Doing Business In.. 2020

Last Updated July 15, 2020

Cabo Verde

Law and Practice

Authors



Raposo Bernardo & Associados is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 12 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

Cabo Verdean law is based on the civil law system.

The Constitution of Cabo Verde and relevant legislation provide for a judiciary independent from the executive.

The judicial system in Cabo Verde is based on three levels of appreciation by different courts:

  • First Instance Courts (trial court);
  • Courts of Appeal; and
  • the Supreme Court.

As a rule, any case shall be presented at the First Instance Courts and, depending on several requisites (such as the value of the case or the subject matter), the party that loses the case may appeal to the Court of Appeal and, after (as a second level of appeal), to the Supreme Court, which only analyses questions of law.

There are no restrictions on the entry of foreign investments.

All investors, regardless of their nationality, have the same rights and are subject to the same duties and obligations under the laws of Cabo Verde. A national partner is not required and there are no limitations to the distribution of profits or dividends abroad.

The rules governing foreign investment are similar to those applicable to domestic investment. No special registration or notification to any authority regarding foreign investment is required.

However, there may be mandatory registration/approvals for specific activities – such as in the banking, finance, aviation, maritime and telecommunications sectors – that are applicable both for foreign and domestic investment.

There are no restrictions on the entry of foreign investments and the rules governing foreign investment are similar to those applicable to domestic investment.

See 2.2 Procedure and Sanctions in the Event of Non-compliance.

The law recognises the right of an investor to challenge any decision of the administrative authorities in court. The scope of the legal challenge depends on the nature of the decision by the administrative authority.

The court does not have mandatory deadlines to issue a decision. It can take six months or more.

The following types of companies are the most relevant provided for in the Cabo Verde Companies Code and are frequently chosen by foreign investors aiming to start their own enterprise structure in Cabo Verde.

The choice of one of these structures depends on many factors, such as the type of business to be implemented, the simplicity or size of the operations, the amount of capital to be invested, the possibility to transfer ownership freely and disclosure rules about the aforesaid ownership.

The most commonly used forms are public limited companies and limited companies, since they are more operational.

Public Limited Companies (Sociedade Anónima)

This type of company has the following characteristics.

  • Minimum share capital – EUR0.01.
  • Minimum number of shareholders – two. A single-shareholder public limited company incorporation is permitted if the single shareholder is another company.
  • Forms of incorporation – as a general rule, public limited companies are incorporated by means of a private document (articles of association). Additional formalities may apply if the shareholders perform contributions in kind.
  • Share transfers – as a rule, transfer of shares is free and may be carried out by means of an agreement between the parties.
  • Governing bodies – the governing bodies of a public limited company are as follows.
    1. The management board – as a rule, with a minimum of three members. Management can be entrusted to one director if the turnover for two consecutive years is expected to be less than CVE10 million. In addition to the election of the effective members of the board of directors, substitute directors must be elected in numbers not exceeding one third of the effective directors. This means three effective members and one substitute member or one effective member and one substitute.
    1. The shareholder meeting.
    2. The supervisory board (three members) or one auditor. A member of the supervisory board or the auditor must be certified.
  • Shareholders’ liability – limited to capital subscribed, but shareholders are jointly and severally liable for all contributions foreseen in by-laws.
  • Flexibility of capital – only registered shares are allowed. Registered shares are transferred by endorsing the share certificate in the name of the transferee and notice must be given to the company for the purposes of registration in the share book. Book-entry shares are transferred by registration in the transferee’s bank account. The only limit on the free transfer of shares may arise from any pre-emption rights that have been established by the shareholders in the articles of association.

Limited Companies (Sociedade por Quotas)

This type of company has the following characteristics.

  • Minimum share capital – EUR0.01.
  • Minimum number of shareholders – as a rule, two members. Single-shareholder limited liability company incorporation is permitted.
  • Forms of incorporation – as a general rule, limited companies are incorporated by means of a private document (articles of association). Additional formalities may apply if the shareholders perform contributions in kind.
  • Share transfers – the transfer of shares may be carried out by means of an agreement between the parties, except when the incorporation has been made through public deed.
  • Governing bodies – management with one or more directors. An auditor is not mandatory, but companies that do not have a supervisory body must appoint a certified auditor to carry out the statutory audit as long as the turnover is greater than CVE10 million and/or the number of employees is more than ten.
  • Shareholders’ liability – limited to capital subscribed, but shareholders are jointly and severally liable for all contributions foreseen in by-laws.
  • Transfer of shares – the transfer of shares must be made by written agreement between the parties. The articles of association may set limits or conditions on the transfer of shares or pre-emptive rights in favour of other shareholders or the company itself.

A public limited company (sociedade anónima, or SA) is the form traditionally adopted by larger companies. It is primarily characterised by the fact that it has a more complex organisational structure than, for example, the limited company. The public limited company form also provides greater flexibility when it comes to share capital in so far as no special procedure is required for the transfer of shares.

The procedural steps to set up a company are as follows.

  • Approval of name – the first step in this type of process is to gain approval of the name of the company to be set up and to indicate what type of company it will be.
  • Head office of the company – the company must indicate the location where it will carry out its commercial activity.
  • Corporate structure – the identification documents or commercial certificates, according to whether individuals or legal entities are involved, of the shareholders or quota-holders who will make up the corporate structure of the company are required. If the individuals or legal entities are foreign, the above documents must be legalised at the Cabo Verdean consulate in the country of origin or apostilled. If the shareholders or quota-holders are legal entities, it will also be necessary to have the written resolution – approving the setting up of the Cabo Verdean company and the shareholding to be held by the legal entity in question.
  • Powers of attorney – in the event that the share/quota-holders are not available to travel to Cabo Verde to sign the documentation necessary for the process of incorporating the company, they will have to execute powers of attorney granting powers to representatives in Cabo Verde to enable the latter to deal with the respective legal steps of incorporation.
  • Articles of association – this document establishes the rules that will govern the operation of the company.
  • Composition of the corporate bodies – the members who will form the first board of directors must be indicated at the moment of incorporation.
  • Commercial licence – after dealing with the deed of incorporation and respective commercial registration, an application must be made requesting the issue of the commercial licence.

