The following covers exactly how the ‘Empresário em Nome Individual’ (sole proprietorship) status operates in Cabo Verde in 2025, including registration steps, relevant taxes, and eligibility details.
Availability of Sole Proprietorship Status in Cabo Verde
Cabo Verde offers a formally recognized sole proprietorship status called Empresário em Nome Individual. This structure is open to all regular citizens and is a common choice for individuals seeking to operate small businesses, freelance activities, or service-oriented enterprises without forming a separate legal entity.
Main Features and Legal Conditions
The Empresário em Nome Individual allows an individual to conduct commercial activities in their own name. All obligations and debts incurred by the business are the direct responsibility of the owner, since there is no legal separation between personal and business assets.
| Feature | Details |
|---|---|
| Status Name (PT) | Empresário em Nome Individual |
| Entity Separation | No – Individual is fully liable |
| Eligibility | Open to regular citizens |
| Registration Authorities | Casa do Cidadão, Government Portal |
| Common Uses | Small traders, freelancers, service providers |
Registration Process
- Registration must be completed at Casa do Cidadão or online through the official government portal.
- The process is structured to be straightforward, minimizing administrative friction for small business owners.
Relevant authority websites for official information include the Casa do Cidadão and the Directorate-General for Contributions and Taxes.
Taxation of Sole Proprietors in Cabo Verde (2025)
For the 2025 tax year, sole proprietors in Cabo Verde fall under a well-defined regime. The main applicable personal tax is the Imposto Único sobre o Rendimento das Pessoas Singulares (IUR), similar to personal income tax in many jurisdictions. Taxation is progressive based on income brackets, and a simplified tax regime is available for smaller businesses.
| Tax Regime | Applicable Rate / Rule | Eligibility / Threshold |
|---|---|---|
| Personal Income Tax (IUR) | 16.5% – 27.5% | All sole proprietors, based on income bracket |
| Simplified Tax Regime | Special flat rules | Annual turnover below 2,000,000 CVE (≈$19,500 USD at 1 USD ≈ 103 CVE) |
| Social Security | Mandatory contribution | All sole proprietors |
Key Details on Taxation
- Standard IUR (personal income tax) uses a progressive scale from 16.5% to 27.5% in 2025.
- Simplified Regime (Regime Simplificado): If annual turnover does not exceed 2,000,000 CVE (Cabo Verdean Escudo), a simplified scheme is available to reduce compliance complexity for smaller enterprises.
- Social Security: Contributions are required in addition to income tax.
Liability and Risk Considerations
With the Empresário em Nome Individual status, all assets and debts of the business are tied to the individual. There is no limited liability protection—the owner is personally responsible for all obligations incurred by their business activities.
Summary Table: Sole Proprietorship Status in Cabo Verde (2025)
| Attribute | 2025 Status |
|---|---|
| Status Name | Empresário em Nome Individual |
| Legal Entity Separation | No |
| Personal Liability | Unlimited |
| Progressive Tax Brackets | 16.5% to 27.5% |
| Simplified Tax Eligibility | ≤ 2,000,000 CVE (≈$19,500 USD) |
| Social Security | Mandatory |
| Registration Point | Casa do Cidadão or Online Portal |
Pro Tips for Sole Proprietors in Cabo Verde
- Carefully monitor annual turnover if you wish to take advantage of the Simplified Regime to minimize both administrative and tax burdens.
- Register promptly through Casa do Cidadão or the government’s web portal to ensure your operation is fully compliant from day one.
- Set aside funds for social security contributions from the outset, as these are mandatory regardless of profit levels.
- Keep in mind your personal exposure: since all business debts are yours personally, prudent management and record-keeping are essential.
Where to Find Official Information
Cabo Verde’s sole proprietorship regime is practical and designed to be accessible, particularly for small-scale entrepreneurs and freelance professionals. Registration is straightforward and compliance for small businesses is supported by a simplified tax regime. The most important considerations are the unlimited personal liability and the requirement to comply with both income tax and social security rules. For anyone seeking to operate individually in Cabo Verde, knowing the tax brackets, eligibility for simplified rules, and the points of registration will be essential for a smooth launch and ongoing compliance.