Cape Verde has established itself as one of the most stable and welcoming jurisdictions for foreign investment in Africa. With a economic growth of 6% in 2024, 1.25 million tourists in 2025 With a legal framework modelled on the European one, the archipelago offers unique conditions for anyone wishing to expand or start a business. The freedom of investment is almost total, it is possible to stop 100% of capital in almost all sectors, and the incorporation process can be completed in less than 24 hours. However, the success of the investment depends on knowing the rules of the game from day one: the correct corporate structure, the required documentation, the tax framework and the incentives available. This practical guide brings together everything a foreign investor or entrepreneur from the diaspora needs to know before setting up a business in Cape Verde.
Choosing the legal form of the company is the most strategic decision in the process. The Commercial Companies Code of 2019 It offers unprecedented flexibility, but that freedom requires sound judgement . For most projects, it is recommended that Private Limited Company (Lda.): requires only 1 partner (sole proprietorship permitted), has a minimum share capital of 1 shield (approximately €0.01), offers limited liability in respect of share capital and exempts the company from an audit if its turnover is less than 10 million CVE or it has fewer than 10 employees . A Public Limited Company (SA) It is recommended for larger-scale projects or for attracting future investors, requiring a minimum of 2 shareholders and a more complex governance structure . The Sole Trader (ENI) It is the simplest way, but it involves unlimited liability, personal assets are exposed to business risks .
Cape Verde offers two legally recognised routes. The Company on the Day (END), established by Decree-Law No. 9/2008, is the recommended route: in around 1 hour, at the Citizen’s Centre, brings together commercial, tax and social security registration under one roof, for a fee of just 5.000$00 CVE (approximately €45) . The applicant immediately receives the Certificate of Commercial Registration, the company’s tax identification number (NIF) and the employer’s INPS number. The traditional method, via the Commercial Registry Office, is required for more complex cases, such as the incorporation of a company with immovable property as part of its capital, bespoke articles of association or special authorisations, and has a time limit of 3 to 15 working days.
The END process is streamlined and accessible in all municipalities and on all islands, including via the Mobile Citizens’ Centre, a vehicle equipped to provide services in more remote areas . For foreign investors who are unable to travel in person, it is possible to set up the company by power of attorney, and this must expressly set out the powers to incorporate companies, subscribe for shares and open a bank account .
The documentation required varies depending on the legal form and nationality of the partners. In all cases, the following are required: Valid identity card or passport, Individual tax identification number (assigned at the time if none exists), Certificate of Acceptance of a Business Name (CAF), the registration of the trade name, and proof of the registered office’s address. In the case of a limited liability company (Lda.), the following must also be submitted: proof of a bank deposit of 50% of the share capital (a common practice, although the statutory minimum is nominal) and the acceptance of directors’ appointments .
The foreign investors should add: sworn translation into Portuguese of all the documents, The Hague Protocol (or consular legalisation if the country is not a signatory to the Convention), a current certificate of good standing if the applicant is a legal person, and a power of attorney with a notarised signature if the applicant is represented by a third party . The CAF is valid for a limited period (usually 60 days), so it is recommended that you arrange for the company to be incorporated immediately after reserving the name to avoid renewal costs .
The Cape Verdean tax system is transparent and on a downward trend. The Corporate Income Tax (IRPC) went down to 20% in 2026 (it was 22% in 2024), and is forecast to reach 17% in 2028. The SMEs are eligible for a reduced rate of 15% on the first 50,000 euros of taxable profit . The Value Added Tax (VAT) has a standard rate of 15%, reduced to 10% in the tourism sector during specific periodss .
For micro and small businesses (up to 10 employees and a turnover of up to 10 million CVE), the Special Regime for Micro and Small Enterprises (REMPE) replaces VAT and IRPC with a One-off Special Levy (TEU) of 4% in terms of turnover, with significantly reduced accounting obligations . In 2026, micro-enterprises with a turnover of up to 5,000 contos will pay only 2.8% in social security contributions, instead of the current 4% .