Commercial representation/foreign branches of commercial companies may choose to be represented in Cabo Verde through branches, agencies, delegations or other forms of representation. Representations are authorised to carry out activity in Cabo Verde in accordance with the applicable time limit.

The ongoing report and disclosure obligations depend on the sector of activity of the company. Companies that operate in financial, banking, insurance and communications are subject to different levels of ongoing reporting and disclosure obligations.

But for companies not subject to special legal regimes, the following reporting requirements are applied:

  • annual accounts, which are to be filed annually to the commercial registry and are publicly available;
  • statement of commencement of activity from the tax authorities;
  • statement of commencement of activity for social security; and
  • amendment to the articles of incorporation.

For a sociedade anónima, the management must be structured as follows: a board of directors with a minimum of three members or an executive board of directors.

Where the share capital does not exceed EUR90,691, the board of directors can be replaced by a single director.‬‬

For sociedades por quotas, the following applies: management is discharged by one or more managers, who must be individuals, designated by the shareholders.

Directors can face civil and criminal liability.

Directors’ Civil Liability

Members of the board of directors can be held liable towards the company for damages caused by acts or omissions resulting from disrespect of their legal or contractual duties, unless the directors can prove that they did not act wilfully or maliciously.

As an expression of the business judgement rule, liability is waived if directors can prove that they acted in an informed manner, free of any personal interest and using the criterion of corporate rationality. A director who does not exercise the right of opposition conferred by law, when able to do so, will be jointly liable for the acts they could have objected to.

Directors are not liable towards the company if the act or omission is part of a resolution of the general meeting, even if that resolution is voidable. However, directors will not be released from liability on the favourable opinion or consent of the supervisory body.

Directors' Criminal Liability

Under Cabo Verdean law, only crimes expressly provided for in the law can be punishable. Companies and individuals can be held criminally liable.

Directors can be liable for any action wilfully performed on behalf of the company, whenever such action qualifies as a crime and even if the relevant type of crime requires (to qualify as such) certain elements that can only occur in the company or if an agent acts in its own interest and the director acted in the company’s interest.

Misdemeanour Proceedings

Certain actions of the directors can qualify as misdemeanours and incur fines and accessory penalties applicable to the relevant agent (either a company or generally a director acting on behalf of the company).

The employment relationship is regulated by the Labour Code (Decreto-Legislativo No 5/2007 de 16 de Outubro). Further to the Labour Code, several other laws regulate important issues, such as work-related accidents and sickness.

Nevertheless, the parties may agree in employment agreements some special situation conditions for the employment relationship provided they do not violate the Labour Code. It is also possible to have collective bargaining agreements with more favourable conditions for employees.

Civil servants or public employment relationships are subject to special regulation.

As a rule, no written document is required and the employment relationship can be proved by any means.

Some types of contract must be in writing – that is, fixed-term or part-time – and certain top management contracts. However, if the contract is not in writing, it does not render it invalid. It can, however, lead to the contract’s requalification into a full-time permanent one.

The minimum and maximum working times are regulated by the Labour Code. The normal working period may not exceed eight hours per day and 44 hours per week, and a minimum of 12 consecutive hours of rest must be respected.

The Labour Code provides that by a unilateral decision of the employer, a single schedule of seven hours of daily work may be established during the months July to September, between 6am and 3pm on the same day. During daylight saving time, the employee shall be allowed an interval of not less than 15 minutes. The employer may also choose to maintain normal working hours by extending rest time between the morning and afternoon periods, but in such case the afternoon period may not exceed 19:30 each day.

As a rule, the daily working period shall be interrupted by an interval with a maximum duration of one hour so that the employee does not work more than five consecutive hours.

Overtime hours are also regulated by the Labour Code and are considered to be work outside the normal period of work to which the employee is bound and can only be done (i) in the case of increases in work that do not justify the recruitment of other employees or (ii) in the case of force majeure, or where there are serious reasons that make it necessary to prevent serious harm.

The employment contract is extinguished by:

  • mutual agreement of the parties;
  • expiry;
  • collective dismissal;
  • individual dismissal for just cause; or
  • termination by the employee.

Mutual Agreement of the Parties

It is always lawful for the employer and the employee to terminate the employment contract by mutual agreement, which must be executed in writing.

The parties are free to enter into an agreement with or without compensation and to fix the date of termination; ie, to establish that the termination will be immediately or in the future.

However, if the parties intend to give immediate effect to the termination agreement, the employer shall agree compensation with the employee, taking into consideration the type of employment contract, duration, remuneration and possibility of finding a new job.

The compensation to be agreed between the parties may be paid in cash or in goods, in a single instalment or several instalments.

The employee can always claim cancellation of the agreement or any of its clauses, by judicial proceedings, if he considers that there has been an error, malicious act or coercion in its conclusion.

Expiry

The employment contract expires:

  • once the period has expired;
  • if there is a supervening, absolute and definitive impossibility of the employee performing the work for which he was hired or the employer receives it;
  • by the occurrence of any extinctive facts, not dependent on the will of the parties; or
  • on the retirement of the employee.

The expiry of the contract due to the expiry of the initial or renewal period gives the employee the right to compensation of the following amounts:

  • 21 days of basic remuneration, if the contract lasts one year;
  • 15 days of basic remuneration for each full year of the contract, in addition to the first year; and
  • 1.75 days of basic remuneration for each month of the contract term up to one year.

In undetermined-duration and fixed-term contracts with a duration of more than five years, the employee is entitled to compensation in the amount of ten days of basic remuneration for each full year after the first five years and one day of compensation for each month of duration of the contract up to one year.

Collective Dismissal

The employer may terminate the employment contracts of two or more employees on the grounds of reduced business or permanent closure of the company, establishment or part of the company structure for economic, conjectural or technological reasons.

The employer intending to make a collective dismissal shall communicate its intention in writing to the unions representing the employees. If the employees are non-unionised, the company shall directly notify the employees.

The communication shall include the following information:

  • the grounds for collective dismissal;
  • the expected date for the termination of the contracts;
  • the criterion for selection of employees; and
  • the number and professional category of the employees covered by the collective dismissal.

The employees covered by the collective dismissal are entitled to compensation. The amount of the compensation depends on the date of hiring the employee.

Individual Dismissal for Just Cause

The employer can, under certain circumstances, terminate the contract with just cause. The concept of just cause includes disciplinary dismissal and other forms of dismissal, provided that they are justified according to the law.

