FAQ

  1. Which institution can a foreign investor contact to obtain information about the country, its opportunities or to make investment proposals?

Multiple entities are involved in the promotion of foreign investment in Cuba, including the Center for the Promotion of Foreign Trade and Foreign Investment (ProCuba), the Chamber of Commerce of the Republic of Cuba, the Single Window for Foreign Investment (VUINEX), the Single Window of the Office of the Mariel Special Development Zone and the Cuban Embassies abroad and their Economic Offices. All these entities contribute to the identification of potential investors, manage databases with business opportunities and provide information and advice to potential foreign investors.

The presentation of business proposals can be made in the same way before these institutions or directly to the agencies of the Central Administration of the state or national sponsoring entities, business groups, companies or Cuban trading companies.

The contact information of the institutions that promote business with foreign investment is as follows:

- ProCuba: procubainfo@mincex.gob.cu

- Chamber of Commerce of the Republic of Cuba: proinversion_inf@camara.com.cu

- Single Window for Foreign Investment (VUINEX): :ventanillaunica@mincex.gob.cu

- Single Window of the Office of the Mariel Special Development Zone : ventanillaunica@zedmariel.co.cu

  1. How can the foreign investment opportunities identified by Cuba and the contact details of Cuban institutions and companies be known? Only in the identified opportunities Can investment proposals be made only in the identified opportunities?

The Portfolio of Foreign Investment Opportunities is published every year and can be consulted on the websites of MINCEX, the Chamber of Commerce of the Republic of Cuba and the Center for the Promotion of Foreign Trade and Investment (ProCuba), and other forms and formats are also used for its annual updating and dissemination.

It is a priority for Cuba that the Portfolio of Opportunities has a diverse representation of projects in terms of sectors and distribution throughout the national territory. In addition, this document includes useful information for interested parties on general and sectoral policies related to foreign investment, as well as contact information for Cuban institutions and companies.

In any case, the Portfolio of Opportunities is not a straitjacket, but a promotional tool. Other projects proposed by domestic or foreign investors not included in the Portfolio may be evaluated.

  1. What are the sectors and activities prioritized for investment?

The sectors of greatest interest for developing investments with foreign capital are food production; tourism, including health; electro energy, with emphasis on the development of renewable energy sources; exploration and exploitation of hydrocarbons; mining; construction, as well as the improvement and expansion of industrial infrastructure. Most of these sectors are identified among the strategic sectors of the National Economic and Social Development Plan until 2030.

In all cases, the purpose of attracting foreign investment is to increase exports and effectively substitute imports, access new technologies and establish productive linkages with the rest of the national economy. It is also considered a relevant objective to carry out projects in less economically developed areas and to match them with the potential of the territories with the support of the Provincial Governments.

  1. In non-prioritized sectors, could investments be approved?

The decision to attract foreign investment as an essential component for the development of certain sectors does not exclude the possibility of evaluating business opportunities in other areas. In fact, in the Foreign Investment Opportunities Portfolio there are many projects that do not belong to these prioritized sectors and are still being promoted.

The exception is maintained for health and education services to the population and armed institutions, except in their business systems and expressly recognizing in the Law that the "Cuban State authorizes foreign investments that do not affect national defense and security, the nation's patrimony and the environment".

  1. Are there any limitations to foreign investment by origin of capital?

Law 118 "Foreign Investment Law" of 2014 does not establish any type of distinction based on the origin of the foreign capital to be invested. In the selection and evaluation of foreign investors by the Cuban authorities, their experience in the activity to be developed, their financial capacity and their prestige and positioning at the international level are taken into account, among other general requirements that are not related to their origin.

Neither Law No. 118/14 nor its complementary regulations limit the investment of Cuban citizens permanently residing abroad. In fact, there are businesses established in Cuba as foreign investment modalities, in which there is the presence of capital of Cubans permanently residing abroad, for instance, the Productive Management Contract between the Shrimp Farming Company and the Panamanian Corporation SOCIEDAD MLL CARIBE, S. DE R.L.

  1. Is there room in the Law for small and medium-sized enterprises (SMEs) to invest in the country or is it only designed for large investors?

