How to Register a Sole Proprietorship (Empresário Individual) in Angola

Working as a contractor or independent professional in Angola offers flexibility, fewer formalities than setting up a full company, and the ability to start small. Angola has been reforming its business registration systems in recent years (for example, through “one-stop shops” and integrated business support) to reduce bureaucracy.

However, there are still challenges: navigating government offices, making sure you have all the correct permits, tax obligations, and sometimes unclear timelines for registration or license approvals. On the plus side, operating as a sole proprietor gives you independence, low upfront capital requirements, and simpler accounting compared to limited companies.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Angola?

In Angola, a sole proprietorship is officially called an Empresário Individual (sometimes also written as Empresário em Nome Individual). In everyday language, it is also known as a sole trader, self-employed worker, or independent contractor. All of these terms describe the same business model: one person legally runs a business on their own, is personally responsible for its debts and obligations, and does not create a separate legal entity like a company with shareholders.

How does a sole proprietorship (Empresário Individual) work in Angola?

Empresário Individual vs. other business structures in Angola

The following table compares how sole proprietorships (Empresário Individual) differ from limited companies (e.g., Sociedade Limitada) when it comes to tax structure, liability, setup, and suitability in Angola.

Step-by-step guide: How to register a sole proprietorship in Angola

Step 1: Check your eligibility

To register as a sole proprietor in Angola, you must be an individual adult with the legal right to run a business. Both Angolan citizens and foreign nationals can register, although foreigners may also need a valid residence or work permit, depending on their status.

Step 2: Choose your business name

You must pick a proposed name and ensure it is not already in use. You can apply for a certificate of name availability.

Step 3: Gather required documents

You will typically need:

• Valid identification (passport / national ID)
• Proof of address
• Proposed business name certificate from the registry
• Details of the business activity (commercial / service / industrial)
• Possibly a business permit (Alvará) or sector license, depending on your trade or location

Step 4: Register with the registration authority

Submit your documents through the one-stop shop (“Guichê Único”).

Step 5: Pay registration fees and contributions

The registration fee is Kz 21,380.00. Additional fees may apply (name certificate, notary, licenses, publications), depending on your activity.

Step 6: Complete post-registration obligations

Once you are registered as a sole proprietor in Angola, you must complete a few follow-up steps to stay compliant. The first is to apply for a Tax Identification Number (NIF) with the AGT. If your annual turnover exceeds the threshold, you must also register for VAT, which is charged at the standard rate of 14%.

From 2025 onward, all invoices must be issued using AGT-approved invoicing software, so it is important to set up a compliant system. Sole proprietors are further required to keep accounting records, either under the simplified or organized regime, depending on turnover levels. Finally, any changes to your business—such as a new address, an updated business activity, or a structural adjustment—must be reported to the registry to keep your records current.

Financial and tax obligations for sole proprietors in Angola

You are responsible for:

• Personal income tax (IRT): Sole proprietors are treated as self-employed professionals under Group B of Angola’s personal income tax system. If you provide services to companies with organized or simplified accounting, payments are generally subject to a 6.5% withholding tax. If you are paid by clients without accounting, your income may be taxed at a flat rate of 25%.
• VAT (IVA): The standard VAT rate is 14%. You must register for VAT with the AGT if your annual turnover exceeds the turnover threshold of Kz. 350,000,000.00. Returns are usually filed monthly under the standard regime, and invoices must show VAT separately.
• Social security contributions: If you employ staff, you must register with Angola’s Instituto Nacional de Segurança Social (INSS) and make employer and employee contributions. For sole proprietors without employees, contributions may still apply depending on sector and activity, though not always at fixed percentages like employees.
• Record-keeping: Sole proprietors are required to maintain proper accounting. Depending on turnover, this can be under the simplified or organized accounting regime. Books and supporting documents (invoices, receipts, expenses) must be kept for at least 10 years and be available for inspection by AGT.
• Invoicing: From September 2025, all taxpayers under simplified or general VAT regimes must issue invoices using AGT-approved invoicing software. Every invoice must include your NIF, client details, the date, description of goods or services, and any applicable VAT. Invoices must be numbered sequentially and archived for your records.

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FAQs

What is the minimum capital required to start an Empresário Individual in Angola?
There is no minimum capital requirement. Starting a sole proprietorship does not require share capital like a limited company.

Do Empresários Individuais need to register for VAT?
Yes, if your business turnover or goods/services operations exceed the VAT registration threshold, you must register with AGT for VAT. The standard VAT rate is 14%.

How much are the standard registration fees or contributions?
For example, reserving or certifying a business name costs KZ 21,380.00 at the one-stop shop. Other fees (notary, licensing) vary depending on activity and location.

Can an Empresário Individual hire employees?
Yes. If you hire employees, you must register with the Social Security Institute and make contributions as an employer, and comply with labor/employment laws.

How long does it take to register as an Empresário Individual in Angola?
Typically, the registration process can take from a few days to a couple of weeks, depending on whether all documents are in order, whether additional licenses are required, and how busy the offices are.

Can foreign nationals register as Empresário Individual in Angola?
Yes. Foreign nationals are allowed to register as self-employed/independent contractors. You may need to meet residency or work permit requirements depending on your immigration status.

Do Empresário Individual need a separate business bank account?
While not always legally mandatory, having a separate bank account for business income and expenses is highly recommended for accounting clarity and compliance. It helps with tax/legal audits, especially if you are under simplified or organized accounting.

What happens if I stop working as an Empresário Individual?
You should formally deregister or cease operations with the Commercial Registry, inform AGT (tax authority) of the final tax return, and settle any outstanding liabilities or contributions (social security, tax). Close or deactivate licenses or permits.

Are there any government incentives or reduced rates for new Empresário Individual? There are some reforms aimed at easing business entry (e.g., one-stop shops, integrated business support centers) to speed up registration and reduce red tape. But specific tax holidays, reduced rates for sole proprietors are limited. It depends on the region, sector, and sometimes on private investment law agreements.

Can I use Deel as an Empresário Individual to get paid by international clients?
Yes. Deel allows freelancers / sole proprietors (Empresário Individual) to receive payments from clients worldwide. You can invoice via Deel in multiple currencies with transparent currency conversion. Using Deel helps you keep records of income, invoices, which is useful for compliance with AGT and your tax returns.

Does Deel generate compliant invoices for Empresário Individual?
Yes. Deel automatically generates invoices that meet local and international legal and tax requirements. These invoices can include required information for Angola (name, business registration/tax number, service description, amounts, taxes, etc.).

Can Deel help me with taxes as a sole proprietor in Angola?
Deel provides downloadable tax reports and records of payments, which simplify bookkeeping. While Deel does not replace a local accountant or tax lawyer, the reports can be used for filing with AGT, VAT, and income tax purposes.

Does Deel offer contracts for freelancers and Empresário Individual?
Yes. Deel includes contract templates compliant with local laws so you can work with clients safely and professionally.

Can I access benefits through Deel as an Empresário Individual?
Yes. Deel offers optional perks (such as insurance, retirement savings plans, etc.) that can help you get security similar to what employees get, even while working independently.