For dismissal based on unlawful conduct of the employee, the concept of just cause is the centrepiece of the matter and consists of the impossibility in practice of continuing the employment relationship due to the seriousness of the employee’s misconduct. When dismissed with disciplinary cause, the employee is not entitled to any compensation.

If the dismissal is not justified according to the law or if the employer does not comply with the proper proceeding, the termination of the contract can be considered null and void. The contract remains in force, which can lead to reinstatement or compensation.

Termination by the Employee

The employee may terminate the employment contract at any time without any reason or explanation, but the employee is obliged to give prior notice to the employer, which varies between 15 days and two months depending on the duration of the contract.

The right to form an employee representative body in any company, regardless of its size, is guaranteed by the Cabo Verdean Constitution. The initiative depends completely on the employees, which means that employers are under no obligation to implement this form of representation.

Employees are subject to personal income tax (PIT) under two tax methods: (i) declarative (self-assessment method) and (ii) final withholding method.

Employees are taxed according to category A (employment income), based on their residence or non-residence status. For PIT purposes, an employee is deemed resident in Cabo Verde provided they meet one of the following conditions: (i) a person who spends more than 183 days in aggregate in Cabo Verde during a calendar year or (ii) a person stays fewer than 183 days therein and maintains a residence said to be the habitual residence in Cabo Verde with reference to December 31st of a given year.

Employment income is specifically defined in the PIT Code and covers all payments in connection with work (employment contract), such as salary, bonuses, commissions, pensions, allowances (eg, cost-of-living and housing allowances) and benefits in kind (eg, company cars), regardless of where the payment originates.

The following types of income are exempt from PIT:

  • per diems for national and international trips, for the portion that does not exceed the limits set for the public services;
  • lunch allowance, up to CVE250 per day;
  • use of personal car, up to CVE120,000 per year;
  • cash shortage allowance, up to 15% of the monthly salary;
  • family allowance, up to CVE500 per month, for each dependant or equivalent and ancestors; and
  • redundancy payments are taxable on the portion that exceeds one and a half times the average remuneration paid during the last months of employment, multiplied by the number of years of employment.

Employment and pension income are generally subject to monthly withholding tax (WHT). As a rule, the monthly WHT is levied as final taxation, unless the taxpayer opts to file the tax return, in which case the tax withheld has the nature of an advance payment on account of the final annual income tax liability. The monthly tax withholdings due are calculated by applying the following progressive WHT rates and the corresponding deduction to the taxable income.

  • Bracket 1: taxable income over CVE0 but not over CVE80,000, 15% WHT, CVE5,500 deduction.
  • Bracket 2: taxable income over CVE80,000 but not over CVE150,000, 21% WHT, CVE10,300 deduction.
  • Bracket 3: taxable income over CVE150,000, 21% WHT, CVE16,300 deduction.

Under the declarative method, employees are taxed according to their annual income statement. This method is applicable to dependent employees (Category A) who opt to file the tax return, on the income obtained abroad by resident taxpayers and on the income obtained in Cabo Verde by non-resident taxpayers that could not be taxed at flat rates. The total income will be subject to taxation at rates ranging between 16.5% and 27.5%.

Employees and managers or directors of the company are liable to social security contributions of 8.5% on their gross remuneration. Employers are liable to social security contributions of 16% on the same gross remuneration received by employees and managers or directors of the company.

Cabo Verde's corporate income tax (CIT), called Imposto sobre o Rendimento das Pessoas Colectivas, is levied on profits obtained within the Cabo Verdean territory and those obtained outside by resident companies (worldwide principle). Non-resident companies with a permanent establishment (PE) in Cabo Verde are also subject to CIT on Cabo Verdean-source income attributable to the PE.

Taxable profit is computed according to the local accounting rules and adjusted for tax purposes. For the purposes of determining taxable income, CIT payers can be taxed under two methods/regimes as follows.

  • Special regime for micro and small-sized companies:
    1. micro-sized company – an entity that employs up to five persons, with an annual turnover (gross amount of sales and services) that does not exceed CVE5 million;
    2. small-sized company – an entity that employs between six and ten persons, with an annual turnover (gross amount of sales and services) of between CVE5 million and CVE10 million; and
    3. micro and small importers – importers whose customs value of imported goods does not exceed the value of turnover on an annual basis for the purpose of qualifying under the simplified scheme for micro and small-sized companies.
  • Standard organised accounting regime (standard/normal regime under which the computation of profits follows the local accounting rules).

Resident companies are subject to a tax rate of 22%, where taxable income corresponds to the profit less any tax benefits and any losses carried forward, as stated in the tax return. The tax rate of 22% is also applicable for PEs of non-resident companies.

Micro and small-sized companies are subject to a single special tax (SST) of 4% levied on the gross amount of sales obtained in each taxable year, to be paid quarterly. The SST replaces the CIT, fire brigade surtax and value-added tax (VAT), as well as the contribution to social security attributable to the company.

Non-resident companies without a PE are subject to WHT rates applicable for each income category stipulated in the Tax Code, which range between 1% and 20%.

The CIT rate is increased by a fire brigade surcharge, called Taxa de Incêndio, of 2% on the tax due, leading to a final tax rate of 22.44%. This surcharge is levied in the municipalities of Praia (Island of Santiago) and Mindelo (Island of São Vicente).

Permanent Establishment

Non-resident companies deemed to have a PE in Cabo Verde are also subject to tax in Cabo Verde. Under Cabo Verdean tax law, a non-resident company is deemed to have a PE if the non-resident company:

  • has any fixed installation or permanent representation located in Cabo Verde through which, among others, activities of a commercial, industrial or agricultural nature, or fishing and rendering of services are carried out (including agricultural, fishing, and cattle-raising explorations, or other quarries or any other places of natural resources extraction); or
  • carries out its activity in Cabo Verde through:
    1. employees, or any other personnel hired for that purpose, for a period (continuous or not) of not less than 183 days within a 12-month period;
    2. a person (a dependent agent), who is not an independent agent, acting, in the Cabo Verdean territory on behalf of a company, with powers to intermediate and conclude binding contracts for that company, within the scope of its business activity; or
    3. a building site or a construction installation if it lasts for more than 183 days, as well as activities of co-ordination, supervision and inspection related to the building site or its construction installation.

