When you're ready to expand your company to a new country, you have the option to establish a subsidiary — but it's not your only option. At Globalization Partners, our subsidiary outsourcing...
Read MoreWhen you're ready to expand your company to a new country, you have the option to establish a subsidiary — but it's not your only option. At Globalization Partners, our subsidiary outsourcing allows you to enjoy the benefits of an entity without the challenges of setting one up.
When you’re ready to expand your company to a new country, you have the option to establish a subsidiary — but it’s not your only option. At Globalization Partners, our subsidiary outsourcing allows you to enjoy the benefits of an entity without the challenges of setting one up.
Establishing a subsidiary in Cabo Verde starts with searching the availability of your company name and reserving it. You can handle this step at the Commercial Registry Department, known as Casa do Cidadão. After securing your name, you need to deposit your initial capital in a bank. The Commercial Registry Department will need proof of this deposit at your registration.
Once you make contact with the Commercial Registry Department, they will handle your registration through an online system. When your incorporation goes through, you’ll find the notice published on their website. You’ll automatically receive a tax identification number when your incorporation is official.
As an official company, you’ll need licenses for operation. You can apply for your municipal license and license by activity with the appropriate municipality. Both of these applications will require an inspection of your business premises to confirm compliance.
During your license processing and inspection, you’ll need to obtain company books from the National Print and have all pages certified by the tax department. You’ll also need to register with the National Social Insurance Insitute to make employee contributions to the social security fund. Before you start operations, you must submit a notice to the Labor Inspectorate.
A notable requirement for establishing a subsidiary is the deposit of the initial capital. The minimum share capital is CVE 1, which means you have some freedom in the amount you start with. Regardless of the amount you choose, you’ll need to deposit 50 percent in a bank account. You will also need to accrue the remaining 50 percent over the first three years of business.
Another subsidiary law to consider is the required articles of association. This document acts as a constitution for your business, describing how you elect directors, manage finances, and make decisions. When you apply for incorporation, you’ll need to submit these articles, and the Commercial Registry Department will publish them in the Official Bulletin.
Time is your most essential resource for subsidiary establishment. While the application process may take seven to 10 days, the work that goes into meeting application requirements takes longer. You need to draft your articles of association, determine your directors and secretaries, and find a location to conduct business.
You should also consider how much money you’ll invest in this process. You need investment capital, and you’ll have to pay application processing fees. There may also be additional expenses, like working with a lawyer to create your articles of association.
Incorporating an entity comes with its challenges, but you can reap the benefits once the process is complete. When you establish a subsidiary, you have a business that acts as a separate entity from your parent company. This arrangement gives your subsidiary a chance to develop its own professional identity, and it gives it an individual legal presence. Separate legal responsibility means you can avoid damages to your parent company if your subsidiary runs into compliance issues.
With Globalization Partners, you can enjoy the advantages of a subsidiary without the challenging setup process. As your Employer of Record, we’ll hire your workforce through our subsidiary, making all processes our legal responsibility. You can develop a professional identity for your new company and remove all legal risks from your shoulders.
Mitigate risk and create a new company identity in Cabo Verde with Globalization Partners. Reach out today to learn more about our services.
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