Democratic Republic of Congo National Agency for Investment Promotion ANAPI INVESTMENT CODE GENERAL GUIDELINES (Law n 004/2002 of February 21, 2002 about Investment Code)
2 SECTORS INVOLVED IN THE INVESTMENT CODE Agriculture, agribusiness, cattle breeding, fishing, manufacturing industries, hotel trade and catering, building and civil engineering, council houses, timber and forestry, air, road, sea and fluvial transport, telecommunications, information technology, energy, textile, other services. A precious tool including fiscal and customs incentives and intended for private, public or semi public investments to boost the congolese economy. The Code sets the general rules to be applied to national as well as foreign direct investments in the DRC, and provides for specific provisions for SMEs SMIs. The Code involves all sectors except: mining and hydrocarbons, banking, insurance, explosives and arms production, military activities and trade. Unique regime for all approved investment and equal treatment for domestic and foreign investors. One stop Shop regarding investments: the National Agency for Investment Promotion (ANAPI). Fiscal and Customs benefits Government guarantees and security on the investments implemented. Approval Procedure (Art. 5) Easy and fast Submission of approval application files in one copy to ANAPI. Quick scrutinizing of the file by ANAPI. Licence approval issuance decision by an interministerial (Plan and Finances) decree within 30 days. After the deadline, approval is taken for granted. In the event of refusal, decision should be written down and explained.
3 Eligibility conditions (Art. 8) Approval delivery to investor Being or be converted into an enterprise subject to Congolese law Undertake to observe regulations related to environment protection and wildlife preservation. Undertake to train the national staff to specialized technical duties and of guidance and responsibility. The share capital should amount to US $ 200,000 minimum. Guarantee a value added rate equal to or exceeding 35 %. Granted benefits (Art. 10 18) The ANAPI Managing Director with investors Full exemption from duties and taxes on import for public utility investments of machinery, equipment, new materials, new spare parts not exceeding 10 % of the CIF value. Full exemption from duties and taxes on import for machinery, equipment and new materials as well as new spare parts not exceeding 10 % of the CIF value. Full exemption from duties and taxes on export of all or part of the finished products, carved or semi carved in good conditions for the balance of payment. Full exemption from professional tax on income for profits made by newly approved investments. Exemption from tax on the area of land concession and developed properties. Exemption from tax on turnover for products and services purchased from local producers. Exemption from ad valorem duty during the constitution or enhancement of the share capital of Limited Liability Companies. Economic zones (Art. 9) Duration of granted advantages: 3 years : Economic zone A (Kinshasa city). 4 years : Economic zone B (Bas Congo, Lubumbashi, Likasi and Kolwezi). 5 years : Economic zone C (Bandundu, Equateur,Eastern Kasaï, Western Kasaï, Maniema, Norh Kivu, South Kivu, Katanga)
4 SMEs and SMIs (Art. 19 22) PME et PMI Admissibility level to the general system of the Code: Minimum : 10,000 $ US Maximum: 200,000 $ US In addition to exemptions provided for in the general regime, SMs and SMs have the following benefits: Full exemption from duties and taxes on import for machinery, materials, and equipment even of second hand, new spare parts not exceeding 10 % of the CIF value of the said equipment, and industrial inputs necessary for the implementation of the approved investment. The right to deduce from taxable income all expenses related to the training of the MD or of his staff, to protection and preservation of the environment, and to assessment of their depreciation on a degressive basis. Exemption from duties on constitution acts of companies or cooperatives and their registration in RCCM. Guarantees & Security (Art. 23 30) Investors and their investments are secure in the DRC. Improvement efforts made in the DRC render the latter a constitutional State conducive to investors. Therefore, the DRC has been ranked among the top ten reformers in the world by the 2015 Doing Business Report. In addition: The private ownership right and freedom of trade and industry are guaranteed by the Constitution and the Investment Code; Equal treatment of all domestic and foreign investors is also ensured (no discrimination); No nationalization and expropriation, except for public utility reasons and with fair compensation; Total freedom to transfer abroad income generated by investments in the country; DRC membership of the modern Business Law in Africa (OHADA); DRC membership of MIGA (Multilateral Investment Guarantee Agency) of the World Bank Group; Observance of vested rights by investors;
5 Membership in ATI (Agency for Trade Insurance in Africa) and ICSID (International Centre for Settlement of disputes regarding investments based in Washington City), etc. Several bilateral agreements on promotion and reciprocal protection of investments signed by the DRC with individual countries. Obligations of approved companies (Art. 5) Implement the approved program Keep regular accounts Train the staff Observe the regulations regarding exchange and environment protection and wildlife preservation. Provide significant information relating to the achievement level of investment every six months to ANAPI. Observe the labor code in force. Conform to national and international standards to be applied on goods and services produced. Penalities (Art 34 35) In the event of failure: License withdrawal if no reaction after formal notice. Loss of advantages with backdated impact.