The Law provides room for all investors. The definition of foreign investor in the law makes no distinction in this regard. What is essential is that the investor has the capacity to develop the investment and that it corresponds to the general and sectorial policies established for foreign investment.

The Portfolio of Foreign Investment Opportunities demonstrates the above, since it includes a significant number of medium and small investment projects.

  1. Does establishing foreign investment require authorization in all cases?

Yes, in all cases authorization is required to establish an investment in Cuba. The authorization for the establishment of foreign investment in the national territory is granted, according to the sector, modality and characteristics of the investment, by the Council of State, the Council of Ministers and/or heads of Central State Administration Agencies authorized to do so.

Agreement No. 8732 of 2019 delegates to the heads of the agencies of the Central State Administration the power to approve and authorize International Economic Partnership contracts whose purpose is the productive and services administration, as well as extensions of their term and other modifications, in cases of their competence and target sector.

In addition, the Minister of Finance and Prices is delegated the approval and authorization of International Economic Partnership contracts for the provision of professional services, as well as extensions of their term and other modifications.

Finally, the Minister of Tourism is delegated the regulation, approval, authorization and control of the International Economic Partnership contracts whose purpose is the hotel administration, as well as the extensions of their term and other modifications.

  1. What is the procedure for foreign investment approval and how long does the process take?

Once the negotiation process and preparation of the legal and economic documents required by Law 118 "Foreign Investment Law", Decree 325 "Regulations of the Foreign Investment Law" and MINCEX Resolution 207/2018, which contains the methodological bases for the presentation of the technical-economic studies is completed, the business proposal is submitted by the Central State Administration agency or national entity sponsoring foreign investment to the Ministry of Foreign Trade and Foreign Investment, who has a term of 5 calendar days to admit it or not.

If the proposal is admitted, it is evaluated within 15 calendar days by the members of the Foreign Investment Business Evaluation Commission, an advisory commission to the Minister of Foreign Trade and Investment.

Subsequently, an analysis process begins for the purpose of its approval by the corresponding body: Council of State, Council of Ministers. The approval will be issued within 60 calendar days from the date of submission of the file and will be notified to the applicants.

When the approval of the business is the authority of a head of an agency of the Central State Administration (see question 7), the decision will be made within 45 calendar days from the date on which the application was admitted.

  1. Are there limits to the term of the foreign investment once established?

The Law does not establish limits for the term of the business. This aspect is evaluated on a case-by-case basis, taking into account the characteristics of the project and the indicators of the technical and economic pre-feasibility study.

The Law determines that the term of the authorization granted for the development of the operations of a joint venture (JV), of the parties to an International Economic Association Contract (IEAC) or of the Totally Foreign Capital Enterprise (TFCE), may be extended by the same authority that granted it, provided that it is requested by the interested parties before its expiration.

If the term is not extended at its expiration, the MS, IEAC or TFCE shall be liquidated or terminated, as agreed in the constitutive documents and the provisions of the legislation in force. Whatever corresponds to the foreign investor shall be paid in freely convertible currency, unless otherwise expressly agreed.

  1. Can foreign investment engage in foreign trade without limitations?

Joint ventures, national investors parties to international economic association contracts and totally foreign capital companies have the right, in accordance with the provisions established for such purposes, to directly import what is necessary for the achievement of their purposes and export their productions and services with the quality required in the world market. For this purpose, they will have a foreign trade nomenclature that will include the authorized headings in accordance with the activities to be carried out by the business.

However, it is favored that the goods and services necessary for the operation of foreign investment businesses are preferably acquired in the domestic market, provided that they are offered under competitive conditions of quality, prices and delivery terms with respect to the international market.

  1. What guarantees are offered to foreign investors?

The Foreign Investment Law, as an expression of the will of the Cuban State, guarantees that the benefits granted to foreign investors and their investments will be maintained during the entire period for which they have been granted.

