Once you decide to work in Cape Verde, you have two options for incorporation — establish your own subsidiary or work with a global PEO. If you establish your own entity, you’ll need to learn how to set up a Cape Verde subsidiary, understand the applicable laws, and choose the right structure to meet your needs, all of which occurs while you’re running both your global location and parent company.
Globalization Partners makes it easier for companies to expand without worrying about everything listed above. We offer Cape Verde subsidiary outsourcing through our existing subsidiary, which ensures that you can start working in a day or two. Our experts will handle Cape Verde’s subsidiary laws on your behalf, so you can pour your time and energy into building your business.
How to Set Up a Cape Verde Subsidiary
The Cape Verde subsidiary setup process looks different for every company. One of your first considerations needs to be where you will run your business in Cape Verde. The city or region you choose can have different subsidiary laws, so it’s best to find an area with the most favorable regulations. If you’re not familiar with all the laws you need to follow, we recommend working with an expert who can help you stay compliant.
Next, you need to set your business up as a specific entity. Cape Verde will allow you to classify your business as a co-partnership, shareholder society, anonymous society (limited company), limited society or joint stock company, or co-operative society. Each has its own incorporation process and Cape Verde subsidiary laws, so we recommend researching all options and choosing the one that best applies to your business goals.
Most companies incorporate as a limited liability company (LLC) because it gives them plenty of freedom to work in Cape Verde and also protects their shareholders and parent company. If you decide to set up your Cape Verde subsidiary as an LLC, you’ll need to follow these steps:
- Search for a unique company name and reserve your choice.
- Complete your company’s registration through an internal online registration system.
- Publish your incorporation notice in the Casa do Cidadão website.
- Obtain a tax identification number (TIN).
- Obtain a municipal license.
- Register workers with the Social Security Office.
- Register workers with accident insurance at an insurance company.
- Register workers with the labor inspectorate.
- Obtain and legalize the company books.
Cape Verde Subsidiary Laws
Cape Verde’s subsidiary laws for LLCs require them to have all initial capital paid in Cape Verdean escudo and indicate how many shareholders they have. You must deposit this capital in a bank within two business days. You’ll need to pay to create a business, which is 10,000 ECV. Then, you’ll owe another 10,000 ECV to register it at the Chamber of Commerce.
For a successful application, you need to present the proper identification, including a passport and tax identification. If you’re applying on behalf of a whole company, you’ll need a certificate of business registration and a power of attorney. If you wrote any of your documents in a foreign language, you must translate and notarize all original documents.
Benefits of Setting Up a Cape Verde Subsidiary
Setting up a Cape Verde subsidiary will give you numerous benefits, including the ability to legally work in the country. Since all shareholders are limited in liability by the amount they contribute, you can protect their assets. LLCs are also independent from their parent companies, which will protect your subsidiary and parent company’s interests.
Despite these benefits, it will still take you weeks or months to incorporate. Globalization Partners will help you start working in a day or two through our global PEO. We act as the Employer of Record, which ensures that we follow all the right Cape Verde subsidiary laws. Since you can use our existing infrastructure, we can help you hire, handle payroll, and give out compensation and benefits.
Other Important Considerations
Incorporating as an LLC requires plenty of time, knowledge, and money. Working with your finance and HR departments will help you plan for the amount of money you need and how many people should help with each task. If you’re unfamiliar with all the laws and regulations, try hiring a third-party expert, accountant, or lawyer who will help you avoid fines or delays.
Let Globalization Partners Help With Your Expansion
Globalization Partners will help make your expansion successful from the start. Contact us today to learn more about Cape Verde subsidiary outsourcing.