation Extent of director liability index (0-10) 6 Can shareholders representing 10% of Buyer's share capital sue directly or derivatively Yes 1.0 for the damage the transaction caused to Buyer? (0-1) Can shareholders hold the interested director liable for the damage the transaction Liable if negligent 1.0 caused to Buyer? (0-2) Can shareholders hold the other directors liable for the damage the transaction caused Liable if negligent 1.0 to Buyer (0-2) Must Mr. James pay damages for the harm caused to Buyer upon a successful claim by Yes 1.0 shareholders? (0-1) Must Mr. James repay pro ts made from the transaction upon a successful claim by No 0.0 shareholders? (0-1) Is Mr. James disquali ed or ned and imprisoned upon a successful claim by No 0.0 shareholders? (0-1) Can a court void the transaction upon a successful claim by shareholders? (0-2) Voidable if unfair 2.0 or prejudicial Ease of shareholder suits index (0-10) 6 Before suing can shareholders representing 10% of Buyer's share capital inspect the Yes 1.0 transaction documents? (0-1) Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Page 38   Can the plainti obtain any documents from the defendant and witnesses at trial? (0-3) Any relevant 3.0 Doing Business 2018 Angola document Can the plainti request categories of documents from the defendant without No 0.0 identifying speci c ones? (0-1) Can the plainti directly question the defendant and witnesses at trial? (0-2) Preapproved 1.0 questions only Is the level of proof required for civil suits lower than that of criminal cases? (0-1) No 0.0 Can shareholder plainti s recover their legal expenses from the company? (0-2) Yes if successful 1.0 Extent of shareholder governance index (0-10) 5.7 Extent of shareholder rights index (0-10) 7 Does the sale of 51% of Buyer's assets require shareholder approval? No 0.0 Can shareholders representing 10% of Buyer's share capital call for a meeting of Yes 1.0 shareholders? Must Buyer obtain its shareholders’ approval every time it issues new shares? Yes 1.0 Do shareholders automatically receive preemption rights every time Buyer issues new Yes 1.0 shares? Must shareholders approve the election and dismissal of the external auditor? No 0.0 Are changes to the rights of a class of shares only possible if the holders of the a ected Yes 1.0 shares approve? Assuming that Buyer is a limited company, does the sale of 51% of its assets require No 0.0 member approval? Assuming that Buyer is a limited company, can members representing 10% call for a Yes 1.0 meeting of members? Assuming that Buyer is a limited company, must all members consent to add a new Yes 1.0 member? Assuming that Buyer is a limited company, must a member rst o er to sell their Yes 1.0 interest to the existing members before they can sell to non-members? Extent of ownership and control index (0-10) 6 Is it forbidden to appoint the same individual as CEO and chair of the board of No 0.0 directors? Must the board of directors include independent and nonexecutive board members? No 0.0 Can shareholders remove members of the board of directors without cause before the Yes 1.0 end of their term? Must the board of directors include a separate audit committee exclusively comprising Yes 1.0 board members? Must a potential acquirer make a tender o er to all shareholders upon acquiring 50% No 0.0 of Buyer? Must Buyer pay declared dividends within a maximum period set by law? Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Page 39   Buyer pay declared MustBusiness Doing dividends within a maximum period set by law? 2018 Angola Yes 1.0 Is a subsidiary prohibited from acquiring shares issued by its parent company? Yes 1.0 Assuming that Buyer is a limited company, must Buyer have a mechanism to resolve Yes 1.0 disagreements among members? Assuming that Buyer is a limited company, must a potential acquirer make a tender No 0.0 o er to all shareholders upon acquiring 50% of Buyer? Assuming that Buyer is a limited company, must Buyer distribute pro ts within a Yes 1.0 maximum period set by law? Extent of corporate transparency index (0-10) 4 Must Buyer disclose direct and indirect bene cial ownership stakes representing 5%? No 0.0 Must Buyer disclose information about board members’ primary employment and No 0.0 directorships in other companies? Must Buyer disclose the compensation of individual managers? No 0.0 Must a detailed notice of general meeting be sent 21 days before the meeting? Yes 1.0 Can shareholders representing 5% of Buyer’s share capital put items on the general Yes 1.0 meeting agenda? Must Buyer's annual nancial statements be audited by an external auditor? No 0.0 Must Buyer disclose its audit reports to the public? No 0.0 Assuming that Buyer is a limited company, must members meet at least once a year? Yes 1.0 Assuming that Buyer is a limited company, can members representing 5% put items on Yes 1.0 the meeting agenda? Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, Page 40   and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, Assuming that Buyer is a limited company, must Buyer's annual nancial statements be No 0.0 audited by an external auditor? Doing Business 2018 Angola Paying Taxes This topic records the taxes and mandatory contributions that a medium-size company must pay or withhold in a given year, as well as measures the administrative burden in paying taxes and contributions. The most recent round of data collection for the project was completed on June 30, 2017 covering for the Paying Taxes indicator calendar year 2016 (January 1, 2016 – December 31, 2016). Last year (Doing Business 2017) the scope of data collection was expanded to better understand the overall tax environment in an economy. The questionnaire was expanded to include new questions on post- ling processes: VAT refund and tax audit. The data shows where post ling processes and practices work e ciently and what drives the di erences in the overall tax compliance cost across economies. The new section covers both the legal framework and the administrative burden on businesses to comply with post ling processes. See the methodology for more information. What the indicators measure Case study assumptions Tax payments for a manufacturing company in Using a case scenario, Doing Business records taxes and mandatory 2016 (number per year adjusted for electronic and contributions a medium size company must pay in a year, and measures joint ling and payment) the