How can a foreigner open a company in Cuba

Cuba has been making great efforts in recent years to improve the investment climate and attract foreign capital to the country. To date, the jurisdiction of Cuba has become low-tax and loyal to non-residents. From this jurisdiction it is convenient to conduct international business and interact with foreign partners.

Cuba — this is specific kind of socialist offshore territory, which has a progressive investment legislative base, and has signed agreements on the avoidance of double taxation with more than 8 countries. A business that has a share of local capital does not pay a corporate tax for the first 8 years of operation, after this period the rate is 15%. Quite low rates are offered to completely non-resident companies. The standard corporate income tax rate in Cuba — 35%. The company may not pay sales taxes in the first year of existence, then the rate is 50%. The social insurance rate is 14%.

Benefits of registering a company in Cuba

• It is allowed to open firms with 100% external capital;
• offshore firms are covered by Cuban civil law;
• organizations are not required to provide financial statements;
• foreign investment is protected from political changes;
• no need for local registered agents and office;
• during the establishment of the enterprise, they are exempted from customs duties on the import of equipment necessary for the operation of the company.

Conditions and process of opening a Cuban company

Joint Venture (work with the citizens of the country in a joint format) — the most appropriate form of company. It is also possible to create a company whose capital will be completely foreign (IBC). For both of these forms of companies, the same opportunities open up, the difference is only in the registration process. Any industry is open to non-residents. They open equal opportunities, there are only some nuances of registration. Foreigners and companies with external capital have the right to work in any field, except for educational, military and health care.

A company to be created must have at least two shareholders, one of which is — Cuban resident. One director is enough for work — person or legal entity. If a company is founded with 100% external capital, it must obtain official permission from the authorities, and non-resident founders must obtain business visas. For a completely foreign company, official permission from the authorities is required. At the same time, founders are issued business visas that give non-residents the right to stay in Cuba for 3 consecutive months.

Steps of applying for a business visa

• obtain an invitation from Cuban partner organizations and a business license;
• to provide the consulate with passports (general and foreign), an English-language application form, photo, flight and hotel reservations, medical insurance;
• pay the fee at the consulate — about US$35 or $60 through representatives (allowed);
• confirm good criminal record — provided by standard help;
• to prove solvency (from $50 for each day of stay) — take a bank statement.

After obtaining a visa, you need to prepare registration documents (charter, extract from the register, power of attorney for an intermediary with the right to sign, accounting reports), translate them and notarize them. Next, a questionnaire and a registration form are filled out, which are issued by the Cuban authorities, and a package of documents, together with a power of attorney for directors and a receipt for payment for services, is submitted to the Chamber of Commerce.