We are a team of Cuban attorneys who advise on the process of establishing companies in Cuba, which, according to the latest legislation in this country, can be achieved as stated below.
Types of Investments when Establishing a Company in Cuba
If you are looking to establish a company in Cuba, you can achieve this in the following two ways:
1. Make a direct investment; or
2. Invest in shares or in private or public securities.
Business Establishments in Cuba
Our law firm can provide foreign investors with advice on the latest legislation regarding company establishment procedures in Cuba. According to the current laws, a foreign investor can open a company in this country under the following forms:
1. A Joint Venture: it is the most commonly met type of business that involves a foreign investor. It is characterized by a local company with registered shares that are owned both by local and foreign investors.
2. An International Economic Association Agreement: it is the agreement among one or more local investors with one or several foreign entrepreneurs for carrying out activities that fit an international economic association.
3. An Entirely Foreign Capital Corporation: these are business establishments with totally foreign capital.
Approval of the Economic Entity When Looking to Establish a Business in Cuba
After deciding on the type of business to open, the following stage in establishing a company in Cuba is contacting different agencies of the Cuban State that have to issue an Approval of business. Depending on the characteristics of each investment, these agencies may be:
• The Council of State: it approves foreign investments if it intends to exploit or prospect non-renewable natural resources, with some exceptions, and if it has to do with the public service management.
• The Council of Ministers: it approves foreign investments if they are related to:
o Real estate developments;
o Entirely foreign businesses;
o Transfer of State ownership;
o Risk agreements of international economic associations for the exploitation and production of non-renewable natural resources;
o A foreign business dealing with public capital;
o Use of renewable sources of energy;
o Other foreign investments that do not request the approval of the Council of State.
• Head of State Central Administration Bodies:
o The Minister of Foreign Trade and Investment: it issues the Approvals for all the International Economic Association Contracts for production and service management;
o The Minister of Tourism: is issues the Approvals for the International Economic Association Contracts for companies which deal with hotel management.
With in-depth knowledge of the national legal system, our law firm in Cuba provides legal advice regarding the establishment of a company in this country, as well as debt collection and litigation services. Please contact our team of Cuban lawyers if you need legal assistance in this country.