administrative burden of paying taxes, contributions and dealing with post ling processes. Information is also compiled on frequency of ling Total number of taxes and contributions paid, and payments, time taken to comply with tax laws, time taken to comply including consumption taxes (value added tax, with the requirements of post ling processes and time waiting. sales tax or goods and service tax) Method and frequency of filing and payment To make data comparable across economies, several assumptions are used: Time required to comply with 3 major taxes - TaxpayerCo is a medium-size business that started operations on January (hours per year) 1, 2015. It produces ceramic flowerpots and sells them at retail. All taxes Collecting information, computing tax payable and contributions recorded are paid in the second year of operation Completing tax return, filing with agencies (calendar year 2016). Taxes and mandatory contributions are measured at all levels of government. Arranging payment or withholding Preparing separate tax accounting books, if The VAT refund process: required - In June 2016, TaxpayerCo. makes a large capital purchase: the value of the Total tax and contribution rate (% of pro t before machine is 65 times income per capita of the economy. Sales are equally all taxes) spread per month (1,050 times income per capita divided by 12) and cost of goods sold are equally expensed per month (875 times income per Profit or corporate income tax capita divided by 12). The machinery seller is registered for VAT and excess Social contributions, labor taxes paid by input VAT incurred in June will be fully recovered after four consecutive employer months if the VAT rate is the same for inputs, sales and the machine and Property and property transfer taxes the tax reporting period is every month. Input VAT will exceed Output VAT Dividend, capital gains, financial transactions in June 2016. taxes The corporate income tax audit process: Waste collection, vehicle, road and other taxes - An error in calculation of income tax liability (for example, use of incorrect Post ling Index tax depreciation rates, or incorrectly treating an expense as tax deductible) leads to an incorrect income tax return and a corporate income Time to comply with a VAT refund tax underpayment. TaxpayerCo. discovered the error and voluntarily Time to receive a VAT refund noti ed the tax authority. The value of the underpaid income tax liability is Time to comply with a corporate income tax audit 5% of the corporate income tax liability due. TaxpayerCo. submits corrected information after the deadline for submitting the annual tax Time to complete a corporate income tax audit return, but within the tax assessment period. Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Payments (number per year) 31 37.2 10.9 3 (Hong Kong SAR, China) Page 41   return, but within the tax assessment period. Doing Business 2018 Angola Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Payments (number per year) 31 37.2 10.9 3 (Hong Kong SAR, China) Time (hours per year) 287 280.8 160.7 55 (Luxembourg) Total tax and contribution rate (% of profit) 49.1 46.8 40.1 18.47% (32 Economies) Postfiling index (0-100) 94.95 54.39 83.45 99.38 (Estonia) Figure – Paying Taxes in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 83.75: Portugal (Rank: 38) 80.02: South Africa (Rank: 46) 80.01: Botswana (Rank: 47) 74.52: Namibia (Rank: 79) 69.54: Angola (Rank: 103) 57.49: Regional Average (Sub-Saharan Africa) Note: The ranking of economies on the ease of paying taxes is determined by sorting their distance to frontier scores on the ease of paying taxes. These scores are the simple average of the distance to frontier scores for each of the four component indicators – number of tax payments. time, total tax rate and post ling index – with a threshold and a nonlinear transformation applied to one of the component indicators, the total tax rate. The nonlinear distance to frontier for the total tax rate is equal to the distance to frontier for the total tax rate to the power of 0.8. The threshold is de ned as the total tax rate at the 15th percentile of the overall distribution for all years included in the analysis up to and including Doing Business 2015, which is 26.1%. All economies with a total tax rate below this threshold receive the same score as the economy at the threshold. Figure – Paying Taxes in Angola and comparator economies – Measure of Quality 100 94.95 92.71 90 82.70 77.17 80 70 Index score 60 55.45 54.39 50 40 30 20 10 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Paying Taxes in Angola Tax or Total tax and mandatory Payments Notes on Time Statutory tax contribution rate (% of Notes contribution (number) Payments (hours) rate Tax base profit) on TTR Page 42   Corporate 2 80 30% taxable profit 21.53 Doing Business 2018 Angola Figure – Paying Taxes in Angola and comparator economies – Measure of Quality 100 94.95 92.71 90 82.70 77.17 80 70 Index score 60 55.45 54.39 50 40 30 20 10 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Paying Taxes in Angola Tax or Total tax and mandatory Payments Notes on Time Statutory tax contribution rate (% of Notes contribution (number) Payments (hours) rate Tax base profit) on TTR Corporate 2 80 30% taxable profit 21.53 income tax Stamp tax 0 jointly 1% contract value 17.69 (turnover) Social security 12 125 8% gross salaries 9.02 contributions Property Tax 2 0.5% for non- Property 0.58 rented property registered value Interest Tax 1 10% Interest 0.26 income Circulation fee 1 AOA 12,500 fixed fee 0.04 Consumption tax 12 82 10% sales 0.00 withheld Employee labor 0 jointly 3% gross salaries 0.00 withheld tax Stamp duty on 1 various rates contract value 0.00 small contracts amount Totals 31 287 49.1 Details – Paying Taxes in Angola – Tax by Type Taxes by type Answer Profit tax (% of profit) 21.5 Labor tax and contributions (% of profit) 9.0 Other taxes (% of profit) 18.6 Page 43   Totals 31 287 49.1 Doing Business 2018 Angola Details – Paying Taxes in Angola – Tax by Type Taxes by type Answer Profit tax (% of profit) 21.5 Labor tax and contributions (% of profit) 9.0 Other taxes (% of profit) 18.6 Details – Paying Taxes in Angola – Measure of Quality Answer Score Post ling index (0-100) 94.95 VAT refunds Does VAT exist? No Does a VAT refund process exist per the case study? N/A Restrictions on VAT refund process N/A Percentage of cases exposed to a VAT audit (%) Not applicable Is there a mandatory carry forward period? No Time to comply with VAT refund (hours) No VAT No VAT Time to obtain a VAT refund (weeks) No VAT No VAT Corporate income tax audits Does corporate income tax exist? Yes Percentage of cases exposed to a corporate income tax audit (%) 0% - 24% Time to comply with a corporate income tax audit (hours) 7.0 89.91 Time to complete a corporate income tax audit (weeks) No tax audit per 100 case study scenario Notes: Names of taxes have been standardized. For instance income tax, pro t tax, tax on company's income are all named corporate income tax in this table. The hours for VAT include all the VAT and sales taxes applicable. The hours for Social Security include all the hours for labor taxes and mandatory contributions in general. The post ling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border recent compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The mostPage 44   round of data collection for the project was completed in June 2017. See the methodology for more information. a corporate income tax audit and time to complete a corporate income tax audit. N/A = Not applicable. Doing Business 2018 Angola Trading across Borders Doing Business records the time and cost associated with the logistical process of exporting and importing goods. Doing Business measures the time and cost (excluding tari s) associated with three sets of procedures—documentary compliance, border compliance and domestic transport—within the overall process of exporting or importing a shipment of goods. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information. Given the importance of trade digitalization, in Doing Business 2018, the Trading across Borders questionnaire included research questions on the availability and status of implementation of Electronic Data Interchange (EDI) and Single Window (SW) systems. With this information, Doing Business built a comprehensive dataset on the adoption and level of sophistication of electronic platforms in 190 economies. These data are not used to compute the distance to frontier score or ranking of the ease of doing business. The new dataset on EDI and SW systems is available here. What the indicators measure Case study assumptions Documentary compliance To make the data comparable across economies, a few assumptions are made about the traded goods and the transactions: Obtaining, preparing and submitting documents during transport, clearance, inspections and port Time: Time is measured in hours, and 1 day is 24 hours (for example, 22 or border handling in origin economy days are recorded as 22×24=528 hours). If customs clearance takes 7.5 Obtaining, preparing and submitting documents hours, the data are recorded as is. Alternatively, suppose documents are required by destination economy and any transit submitted to a customs agency at 8:00a.m., are processed overnight and economies can be picked up at 8:00a.m. the next day. The time for customs clearance Covers all documents required by law and in would be recorded as 24 hours because the actual procedure took 24 practice, including electronic submissions of hours. information Border compliance Cost: Insurance cost and informal payments for which no receipt is issued are excluded from the costs recorded. Costs are reported in U.S. dollars. Customs clearance and inspections Contributors are asked to convert local currency into U.S. dollars based on Inspections by other agencies (if applied to more the exchange rate prevailing on the day they answer the questionnaire. than 20% of shipments) Contributors are private sector experts in international trade logistics and Handling and inspections that take place at the are informed about exchange rates. economy’s port or border Assumptions of the case study: - For all 190 economies covered by Doing Domestic transport Business, it is assumed a shipment is in a warehouse in the largest Loading or unloading of the shipment at the business city of the exporting economy and travels to a warehouse in the warehouse or port/border largest business city of the importing economy. - It is assumed each Transport between warehouse and port/border economy imports 15 metric tons of containerized auto parts (HS 8708) Traffic delays and road police checks while from its natural import partner—the economy from which it imports the shipment is en route largest value (price times quantity) of auto parts. It is assumed each economy exports the product of its comparative advantage (de ned by the largest export value) to its natural export partner—the economy that is the largest purchaser of this product. Shipment value is assumed to be $50,000. - The mode of transport is the one most widely used for the chosen export or import product and the trading partner, as is the seaport, or land border crossing. - All electronic information submissions requested by any government agency in connection with the shipment are considered to be documents obtained, prepared and submitted during the export or import process. - A port or border is a place (seaport, airport or land border crossing) where merchandise can enter or leave an economy. - Relevant government agencies include customs, port authorities, road police, border guards, standardization agencies, ministries or departments of agriculture or industry, national security agencies and any other government authorities. Page 45   of agriculture or industry, national security agencies and any other Doing Business 2018 Angola government authorities. Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Time to export: Border compliance (hours) 192 100.1 12.7 0 (17 Economies) Cost to export: Border compliance (USD) 825 592.1 149.9 0.00 (19 Economies) Time to export: Documentary compliance 169 87.8 2.4 1.0 (25 Economies) (hours) Cost to export: Documentary compliance (USD) 240 215.1 35.4 0.00 (19 Economies) Time to import: Border compliance (hours) 96 136.4 8.7 0.00 (21 Economies) Cost to import: Border compliance (USD) 1030 686.8 111.6 0.00 (27 Economies) Time to import: Documentary compliance 180 103.0 3.5 1.0 (30 Economies) (hours) Cost to import: Documentary compliance (USD) 460 300.1 25.6 0.00 (30 Economies) Figure – Trading across Borders in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 86.65: Botswana (Rank: 50) 61.47: Namibia (Rank: 132) 58.01: South Africa (Rank: 147) 52.56: Regional Average (Sub-Saharan Africa) 25.28: Angola (Rank: 180) 100.00: Portugal (Rank: 1) Note: The ranking of economies on the ease of trading across borders is determined by sorting their distance to frontier scores for trading across borders. These scores are the simple average of the distance to frontier scores for the time and cost for documentary compliance and border compliance to export and import (domestic transport is not used for calculating the ranking). Figure – Trading across Borders in Angola – Time and Cost Time Cost 250 1200 1030 200 192 1000 180 825 169 800 Time (hours) Cost (USD) 150 600 96 460 100 400 240 50 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Page 46   Doing Business 2018 Angola Figure – Trading across Borders in Angola – Time and Cost Time Cost 250 1200 1030 200 192 1000 180 825 169 800 Time (hours) Cost (USD) 150 600 96 460 100 400 240 50 200 0 0 Export - Border Compliance Export - Documentary Compliance Import - Border Compliance Import - Documentary Compliance Details – Trading across Borders in Angola Characteristics Export Import Product HS 72 : Iron and steel HS 8708: Parts and accessories of motor vehicles Trade partner China China Border Luanda port Luanda port Distance (km) 27 27 Domestic transport time (hours) 4 5 Domestic transport cost (USD) 650 650 Details – Trading across Borders in Angola – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 455.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 120.0 370.0 Import: Clearance and inspections required by customs authorities 72.0 660.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 370.0 Details – Trading across Borders in Angola – Trade Documents Export Import Bill of lading Bill of lading Certificate of origin Certificate of origin Page 47   Domestic transport cost (USD) 650 650 Doing Business 2018 Angola Details – Trading across Borders in Angola – Components of Border Compliance Time to Complete Associated Costs (hours) (USD) Export: Clearance and inspections required by customs authorities 96.0 455.0 Export: Clearance and inspections required by agencies other than customs 0.0 0.0 Export: Port or border handling 120.0 370.0 Import: Clearance and inspections required by customs authorities 72.0 660.0 Import: Clearance and inspections required by agencies other than customs 0.0 0.0 Import: Port or border handling 96.0 370.0 Details – Trading across Borders in Angola – Trade Documents Export Import Bill of lading Bill of lading Certificate of origin Certificate of origin Customs export declaration (Documento Único) Commercial invoice Packing list Customs import declaration (Documento Único) Tax certificate Declaration of Customs Value (ADV) Terminal handling receipts Loading certificate (also known as ARC / Waiver / CNCA certificate) MINCO Export License MINCO Import License Commercial invoice Packing list SOLAS certificate Terminal handling receipts SOLAS certificate Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. 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 Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Page 48   Time to enforce the judgment several assumptions about the case: SOLAS certificate Doing Business 2018 Angola Enforcing Contracts The enforcing contracts indicator measures the time and cost for resolving a commercial dispute through a local rst-instance court, and the quality of judicial processes index, evaluating whether each economy has adopted a series of good practices that promote quality and e ciency in the court system. 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 Time required to enforce a contract through the The dispute in the case study involves the breach of a sales contract courts (calendar days) between 2 domestic businesses. The case study assumes that the court hears an expert on the quality of the goods in dispute. This distinguishes Time to file and serve the case the case from simple debt enforcement. Time for trial and to obtain the judgment To make the data comparable across economies, Doing Business uses Time to enforce the judgment several assumptions about the case: Cost required to enforce a contract through the - The dispute concerns a lawful transaction between two businesses (Seller courts (% of claim) and Buyer), both located in the economy’s largest business city. For 11 Attorney fees economies the data are also collected for the second largest business city. - The buyer orders custom-made goods, then fails to pay. Court fees - The value of the dispute is 200% of the income per capita or the Enforcement fees equivalent in local currency of USD 5,000, whichever is greater. Quality of judicial processes index (0-18) - The seller sues the buyer before the court with jurisdiction over commercial cases worth 200% of income per capita or $5,000. Court structure and proceedings (-1-5) - The seller requests a pretrial attachment to secure the claim. Case management (0-6) - The dispute on the quality of the goods requires an expert opinion. Court automation (0-4) - The judge decides in favor of the seller; there is no appeal. Alternative dispute resolution (0-3) - The seller enforces the judgment through a public sale of the buyer’s movable assets. Standardized Case Claim value AOA 863,430.00 Court name Luanda Provincial Court City Covered Luanda Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Time (days) 1296 656.8 577.8 164.00 (Singapore) Cost (% of claim value) 44.4 44.0 21.5 9.00 (Iceland) Quality of judicial processes index (0-18) 4.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.74: Portugal (Rank: 19) 61.58: Namibia (Rank: 59) 54.10: South Africa (Rank: 115) Page 49   of judicial processes Quality Business Doing index (0-18) 2018 Angola 4.5 6.5 11.0 15.50 (Australia) Figure – Enforcing Contracts in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 71.74: Portugal (Rank: 19) 61.58: Namibia (Rank: 59) 54.10: South Africa (Rank: 115) 49.99: Botswana (Rank: 133) 48.14: Regional Average (Sub-Saharan Africa) 26.26: Angola (Rank: 186) Note: The ranking of economies on the ease of enforcing contracts is determined by sorting their distance to frontier scores for enforcing contracts. These scores are the simple average of the distance to frontier scores for each of the component indicators. Figure – Enforcing Contracts in Angola – Time and Cost Time Cost 1400 1296 50 44.4 44.0 1200 39.8 Cost (% of claim value) 35.8 40 1000 33.2 Time (days) 30 800 660 656.8 577.8 21.5 547 600 600 17.2 20 460 400 10 200 0 0 Angola Botswana Namibia