Fishing Charter Boat Buisness

Hi Stephen,

First of all, it could be pretty tough to purchase a good charter fishing boat in CV as there aren't many available for sale (or maybe someone who had such a business may end up having one for sale due to the pandemic's impact on tourism in CV .... tourism basically went to zero and now may be a good time to get a good deal on a boat but not a good time to start a fishing charter business as tourists are not yet back in any volume). But there's nothing like being ready for when the tourists return!

Getting the license is actually not too difficult, but could take some time because of the bureacratic process. The best way to go about it is to apply for a "utilidade turistica" which is to submit your proposal for a tourism business to the Cape Verde foreigninvestment agency. They will coordinate the issuace of the license on your behalf. Basically, you will need to submit certain documents including your business registration (you need to create a business), your residency visa (you need to apply for residency in CV), the title of the vessel, a safety inspection report for the vessel, insurance certificate, etc, etc.

CVTI will obtain the licenses from the port authorities for you to operate your chater fishing vessel. You will also receive fiscal benefits such as waiver of income taxes, waiver of importation duties (in case you choose to bring a vessel you purchase outside CV), etc. Just be aware that it could take 2-3 months for you to get all the preliminary steps completed (business registration, residency visa, application to CVTI) BEFORE you can start your operations even if you purchase a vessel here in CV (assuming one is available) or before you import one if you purchase outside of CV.

If you're not interested in the fiscal benefits that are given to foreign investors in the tourism sector and you simply want to start your business, then the paperword requirements are the exact same but you would need to make the application directly to the Ministry of Tourism. It would take the same amount of time for your licenses to be issued.

If you'd like more details about the steps in the process and how it all would work, just send me a private message and we can exchange email addresses, Whatsapp, etc.

Best regards,

Angelo

shayden29 wrote:

Hi everybody i would like to know how to go about opening a charter boat buisness from sal in cape verde. I am coming down at the end of may to buy some property with the view of provideing fishing from  sal pier for tourists. Im also wondering how to go about buying a boat their for this any information on this would be great regards Stephen

Dear Angelo,

Thank you for your site and your valuable advices.

I often go fishing to Cape Verde and a local friend proposed me to buy a boat that he could operate when I am not in Cape Verde (I am a European citizen)

I have received mixed messages about cost of licenses and minimal capital requirements.

Can you please tell me approximately the cost of licences and the type of corporate structure I should set up for such an activity?

Best regards

Serge

    Dear Angelo,
Thank you for your site and your valuable advices.
I often go fishing to Cape Verde and a local friend proposed me to buy a boat that he could operate when I am not in Cape Verde (I am a European citizen)
I have received mixed messages about cost of licenses and minimal capital requirements.
Can you please tell me approximately the cost of licences and the type of corporate structure I should set up for such an activity?
Best regards
Serge
   

    -@SergeKBG

Hi Serge,

This is not my site. I am simply a long-term contributor to this site.

Warning: You must be extremely careful when attempting business ventures with locals! You will never be told the complete truth if you are a foreigner funding a business venture with a local partner or partners. The Cape Verdean business culture is to own/control the business with foreign funding and with dubious promises regarding the payments to the foreigner. In other words, the goal is to have a free ride on the back of a foreigner.

That has been what I have observed in almost every case over the years. A successful venture requires that you own a majority share of the business AND that you create binding legal contracts outlining the roles of each partner (especially regarding who can sign for the business and who has access to the bank accounts), and written by lawyers and which the local partners must sign (with signatures authenticated at the civil registry).

In addition, you MUST have a regular meeting of the board of directors and document all discussions held and decisions taken. Even if you are the majority owner, you must NEVER EVER make the local partner the GERENTE because under CV law, the gerente is the only one who can legally sign any document for the business. So you must be the gerente and you must sign everything including checks. In essence, the gerente runs the business on a day to day basis.

Regarding the fishing boat, you need to be aware that a fishing boat (or any maritime vessel) cannot be licensed unless it is majority-owned by Cape Verdean citizens. Foreigners can only own a minority share. Therefore, you will not have any control of this vessel even if there were a legal contract in place. And you cannot be the Gerente.

Next, there is no minimum capital requirement for a fishing vessel. And the licenses cost next to nothing. If you are being told a different story, it is because someone is trying to take advantage of your presumed lack of knowledge about the CV maritime laws.

The only fishing vessel that can be owned and fully operated by a foreigner is a sports-fishing vessel (which cannot be used for regular artisanal fishing). Again, there is no minimum capital requirement to start such a company and the license (a tourism license) is relatively inexpensive.

Serge, I hope this information is helpful to you.

Angelo

Thank you Angelo for your answer, much appreciated.

I was aware of the business risk but not of the critical role of the gerente. Once again, thank you for this.

I have a trusted person that moved to Cap Verde few years ago that might take the role of Gerente.

Assuming a sports fishing vessel, what are the responsibilities of the shareholders versus the gerente in case of non compliance activities or even worst, accidents with tourists on board?

Best

Serge

    Thank you Angelo for your answer, much appreciated.
I was aware of the business risk but not of the critical role of the gerente. Once again, thank you for this.
I have a trusted person that moved to Cap Verde few years ago that might take the role of Gerente.
Assuming a sports fishing vessel, what are the responsibilities of the shareholders versus the gerente in case of non compliance activities or even worst, accidents with tourists on board?
Best
Serge
   

    -@SergeKBG

The gerente can only be dismissed but bears zero responsibility since they are only a manager, except if the committed a crime in the execution of their duties.

The shareholders bear full responsibility for the finacial consequences. However, there is no tort law in CV. The company can get sued and punished if criminal/civil crimes were committed, and shareholders will be responsible for any fines/property damage (that can be proven and valued) and only up to but not exceeding the companies assets.

But those harmed cannot claim your personal assets or any amounts beyond the value of the assets of the LDA (limited liability) company.

Angelo

Noticed with Thanks