Until October 2010, Curacao was part of the Netherlands Antilles. Later it transferred to the status of a self-governing state with significant autonomy within the Kingdom of the Netherlands. The Dutch government is responsible for the defense and foreign policy of its Caribbean island of Curacao. Therefore, when set up a company in Curacao do not be surprised at the name of the local private LLC: Netherlands Antilles Besloten Venootschap or NABV.
Today, Curacao is a stable country with a diversified economy, which is based on industries such as tourism, financial services, online gambling, maritime business, and oil refining. This incredibly versatile economy is part of the Open Arms Initiative which aims to attract foreign investment. It is worth noting that the goal is quite realistic and successfully achieved. Despite some problems in past Curacao offshore remains a very safe place to live and provides a very attractive sector of financial services and online gambling.
Curacao has gained a positive reputation among international business representatives, and also has double tax treaties with many countries.Atrium Business Solutions
Why set up offshore company in Curacao
Why do foreign investors respect local private LLC? The reason is simple, with proper structure, it is possible to get rid of taxation. To achieve this it’s necessary to follow the next requirements:
- Registration of at least 10% of the shares in the shareholder’s register is obligatory.
- Management and meetings of the owners must be held on Curacao. An exception has been made for owners, they can send representatives in their place.
- It is necessary to keep records and conduct an annual audit.
- In order to avoid taxes, it will be necessary to limit the company’s activities to holding or investment projects.
Considering a good reputation of Curacao as a business center, the businessman decided to open a company in Curacao receives double benefits by withdrawing money to a tax-free offshore still maintaining a reputation.
Ways to register company in Curacao
Obtaining a gambling license for online gambling in Curacao is quite easy, and the cost of it is relatively low compared to European jurisdictions such as Malta, Gibraltar or the UK. Generally, holding a license for gambling in Curacao, as well as e-commerce companies in the Eurozone, is an extremely profitable and economical option.
The country has invested heavily in a good Internet connection, and Curacao is one of the most Internet-connected islands in the Caribbean, after the Bahamas, Puerto Rico, and the Virgin Islands. This means that gambling and betting companies in Curacao can safely place their servers. The government and authorities responsible for the e-commerce zone are very responsive and are willing to issue new licenses for company formation Curacao.
Company types you can register
The previous tax law for companies in Curacao, which assigned companies tax-exempt status, was suspended in 2000, but in reality, these companies became a subject of taxation only in 2019. Instead of the previous tax system, Curacao has developed a new bill that will allow Curacao companies to become part of an effective business structure. NABV or private limited company is the type of company that can be opened in Curacao today.
Gambling as well as trading companies formed in the E-Zone, are subject to income tax of 2% and have access to double tax treaties, but they must work inside the E-zone. Gambling companies in the E-Zone are private companies licensed in Curacao and may provide their services in accordance with the laws of Curacao, which is a respected gambling jurisdiction.
Requirements for companies
A company can only act as a holding company or only as an investment company to achieve tax exemption. NABVs are also not subject to double taxation avoidance agreements, so the company’s income must be accumulated in the parent company or another jurisdiction.
General requirements to open an offshore company in Curacao for working in the E-Zone:
- The company’s capital should be divided into shares.
- Activities in Curacao should only be carried out in a specific economic zone. Large economic zones, also called E-Zone, are located in the port and airport of the island of Curacao.
- The turnover of a company that provides its services to residents of Curacao may not exceed 25% of the total turnover in the category for this product, and the business activities of the company should contribute to the economic development of Curacao by creating jobs or attracting foreign investments.
Following local laws, a company in Curacao must have a registered address and also be registered in a local chamber of commerce. For practical reasons, the company must also appoint a local resident agent who will manage the affairs of the company.
To set up company in Curacao the following documents from individuals will be required:
- A completed application with details of the preferred company’s name, type of business, details of the founding directors and shareholders (citizenship, country of residence, address, profession, etc.). It is also necessary to report the estimated annual turnover of the company and the source of funds.
- A notarized copy of passport or other acceptable Identification Document (pages with a photo and signature).
- Summary of the beneficiary of the company (personally signed), which shows the experience of the beneficiary in this business.
- Proof of residential address (utility bills).
- A notarized copy of the utility bill or bank statement to confirm the address of residence.
Benefits to open company in Curacao
As mentioned above, the obvious advantage of company registration in Curacao is that with proper structuring, such a company achieves zero taxation, and in the E-zone zones the rate is 2%, with additional features when using the Curacao gaming license.
A large number of banks operate in Curacao under eight licenses. Depending on the profile and source of financing, banks are divided into local banks with basic functionality, subsidiaries and branches of foreign banks, credit associations and specialized credit institutions. Also, banks and other institutions for storing funds, plus international credit institutions that cannot provide services in the local market, since they belong to another jurisdiction, not Curacao.
The quality of banks is assessed on average as good, they allow customers to open an account remotely, but it is reasonable to assume that it’s necessary to go to the island personally because each case is considered separately. The minimum deposit starts with a few thousand dollars.
Quick and easy offshore company formation in Curacao
It’s necessary to mention that Curacao is included in the Organization for Economic Co-operation and Development (OECD) white list and offshore company formation Curacao is an attractive option for diversifying your funds abroad. Curacao has a good international reputation, and the financial services it provides are of high quality and professional. Moreover, the online license of Curacao is considered respected, affordable and convenient to use. Local E-zones allow business owners to engage not only in gambling but also in online trading and services.