Doing business

Cuba

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Setting up a company | FDI in figures | Why you should choose to invest | Procedures relative to foreign investment | Finding assistance for further information

Setting up a company

Types of companies and capital (max/min)	Number of partners/shareholders and liability
Public Limited Company No minimum amount	2 minimum Liability is limited to their investment.

Business setup procedures

Setting up a company	Cuba
Procedures (number)	-	-
Time (days)	-	-

Source: .

For further information: Trade Register, in Spanish.
The competent organization: The Ministry of Foreign Investment and Economic Co-operation, through the Evaluation and Project Investment management leadership (Direccion de Evaluacion y Gestion de Proyectos de Inversion, DEGPI) is in charge of negotiations with foreign partners. The Ministry then gives the selected projects to the Excecutive Committee of the Council of Ministers, which gives the final decision.

FDI in figures

Foreign Direct Investment	2008	2009	2010
FDI inward flow (millions USD)	36	24	86
FDI stock (millions USD)	184.8	231.1	316.7
Number of Greenfield investments***	7	12	-
FDI inwards (in % of GFCF****)	0.6	5.7	-
FDI stock (in % of GDP)	0.3	0.4	-

Source:

Note: * The UNCTAD Inward FDI Performance index is based on a ratio of the country's share in global FDI inflows and its share in global GDP. ** The UNCTAD Inward FDI Potential index is based on 12 economic and structural variables such as GDP, foreign trade, FDI, infrastructures, energy use, R&D, education, country risk. *** Green field investments are a form of foreign direct investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up. **** Gross fixed capital formation (GFCF) measures the value of additions to fixed assets purchased by business, government and households less disposals of fixed assets sold off or scrapped.

Why you should choose to invest Cuba

Strong points: The law regarding direct foreign investment is relatively flexible and, in theory, it allows investment in all economical sectors. However, the government favors and offers more advantages to investments that can bring advanced technology, open new markets or provide an amount of capital which Cuba cannot bring in alone, allowing the country to have the freewill of substituting imports.
Weak points: Cuba's economy remains strongly centralized, which forces FDI, in most cases, to consider the Cuban government as a trade partner.
The government is the only one to authorize investments. In addition, the country's political risk remains high (6 of 7).
Government measures to motivate or restrict FDI: Free industrial trade zones have been established in order to attract foreign investors (for example: Havana in Bond, the Wajav zone or the port zone of Mariel). They are exempt of income tax on profits as well as labor tax, also exempt of customs duty and any other additional duties on merchandises introduced in the free zone. The tax exemption is valid for 12 years. The following five years, the company is taxed only 50%. For commercial activities and services, the exemption period is extended for 5 years.

Procedures relative to foreign investment

Freedom of establishment: No
Acquisition of holdings: In Cuba, majority shareholding in a local company is allowed .
Obligation to declare: The country'sWorld Association of Investment Promotion Agency enables one to be able to inform himself on the necessary authorisations required to set up.
Competent organization for the declaration: Ministry of Foreign Investment and Economic Co-operation, the MINVEC (Minsterio para la inversion extranjera y colaboracion economica). (Spanish only)
Requests for specific authorizations: No

Finding assistance for further information

Investment aid agency: Evaluation and Project Investment management leadership ( DEGPI)
Other useful resources: Law no. 77 on foreign investment (Spanish only)
Website on foreign investment registration (Spanish only)