During a recent visit to Havana I met a person which i found very trust worthy. He wants to open a restaurant and a Casa particular and I offered to help him to invest money in his business. My question is, is it possible to draw up a legal contract between me and him to formalize a partnership?
Any help would be greatly appreciated.
Saeid

No. Don’t do it unless you’re goal is to loose money.

Forget about the contract. Do you know Cuban law? When the guy breaks the contract or can’t pay you, what is your recourse?

Paladares and Casas Particulares pay very high taxes and can be shut down by the government for no reason including the fact that the owner is getting money from you.

If you want to give the guy money and eat and stay for free, that’s probably your best case scenario.

As far as an investment, forget about it.

Great idea though but it’s a big loser. Post Castro post Embargo, sure, go for it. Maybe give him money for a long long long long long term investment that MAY pay off if and when the Cuban government actually encourages paladares and casas particulares instead of taxing them out of business.

Thanks for your reply.That seems to be the general consensus when it comes to doing business in Cuba. Big Shame!
So I think I’ll just go for it then ((-: It’ll be a reason to go there often, and nothing more!

Sure. Go get to know the industry and the Players. We’d love to have a list of Paladares. Maybe you can start a directory and become an authority in the industry.

Then, when the time is right you’ll have plenty of business opportunities. Get to know the paladar owners, the supply chain, health inspectors, tax laws etc.

I own Paladares.com and would be happy to partner with you if you want to provide some content.

Publisher - 20 October 2007 04:29 AM

Sure. Go get to know the industry and the Players. We’d love to have a list of Paladares. Maybe you can start a directory and become an authority in the industry.

Then, when the time is right you’ll have plenty of business opportunities. Get to know the paladar owners, the supply chain, health inspectors, tax laws etc.

I own Paladares.com and would be happy to partner with you if you want to provide some content.

I would have to Agree with Publisher on this one.
Wait a short spell, things are about to pop.

Hello, I don’t want to seem like I am Pro Cuban Government or anything like that, I keep my political opinions to myself and from my understanding years ago it was very difficult to open a business in Cuba.  In the last 10 years I believe a lot has changed.  The Cuban government has given a lot of latitude to the foreign investment act and there is more investment in the last 5 years than ever before.  I personally have consulted on several business startups with the Cuban govn. and have had for the most part a smooth transaction process and the owners are happy with the arrangements and doing fairly well and just awaiting the real opportunity when the embargo with the US ends.  (Hopefully soon with the new President stating he is open to relations)  I know that several large Canadian companies have inked deals recently including Sheraton Hotels and one of my favorites Leisure Canada that has started several large hotel and golf course projects, they ran into some financing issues that have delayed them but recently acquired a partner from Dubai and they are now back on track.  I have been to Cuba several times and I am learning more each time I go and continue to look to help those in the US interested in starting a business in Cuba.  Personally I will look to move to Cuba permanently within the next 10 years and continue my consulting business from there via the internet and phone.  I plan on my next trip to be in June and for those looking to start a business there I am open to free consultations, and instead of charging a consulting fee I ask for a 10 percent interest in any business I help start and structure, I have several partnership agreements in place as a 10% shareholder and soon will be there to continue to help these companies on a permanent basis as I offer free services to help those businesses grow.  I hope to have 20 companies in place within the next 5 years and then consult them part time and look to receive a great return upon the end of travel restrictions.  So for what it is worth I have had some success in starting and structuring companies in Cuba, and have made a lot of great connections in the process.  For those of you looking to invest in Cuba please check out my website at millionaireblueprints.scriptmania.com and feel free to contact me for a free consultation.  I always enjoy talking to people that love the country and the people as much as I do.  I only look to promote the country in a positive manor and leave all political opinions for the politicians.  So as long as someone has a business idea that is a real win/win situation for themselves, the country of Cuba, and the Cuban people then I would love to talk to you.

Mark Green

Page doesn’t load for that site. Can you edit and make sure the link is right?

You say you have experience “starting and structuring companies in Cuba”.

Can you give us more details?

Are you from the US?

Are you connected to the Cuban government?

What kind of businesses have you started in Cuba and how involved in the Cuban government?

I had previously replied to this post, so if this is a duplicate please erase the other posting.

http://millionaireblueprints.scriptmania.com/  this is the link to my website.

to answer your questions:

I am a US citizen, born and raised, currently residing in metro Detroit area and Las Vegas.

I am not connected to the Cuban govt. in an way shape or form, and have no political affiliations nor expressed opinions.

I have helped a few successful startups in Cuba, specifically in Havana, including a restaraunt, a restaraunt/bar, small factory, and telecom co.

