If you plan to start a business in Africa, Cabo Verde is a good choice for registering your company. The Manimama Law Firm has conducted in-depth research, analyzed the main subtleties of incorporating in Cabo Verde, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Cabo Verde?
- Strategic Location in the Atlantic Ocean
Cabo Verde is strategically positioned at the crossroads of trade routes between Europe, Africa, and the Americas, making it a convenient platform for international business. The island nation is actively developing its transportation and logistics infrastructure, including seaports and airports.
- Stable Political Environment
Cabo Verde is one of the most democratic and politically stable countries in Africa, which has a positive impact on its investment climate. The strength of its institutions and the rule of law provide investor protection and foster confidence in the local jurisdiction.
- Economic Diversification and Emerging Markets
While tourism remains a key industry, Cabo Verde actively invests in other sectors such as renewable energy, fisheries, agribusiness, and digital services. This opens up numerous opportunities for businesses looking to grow in new areas. The government encourages innovation and sustainable projects, making the country attractive to forward-thinking companies.
- Access to Skilled Workers and a Multilingual Environment
Cabo Verde has a well-educated population with strong proficiency in Portuguese, English, and French. This creates a favorable environment for serving both local and international clients. Moreover, the rise of remote work adds to the country’s appeal for IT firms and service-based businesses.
- Developed Tourism Infrastructure and Growing Demand
Tourism in Cabo Verde continues to grow steadily, offering significant opportunities for companies in hospitality, entertainment, construction, and services. The government actively supports the private sector in this area through investment programs and public-private partnerships.
How to register a company in Cabo Verde and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Submission set of documents;
- Publication of registration in the Commercial Register of Cape Verde (Casa do Cidadão);
- Obtain a tax identification number(TIN) (is still not possible);
- Opening and depositing money in a bank account;
- Submitting an inspection request and obtaining a municipal license (if applicable).
Requirements for registering a company in Cabo Verde on the example of a Sociedade Anónima (LLC):
- The type of company is a Limited Liability Company (LLC).
- Number of shareholders: at least 2 shareholders.
- Share capital Minimum paid-up capital 2,500,000 escudos, of which 30% must be placed in cash at a local bank and the remainder 75% over the next five years.
Requirements for registering a company in Cabo Verde on the example of a Sociedade por Quotas (LLP):
- The type of company is a Limited Liability Partnership (LLP).
- Number of shareholders: at least 2 shareholders.
- Share capital is a minimum share capital of 200,000 escudos, with half of it placed in cash at a local bank and the remainder paid out over the next three years.
What do you have to know about taxes when registering a company in Cabo Verde?
Corporate income tax (CIT):
- The corporate tax rate in Cabo Verde is set at 25% and is applied to the net earnings of a company.
Personal income tax (PIT):
Residents and non-residents earning income sourced from Cabo Verde are subject to progressive income tax rates. These rates range from 16.5% to 27.5%, depending on the income bracket:
- CVE 0 to 960,000 – 16.5%
- CVE 960,000 to 1,800,000 – 23.1%
- Over CVE 1,800,000 – 27.5%
Non-residents are taxed on Cabo Verde-sourced income only.
Value-added tax (VAT):
The standard VAT rate in Cabo Verde is 15%. And 6% reduced rate. This tax applies to the majority of goods and services supplied domestically.
VAT exemptions and reduced rates:
- Basic foodstuffs, healthcare, and educational services may be exempt.
- Exports are zero-rated.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Cabo Verde. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Cabo Verde, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Cabo Verde and pave the way for your business success!
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
