Company Formation in Curacao
Curacao refers to the Small Antilles Islands and is the largest formation among them. Since 2010, it has been a member of the Kingdom of the Netherlands. There are special conditions for businessmen and entrepreneurs in the whole territory, and the duty-free trade is officially allowed. The entire economic sphere of Curacao is based on several leading industries, including offshore business, tourism and refining industry. Approximately 85% of the gross domestic product falls on business in service delivery. It is not difficult to hire locals if there are cash savings, personal or leased property on the island.
Curacao – Key Points
Curacao is titled by the Organization for Economic Cooperation and Development as responsible and fair jurisdiction. Currently, some countries have signed agreements on double taxation. These include Norway, Aruba and the Netherlands today. The agreement on exchange of tax information is already in place with Caymans, Barbados, Spain, Mexico, USA, Denmark, British Virgin Islands and New Zealand.
Benefits of incorporating a company in Curacao – Over the past few years, Curacao has become increasingly important in the list of states where it is profitable to organize its own business and open firms. The main advantages include the following:
- emphasis in the development of the state is largely done on attracting foreign capital;
- stability in the political situation in the island state is steadily increasing;
- there is autonomy in the area of tax legislation with reliable links with the Kingdom of the Netherlands;
- improvement and reorientation of sales markets, which include the financial area, gambling, tourism, oil refining;
- advantageous conditions of taxation are provided.
All international companies carry out the main activity on the basis of a special bill, the main purpose of which is effective attraction of foreign investments. In the course of legislative drafting, Curacao borrows a lot from Liechtenstein.
How do the islands do business
The state of Curacao offers investors the following types of business within its territory:
- Curacao Exempt NABV, private exempted company with limited liability;
- closed company (BeslotenVennootschap-BV) with limited liability;
- family fund (private foundation);
- open company (NaamlozeVennootschap-NV) with limited liability;
- partnerships (two varieties: with unlimited and limited liability).
- Peculiarities of CuracaoExempt NABV functioning include:
- there is at least one shareholder with no residency requirements;
- the managing director is selected from the list of residents and can be both a natural person and a legal entity;
information is kept on shareholders, but it is not subject to distribution.
- The features of BV include:
- no minimum amount of capital;
- the board may include individuals and legal entities, among which one is a resident;
- the minimum number of shares is one piece;
- the organization does not require the approval of the Ministry of Justice;
- the managing body is shareholders, the managing director is not required to be appointed;
- the issue is carried out exclusively by registered shares, keeping the register of shareholders is a mandatory procedure.
- The NV features include:
- at the time of the company registration of the, the authorized capital should be paid in the amount of twenty percent;
- internal reporting, annual reporting and audit are optional (this does not apply to companies that issue loans and providing insurance services);
- it is allowed to issue both bearer shares and nominal;
- shareholders ‘ information is prohibited to public;
- at least one shareholder is required and can be a natural or legal person;
- the Director Manager shall be appointed each time from the list of residents (one minimum, the rest may not satisfy the specified condition);
- registration of the company takes place after confirmed by the Ministry of Justice;
- documents must be transferred to the English language.
- The peculiarities of the Family Fund include:
- total exemption from taxation;
- annual reporting is not a prerequisite;
- the minimum capital of arbitrary value is established;
- the purpose of the foundation is to protect property and effectively manage inheritance issues;
- investment investments may come from the founders and third parties;
- the structure of thefFund, which is not disclosed to third parties under any circumstances, should be organized;
- the foundation is inadmissible to engage in business.
- Peculiarities of partnerships include:
- capital is distributed as a share between partners;
- management is carried out by the general partners;
- setting the rights of partners is based on the form of organization of the company (liability limited or not).
Taxation in Curacao
The amount of income tax rate is always determined by the state and should not exceed 50%. Those offshore companies that were registered before the year 2002 are exempted from the burden offee payment until 2019.
Major conditions under which the activities of private limited liability companies are not subject to income tax are as follows:
- provision of financial services (investment, loans, but this does not include the scope of banking);
- presence of statement communicated to the tax authorities.