My occupation is as a financial consultant specializing in:

<>Business Start up Strategies:  Incorporation, LLC’s, partnerships, jurisdictions, feasibility/ ROI studies, financing, credit, legal issues.

<> Asset Protection Services:  Offshore corporations, holding companies, trusts, banking, virtual offices, tax avoidance strategies, legal issues, judgement proofing strategies.

<>Restructuring, Bankruptcy, and Disolution Strategies:  Protection of business and personal assets and income, negotiations with creditors.

<> Business / Life Mission Plans:  From finding out and attaining your goals according to your values and living your dreams to putting together a plan that will make any bank say yes to your loan for start up or expansion.

<> Success Strategies:  Consulting services designed to turn your job into a business and your business into a powerhouse!

this is info from my website and can be applied to starting up a venture or investment in Cuba,  I am a firm believer in Cuba being the last bastion of unclaimed wealth in the carribean and that the opportunity for great returns exists,  I do not charge consulting fees rather I ask for a percentage of the start up company in return for my services due to my strong belief that soon the travel embargo will end and everyone in early will be greatly rewarded.  I also only look to help people that believe in creating a win/win situation, this includes their dealings with their partners, the govt. their customers and their employees.  I cannot stress this enough. The govt. charges $25 per employee per month for their services which includes a 40 hour work week, so I believe in looking out for the employees as much as possible, not only do they work that much harder for you, but if someone is so cheap that they do not want to give to the employees that are working hard for about $1 a day then I dont want to do business with that person.  I have always been an advocate that you have to give back.  Look at Cuba as an opportunity to improve yourself, the country and the people that live their.  Everyone can benefit from a good business.
Don’t be Cheap People!!!  Any questons, I will answer the basics free of charge.

Mark Green

How do you set up any business in Cuba without approval from the Cuban government?

And a telephone company and a small factory? In Cuba?

Did you have any problem with the US government?

Can you tell us about the process, time frame and investment required to set up these businesses?

Are they run by Cubans or Canadians?

MarkGreen - 22 January 2009 02:51 PM

I had previously replied to this post, so if this is a duplicate please erase the other posting.

http://millionaireblueprints.scriptmania.com/  this is the link to my website.

to answer your questions:

I am a US citizen, born and raised, currently residing in metro Detroit area and Las Vegas.

I am not connected to the Cuban govt. in an way shape or form, and have no political affiliations nor expressed opinions.

I have helped a few successful startups in Cuba, specifically in Havana, including a restaraunt, a restaraunt/bar, small factory, and telecom co.

My occupation is as a financial consultant specializing in:

<>Business Start up Strategies:  Incorporation, LLC’s, partnerships, jurisdictions, feasibility/ ROI studies, financing, credit, legal issues.

<> Asset Protection Services:  Offshore corporations, holding companies, trusts, banking, virtual offices, tax avoidance strategies, legal issues, judgement proofing strategies.

<>Restructuring, Bankruptcy, and Disolution Strategies:  Protection of business and personal assets and income, negotiations with creditors.

<> Business / Life Mission Plans:  From finding out and attaining your goals according to your values and living your dreams to putting together a plan that will make any bank say yes to your loan for start up or expansion.

<> Success Strategies:  Consulting services designed to turn your job into a business and your business into a powerhouse!

this is info from my website and can be applied to starting up a venture or investment in Cuba,  I am a firm believer in Cuba being the last bastion of unclaimed wealth in the carribean and that the opportunity for great returns exists,  I do not charge consulting fees rather I ask for a percentage of the start up company in return for my services due to my strong belief that soon the travel embargo will end and everyone in early will be greatly rewarded.  I also only look to help people that believe in creating a win/win situation, this includes their dealings with their partners, the govt. their customers and their employees.  I cannot stress this enough. The govt. charges $25 per employee per month for their services which includes a 40 hour work week, so I believe in looking out for the employees as much as possible, not only do they work that much harder for you, but if someone is so cheap that they do not want to give to the employees that are working hard for about $1 a day then I dont want to do business with that person.  I have always been an advocate that you have to give back.  Look at Cuba as an opportunity to improve yourself, the country and the people that live their.  Everyone can benefit from a good business.
Don’t be Cheap People!!!  Any questons, I will answer the basics free of charge.

