CABO VERDE LAW AND PRACTICE Contributed by: Nelson Raposo Bernardo, Joana Andrade Correia, Manuel Esteves de Albuquerque and Mafalda Contumélias Batista, Raposo Bernardo & Associado s
1. Legal System 1.1 Legal System and Judicial Order Cabo Verdean law is based on the civil law system. The Constitution of Cabo Verde and relevant legislation provide for a judiciary inde - pendent from the executive. The judicial system in Cabo Verde is based on three levels of appre - ciation 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 fac - tors (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 subsequently (as a second level of appeal) to the Supreme Court, which only analyses questions of law. 2. Restrictions on Foreign Investments 2.1 Approval of Foreign Investments There are no restrictions on the entry of foreign investments. All investors have the same rights, regardless of their nationality, 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 on the distribution of profits or dividends abroad. The rules governing foreign investment are similar to those applicable to domestic invest - ment. No special registration or notification to any authority regarding foreign investment is required. However, there may be mandatory reg - istration/approvals for specific activities – such as in the banking, finance, aviation, maritime and
telecommunications sectors – that are applica - ble for both foreign and domestic investment. 2.2 Procedure and Sanctions in the Event of Non-Compliance There are no restrictions on the entry of foreign investments, and the rules governing foreign investment are similar to those applicable to domestic investment. 2.3 Commitments Required From Foreign Investors See 2.2 Procedure and Sanctions in the Event The law recognises the right of an investor to challenge any decision of the administrative authorities in court. The scope of the legal chal - lenge depends on the nature of the decision by the administrative authority. As a rule, the First Instance Court has a manda - tory deadline of three years to issue a decision. of Non-Compliance . 2.4 Right to Appeal 3. Corporate Vehicles 3.1 Most Common Forms of Legal Entity The following types of company are the most relevant provided for in the Cabo Verde Compa - nies 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
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