Foreign investments within the national territory enjoy full protection and legal security and may not be expropriated, except for reasons of public utility or social interest, in accordance with the Constitution of the Republic, the international treaties signed by Cuba and the legislation in force. If they are expropriated, they shall be duly compensated for their commercial value established by mutual agreement. If no agreement is reached on the commercial value, the price shall be set by an organization of recognized international prestige in business valuation, authorized by the Ministry of Finance and Prices and contracted by agreement of the parties involved in the expropriation process. If there is no agreement between them with respect to the selection of such organization, at their choice, a lottery will be held to determine it or recourse will be taken to the courts.

Foreign investments are protected in the country against claims of third parties that are in accordance with the law or the extraterritorial application of the laws of other States, in accordance with Cuban laws and the decisions of the Cuban courts.

The duration of the authorization for the development of the operations of any of the foreign investment modalities may be extended by the authority that granted it, provided that the request is made before the expiration of the fixed term.

The foreign investor may sell or transfer its rights to the State, to the parties to the association (in the specific case of the foreign investor party to an international economic association) or to a third party, subject to government authorization.

The State guarantees the free transfer abroad in freely convertible currency, without payment of taxes or other charges, of the dividends or profits obtained by the foreign investor.

Foreign individuals who render their services to a joint venture, to parties to any other form of international economic association or to a totally foreign capital company, provided that they are not permanent residents in the Republic of Cuba, have the right to transfer abroad the assets they receive and in accordance with the regulations issued by the Central Bank of Cuba.

  1. What are the modalities that foreign investment may adopt?

Foreign investment can take one of the following forms:

- joint venture;

- international economic partnership contract; or

- a wholly foreign-owned enterprise.

The joint venture involves the creation of a legal entity different from that of the parties, in the form of a corporation with nominative shares, in which national and foreign investors participate as shareholders.

The international economic association contract does not imply the formation of a legal entity different from that of its parties, and is agreed upon by both domestic and foreign investors. The following classify as optional international economic association contracts, among others: risk contracts for the exploration of non-renewable natural resources, for construction, agricultural production, hotel, production or service management and contracts for the provision of professional services.

The foreign investor in wholly foreign capital enterprises manages it, enjoys all the rights and is responsible for all the obligations prescribed in the Authorization. In addition, he/she may establish himself/herself within the national territory:

- as a natural person, acting on its own;

- as a juridical person by incorporating a Cuban subsidiary of the foreign entity of which it is the owner, by means of a public deed, in the form of a corporation by nominative shares; or

- as a juridical person establishing a branch of a foreign entity (in this case they differ from those registered in the Chamber of Commerce of the Republic of Cuba since they can directly carry out import and export operations, enter into contracts of various kinds, etc.).

  1. Are Construction, Ownership, Operation and Transfer (BOOT) and other turnkey contracts promoted in Cuba? Under which foreign investment modalities?

For the execution of investments whose complexity and importance require it, especially for the development of industrial infrastructure, totally foreign capital companies may be established for the execution of special turnkey contracts such as Engineering, Procurement and Construction Contracts (IPC), Engineering, Procurement and Construction Management Contracts (IPCM), Construction, Ownership, Operation and Transfer Contracts (BOOT), Construction, Transfer and Operation Contracts (BTO), among others. It is not intended to promote these contracts; it is reiterated that their conclusion in Cuba depends on the works to be executed and that require them, and each investment that gives rise to contracts of this type is analyzed in detail.

  1. Are there any limitations to investing in sectors such as telecommunications, banking and insurance?

Foreign participation in the operation and commercialization of telecommunications services is excluded for reasons of national interest.

The participation of foreign investment in the capital of financial institutions with one hundred percent Cuban capital is not promoted, nor is the establishment of branches of foreign banks. In the insurance sector, the creation of companies with totally foreign capital will not be allowed.

  1. Under what principles can one invest in the Cuban agricultural sector? Is it possible to acquire ownership of the land?

In the agroindustrial sector, the country requires foreign capital to develop and promote integral projects that increase food production, foster sustainable development and raise the efficiency, quality and competitiveness of the different forms of management and ownership that operate in this sector, with the objective of reducing food imports and increasing and diversifying exports.

Foreign investment will be directed primarily to the production of fruits, vegetables, grains and cereals; livestock, pigs, poultry, animal feed and milk, as well as integrated projects that include the intensive management of forestry production on a commercial basis.

