The unitary Republic of Cape Verde is located on an archipelago of 18 islands in Western Africa. The country gained independence in 1975. It is not difficult to register a company in Cape Verde, as the country has a special government program that includes foreign investment in the state development strategy.
YB Case specialists note that all foreign investments are subject to prior approval. The request for the status of a foreign investor is submitted in triplicate using the prescribed form.
Another advantage for the investor is the possibility of obtaining a local citizenship. If you intend to set up a company in Cape Verde and open an account with a bank in Cape Verde, and are ready to invest $30 000 in your own company, then you can become a citizen of this country.
Citizenship gives you the right to visa-free visits to all countries of West Africa and greatly facilitates the possibility of obtaining a visa for Portugal, and this is the way to the EU countries.
To learn more about this country, you can ask for individual advice on a company registration procedure in Cape Verde and opening an account with a Capo Verde bank from YB Case specialists.
If you would like to open your own business in Capo Verde, you can choose one of the following business entity types:
- JSC (Sociedade em nome coletivo);
- LLP (Sociedade por quotas);
- LLC (Sociedade Anónima);
- Limited partnership with shares (Sociedade em Comandita);
- Cooperative (Sociedad Cooperativa).
If you decide to register a Cape Verde company, YB Case experts recommend you choosing LLC. Doing business in Cape Verde traditionally begins with the fact that you will need to choose the name of the company, as well as submit a detailed description of the objectives of the company to the registrar.
If you are going to open LLC in Cape Verde or LLP, you will need to fulfill several conditions:
- Sociedade anónima must have at least two shareholders;
- You need to prepare the share capital of 2 500 000 local escudos (25 118 USD). 30% must be deposited in cash at a local bank and the remaining 75% in cash over the next 5 years;
- Sociedade por quotas specifies in the constituent document 75% of the share capital, as well as the number and value of shares and the amount of capital signed by each shareholder;
- The minimum share capital is 200 000 escudos (2 010 USD). 50% of the share capital is also deposited in cash to a local bank. The rest is paid over the next 3 years.
Registering a Sociedade anónima in Cape Verde and opening an account for a Cape Verde company take up to 3-4 weeks.
You cannot set up a company in Cape Verde without a personal visit. Although it is possible to register a company in Cape Verde online, it is not yet possible to obtain its tax identification number (TIN) remotely.
You have an opportunity to open a company in the Cape Verde Free Zone, specially designed for investors. Free zone enterprises are engaged in the production and sale of goods or services that are intended exclusively for export or for sale to other enterprises in the same free zone.
For more information, please request for personal advice on a business organization process in Cape Verde from YB Case experts. Also, we can provide you with support services in opening a corporate account with a bank of Cape Verde.
Those entrepreneurs who are going to register a business in Cape Verde, the country offers a number of investment incentives:
- Tax exemption for dividends and profits distributed over a period of five years (or forever, if reinvested);
- After the end of the exemption period, the tax rate on profits or distributed dividends is 15%;
- Tax exemption of basic and interest payments related to foreign investment;
- Fixed tax rate (tax rate is 10% after the 6 year of activity);
- Exemption from all taxes or other income taxes during the first 10 years.
If you would like to set up a Cape Verde company, please take into account the following customs incentives:
- Exemption from customs duties and sales tax in connection with imports;
- A special regime for the import of primary goods and some other materials;
- Export is exempt from duties.
In addition, if you want to open a Cape Verde company, you should know that:
- Incentives are not available to foreign investors who focus their economic activity mainly on the local market or invest the financial sector regulated by specific legislation;
- You will need to obtain a license in Cape Verde for conducting some business activities.
You can receive qualified advice on a company registration process in Cape Verde from YB Case specialists. Also, we can provide you with professional assistance in opening a Cape Verde corporate bank account.