The types of companies that can be established in Cuba by foreign investors are regulated by the Law No. 118 “Foreign Investment Act” issued in 2014.
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Business entities in Cuba
According to the current legislation, foreign investments can be constituted in the following types of companies in Cuba:
1. Joint Venture: the most common type of foreign investment. It is represented by a Cuban corporation with registered shares that belong to national investors, as well as foreign ones.
Joint ventures can open offices, branches and subsidiaries inside Cuba and abroad, and they can partake in companies abroad.
2. International Economic Association Agreement: it represents the agreement between one or several Cuban investors with a single or more foreign investors for the undertaking activities that fit an international economic association. According to the Cuban laws, such agreements include:
- Risk contracts for the exploitation of non-renewable natural resources;
- Construction;
- Agricultural production;
- Hotel services and management;
- Contracts for the provision of professional services;
- Other activities. Our Cuban company formation experts can provide further information to foreign investors interested in these types of agreements.
3. Entirely Foreign Capital Companies: business entities with entirely foreign capital. This type of company in Cuba has the following characteristics:
- the foreign investor is able to manage the company;
- the foreign investor has all the rights that are granted in such a situation; and
- the foreign investor is liable for all the obligations stipulated in the Authorization.
After the registration of the corporation, foreign investors are able to:
- Settle within Cuba as private persons;
- Settle within the national territory of the country as legal bodies, by opening an office as a corporation with registered shares, or
- Settle within the national territory of Cuba as legal bodies by opening a branch.
An entirely foreign company established as a branch can open offices, branches and subsidiaries inside Cuba and abroad.
Before deciding to set up a company in Cuba, find out more about how to register a corporation in this country and the incentives offered by the Cuban State for foreign investors.
Banking policy for the types of businesses in Cuba
Joint ventures, foreign investors involved in international economic association agreements and entirely foreign businesses have the right to open bank accounts with any bank of the National Banking System. Such types of companies in Cuba can send and receive payments though as a result of their activities. They also have the right to enjoy the services of Cuban financial institutions.
Our specialists have the expertise to provide outstanding company formation services in Cuba. If you have more questions about how to open a company in Cuba and the types of businesses that can be set up in this country, please contact us.