Foreign Investors in Cuba. |
To invest in any type of business in Cuba, you would likely have to face two different approaches:
The first scenario: Investment in Cuba in partnership with governmental local institutions.
Cuba is an emerging economy, still subject to a complex process of changes initiated a few years ago, and expected to grow dramatically in the present decade. At the moment, foreign investment in Cuba has to follow a number of steps throughout a large path, involving from the very beginning the evaluation and approval of the Cuban government. Being still a communist society, the participation of foreigners and foreign capital in the Cuban local economy is strongly regulated by its centralized government. This doesnt mean it is impossible to invest on some business, or develop investment ideas in Cuba; it is only that you must pass through several filters and discuss the project with the right officials. There are specific areas considered by Cuban government as a priority for national and social development, and there is where chances of an approval of foreign capital investment are higher. In a macroeconomic level, industries like Tourism, Telecommunications and sectors like Transport, have the better chances. The centralization of the evaluation process, makes the foreign offers of business development go to the Ministry of the Foreign Investment, where considerations and suggestions of the foreign enterprise and the Cuban counterpart (generally a local ministry or office) would be taken into account. Depending on the capital volume, the extension and duration of the project, the investment recovering schedules and the national, economic and social impact, a decision is made by the mentioned Ministry. Once approved, the capital share distribution scheme is set giving a 51% to the Cuban partner (a local enterprise, existing or created to these effects) and 49 % to the foreign investor. The administration of the business, the hiring of personnel (foreign and domestic) the salaries policies and other internal procedures for the operations, are also regulated by Cuban law with very specific terms in it.
There is a second scenario, which doesnt involve the official gov participation, at least directly.
In the past three years, there has been an opening in some policies and laws regulating the participation of Cuban citizens in private economic activities and business. According to it, now Cubans can develop small private business like accommodation for travelers, restaurants, professional services related Information Technology, construction, gyms, beauty parlours and others. Although limitations in size and growth are in place, some of these private enterprises have really succeeded and become profitable business. And some of them, several of them actually, have been receiving support and capital injection from foreign investors. In these cases, the relation and contractual obligations of the parties have been governed by personal agreements based on mutual trust, or legal compromises signed before international notaries abroad. And the reason for it is that the only recognition of the legal status of the business, provided by the local gov and law, goes to the Cuban citizen authorized to conduct the business activities. This is actually a feasible option for foreign investors in Cuba, who have a partnership with a Cuban citizen residing abroad ( as far as this Cuban citizen has not migrated from Cuba under permanent basis and keep his legal rights inside the island ). Since the Cuban partner have a status and a life in another country, and spend time only partially in Cuba, legal agreements are possible to reach under foreign laws (those of the country where the Cuban resides temporarily).
For both scenarios or schemes, we can help you to study the feasibility and potentiality of an investment project in Cuba. Just email us with your general idea and we will provide advice and consultation. If you decide to move further, we can then assist you in a professional way and guide you through the necessary steps to develop the project. Please see the main services we can provide you with, and let us know if you want either general advice or a quotation of the assistance and advisory package;
- Marketing Research executed by local professionals ( MD and PHD on economic science ), focused on the chosen economic sector to invest, identifying business opportunities and designing the approach strategies.
- Compilation of laws and regulations governing the economic activities you are interested in, as well as the policies for foreign investment in the sector. ( Done by local specialized lawyers).
- Coordination of meetings with the Cuban potential counterpart ( both governmental sector and private sector ).
- Translation and interpretation carried out by specialists graduated from Foreign Languages Faculty of the Havana Univesity.
- Legalization of required documentation to be presented before Cuban authorities ( done through a recognized International Legal Consulter Firm in Havana ).
- Identification of Real Estate investment opportunities, creation of properties for sales portfolio and field trips to show these properties. Coordination of meetings with owners and advisory on the legal procedures to buy a home in Cuba.
- Through our associated Travel Agency, accommodation, transportation and land traveler services in Cuba during exploratory or business trips inside the island.
Our team on the ground guarantee you a fully assistance package of services, so you are always accompanied and guided by our specialists once you are in Cuba.
Contact us with the initial idea, lets discuss the options and then you decide the further steps. Now is the time, now is the moment, before changes inside the island go too far and it's too late to be the first. And we all know the importance of being the first in a new market...the main ingredient for success.