A permanent establishment is also recognised in the case of:

  • commissionaire arrangements;
  • preparatory or ancillary activities carried out by closely related enterprises through a fixed installation; and
  • independent agents acting exclusively, or almost exclusively, on behalf of one or more closely related enterprises.

A PE of a non-resident is taxed as a resident company.

Foreign Investor Status (Estatuto do Investidor Externo)

The Foreign Investor Status, which has granted some tax benefits at the level of the investor (eg, exemption from WHT on distribution of profits and on interest related to the financing of the investment) was revoked by the New Investment Law effective as of 1 January 2013. The tax benefits already granted or for which recognition has been requested prior to the entry into force of the Tax Benefits Code (TBC) and the Investment Code are maintained. Investment projects submitted for analysis and approval to the competent authorities prior to the entry into force of the Tax Benefits Code continue to be regulated under the legislation in force at the date of the respective submission.

Contractual Tax Benefits

There are exceptional incentives – regarding customs duties, CIT, PIT, property tax and stamp duty – to investments that fulfil all of the following conditions:

  • the promoter of the investment should possess technical and managerial capacities;
  • the invested amount should exceed CVE3 billion – formerly CVE550 million; the relevant amount is CVE1.5 billion in the case of investments located in a municipal area, the average GDP per capita of which is lower than the national average (with reference to the last three years); and
  • they create, directly, at least 20 qualified jobs (10 in the case of investments located in a municipal area whose average GDP per capita is lower than the national average, with reference to the last three years); a qualified job requires professional or higher education, specialised technical training, certified by a national or foreign entity, including management positions.

The concession of contractual tax benefits is subject to approval by the Council of Ministers upon agreement.

Differentiated Merit Projects

Differentiated Merit Projects (DMP) status, established by Law 80/IX/2020, of 26 March, is granted to investments that, among others, cumulatively meet the following requirements:

  • represent an investment equal to or higher than CVE1.5 billion;
  • contribute, in net terms, to the improvement of the balance of payments;
  • use technology, production and commercialisation processes that minimise environmental impacts or promote environmental sustainability; and
  • have a recognised productive social effect, particularly in the creation of at least five qualified jobs (those that require specialised technical training, either professional or of higher education, including management positions).

Investment projects with DMP status are granted the following benefits:

  • a reduced customs duty rate of 5% on the importation of materials, goods and equipment mentioned in Article 15 of the Tax Benefit Code;
  • customs duty exemption on the importation of raw materials, consumables, finished and semi-finished materials and other products to be incorporated in products manufactured by the company; in the case of industrial investment, projects of companies registered in the "Cadastro Industrial", the exemption is also applicable to packaging and wrapping materials used in products manufactured by the company;
  • CIT tax credit of 30% of the eligible investments effectively made (capped at 50% of the CIT assessed);
  • Stamp tax exemption on the borrowing of funds for the investment;
  • Property tax (IUP) exemption on the acquisition of real estate exclusively aimed at the installation of the investment project; and
  • other non-tax incentives established in specific legal diplomas.

Alongside the above benefits, for DMP investment projects implemented in municipal areas with a GDP per capita lower than the national average, there are the following added benefits:

  • CIT credit of 40% of the eligible investments effectively made (capped at 50% of the CIT assessed); and
  • IUP Exemption on the acquisition of real estate used in the development of the company’s main activity, including any developing needs arising throughout the first five years following the acquisition.

Direct Investment Made in Cabo Verde by Emigrants

Direct investment made by emigrants shall benefit from a set of tax incentives, as established by Law 73/IX/2020, of March 2nd, namely:

  • exemption from taxation (as foreseen in the Corporate Income Tax Code) of dividends and profits distributed to the emigrant investor, arising from authorised foreign investment; and
  • exemption from customs duties on the acquisition of materials for construction, extension or refurbishment of a first residential house, including furniture, appliances and other imported goods, under certain conditions.

The regime applies to emigrant investors permanently living abroad, as well as to former emigrant pensioners and retired people receiving pensions and similar income from their country of immigration.

The investment in tangible assets or intangibles in Cabo Verde is eligible, under the conditions foreseen in the regime. For example, the incorporation of entities or branches in Cabo Verde, acquisition of shareholdings, granting of loans or other forms of financing of entities in which a shareholding is held.

Direct investment made by emigrants shall benefit from a set of tax incentives, as established by Law 73/IX/2020, of March 2nd, namely:

  • exemption from taxation (as foreseen in the Corporate Income Tax Code) of dividends and profits distributed to the emigrant investor, arising from authorised foreign investment; and
  • exemption from customs duties on the acquisition of materials for construction, extension or refurbishment of a first residential house, including furniture, appliances and other imported goods, under certain conditions.

The regime applies to emigrant investors permanently living abroad, as well as to former emigrant pensioners and retired people receiving pensions and similar income from their country of immigration.

The investment in tangible assets or intangibles in Cabo Verde is eligible, under the conditions foreseen in the regime. For example, the incorporation of entities or branches in Cabo Verde, acquisition of shareholdings, granting of loans or other forms of financing of entities in which a shareholding is held.

Industrial Activity

The following tax and customs benefits are provided for industrial activity:

CIT benefits

A CIT credit is available for up to 50% of the eligible investments made in an industrial activity. Any unused tax credit may be carried forward for ten years, subject to certain limitations.

Eligible investments include the acquisition of new fixed assets, patents and licences regarding technologies.

IUP benefits

Industrial activities may benefit from an exemption from IUP on the acquisition of immovable property used exclusively for industrial purposes; however, the recognition of such tax exemption should be approved by the municipality.

Customs duty benefits

Industrial activities benefit from an exemption from customs duties on the importation of construction materials, machines, utensils, semi and finished materials, products, and raw materials used in the production of goods.

Stamp duty benefits

Financing transactions of industrial projects are exempt from stamp duty.

International Business Centre (IBC) of Cabo Verde

The Cabo Verdean Agency for Foreign Investment is the entity responsible for granting the licences to operate within the IBC, upon previous proposal of the Zona Franca Comercial S.A. The following tax benefits are applicable to entities licensed to operate in the IBC on income from industrial or business activities and services.

Note that these tax benefits are not applicable to entities engaged in tourism, banking and insurance, real estate, or construction.