OECD high income Portugal South Africa Sub-Saharan Africa Figure – Enforcing Contracts in Angola and comparator economies – Measure of Quality Angola 1.5 1.5 0 1.5 Botswana 2 2.5 0 2.5 Namibia 2 4 2 1.5 Portugal 2.5 4 2.5 3.5 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 Page 50   14 0 0 Angola Botswana Namibia OECD high income Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Figure – Enforcing Contracts in Angola and comparator economies – Measure of Quality Angola 1.5 1.5 0 1.5 Botswana 2 2.5 0 2.5 Namibia 2 4 2 1.5 Portugal 2.5 4 2.5 3.5 South Africa 2.5 2 0.5 2 OECD high income 2.5 2.9 2 3.6 Sub-Saharan Africa 2 1.1 0.3 3.2 0 2 4 6 8 10 12 14 Sub-Indicator Score Alternative dispute resolution (0­3) Case management (0­6) Court automation (0­4) Court structure and proceedings (­1­5) Details – Enforcing Contracts in Angola Indicator Time (days) 1296 Filing and service 86 Trial and judgment 770 Enforcement of judgment 440 Cost (% of claim value) 44.4 Attorney fees 22.2 Court fees 22.2 Enforcement fees 0 Quality of judicial processes index (0-18) 4.5 Court structure and proceedings (-1-5) 1.5 Case management (0-6) 1.5 Court automation (0-4) 0.0 Alternative dispute resolution (0-3) 1.5 Details – Enforcing Contracts in Angola – Measure of Quality Page 51   Alternative dispute resolution (0-3) 1.5 Doing Business 2018 Angola Details – Enforcing Contracts in Angola – Measure of Quality Answer Score Quality of judicial processes index (0-18) 4.5 Court structure and proceedings (-1-5) 1.5 1. Is there a court or division of a court dedicated solely to hearing commercial cases? No 0.0 2. Small claims court 0.0 2.a. Is there a small claims court or a fast-track procedure for small claims? No 2.b. If yes, is self-representation allowed? n.a. 3. Is pretrial attachment available? Yes 1.0 4. Are new cases assigned randomly to judges? Yes, but manual 0.5 5. Does a woman's testimony carry the same evidentiary weight in court as a man's? Yes 0.0 Case management (0-6) 1.5 1. Time standards 0.0 1.a. Are there laws setting overall time standards for key court events in a civil case? No 1.b. If yes, are the time standards set for at least three court events? n.a. 1.c. Are these time standards respected in more than 50% of cases? n.a. 2. Adjournments 0.5 2.a. Does the law regulate the maximum number of adjournments that can be Yes granted? 2.b. Are adjournments limited to unforeseen and exceptional circumstances? Yes 2.c. If rules on adjournments exist, are they respected in more than 50% of cases? No 3. Can two of the following four reports be generated about the competent court: (i) No 0.0 time to disposition report; (ii) clearance rate report; (iii) age of pending cases report; and (iv) single case progress report? 4. Is a pretrial conference among the case management techniques used before the Yes 1.0 competent court? 5. Are there any electronic case management tools in place within the competent court No 0.0 for use by judges? 6. Are there any electronic case management tools in place within the competent court No 0.0 for use by lawyers? Court automation (0-4) 0.0 1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 the competent court? 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? Page 52   1. Can the initial complaint be led electronically through a dedicated platform within No 0.0 Businesscourt? the competent Doing 2018 Angola 2. Is it possible to carry out service of process electronically for claims led before the No 0.0 competent court? 3. Can court fees be paid electronically within the competent court? No 0.0 4. Publication of judgments 0.0 4.a Are judgments rendered in commercial cases at all levels made available to the No general public through publication in o cial gazettes, in newspapers or on the internet or court website? 4.b. Are judgments rendered in commercial cases at the appellate and supreme No court level made available to the general public through publication in o cial gazettes, in newspapers or on the internet or court website? Alternative dispute resolution (0-3) 1.5 1. Arbitration 1.5 1.a. Is domestic commercial arbitration governed by a consolidated law or Yes consolidated chapter or section of the applicable code of civil procedure encompassing substantially all its aspects? 1.b. Are there any commercial disputes—aside from those that deal with public No order or public policy—that cannot be submitted to arbitration? 1.c. Are valid arbitration clauses or agreements usually enforced by the courts? Yes 2. Mediation/Conciliation 0.0 2.a. Is voluntary mediation or conciliation available? No 2.b. Are mediation, conciliation or both governed by a consolidated law or n.a. consolidated chapter or section of the applicable code of civil procedure encompassing substantially all their aspects? 2.c. Are there nancial incentives for parties to attempt mediation or conciliation (i.e., n.a. if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. 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 Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Page 53   Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent if mediation or conciliation is successful, a refund of court ling fees, income tax credits or the like)? Doing Business 2018 Angola Resolving Insolvency Doing Business studies the time, cost and outcome of insolvency proceedings involving domestic legal entities. These variables are used to calculate the recovery rate, which is recorded as cents on the dollar recovered by secured creditors through reorganization, liquidation or debt enforcement (foreclosure or receivership) proceedings. To determine the present value of the amount recovered by creditors, Doing Business uses the lending rates from the International Monetary Fund, supplemented with data from central banks and the Economist Intelligence Unit. 