The tobacco agricultural production and the premium twisted tobacco industry is excluded. The land will not be transferred as property but as a real right. In joint ventures, the contribution of the Cuban party may include the real right of usufruct over the land.

In the agricultural sector, not only Cuban companies or trading companies may be national investors, but it is also possible for agricultural cooperatives to participate in international economic associations.

  1. Is it possible to acquire property in Cuba?

The Constitution recognizes the ownership acquired by joint ventures and international economic associations. The Constitutional Reform of 2019 recognizes as a form of property, among others, mixed and private property.

The socialist property of all the people, in accordance with the Constitution, includes the lands that do not belong to individuals or cooperatives integrated by them, the subsoil, mineral deposits, mines, forests, waters, beaches, communication routes and natural resources, both living and non-living, within the exclusive economic zone of the Republic.

These assets may not be transferred in ownership to natural or legal persons. The transfer of other rights that do not imply transfer of ownership of these assets shall be made with the prior approval of the Council of State, as provided by law, provided that they are intended for the purposes of the economic and social development of the country and do not affect the political, economic and social foundations of the State.

In addition, this form of ownership includes other assets such as infrastructures of general interest, main industries and economic and social facilities, as well as others of a strategic nature for the economic and social development of the country. These assets are unseizable and may be transferred in ownership only in exceptional cases, provided that they are destined to the purposes of the economic and social development of the country and do not affect the political, economic and social foundations of the State, with the prior approval of the Council of Ministers.

In compliance with this constitutional precept, land (state-owned) for the construction of real estate or the installation of industries is transferred by granting a right of superficies. This right consists of the right granted to natural or juridical persons to build houses or carry out other constructions, as well as to be used for other specific activities. According to Law No. 59 of the Civil Code of Cuba, this right may be granted for a term not exceeding 50 years. It may be extended for half of the original term, by virtue of a request made by the holder before the expiration date.

It may also be granted in perpetual right of superficies on state-owned land for the construction of housing or apartments dedicated to tourism.

In practice, these rights are only granted for the term of the business, with the exception of real estate developments where plots of land for the construction of real estate for sale are granted in perpetuity.

The remaining state-owned property may be transferred as a right of usufruct consisting of the free enjoyment of another's property with the obligation to preserve its form and substance, unless the title of its constitution or the law authorizes otherwise.

  1. Are there any limitations to make investments in the real estate sector?

Law No. 118 allows investments in real estate to be used for housing and buildings for private residences or for tourism purposes; housing or offices of foreign legal entities; or real estate developments for tourism exploitation purposes.

In this sector, incentives are currently provided for real estate projects for tourism purposes, particularly those involving the construction and operation of golf courses, in the form of joint ventures.

The land to build these real estate complexes is transferred in surface rights to Cuban companies for their contribution to the capital of the joint venture. This allows the joint venture to have the right to build and acquire the property of what has been built, which it will enjoy for the duration of the right granted to the land.

Upon expiration of this right, the ownership of the real estate complex reverts to the owner of the land (the State). The procedure for liquidation of the assets of a joint venture when its term ends or when it is dissolved early is set forth in Decree Law 325/2018 "Regulations of the Foreign Investment Law" of 2014.

In this sector, according to the Cuban Civil Code, the surface right may be granted for a term of up to 99 years and if granted for a shorter period it may be extended up to such term. A perpetual surface right may also be granted for the construction of housing or apartments dedicated to tourism. The surface right (right to build) is extinguished if it is not exercised within two years after it is granted, unless a different term is established in the Law.

The joint venture's ownership of the constructed real estate (real estate complex) enjoys full protection under the Foreign Investment Law and the Constitution of the Republic of Cuba. The purchasers of the real estate located in these real estate developments acquire title to the property and acquire the status of real estate resident.

  1. What is the current legal framework that regulates administrative concessions in Cuba?

Administrative concessions may be granted to manage public services, carry out public works or exploit public property.

Article 15 of the Constitution does not explicitly define the institution of the administrative concession, although it does so indirectly when it provides for the possibility of transferring other rights over public property, other than the right of ownership.