CIT benefits

Reduced CIT rates of 5%, 3.5%, or 2.5% are applicable to entities that create, respectively, 10, 20, or 50 jobs.

The CIT rate is 2.5% in the case of the creation of four jobs for entities licensed to operate within the International Business Centre.

Entities licensed to operate within the IBC are granted to benefit from reduced CIT rates until 2030.

Shareholders' benefits

Shareholders of the entities licensed to operate within the IBC are exempt from taxation on dividends and interest received.

VAT and customs duty benefits

All the exemptions foreseen in the VAT regulation and customs law apply.

An exemption from customs duties applies with respect to certain goods, equipment and materials used within the scope of the activity developed and licensed under the IBC.

Maritime Transport (Tonnage Tax)

Cabo Verdean tax legislation foresees a special regime for the assessment of the taxable profit applicable to maritime transport activities (tonnage tax).

Entities licensed in the IBC that carry out activities related to the international maritime transport of persons or goods may opt for a special regime for the assessment of the taxable profit, provided that they fulfil the following conditions:

  • all the ships and vessels owned by the taxpayer must be registered in the International Register of Ships of Cabo Verde (further regulation shall be published), and all the activity carried out must be eligible; and
  • at least 85% of the total income derives from activities carried out with other entities licensed and operating in the IBC or with non-resident entities.

Under the tonnage tax regime, the taxable profit shall be determined by applying the following daily amounts to each eligible ship or vessel.

  • Up to 1,000 net tonnes – daily taxable income for each 100 net tonnes: CVE646.
  • From 1,001 to 10,000 net tonnes: CVE566
  • From 10,001 to 25,000 net tonnes: CVE307
  • Above 25,000 net tonnes: CVE103.

No tax credits are available.

In the case of changing from the tonnage tax regime to the general CIT regime, the tax value of the assets held corresponds to the one resulting from the application of the general rules foreseen in the CIT Code, as if the taxpayer had not applied the special regime. Additionally, tax losses or any tax credits carried forward originated during the taxable periods to which the special regime applied are disregarded.

Internationalisation of Cabo Verdean Companies

A regime that provides for tax and financial incentives for investment projects in order to promote the internationalisation of Cabo Verdean companies is in force.

The following incentives, to be granted under a contract of not more than three years, apply to internationalisation projects of companies with their head office and place of effective management in Cabo Verde that are undertaken before 31 December 2020.

CIT benefits

Investments that are eligible for the regime of tax benefits for internationalisation may benefit from:

  • a reduced CIT rate of up to 50%, applicable until the term of the investment contract; and
  • an exemption from CIT on income obtained by qualified expatriate employees.

Additionally, a deduction for creation of employment ranging between CVE26,000 and CVE35,000 for each new job created may apply.

IUP benefits

An exemption from IUP may be available on the acquisition of immovable property for the establishment or expansion of the activity of the investor.

VAT and customs duty benefits

Exemptions provided for in the VAT Code apply, as well as customs duties incentives as provided for in the general applicable legislation.

Stamp duty and other benefits

An exemption from stamp duty is available on the incorporation of companies on an increase of share capital of existing companies, and on financing transactions.

An exemption from notary and registration fees is available on the incorporation and registration of companies.

Touristic Utility Status (Estatuto de Utilidade Turística)

Cabo Verde may grant Touristic Utility Status to certain touristic projects. Touristic Utility Status is granted to the following types of touristic projects:

  • installation, granted to new tourist resorts and facilities;
  • operation and exploitation, granted to existing tourist resorts and facilities; and
  • refurbishment, granted to existing tourist resorts and facilities in connection with improvements and expansions.

Touristic Utility Status generally allows for the following tax incentives and benefits:

  • CIT credit of up to 30% of the eligible investments made in tourism, touristic promotion activities and real estate tourism project investment;
  • an exemption from IUP on the acquisition of real estate used for the construction and installation of touristic projects if granted by the municipality;
  • a reduced rate of 5% of customs duties on the importation of materials and equipment used in touristic projects; and
  • exemptions from stamp duty on the financing of tourism investments.

Tax Incentives for Renewable Energies

There is a regime for promotion, encouragement, and access, licensing and exploitation inherent to the exercise of independent production and self-production of electricity based on renewable energy sources.

Water, wind, solar, biomass, biogas or industrial, agricultural or urban waste, oceans and tides, and geothermal are to be considered sources of renewable energy. Under the regime, renewable energy producers may benefit from the following.

CIT benefits

A CIT credit is available for up to 30% of the eligible investments made in renewable energies projects.

Customs duty benefits

A reduced rate of 5% of customs duties and other customs charges applies on the importation of capital goods, raw materials and supplies, finished and semi-finished products, and other materials that are incorporated or used in the production of goods or services involved in the production of electrical energy from renewable sources.

IUP and stamp duty

Exemptions from IUP and stamp duty are granted on the acquisition of immovable property and other assets related to the investment project or its financing.

Shipping Transport Industry Incentive

CIT benefits

A CIT credit is available for up to 30% of the eligible investments made in shipping, air and sea transportation projects.

Customs duty benefits

A reduced rate of 5% from customs duties applies on the importation of shipping material for the maintenance, production and repair of shipping and respective equipment.

IUP and stamp duty

Exemptions from IUP and stamp duty are granted on the acquisition of immovable property and other assets related to the investment project or its financing.

Job Creation Incentives

Entities taxed under the verification method are entitled to deduct the following amounts for each permanent job created:

  • CVE26,000 for each job created in the municipalities of Boa Vista, Praia and Sal;
  • CVE30,000 for each job created in the remaining municipalities; and
  • CVE35,000 in the case of a disabled person.

Media, Telecommunications and the Internet

Importation of goods, materials, equipment, vehicles and other equipment exclusively for the purpose of telecommunications and media is exempt from customs duties.