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 Time required to recover debt (years) To make the data on the time, cost and outcome comparable across economies, several assumptions about the business and the case are Measured in calendar years used: Appeals and requests for extension are included - A hotel located in the largest city (or cities) has 201 employees and 50 Cost required to recover debt (% of debtor’s estate) suppliers. The hotel experiences nancial di culties. Measured as percentage of estate value - The value of the hotel is 100% of the income per capita or the equivalent Court fees in local currency of USD 200,000, whichever is greater. - The hotel has a loan from a domestic bank, secured by a mortgage over Fees of insolvency administrators the hotel’s real estate. The hotel cannot pay back the loan, but makes Lawyers’ fees enough money to operate otherwise. Assessors’ and auctioneers’ fees In addition, Doing Business evaluates the adequacy and integrity of the Other related fees existing legal framework applicable to liquidation and reorganization Outcome proceedings through the strength of insolvency framework index. The index tests whether economies adopted internationally accepted good Whether business continues operating as a going practices in four areas: commencement of proceedings, management of concern or business assets are sold piecemeal debtor’s assets, reorganization proceedings and creditor participation. Recovery rate for creditors Measures the cents on the dollar recovered by secured creditors Outcome for the business (survival or not) determines the maximum value that can be recovered Official costs of the insolvency proceedings are deducted Depreciation of furniture is taken into account Present value of debt recovered Strength of insolvency framework index (0- 16) Sum of the scores of four component indices: Commencement of proceedings index (0-3) Management of debtor’s assets index (0-6) Reorganization proceedings index (0-3) Creditor participation index (0-4) Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Recovery rate (cents on the dollar) 0.0 20.3 71.2 93.1 (Norway) Time (years) no practice 2.9 1.7 0.4 (Ireland) Page 54   Cost (% of estate) no practice 22.7 9.1 1.00 (Norway) Creditor participation index (0-4) Doing Business 2018 Angola Sub-Saharan OECD high Indicator Angola Africa income Overall Best Performer Recovery rate (cents on the dollar) 0.0 20.3 71.2 93.1 (Norway) Time (years) no practice 2.9 1.7 0.4 (Ireland) Cost (% of estate) no practice 22.7 9.1 1.00 (Norway) Outcome (0 as piecemeal sale and 1 as going 0 .. .. .. concern) Strength of insolvency framework index (0-16) 0.0 6.2 12.1 15.00 (6 Economies) Figure – Resolving Insolvency in Angola and comparator economies – Ranking and DTF DB 2018 Distance to Frontier (DTF) 0 100 79.67: Portugal (Rank: 15) 57.59: South Africa (Rank: 55) 47.76: Botswana (Rank: 79) 37.04: Namibia (Rank: 123) 30.28: Regional Average (Sub-Saharan Africa) 0.00: Angola (Rank: 168) Note: The ranking of economies on the ease of resolving insolvency is determined by sorting their distance to frontier scores for resolving insolvency. These scores are the simple average of the distance to frontier scores for the recovery rate and the strength of insolvency framework index. Figure – Resolving Insolvency in Angola – Time and Cost Time Cost 3.5 22.7 25 3.0 2.9 3 18.0 2.5 18.0 20 2.5 Cost (% of estate) Time (years) 14.5 2.0 15 2 1.7 1.7 1.5 9.1 9.0 10 1 5 0.5 0 0 no practice Botswana Namibia OECD high income Portugal South Africa Sub-Saharan Africa Angola Figure – Resolving Insolvency in Angola and comparator economies – Measure of Quality Angola 4 2 0 Page 55   Botswana 1 3 0 no practice Botswana Namibia OECD high income Portugal South Africa Sub-Saharan Africa Angola Doing Business 2018 Angola Figure – Resolving Insolvency in Angola and comparator economies – Measure of Quality Angola 4 2 0 Botswana 1 3 0 Namibia 2 3 1 0 Portugal 5.5 3 3 3 South Africa 6 3 2 1.5 OECD high income 5.4 2.8 2.3 1.9 Sub-Saharan Africa 4.1 2.3 1 0.4 0 2 4 6 8 10 12 14 16 Sub-Indicator Score Management of debtor's assets index (0­6) Commencement of proceedings index (0­3) Creditor participation index (0­4) Reorganization proceedings index (0­3) Figure – Resolving Insolvency in Angola and comparator economies – Recovery Rate Recovery Rate (cents on the dollar) 70 65.5 63.8 60 50 40 34.0 34.4 30 20.3 20 10 0.0 0 Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Details – Resolving Insolvency in Angola Indicator Answer Explanation Proceeding No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Outcome piecemeal sale According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Time (in years) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this Page 56   circumstance, it is not possible to assess the time, the cost or the outcome associated with Angola Botswana Namibia Portugal South Africa Sub-Saharan Africa Doing Business 2018 Angola Details – Resolving Insolvency in Angola Indicator Answer Explanation Proceeding No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Outcome piecemeal sale According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Time (in years) No Practice According to the research conducted by the team, there were no foreclosure, liquidation or reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Cost (% of No Practice According to the research conducted by the team, there were no foreclosure, liquidation or estate) reorganization proceedings filed in the country in the last 12 months. Due to this circumstance, it is not possible to assess the time, the cost or the outcome associated with the insolvency scenario described in the case study. Recovery rate (cents on the 0.0 dollar) Details – Resolving Insolvency in Angola – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 0.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 Page 57   dollar) Doing Business 2018 Angola Details – Resolving Insolvency in Angola – Measure of Quality Answer Score Strength of insolvency framework index (0-16) 0.0 Commencement of proceedings index (0-3) 2.0 What procedures are available to a DEBTOR when commencing insolvency (b) Debtor may 0.5 proceedings? le for liquidation only Does the insolvency framework allow a CREDITOR to le for insolvency of the debtor? (b) Yes, but a 0.5 creditor may le for liquidation only What basis for commencement of the insolvency proceedings is allowed under the (c) Both (a) and 1.0 insolvency framework? (b) options are available, but only one of them needs to be complied with Management of debtor's assets index (0-6) 4.0 Does the insolvency framework allow the continuation of contracts supplying essential Yes 1.0 goods and services to the debtor? Does the insolvency framework allow the rejection by the debtor of overly burdensome Yes 1.0 contracts? Does the insolvency framework allow avoidance of preferential transactions? Yes 1.0 Does the insolvency framework allow avoidance of undervalued transactions? Yes 1.0 Does the insolvency framework provide for the