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Investment Licensing & Regulatory Approvals

Investing in Cabo Verde: Licensing & Regulatory Approvals

Cabo Verde has made significant progress in simplifying its business environment, particularly through the "Business in a Day" (Empresa no Dia) initiative. However, understanding the specific licensing requirements for strategic sectors like tourism, industry, and the maritime economy requires knowing which regulators to work with.

Here's a step-by-step guide to the regulatory landscape for investors.

1. The Gateway: Cabo Verde TradeInvest

For foreign investors, Cabo Verde TradeInvest (CVTI) is the main entry point. It works as a "One-Stop Shop" (Balcão Único do Investidor) to facilitate and coordinate investment processes.

  • Investor Certificate: To access tax incentives and guarantee the right to send profits home, investors must register their project with CVTI. This process results in receiving an Investor Certificate (Certificado de Investidor).
  • Repatriation of Funds: Foreign investors can convert currency and transfer profits abroad, provided the investment is properly registered with the Banco de Cabo Verde (BCV), a step usually handled through CVTI.

2. Company Incorporation

For general business registration, the government established the Casa do Cidadão (Citizen House).

  • Empresa no Dia: Through this program, companies can often be incorporated in less than 24 hours. It combines the commercial registry, tax number (NIF) issuance, and social security registration into a single process.
  • Commercial Registry: All companies must be registered in the Commercial Registry. The process has been modernized through the Commercial Registry Code of 2020 and the use of electronic signatures.

3. Sector-Specific Licensing & Regulation

While incorporation is fast, operational licensing varies significantly by sector.

A. Industrial & Manufacturing

To operate an industrial facility, companies must navigate the Industrial Registry (Cadastro Industrial).

  • Registration: Companies must submit documents to the Directorate General of Industry and Commerce (DGIC). For new projects, this includes a project description, plant layout, and safety/hygiene plans.
  • Zero Bureaucracy Program: The government is implementing the "Responsible Industry System" (SIR), which aims to allow online licensing for industrial facilities to simplify these procedures.
  • Food & Chemical Safety: Industries involving food production or toxic substances require additional documentation and technical assessments.

B. Tourism

As the backbone of the economy, tourism is heavily regulated to ensure quality and sustainability.

  • Regulator: The Cabo Verde Tourism Institute (ITCV) (Instituto do Turismo de Cabo Verde) is responsible for licensing tourist activities, promoting the destination, and supervising the sector.
  • Tourist Utility Status: Investors can apply for Tourist Utility Status (Estatuto de Utilidade Turística), which grants specific tax benefits. This requires submitting architectural plans and implementation schedules to CVTI/ITCV.
  • ZDTIs: Large projects are often located in Integrated Tourism Development Zones (ZDTIs). Projects here must follow specific land use and environmental regulations to prevent uncontrolled development.

C. Energy & Renewables

The energy sector is overseen by the Ministry of Industry, Commerce and Energy (MICE) and regulated by ARME (Multisectoral Economic Regulatory Agency).

  • Independent Power Producers (IPPs): Electricity production requires licensing. Producers receive fixed payments set by ARME for 15 years.
  • Microproduction: A specific legal system exists for small-scale production (e.g., solar panels for hotels). Investors must request a license from the relevant ministry. Recent agreements facilitate interest rate subsidies for these investments.
  • Environmental Compliance: Renewable energy projects (wind/solar) must undergo mandatory Environmental Impact Assessments (EIA).

D. Blue Economy & Maritime

  • Regulator: The Maritime and Port Institute (IMP) (Instituto Marítimo Portuário) regulates technical compliance, safety, and ship registration.
  • Concessions: Port operations and inter-island maritime transport are often managed through concession contracts (e.g., CV Interilhas). Enapor manages port infrastructure, while IMP handles regulation.
  • Aquaculture: A specific decree (Decree-Law No. 15/2021) regulates aquaculture, establishing guidelines for licensing, environmental standards, and health safety.

E. Financial Services

  • Banking & Insurance: The Banco de Cabo Verde (BCV) is the supervisory authority for all banking and insurance activities. It enforces strict compliance regarding financial stability and anti-money laundering.
  • Capital Markets: The Securities Market General Audit (AGMVM) (Auditoria Geral do Mercado de Valores Mobiliários) regulates the securities market, including the issuance of Green and Blue Bonds.

4. Environmental & Construction Permits

  • Environmental Impact Assessment (AIA): Almost all major investment projects (tourism resorts, industrial plants, energy farms) require an Environmental Impact Assessment. This is regulated by Decree-Law No. 27/2020. The process leads to receiving an Environmental License.
  • Construction: Municipal licenses are required for construction. Investors must submit architectural and engineering plans to the local City Hall (Câmara Municipal).

5. Labor & Immigration

  • Foreign Workers: While foreign investment is open, hiring foreign staff requires showing that no qualified Cabo Verdean nationals are available. Work permits must be processed through the Directorate of Foreigners and Borders.
  • Remote Working: A specific "Remote Working Program" allows digital nomads to obtain a temporary visa for up to six months, exempt from local income tax.

6. Special Economic Zones

Investors operating within Special Economic Zones (such as the ZEEM-SV in São Vicente or the International Business Centre) benefit from a specific, often simplified, regulatory and tax system managed by the zone authorities in coordination with customs and tax authorities.

Cabo Verde Investment Licensing & Regulatory Approvals

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Cabo Verde Investment Licensing & Regulatory Approvals

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Cabo Verde Investment Licensing & Regulatory Approvals

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Cabo Verde Investment Licensing & Regulatory Approvals

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