Incentives on the Importation of Vehicles

The following exemptions from customs duties, excise duty and VAT are granted:

  • on the importation of heavy passenger vehicles for collective transport of passengers comprising more than 30 seats, including the driver, when imported by duly licensed companies operating in the respective sector;
  • on the importation of new passenger vehicles intended for executive transport, carried out by the holders of the respective licence and duly authorised by the General Directorate of Road Transport;
  • on the importation of heavy passenger vehicles for collective transport of passengers comprising more than 15 seats, including the driver, when imported by a public transporter with the respective permit, that is in the process of replacing licensed vehicles, as foreseen in the General Legal Regime of Transport in Motor Vehicles (Regime Jurídico Geral de Transportes em Veículos Motorizados); and
  • on the importation of heavy passenger vehicles intended for school transport, duly equipped, comprising more than 23 seats, including the driver, when imported by an educational entity duly authorised by the competent ministry, local authorities and public transporter, provided that those vehicles are duly licensed and authorised by the competent authorities.

The above incentives shall not apply to vehicles aged more than six years on the importation of heavy passenger vehicles for collective transport of passengers, duly equipped, comprising more than 30 seats, including the driver, intended for exclusive transport of tourists and baggage, when imported by companies holding a licence and a tourist transport permit.

The above incentives shall not apply to vehicles aged more than four years in the case of heavy passenger transport vehicles; or six years in the case of other vehicles.

There is an exemption from customs duties on the importation of new passenger vehicles, as well as equipment, intended exclusively for the taxi service, carried out by holders of the respective taxi licence.

There is an exemption from customs duties, excise duty and VAT on the importation of heavy passenger vehicles for collective transport of passengers, duly equipped, aged not more than six years, comprising more than 30 seats including the driver, intended for exclusive transport of tourists and baggage, when imported by companies holding a licence and a tourist transport permit.

Incentives under the Young Start-ups Programme

Incentives for corporate finance

Resident or non-resident entities with a permanent establishment in Cabo Verde that make cash capital contributions to companies eligible under the Youth Start-up Programme, or to companies based in municipal territory with average GDP per capita in the last three years below the national average, as well as to micro and small companies, can deduct part of these contributions up to 2% of tax assessed in the previous tax year, provided that:

  • there are no overdue wages;
  • their tax and contributory situation is regularised;
  • they not taxed under indirect tax methods; and
  • authorisation is granted to all their bank accounts.

The deduction cap shall apply even if the company makes capital contributions in more than one eligible company.

This benefit is not cumulative with the tax benefit regarding conventional remuneration of share capital.

Other incentives

The following incentives are applicable to entities that carry out, directly and as their main activity, an economic activity eligible under the Young Start-up Programme, approved by Resolution No 34/2017 of April 25th:

  • CIT rate of 5%, applicable in the first five years of activity, starting 1 January 2019, except in the case of ICT and R&D activities, whose rate is 2.5%, regardless of the location of the head office or place of effective management;
  • exemption from customs duties, excise duty and VAT on the importation of one vehicle for the transport of goods, comprising up to three seats in the cabin, including the driver, with a maximum age of five years, intended exclusively for the respective activity;
  • exemption from import duties on the importation of raw and subsidiary materials, materials, and finished and semi-finished products intended for incorporation into products manufactured within the scope of industrial projects; the incentive shall apply provided that the entities are certified and registered at the Industrial Registry, during the installation, expansion, or remodelling phase;
  • financial incentives, support for capacity-building, and other institutional support provided for in the legislation of micro and small companies;
  • exemption from stamp duty on financing agreements for the development of the respective activities; and
  • reduction of 50% of the fees due on notarial acts and registrations due on the purchase and sale of real estate for the respective installation.

Eligible companies whose place of effective management is located outside the municipalities of Praia, São Vicente, Sal and Boa Vista shall benefit from a tax credit of 50% of the CIT assessed (not applicable to ICT and R&D activities).

Eligible companies shall benefit from the incentives provided for in Article 13 (exemption from property tax), Article 15 (exemption from customs duties) and Article 332 (training, internships and scholarships) of the Tax Benefits Code, as well as of the incentives foreseen for employers hiring young people.

Eligible companies benefiting shall be subject to the payment of autonomous taxation under the general terms foreseen in the CIT Code.

Interest Rate Support for Micro Production of Renewable Energies

Interest rate support of 50% is granted on the interest on loans borrowed from financial institutions by families and by duly incorporated micro and small companies for the acquisition of equipment and installation services aimed at the micro production of renewable energy in accordance with the applicable legislation.

This support shall apply to final consumers covered by the normal low voltage category.

Incentives to Electric Mobility

Exemption from VAT and excise duties on the importation of electric vehicles, including two-wheel vehicles.

The exemption from VAT and customs duties also applies to the importation of new rechargeable batteries for electric vehicles, including their connectors, shields, connecting cables and meters, intended exclusively for charging.

Parking fees of the referred electric vehicles are also exempt from VAT.

Tax Benefits Regarding the Recovery of Business and Insolvency Code

There are CIT, PIT, stamp duty and property tax benefits for companies under recovery of business and insolvency procedures.

Foreign Tax Credit

Cabo Verdean tax law allows a foreign tax credit to mitigate the double taxation on foreign income taxed in another jurisdiction. The tax credit is equal to the lesser of (i) the income tax paid abroad or (ii) the CIT fraction calculated before the deduction is given corresponding to incomes that may be taxed in the country concerned, net from any costs or losses, directly or indirectly incurred, for the purposes of its realisation. Foreign tax credit cannot exceed the tax foreseen in the tax treaty, if applicable.

There is no special tax consolidation regime for companies in Cabo Verde.

There is limitation on the tax deductibility of net financing expenses. Net financing expenses are only deductible up to the higher of the following limits:

  • CVE110 million; and
  • 30% of earnings before depreciation, net financing expenses and taxes.

There is a transfer pricing regime that establishes that commercial transactions between associated enterprises should be subject to identical terms and conditions to those that would be accepted and agreed between independent entities (arm’s-length principle).

Taxpayers must keep information and documentation regarding their transfer pricing policies on hand. The following taxpayers must prepare a transfer pricing documentation file:

  • entities classified as "Large Taxpayers";
  • entities considered taxed under a privileged tax regime, as defined in the General Tax Code;
  • PEs of non-resident entities; and
  • other entities designated as such by the tax authorities.

Cabo Verdean law provides for anti-evasion rules.

In general terms, by law, there is no competent entity in Cabo Verde that regulates or controls mergers between companies or entities.

Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

There is no general and autonomous law in Cabo Verde, or any competition or antitrust act or statute, regulating matters of competition. Nevertheless, depending on the sector, an entity can regulate some of the operations; namely, in the finance and insurance sectors, which are regulated by the Central Bank of Cabo Verde.

