The Cape Verdean government has decided to revoke its requirement of a minimum amount of starting share capital for new companies as outlines in its Commercial Companies Code, according to an ordinance published in its official newspaper.

In the preamble of the ordinance published on 14 March the government argues that the requirement is an obstacle to creating companies in sectors with potential growth where large amounts of capital are not required to start a business.

The ordinance also notes that the minimum capital requirement is unable to ensure the company’s capitalisation and thus it only makes sense if there are mechanisms in place to prevent decapitalisation, and does not offer creditors an indication of the company’s actual assets. (macauhub)