Those, who wish to register a company in Cuba and to open a corporate account with a Cuban bank, will find the most comfortable and favorable conditions for business development.
The Republic of Cuba is an island state of the West Indies, located in the north of the Caribbean. Cuba is one of the most progressive countries in Latin America. The most developed sectors of the economy are: a mining, a food processing, the fruit export, an agriculture, the energy, pharmaceuticals.
The capital and the largest city of the Republic is Havana. The official language is Spanish. A state currency is the freely convertible Spanish peso (CUP).
Cuba is a member of the following international organizations: UN (including World Health Organization, Universal Postal Union, World Meteorological Organization, UNESCO, International Atomic Energy Agency), Alliance of Small Island States (AOSIS), Non-Aligned Movements.
Key business prospects
The Cuban authorities are extremely positive about the idea of investing in the country's economy and are trying in every possible way to encourage foreign entrepreneurs, who want to start a business in Cuba. In particular, 3 free economic zones (SEZ) were created in the Republic for these purposes: Havana, Wahai and Mariel. Businessmen have the right to conduct business in Cuban FZ for 50 years.
Also, wishing to open a company in Cuba, the following business benefits await you:
- a dynamic economic growth;
- the expansion and the improvement of the banking sector;
- an important tourist center;
- ample opportunities for opening small and medium-sized businesses in Cuba;
- a well-established trade system with Venezuela, China, Spain, Canada, USA and the Netherlands;
- a flexible tax regime;
- 12 DTA Agreements.
Those, who are going to register a company in Cuba, as well as open an account in Cuba, should focus on the following business areas: a tourism, a construction, the hotel business, the restaurant business, a passenger transportation, a light industry, the manufacturing, a metallurgy.
The main types of companies in Cuba
If you are attracted by the registration of a company in Cuba, pay attention to the following legal forms:
- A company with full foreign capital (IBC);
- A Joint Venture (an analogue of a Joint Stock Company) - JV;
- An International Economic Association (IEA)
If you would like to open a commercial firm in Cuba remotely, pay attention to the fact, that most foreign entrepreneurs prefer to opt for the first two types of companies (IBC and JV), due to the relatively simple and clear registration conditions, as well as the convenience of doing business.
REQUIREMENTS OF THE REGULATOR
In order for the company to be registered in Cuba as soon as possible and without unforeseen difficulties, we recommend you studying the requirements of the local Regulator:
- The name of the enterprise must be a unique and contain at the end an indication of the legal form;
- IBC can be registered an individual, as well as a legal entity, as a branch of a foreign company;
- Use of a commercial real estate can be carried out only through a local partner;
- The permissible number of shareholders is from 2 people (both individuals and companies). Among shareholders there must be at least 1 resident;
- The number of directors is at least 1 (an individual or a legal entity of any residency);
- The size of the authorized capital is 10 000 CUP (about 8 827 EUR);
- The provision of financial statements is not a prerequisite.
A taxation in Cuba
If you intend to register a Cuban commercial enterprise, then it would not hurt to study the tax system of this jurisdiction properly, since it differs significantly from the usual European ones:
- The standard income tax rate is 35%;
- Enterprises involved in the extraction of minerals pay a higher tax rate (up to 50%);
- Companies of the IEA and JV type, with a share of Cuban capital, are entitled to not pay a tax for up to 8 years. At the expiration of the term, the rate will be 15%;
- A company is not required to pay a sales tax in its first year of existence. In the second year, the tax rate is 50%.
- A social insurance is 14%.
How to open a company in Cuba?
You have the opportunity to register a firm in Cuba remotely. For this purpose it will be sufficient to refer to the YB Case specialists, who will provide you with detailed advice on the peculiarities of doing business in this jurisdiction, on opening an account with the Bank of Cuba, and provide full support in the preparation of all necessary documentation.
Please, check with our specialists for possible solutions for your business.