possibility of the debtor obtaining credit No 0.0 after commencement of insolvency proceedings? Does the insolvency framework assign priority to post-commencement credit? (c) No priority is 0.0 assigned to post- commencement creditors Reorganization proceedings index (0-3) 0.0 Which creditors vote on the proposed reorganization plan? N/A 0.0 Does the insolvency framework require that dissenting creditors in reorganization No 0.0 receive at least as much as what they would obtain in a liquidation? Are the creditors devided into classes for the purposes of voting on the reorganization No 0.0 plan, does each class vote separately and are creditors in the same class treated equally? Creditor participation index (0-4) 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Page 58   Creditor Doing participation Business 2018 index (0-4) Angola 0.0 Does the insolvency framework require approval by the creditors for selection or No 0.0 appointment of the insolvency representative? Does the insolvency framework require approval by the creditors for sale of substantial No 0.0 assets of the debtor? Does the insolvency framework provide that a creditor has the right to request No 0.0 information from the insolvency representative? Does the insolvency framework provide that a creditor has the right to object to No 0.0 decisions accepting or rejecting creditors' claims? Note: Even if the economy’s legal framework includes provisions related to insolvency proceedings (liquidation or reorganization), the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). 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 Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for Page 59   work of equal value and nondiscrimination based on the economy receives 0 points for the strength of insolvency framework index, if time, cost and outcome indicators are recorded as “no practice”. Doing Business 2018 Angola Labor Market Regulation Doing Business presents the data for the labor market regulation indicators in an annex. The report does not present rankings of economies on these indicators or include the topic in the aggregate distance to frontier score or ranking on the ease of doing business. Detailed data collected on labor market regulation are available on the Doing Business website (http://www.doingbusiness.org/data/exploretopics/labor-market-regulation). 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 Hiring To make the data comparable across economies, several assumptions (i) whether xed-term contracts are prohibited for about the worker and the business are used. permanent tasks; (ii) maximum cumulative duration of xed-term contracts; (iii) length of the The worker: probationary period; (iv) minimum wage. - Is a cashier in a supermarket or grocery store, age 19, with one year of work experience. Working hours - Is a full-time employee. (i) maximum number of working days allowed per - Is not a member of the labor union, unless membership is mandatory. week; (ii) premiums for work: at night, on a weekly rest day and overtime; (iii) whether there are The business: restrictions on work at night, work on a weekly rest - Is a limited liability company (or the equivalent in the economy). day and for overtime work; (iv) whether nonpregnant - Operates a supermarket or grocery store in the economy’s largest and nonnursing women can work same night hours business city. For 11 economies the data are also collected for the second as men; (v) length of paid annual leave. largest business city. - Has 60 employees. Redundancy rules - Is subject to collective bargaining agreements if such agreements cover (i) whether redundancy can be basis for terminating more than 50% of the food retail sector and they apply even to rms that workers; (ii) whether employer needs to notify are not party to them. and/or get approval from third party to terminate 1 - Abides by every law and regulation but does not grant workers more redundant worker and a group of 9 redundant bene ts than those mandated by law, regulation or (if applicable) collective workers; (iii) whether law requires employer to bargaining agreements. reassign or retrain a worker before making worker redundant; (iv) whether priority rules apply for redundancies and reemployment. Redundancy cost (i) notice period for redundancy dismissal; (ii) severance payments due when terminating a redundant worker. Job quality (i) whether law mandates equal remuneration for work of equal value and nondiscrimination based on gender in hiring; (ii) whether law mandates paid or unpaid maternity leave; (iii) length of paid maternity leave; (iv) whether employees on maternity leave receive 100% of wages; (v) availability of ve fully paid days of sick leave a year; (vi) eligibility requirements for unemployment protection. Details – Labor Market Regulation in Angola Answer Page 60   days of sick leave a year; (vi) eligibility requirements for unemployment protection. Doing Business 2018 Angola Details – Labor Market Regulation in Angola Answer Hiring Fixed-term contracts prohibited for permanent tasks? No Maximum length of a single xed-term contract (months) 120.0 Maximum length of xed-term contracts, including renewals (months) 120.0 Minimum wage applicable to the worker assumed in the case study (US$/month) 148.4 Ratio of minimum wage to value added per worker 0.3 Maximum length of probationary period (months) 3.0 Working hours Standard workday 8.0 Maximum number of working days per week 6.0 Premium for night work (% of hourly pay) 10.0 Premium for work on weekly rest day (% of hourly pay) 75.0 Premium for overtime work (% of hourly pay) 20.0 Restrictions on night work? Yes Whether nonpregnant and nonnursing women can work the same night hours as men Yes Restrictions on weekly holiday? Yes Restrictions on overtime work? No Paid annual leave for a worker with 1 year of tenure (working days) 22.0 Paid annual leave for a worker with 5 years of tenure (working days) 22.0 Paid annual leave for a worker with 10 years of tenure (working days) 22.0 Paid annual leave (average for workers with 1, 5 and 10 years of tenure, in working days) 22.0 Redundancy rules Dismissal due to redundancy allowed by law? Yes Third-party noti cation if one worker is dismissed? Yes Third-party approval if one worker is dismissed? Yes Third-party noti cation if nine workers are dismissed? Yes Third-party approval if nine workers are dismissed? Yes Retraining or reassignment obligation