With immense resources, energy, and a blooming fishing industry, this country is widely open to foreign investors interested in setting up businesses on its shores. Located in Africa and nested in between Central Europe, South America, North America, and South Africa, there is no better strategic location for commercial activities. One could say that its position plays an important role in the growth of the economy as it serves as a regular major air and sea route linking North to South. There are numerous business and investment opportunities in sectors such as the light industry, utilities like water and energy, construction, fishery, agriculture, telecommunication and transport service, tourism, etc. There are five main kinds of business structures available for business owners looking to set up or purchase an existing company in this territory.
Buying a Company
When you want to buy a business on the verge of closing or one that has already shut down, there are certain things to put in mind. If you have the funds to pay, several companies are on sale either online or physically. There are different reasons for buying out a company, an investor’s reason often determines what happens next after buying the company. Some buy a company and merge it with an existing one with similar activities while others buy a business in a different field. Note that you must be cautious when buying a company to avoid scams by business identity thieves.
The steps involved in this process are simple and easy. Step one is to find the company one wishes to acquire then research to know if it is on sale, ensure it owes no liable debt, and can present authentic financial records prepared by its auditors.
Step two is to hire a business services provider who will take charge of the process of buying the company, from basic discussion to important stuff like document signing. Since the representative can stand in for you during the transaction, there is no need to be present in the country.
Doing Business in Cape Verde
One of the reasons investors flocks to this country is the fair and equal treatment they receive, as well as the security and protection of goods and rights the government offers. with a sound political system and a strong economic foundation, it is one of the best places to do business. Registering a company takes a maximum of one week and involves small registration steps with little or no stress. To set up a company or buy one, you must confirm the availability of the business name. You can do this at the Commercial Registry Department (Casa do Cidadão).
Types of Companies
It takes little time as low as a day to register a company here. There are five primary types of businesses. The following commercial entities existing are:
- Commercial partnership (sociedade em nome colectivo)
- Private limited company (sociedade por quotas)
- Public limited company (sociedade anónima)
- Limited partnership or limited partnership with shares (sociedade em comandita simples or sociedade em comandita por acções)
- Cooperative (sociedade cooperativa)
To set up any of the listed entities, certain requirements must be met by the investors. Each structure has its features and requirements.
Features of a Company
For anyone looking to set up or purchase a company, knowing what type of entity to buy is only possible by knowing the features of each and how they apply to the business he or she has in mind or already has. The following are characteristics of a business.
- Shareholders liability
- Foreign Ownership
- Business Address
- Share capital
- Number of partners, etc.