See 6.2 Merger Control Procedure.

See 6.2 Merger Control Procedure.

A patent is an exclusive right that can be granted to any type of invention in any field of technology, whether it is a product or a process, as well as for new processes for obtaining products, substances or compounds that already exist.

There are three patentability requirements in the Industrial Property Code (IPC); that is, novelty, inventive step and industrial application.

The patent shall confer the exclusive right to use the invention anywhere in the national territory. The patent shall also confer on its owner the right to prevent third parties from manufacturing, offering, stocking, trading or using the product that is the subject of the patent without his consent and from importing or holding it for any of these purposes.

The registration of a patent is filed with the Institute of Quality Management and Intellectual Property (IGQPI).

Generally, patent rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose, the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

The length of protection is 20 years.

Trade marks are signs used in trade to identify products and services, and can consist of a sign or set of signs capable of being represented graphically; that is, words, including names of people, designs, letters, numbers, sounds, shape of the product or its packaging. A trade mark may also consist of advertising slogans for goods or services to which they refer, irrespective of copyright protection afforded to them, provided they are of distinctive character.

The registration of the trade mark grants to the right-holder the ownership and the exclusive use of the trade mark for the products and the services that it designates.

The registration of a trade mark is filed with the IGQPI.

Generally, trade mark rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose, the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

The length of protection is ten years from the date of the respective concession and can be indefinitely renewed by equal periods.

A design shall mean the ornament or aesthetic aspect of an article, including the appearance of the whole, or part, of a product resulting from the features of, in particular, the lines, contours, colours, shape, texture or materials of the product itself and its ornamentation. Designs that are contrary to public order, public health or morality may not be registered.

The registration of an industrial design is filed with the IGQPI. The scope of the protection conferred by the registration shall cover all designs that do not give a different overall impression to an informed user. Registration of a design shall confer on its holder the exclusive right to use it and prohibit its use by third parties without his consent, if such acts are carried out for commercial purposes.

Generally, industrial design rights will be enforced and invalidated before the First Instance Courts. Whoever illegally violates the industrial property rights of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose the IP right-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

Copyright is defined as the exclusive right of authors of literary, artistic and scientific works to enjoy, use and exploit such works or to authorise their enjoyment, use or exploitation by third parties, either in whole or in part.

Copyright shall comprise economic rights and personal rights, the latter being known as moral rights.

As a rule, copyright is recognised regardless of registration of the work, its deposit or any other formality.

Copyrighted works are enforced before the First Instance Courts. If the right-holder has his right infringed, he can request compensation. Whoever illegally violates the copyright of another person, with criminal intent or by mere blame, must pay compensation to the injured party for the damages resulting from the violation. For this purpose the copyright-holder must prove the causality of the infringement for the damages calculation. The injured parties can also resort to criminal courts for criminal cases.

Non-patrimonial damages may also be compensated if caused by the infringer’s acts.

Generally, the length of protection is for the lifetime of the author plus 50 years following his death, even if it is a posthumous work. The length of protection for copyright in works of photography or applied arts is 25 years after such works are produced.

Software, databases and trade secrets are protected under the regime of industrial and intellectual rights.

Currently, in Cabo Verde, the personal data protection legislation in force is the Constitution of the Republic of Cabo Verde and Law 133/V/2001, of January 22nd.

The Constitution establishes that all citizens shall be guaranteed the right to personal identity, the development of personality and civil capacity, which may only be limited by a judicial decision and in the cases and terms established in the law, and that all citizens shall have the right of access to computerised data that affects them and for the same to be rectified and updated, as well as the right to be informed about the purposes of the data, in the terms of the law.

The Constitution also grants the right of habeas data to ensure knowledge of the information contained in files, computer archives and registers that affect subjects, as well as to be informed about the purposes of the data and for the same to be rectified or updated.

Law 133/V/2001, of January 22nd, establishes the general legal framework for the protection of individuals with regard to the processing of personal data and it applies to the processing of personal data wholly or partly by automated means as well as to the processing of personal data other than by automated means contained in manual files or part of manual files. The law shall also apply to the processing of personal data carried out:

  • in the context of the activities of an establishment of the controller situated within the national territory;
  • outside the national territory in places where the Cabo Verdean law applies by virtue of international public law; and
  • by a controller who is not established on the national territory, who, for purposes of processing personal data, makes use of automated or other types of equipment situated on the national territory, except where such equipment is used only for purposes of transit.

Law 133/V/2001, of January 22nd, applies in an international context where there are any international treaties in place.

The competent authority is the Comissão Nacional de Protecção de Dados (the National Commission of Data Protection, or CNPD), which is an independent administrative entity that exercises its authority throughout the national territory.

Generally, the CNPD is the national authority endowed with the power to supervise and monitor compliance with the laws and regulations in the area of personal data protection, with strict respect for human rights and the fundamental freedoms and guarantees enshrined in the Constitution and the law.

Raposo Bernardo & Associados

Av. Fontes Pereira de Melo
Ed. Aviz, nº 35, 18º
1050-118 Lisbon
Portugal

+351 21 312 1330

+351 21 356 2908

jacorreia@raposobernardo.com www.raposobernardo.com
Author Business Card

Trends and Developments


Authors



Raposo Bernardo & Associados is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 12 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

Corporate Finance in Cabo Verde in the Context of COVID-19

Government schemes set up to promote investment and improve access to financing

Cabo Verde’s government has recently put in place important institutional, legal and contractual instruments and mechanisms for investors with the aim of helping to promote and encourage the corporate finance sector.

At the institutional level, the government has created Pró Empresa (Decree Law No 22/2017, of May 17th), a public institution that aims to promote, facilitate and monitor investments into micro, small and medium-sized companies (MSME) across the country.

Pró Empresa’s remit is to sponsor research into the private investment conditions that affect MSMEs and use the research in consultation with competent entities to propose beneficial measures for the sector. Its goal is to publicise and promote the opportunities and advantages private investment can bring to the production of goods and services and to facilitate, guide and support MSME investors by providing them with all the information they need relating to private investment in Cabo Verde. The authority offers a one-stop shop for client services and serves, more broadly, to co-ordinate client services by working in close co-operation with venture capital entities and credit guarantee institutions. Its overarching goal is to support and promote investment programmes for MSMEs.

