According to the legislation in Cuba, a foreign investor can open a subsidiary in Cuba as a legal entity, in the form of a company with registered shares, upon the registration of the corporation in the Business Register. Such a subsidiary can be an entirely foreign capital corporation, without the involvement of a Cuban investor or natural person with foreign capital.
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Rights of a subsidiary in Cuba
This way, the foreign investor is able to manage the corporation, have all the rights that result from it and is liable for all the obligations stated in the Authorization.
A subsidiary registered in Cuba is able to open offices, representations, branches and subsidiaries inside the Cuban territory and also abroad, and it is allowed to have interests in organizations abroad. Our Cuba company formation advisors can give you more details on this matter.
Registration requirements of a subsidiary in Cuba
Before beginning its operations, a subsidiary in Cuba has the term of 30 days from the date of the Authorization to submit all the needed public notarial deeds, and within 30 days after submitting this act, the deeds have to be registered in the Business Register.
According to the newest legislation in Cuba, it is important to know that subsidiaries owned or controlled by U.S. corporations in third countries are allowed to deliver services or goods – including financial services – to a Cuban citizen who lives abroad, if the transaction does not include a commercial exportation of services or goods to or from Cuba, be it direct or indirect.
The change is important because it reinforces the principle that foreign subsidiaries can be treated less restrictively than their U.S. parent firm when conducting activities abroad and dealing with customers.
We are a team of Cuban company formation advisors who can help you with the registration process of a subsidiary in this country. We have assisted numerous foreign corporations over the course of the years to establish subsidiaries in Cuba and we are knowledgeable on the entire process required when setting up such an entity in this country.
If you need to know more, please contact our Cuba company formation professionals.