There is no main legal norm in the country that establishes the application of the administrative concession. However, there are general basic rules that deal with concessions for certain activities, among them, those related to mines, fishing, Mariel special development zone and ports. In the case of concessions of public services such as telecommunications, aqueducts, sewage, sanitation and storm drainage, the applicable norm is the concession act itself, endorsed by Decrees or Agreements of the Executive Committee.

Law 118 "Foreign Investment Law" contains minimum general regulations regarding the concessions that may be required for foreign capital investments.

Decree Law 313 "On the Mariel Special Development Zone", approved in September 2013, regulates more generally the issue of concessions, but only applicable to those granted in favor of concessionaires established in said zone. The regulation establishes the information that the concession must contain, the term, the causes of extinction and revocation.

  1. May foreign investors associate with Cuban individuals to undertake business ventures pursuant to Law No. 118?

Cuban natural persons are not included in the definition of national investor in Law No. 118 "Foreign Investment Law". According to this law, foreign investment in association with national capitals can only be made with the participation of Cuban legal entities, that is, entities with the capacity to acquire rights and contract obligations, other than natural persons.

  1. Is the special tax regime of Law No. 118 applicable to all types of foreign investment?

The special tax regime established in Law No. 118 only benefits joint ventures and parties to international economic association agreements. In such sense, these two modalities pay their taxes according to Law No. 113 of the Tax System, with the adjustments (exemptions or bonuses) established by Law No. 118.

Totally foreign capital companies and national and foreign investors who are parties to international economic association contracts for hotel, productive or professional services and hotel management are taxed in accordance with the provisions of Law 113. In addition, foreign investors who are parties to the contracts mentioned above are exempt from sales tax and service tax.

Law No. 118 additionally establishes that the Ministry of Finance and Prices may grant tax incentives depending on the benefits and amount of the investment, its recovery and the sector in which it is carried out.

  1. What incentives apply to joint ventures and parties to international economic partnership contracts?

Law No. 118 establishes the following incentives:

Reinvested earnings are exempted from this tax:

  1. Can the exemption granted for the payment of tax on profits also be understood in the case of those which are granted an extension?

There is no relationship between the term of validity and the exemption from payment of this tax. They are independent terms. The exemption from the payment of the tax on profits for 8 years applies as from the incorporation of the joint venture or the execution of the contract. Any other exemption from such tax must be requested to the Ministry of Finance and Prices, regardless of whether the term of the business has been extended or not.

  1. What facts are levied on sales and services taxes and what are the tax rates established in Law 113/12 "On the Tax System"?

Sales tax is levied on sales of goods intended for use and consumption that are bought and sold, imported or produced, totally or partially in Cuba. This tax is paid by marketers, producers or distributors. The tax rate established in Law No. 113 is 2% for goods marketed in the wholesale network and 10%.

The service tax is levied on telephone, communications, energy transmission, water, gas, sewage, cargo and passenger transportation, gastronomic, lodging, leasing and recreation services, as well as other services rendered in the national territory. The tax rate established in Law No. 113 is 10%.

Law No. 113 also establishes the special tax on products and services destined for use and consumption: alcoholic beverages, wines, liquors and beers, cigars and tobacco, hydrocarbons, luxury items, transmission of electric energy and others that may be established in the Annual Budget Law.

For this tax, for products or groups of products marketed on a wholesale basis, tax rates are determined in value per physical unit. For products or groups of products and services marketed at the retail level, tax rates are determined as a percentage of the value of sales or in value per physical units.

Law No. 113 establishes an exemption in the payment of sales tax, special tax on products and on services for goods that constitute raw material for industrial production, as well as for goods and services destined for export.

  1. Are there particular incentives for more strategic activities?

Law No. 118, "Foreign Investment Law", provides for general incentives that do not establish distinctions to foreign investment by sectors. This does not detract from the possibility of granting them, taking into account the benefits and the amount of the investment, the recovery of the capital, the benefits it may bring to the national economy, or other considerations that may motivate additional incentives, within the framework of the tax legislation in force.

  1. Can a foreign investor freely hire the labor force, selecting the workers it he/she considers most suitable? What is the procedure to be applied?