Cape Verde offers one of the most attractive incentive schemes in the region. The Projects of Exceptional Merit (PMD) offer tax credit from 30% to 40% on investments actually made, exemption from property tax (IPI) on the purchase of property for the project, a reduced rate of 5% customs duties on the import of equipment, and access to state-owned property for up to 50 years. O Migrant Investor Scheme, pursuant to the Law no. 73/IX/2020, grants exemption from tax on dividends and profits distribution and exemption from customs duties on the import of capital goods and building materials .
A Cape Verde TradeInvest (CVTI) works as one-stop shop for investors, thereby reducing red tape and response times. The timeframe for assessing investment projects is 75 days, and the minimum investment required is 50 million CVE (approximately €453,000) . Priority sectors for investment include ICT, renewable energy, tourism, fisheries, maritime transport and public-private partnerships .
Once the company has been incorporated, it is necessary to obtain the municipal operating licence, the cost of which varies depending on the type of business and the local authority. For offices and services, the cost ranges from 5.000$00 and 20.000$00 CVE; for the retail sector, between 15.000$00 and 40.000$00 CVE; for catering, please contact 30.000$00 and 60.000$00 CVE; and for tourist accommodation services, including 40.000$00 and 60.000$00 CVE. Specific sectors such as tourism, healthcare, education and financial services may require additional sector-specific licences in conjunction with the relevant ministries .
It is important to note that there are sector-specific restrictions on foreign investment: the activities of fishing e inter-island sea transport do not permit foreign investors to hold 100% of the capital . In all other sectors, foreign ownership is fully permitted and encouraged.
Opening a bank account for a company with non-resident partners or directors is, in practice, the biggest challenge in the process . Cape Verdean banks require a complete compliance dossier: identification of the ultimate beneficiaries, source of funds, justification of the business activity, expected cash flows, contracts or letters of intent with customers/suppliers, and evidence of local economic substance . S&D Consultoria is assisting with the preparation of this dossier in accordance with the regulations KYC/KYB (Know Your Customer/Know Your Business) e AML (Anti-Money Laundering), significantly increasing the likelihood of the bank approving the loan and avoiding rejections or requests for further documentation that could delay the project by months.
Setting up a company in Cape Verde is a straightforward process, but the Its apparent simplicity conceals technical details that may lead to unforeseen costs and significant delays . The difference between a smooth process and a time-consuming bureaucratic procedure lies in the correct preparation of the documentation, the choice of the appropriate legal form, and ensuring consistency between the articles of association, municipal planning permission and the tax framework.
A S&D Consultancy, based in Mindelo, São Vicente, supports foreign investors and entrepreneurs from the diaspora at every stage: choice of corporate structure, drafting of articles of association and shareholders’ agreements, setting up a company via ‘Empresa no Dia’, preparation of the KYC/KYB banking dossier, municipal and sector-specific licences, optimised tax framework (including access to REMPE or incentives under the Emigrant Investor Programme), and accounting and ongoing tax management. In-depth knowledge of the Cape Verdean business community and experience in public-private partnerships enable S&D to speed up time to market and minimise regulatory risks.
Cape Verde has never been so attractive to foreign investment. With a company formation process that can be completed in 1 hour, a minimum share capital of 1 shield, a falling IRPC to 17% until 2028, and with a tax incentive package that ranks amongst the most competitive in Africa, the archipelago offers a stable and welcoming platform for projects of all sizes. Its long-standing involvement in the 2026 World Cup brings unprecedented international visibility, creating a unique window of opportunity to position your business. The S&D Consultancy invites you to start planning your investment straight away. The time is now, and preparation is the key to success.
S&D Consultancy – Mindelo, Cape Verde. Business consultancy, company formation, business plans, feasibility studies and tax management for foreign investors and entrepreneurs from the diaspora.
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