Because of the current economic conditions, Cuba is keen to attract foreign investments under the form of a branch of a foreign company which is willing to do business with local enterprises and agencies. Another form of extending your business in Cuba is by opening a subsidiary in this country.
The setting up of a branch in Cuba is regulated by the Decree 206 of 1996, “Regulations of the National Registry of Branch Offices and Agents of Foreign Mercantile Societies” and by the Resolution No. 550 of 2001 of MINCEX (Ministry of Foreign Trade and Foreign Investment).
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Requirements for Opening a Branch in Cuba
The main requirements for an application for a branch office in Cuba are:
- A social capital of the foreign company of at least USD 50,000;
- At least five years of registration in the original country;
- At least three consecutive years of doing business in Cuba;
- A yearly business volume with Cuban enterprises or agencies of at least USD 500,000.
There might be certain exceptions from these requirements, depending on the interest of the state in the specific foreign company which submits the inquiry. Our Cuba company formation specialists can offer more information on this matter.
Inquiry and License of the Branch in Cuba
The inquiry for setting up a branch office in Cuba has to be submitted to the Cuban Chamber of Commerce.
A usual license for opening a branch office in Cuba is issued for a period of three years, being possible to renew it, and it allows the employment of Cuban workers – through a state employment agency – renting an office, acquiring cars and contracting services (like communications, setting up a bank account and others) in order to be able to start doing business in the country.
Alternative to Opening a Branch in Cuba
The alternative to setting up a branch in Cuba is to go into a representation contract with a Cuban business and/or to enter a contract with a consultant (who is not able to get involved in negotiations with Cuban bodies) within an authorized Cuban Consultancy company. In certain cases, an already established branch of a foreign company could include the representation of another foreign business that activates in the same economic field.
We provide company formation services in Cuba which are customized to your particular needs when looking for business opportunities in an exciting and promising market. Beyond cultural barriers, we can assist you in opening a company in Cuba, doing all the necessary research and legal ground work for you so that you can focus on setting up the business.
If you wish to know more, please contact us.