The hiring of the workforce is regulated by the provisions of Chapter XI of Law 118 "Foreign Investment Law", as well as by Resolution No. 14/2018 of the Ministry of Labor and Social Security "Regulations on Labor Regime in Foreign Investment".

Cuban or foreign personnel permanently residing in the Republic of Cuba who render services in businesses with foreign investment, with the exception of the members of the management and administrative bodies, are hired by an employing entity. These employing entities are specialized by sectors and activities and provide the service of supplying the labor force.

Persons rendering services to the parties to the international economic association agreements are hired by the Cuban party in accordance with the legal provisions in force regarding labor contracting, including those specific to a sector or branch when applicable, as provided for in Law No. 118 "Foreign Investment Law".

Payment for this service is negotiated between the employing entity and the joint venture or wholly foreign-owned company, which sign a labor supply contract.

In order to negotiate these payments, the salaries paid for positions of similar complexity in entities of the same branch or sector of the geographical area must be taken into account; the salaries earned by workers in Cuba, including paid annual vacations and; the expenses incurred by the employing entity in the management to guarantee the supply of the qualified labor force and involving its recruitment, selection, training and development, among other aspects.

The employing entities have a pool of workers from which the foreign investor may select those he/she considers most suitable.

The hired worker may be returned to the employing entity, when for justified reasons he/she does not meet the work requirements, proceeding to indemnify the referred entity in the amounts established by law. If necessary, it may request the substitution of the worker for another.

Persons who are not permanent residents in the country and are authorized to be part of the management and administrative bodies of the company or some highly specialized technical jobs, which include occupations of workers with particular characteristics, formalize the employment relationship in accordance with the company's bylaws and are subject to the immigration and foreigner's legal provisions in force in the country.

  1. What are the functions of the employing entity of workers linked to foreign investment?

The employing entities provide the service of supplying the labor force required by foreign-invested businesses and their purpose is to ensure compliance with the rights of workers and the application of current labor legislation. Among their functions is the selection of personnel with the required level of training to provide their services according to the activity they develop, thus contributing to facilitate the establishment in Cuba of foreign investors.

  1. How are workers' salaries established?

The employing entity, after entering into the labor supply contract with the joint venture or wholly foreign capital company, hires the workers and pays them the salary in local currency in accordance with the complexity and conditions of the work. The salary received by the worker is determined in accordance with the rate for the labor force service provided by the employer and will always be higher than the average salary at the end of the previous year in the country.

  1. Is there any restriction or law that determines how many Cubans and foreigners can work in foreign-invested businesses?

Article 28.1 of the Foreign Investment Law establishes that the workers rendering their services in the activities corresponding to foreign investments shall generally be Cubans or foreigners permanently residing in the Republic of Cuba.

One of the expected results of foreign investment is the generation of jobs. For this reason, Cuba advocates the practice that all specialist positions and other categories, whenever possible, be filled with national personnel. This corresponds to the country's recognized level in terms of availability of a highly qualified labor force.

However, there are no rules establishing the proportion of Cubans and foreigners that may be employed, which is evaluated on a case-by-case basis under the principle established in the Law.

  1. What are the most relevant amendments of Law No. 118 of 2014 "Foreign Investment Law" with respect to Law No. 77 that preceded it?
  1. The adequacy of "prior compensation", as a guarantee in cases of expropriation of foreign investors' assets, to the constitutional precept that establishes "due compensation".

  2. The broadening of the scope of the International Economic Partnership Contract as a foreign investment modality by incorporating, among others, productive and service management contracts, hotel management contracts and contracts for the provision of professional services.

  3. The redefinition of investments in real estate.

  4. The redefinition of the authorities empowered to authorize foreign investment, based on the sector, modality and characteristics of the intended foreign investment.

  5. The express recognition, in foreign trade matters, of preferences for the purchase of domestic products under competitive conditions.

  6. The inclusion of regulatory provisions on actions to control the modalities of foreign investment.

  7. The inclusion of aspects related to technology and innovation in the provisions referring to the protection of the environment.