In addition to Pró Empresa, companies can benefit from the Pró Capital mechanism (Decree Law No 28/2017, of June 30th), which facilitates investments into the share capital of any public and viable company that is in a difficult financial situation. The mechanism’s goal is to promote the recovery of such companies as well as facilitate participation in the share capital of start-ups. Participation in the share capital of companies under this mechanism is capped at ten years.

At the institutional level, the government has created the Sociedade de Garantia Parcial de Crédito (Pró Garante) (Decree Law No 32/2018, of June 15th). Pró Garante is a public financial institution subject to the supervision of the Central Bank of Cabo Verde whose goal is to facilitate access to financing for MSMEs by offering credit guarantees, which will promote growth in each business sector and boost the sustainable development of the national economy.

Pró Garante has a range of tools at its disposal. It can grant guarantees to eligible credit institutions, regulated and supervised by the Central Bank of Cabo Verde, to facilitate credit lines to companies. It can offer portfolio guarantees of special credit lines to ensure compliance with the obligations assumed by companies with entities that provide the special credit lines. Pró Garante can also offer counter-guarantees to the operations of other eligible financial institutions that are dedicated to providing credit guarantees to companies, as well as administer, on behalf of third parties, guaranteed funding aimed at improving access to corporate finance. A final key tool is that it can support the expansion and dissemination of other financial instruments that can further improve access to finance for companies.

These institutions and mechanisms have been created recently to promote business, facilitate risk capital and guarantee financing operations with credit institutions.

New crowdfunding framework creates fresh opportunities

Another important legislative novelty introduced in Cabo Verde that may have a strong impact on corporate finance developments is the new legal regime that governs crowdfunding or collaborative financing (Law No 34/IX/2018, of July 6th). This is a very recent corporate finance alternative in Cabo Verde and has already attracted investors' attention.

The framework provides a versatile corporate finance mechanism, which consists of:

  • collaborative financing through a donation, whereby the financed entity receives a donation with or without the delivery of a non-pecuniary counterpart;
  • collaborative financing with reward, whereby the financed entity is obliged to provide the financed product or service, against the financing obtained;
  • collaborative capital financing, whereby the financed entity remunerates the obtained financing through participation in the respective share capital, distribution of dividends or profit sharing; and
  • collaborative finance, whereby the financed entity pays the financing obtained through the payment of interest fixed at the time of the fundraising.

Crowdfunding has proven to be especially useful in the financing of start-ups and SMEs, specifically those that are developing activities and projects in innovative areas. It is an instrument that also presents advantages that are not strictly financial; for instance, it has a strong marketing effect by promoting businesses on its platform and by interacting on social networks.

Looking Ahead

The implementation of these regulatory frameworks is expected to boost corporate finance activity over the short to medium term, especially in the period when markets begin to emerge from COVID-19. It should be noted that the government of Cabo Verde has also implemented other kinds of measures to inject more liquidity into the Cabo Verdean economy (Decree Law No 38/2020, of March 31st). These measures include the creation of credit lines to support corporate treasury, a bank financing moratorium, tax reductions and exemptions, and a tax moratorium. Most companies have resorted to the bank financing moratorium. During the moratorium period, beneficiary entities may request to have capital repayments wholly or partially suspended.

The request of moratoria by the companies will not represent, in any case, a breach of any contractual obligations with the banks, nor the activation of early maturity clauses, the suspension of interest due during the moratorium period – which will be capitalised in the loan amount with reference to the time when they are due at the current contract interest rate – as well as the ineffectiveness or termination of any provided guarantees.

To inject liquidity into the economy, the government also opened up the possibility for companies to obtain bank financing with partial guarantee from the Cabo Verdean state.

These sets of instruments will certainly provide companies with interesting investment opportunities and with the advantage that there are no restrictions in terms of the sector of activity, so they are available to companies operating in tourism, industry, services, agribusiness, energy and every other sector. As a result of these developments, companies operating in Cabo Verde have at their disposal important modern corporate finance instruments, namely venture capital, partial guarantee from the state or state-owned companies and crowdfunding in its most diverse modalities.

The traditional sources of corporate finance through equity capital techniques are also provided for in the Cabo Verde Companies Code, in addition to the financing possibilities mentioned above. In the first line of equity financing, we find the subscription of share capital in the primary market, which is performed by the partners of the company. In this modality, the shareholders will benefit from the distribution of dividends and by the balance settlement.

The shareholders can also be called to finance the company through a hybrid model, specifically by means of ancillary payments and supplementary payments, which constitute financing through debt instruments.

To that extent, the authors conclude that Cabo Verde has made available a wide range of corporate finance instruments to companies, which can be complementary and represent an important stimulus to entrepreneurship, innovation, and research and business development.

Companies have been attentive to these opportunities and the legal framework recently introduced in the area of corporate finance has contributed not only to a change of mentalities, but modernised business practices, allowing Cabo Verdean companies to have access for the first time to financial resources that have not previously been available.

Raposo Bernardo & Associados

Av. Fontes Pereira de Melo
Ed. Aviz, nº 35, 18º
1050-118 Lisbon
Portugal

+351 21 3121330

+351 21 356 2908

jacorreia@raposobernardo.com www.raposobernardo.com
Author Business Card

Law and Practice

Authors



Raposo Bernardo & Associados is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 12 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

Trends and Development

Authors



Raposo Bernardo & Associados is an international full-service law firm, with practices in Africa (Angola, Cabo Verde, Guinea Bissau, Mozambique, and São Tomé and Príncipe) and Europe (Portugal, Poland and Spain). In Cabo Verde, with a team of 12 lawyers locally and abroad, the firm offers more than 20 years of local experience by participating in the most innovative and relevant projects, regularly representing the interests of national and international players, investment and commercial banks, investment funds, financial intermediaries, governmental entities, and public sector and private agents in legal matters concerning banking, energy, aviation, pharmaceutical, tourism and leisure, and construction and infrastructure. The firm’s expertise includes advising on operations such as corporate finance and major project finance; large M&A transactions; privatisations; PPP projects; large infrastructure projects; drafts of banking, financial markets and insurance legislation; and working closely with major international law firms.

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