Mark Green

Forgive me for sounding rude, but you as a US citizen are not allowed to travel to Cuba without a special permit from the US, neither to have business with Cuba under a big penalty, so you are just Phishing or you are extremely Ignorant, IMO
Wajiro A life time Cuban American.

to answer the follow up questions, sorry i dont have a lot of time to go into detail so basics are:

1.  Never did I state a business could be set up without govt. approval, that is impossible, 2nd they are also a partner in the business or the business does not exist, as stated they want a 50% interest.
2.  small factory making parts, and telecom company is not a telephone company,  they are in the telecom business in terms of factory parts orders
3. the US government is not involved in any form or function, and obviously would not be a fan of this type of business, but I am not breaking any laws either.
4. Business is formed as a Cuban corporation and run by the cuban govt. and the foreign entity, some cases US citizens some Canadians, they are open to anyone with a good business idea and capital requirements.
Mark Green

Mark,

Thanks for addressing these issues. As you can see from our regular poster Wajiro, we are somewhat skeptical of your post.

For an American to set up businesses in Cuba is such a far fetched concept that we find it hard to believe honestly.

Since setting up ANY business in Cuba by ANYONE is nearly impossible, it appears that you have done the impossible.

That’s why we wonder about your post. If you can answer these two questions, we will be impressed.

1. Can you name a ministry that you dealt with to get the telecom or small factory business set up?

2. Do you have a license from OFAC? If so, is it a general license or specific license?

many people are skeptical, has anyone seen this website leisurecanada.com ??? they are doing the impossible as you guys call it everyday, as for the other questions, I will do more than answer those two short questions for you I will lay out the process in basic format for you so you can see that its not that hard, of course I can’t give all the small details because thats how I make my living, but enough for those that think Cuba is closed off to new business ventures a new perspective.  Give me a day or two to get this together and I will respond here, thanks, Mark

also as for wajiro or whoever he is,  US citizens not allowed to travel to Cuba?  Gee, never heard that one before, yet 100k plus do it every year.  Never had a problem, fly from toronto to havana and back and they never stamp the passport, and why would i bother phising for what? i believe the ignorance is yours alone for the small mindedness or inablilities in life, I dont believe in parameters set by the govt here, and they dont really care if you go to cuba or not, just dont get caught which is about impossible.  So enough of that waste of time, I will submit plenty of corp. info shortly. Mark Green

Mark,

Thanks for taking the time to be involved here. We’ll look forward to your information.

I know Leisure Canada VERY well. They are based in Canada but have had nothing but problems and delays for many many years and I don’t think they have ever even broke ground in Canada.

So, to say that you, as an American, can just go down there and open businesses is a bit hard to believe.

That’s why I and others are skeptical.

As I stated previously I will give a quick run down on business formations in Cuba, first and foremost for all those that believe that you cannot own a business or create a business in Cuba in any way , shape or form, stop reading now and keep believing that.  For those that want to learn something that I normally charge $195 per hour for read on……..

The Republic of Cuba began seeking out investment by foreign corps in Sept. of 1995 with the creation of the Foreign Investment Act.,  this encourages business and investments in all services and areas with the exception of armed services, health and education. Business can be formed with the Cuban Govt. as a joint venture, under an international economic contract or foreign capital corporation.

Now to answer your question on who authorizes this:
Foreign owned corporations must be authorized by the Executive Committee of the Counsel of Ministers or a Commission of the Executive Committee either one of which will issue a resolution approving the corporation.

Now in addition to the above you must register the business if it’s a joint venture with the following:
Chamber of Commerce, and register of importers and exporters, the register for tax purposes, the register of Customs House of the Republic all this is through the Chamber of Commerce, and lastly you must register with the National Bank of Cuba for License to open a bank account with the name of the joint venture.
All authorization for foreign capital corps must be granted by the Executive Committee of the Council of the Ministers.
The average length of time to set up a business in Cuba is from 3 to 6 months, depending upon what type of business and what level of involvement the govt. of Cuba has.

Also note that if you are importing or exporting products to or from the business you must get authorization from the Ministry of foreign trade. Which is just a general formality after completing the above.

Taxes on joint ventures are at 30%, totally foreign corps are taxed at 35%, and as much as 50% on a graduated scale, another reason to partner with the govt. if even to a small degree. You can also carry forward any losses for a period of 5 years.

Real estate can be purchased, built, and sold as of 1996. This includes purchase by foreign persons and entities as well as Cuban entities.  Most people do not know this, I have this in writing as well.

This is just the basics, I just want to share a little bit of what I have learned and to help stop the rampant misinformation that is so spread throughout message boards,  also the more that people realize that these things are possible the more businesses will be created thereby helping all involved,  I would love to start a special business community association of US owners of Cuban business ventures also including those from Canada as well.  We could form a great network to help each others business.  I know that in just a few years I will be retiring their and have already looked into citizenship.  The opportunities in this beautiful country are endless and in 12 years I will look to permanently retire there at the ripe age of 50.  Hope this helped, more information is available at millionaireblueprints.scriptmania.com feel free to send me an email, only positive messages please, thank you, Mark Green.