  8. The intervention of the national courts in the solution of conflicts arising from the inactivity of the governing bodies of the foreign investment modalities, as well as the dissolution or termination and liquidation of such modalities and in those conflicts arising from the relations between their partners or parties in the foreign investment modalities, in the cases in which they have been authorized to carry out activities related to natural resources, public services and execution of public works.

  9. Modification of the procedure for the evaluation and approval of businesses, which becomes more agile.

  1. What avenues for conflict resolution are reflected in Law No. 118 of 2014?

Conflicts arising from the relations between the partners of a Joint Venture, or between national and foreign investors parties to International Economic Association Contracts, or between the partners of a Wholly Foreign Capital Enterprise in the form of a nominative stock corporation, that is, the Cuban wholly foreign capital company, as well as between one or more partners and the Joint Venture or the Wholly Foreign Capital Enterprise to which such partner or partners belong, are resolved as agreed upon in the constitutive documents.

The following cases have a particular treatment:

On the other hand, disputes over the execution of economic contracts arising between the different types of foreign investments provided for in the Law or between them and Cuban legal entities or individuals may be resolved by the Economic Chamber of the corresponding Provincial People's Court, without prejudice to submitting them to arbitration in accordance with Cuban law.

  1. Once a business has been authorized by the corresponding authority, what procedures must be carried out for its effective incorporation or formalization?

During the establishment stage, the investor must comply with the following procedures:

a) opening of the demand account for the deposit of the payment of shares, which is processed directly with the commercial banks;

b) execution of the Notarial Public Deed of incorporation before the Special Notary Office of the Ministry of Justice;

c) registration in the Central Mercantile Registry of the Republic of Cuba;

d) registration with the National Statistics and Information Office;

e) registration in the Taxpayers Registry of the National Tax Administration Office;

f) obtaining a license from the Central Bank of Cuba to open and operate bank accounts;

g) Subscription of the Payment Agreement of the real right granted;

h) registration in the Foreign Investment Property Registry of the real right granted by the competent authority;

i) authorization from the Ministry of Foreign Trade and Foreign Investment of the nomenclature of products authorized for import and/or export and Supplier Code;

j) registration in the National Registry of Exporters and Importers;

k) registration with Customs;

l) obtaining the work permit;

m) certification of personal protective equipment, when applicable;

n) registration in the National Registry of Builders, Designers and Consultants of the Republic of Cuba;

o) obtaining licenses, permits and guarantees for the acquisition and operation of means of transportation and infrastructure, before the Ministry of Transportation; and

p) registration in the Registry of Terrestrial Waters.

  1. Why promote a Single Window System for Foreign Investment in our country?

Among the obstacles identified that affect the performance of foreign investment in Cuba, both in the creation of new businesses and the operation of existing ones, are the number and dispersion of the procedures that must be fulfilled.

Single windows are a mechanism used internationally to facilitate the establishment of foreign investments by simplifying procedures and shortening the time required for the approval of permits, licenses and authorizations.

Taking into account the positive experiences obtained in the operation of the Single Window of the Mariel Special Development Zone, an interdisciplinary group composed of more than 25 organisms met during 2019, with the main objective of creating the Foreign Investment Single Window System.

As a result of this work, in January 2020, the implementation stage of the VUINEX began.

  1. What benefits does the Foreign Investment Single Window (VUINEX) offer foreign investors?

The Foreign Investment Single Window (VUINEX), is a recently created structure, belonging to the Ministry of Foreign Trade and Foreign Investment, which has among its main objectives to provide information and advice on foreign investment, promote business opportunities, and facilitate the establishment of foreign investment modalities, the realization of its investment processes and the processing of permits, licenses and authorizations. It is integrated by representatives of the Ministry of Justice, Ministry of Science, Technology and Environment, Ministry of Construction, Institute of Physical Planning, the National Office of Tax Administration and the National Office of Statistics and Information.

The implementation of the VUINEX is an indirect incentive to foreign investment, since it will expedite the permits, licenses and authorizations required by businesses with foreign capital. In addition, it is supported by a computer platform that allows domestic and foreign investors to manage via web the procedures of the foreign investment modalities and to consult their status.

It also brings together in a single place of the national territory the management of procedures related to business with Foreign Investment. The services offered by VUINEX are free of charge.