before redundancy? No Page 61   Third-party Doing approval Business 2018 if nine workers are dismissed? Angola Yes Retraining or reassignment obligation before redundancy? No Priority rules for redundancies? No Priority rules for reemployment? Yes Redundancy cost Notice period for redundancy dismissal for a worker with 1 year of tenure 4.3 Notice period for redundancy dismissal for a worker with 5 years of tenure 4.3 Notice period for redundancy dismissal for a worker with 10 years of tenure 4.3 Notice period for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 4.3 Severance pay for redundancy dismissal for a worker with 1 year of tenure 8.7 Severance pay for redundancy dismissal for a worker with 5 years of tenure 12.6 Severance pay for redundancy dismissal for a worker with 10 years of tenure 19.5 Severance pay for redundancy dismissal (average for workers with 1, 5 and 10 years of tenure) 13.6 Job quality Equal remuneration for work of equal value? Yes Gender nondiscrimination in hiring? No Paid or unpaid maternity leave mandated by law? Yes Minimum length of maternity leave (calendar days)? 90.0 Receive 100% of wages on maternity leave? Yes Five fully paid days of sick leave a year? No Unemployment protection after one year of employment? No Minimum contribution period for unemployment protection (months)? N/A Business Reforms in Angola In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Angola implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Angola made dealing with construction permits easier and less time consuming by improving the only application system Getting Electricity: Angola made getting electricity easier by upgrading Luanda’s electrical grid, thereby reducing the time it takes for the utility to complete feasibility studies for new connections. Trading across Borders: Angola made trading across borders easier by improving infrastructure at the Port of Luanda. Page 62   DB2017 Minimum contribution period for unemployment protection (months)? N/A Doing Business 2018 Angola Business Reforms in Angola In the year ending June 1, 2017, 119 economies implemented 264 total reforms across the di erent areas measured by Doing Business. Doing Business has recorded more than 2,900 regulatory reforms making it easier to do business since 2004. Reforms inspired by Doing Business have been implemented by economies in all regions. The following are the reforms for Angola implemented since Doing Business 2008. = Doing Business reform making it easier to do business. = Change making it more di cult to do business. DB2018 Dealing with Construction Permits: Angola made dealing with construction permits easier and less time consuming by improving the only application system Getting Electricity: Angola made getting electricity easier by upgrading Luanda’s electrical grid, thereby reducing the time it takes for the utility to complete feasibility studies for new connections. Trading across Borders: Angola made trading across borders easier by improving infrastructure at the Port of Luanda. DB2017 Starting a Business: Angola made starting a business easier by eliminating the paid-in minimum capital requirement. Paying Taxes: Angola made paying taxes easier and less costly by reducing the frequency of advance payments of corporate income tax and increasing the allowable deductions for bad debt provisions. At the same time, Angola made interest income tax a nal tax that is not deductible for the calculation of corporate income tax. Labor Market Regulation: Angola adopted a new labor law that decreased the wage premium for overtime and night work and increased the wage premium for work on weekly holidays. The law also extended the maximum duration of xed-term contracts and made xed-term contracts able to be used for permanent tasks, reduced severance pay for redundancy dismissals of employees with ve and ten years of continuous employment and increased severance pay for employees with one continuous year of service. DB2016 Starting a Business: Angola made starting a business easier by improving registration procedures and reducing the fees to register a company. Paying Taxes: Angola made paying taxes less costly for companies by reducing the corporate income tax rate. DB2014 Trading across Borders: Angola increased documentation requirements for cross-border trade by introducing a mandatory registration for all traders and a new license for export and import transactions. DB2013 Getting Electricity: Angola made getting electricity easier by eliminating the requirement for customers applying for an electricity connection to obtain authorizations from the 2 utility companies. DB2012 Registering Property: Angola made transferring property less costly by reducing transfer taxes. Getting Credit: Angola strengthened its credit information system by adopting new rules for credit bureaus and guaranteeing the right of borrowers to inspect their data. DB2011 Trading across Borders: Angola reduced the time for trading across borders by making investments in port infrastructure and administration. DB2010 Registering Property: Angola speeded up property transfers by digitizing the land registry in Luanda and splitting it into 2 units, each responsible for half the land covered by the registry. Page 63   Doing Business 2018 DB2010 Angola Registering Property: Angola speeded up property transfers by digitizing the land registry in Luanda and splitting it into 2 units, each responsible for half the land covered by the registry. Paying Taxes: Angola made paying taxes easier for companies by introducing mandatory electronic ling for social security contributions for those with more than 20 employees. Trading across Borders: Angola made trading across borders easier through a customs improvement program that streamlined procedures and reduced the time and cost of trade. DB2009 Starting a Business: Angola reduced the time and number of procedures to start a business by making it possible to complete all registration formalities at once at a single counter (the Guichet Unico). Dealing with Construction Permits: Angola made dealing with construction permits easier by eliminating the requirements for approvals from the water and electricity companies. Page 64   Dealing with Construction Permits: Angola made dealing with construction permits easier by eliminating the requirements for approvals 2018 and from the water Doing Business electricity companies. Angola Page 65