Why Choose Curaçao for Your Business Hub?
Tropical weather conditions are a harsh reality for most Caribbean locations. In recent decades, there have been many examples of disasters such as volcanoes, hurricanes, and earthquakes destroying businesses. However, located below the hurricane belt, Curaçao is lucky to be free from such natural disaster risks.
If you want to start your business in this region, Curaçao’s geography, political climate, and easy access to local fiber networks make it the ideal Safe Harbor for disaster recovery.
Below are a few other reasons why you should choose Curaçao as your business hub.
Due to its status as part of the Kingdom of the Netherlands, Curaçao offers you favorable fiscal and legal conditions for entering the European Union and the United States.
Incentives Are Available From the Government.
For overseas businesses, Curaçao offers special incentives to establish themselves in designated free zones to boost its hub position’s growth. Import duties are 0%, revenue taxes are 0%, and profit taxes are only 2%.
Multilingualism Is Widespread
Curaçao’s rich history of cultural migration has led to almost every person speaking two or more languages. It helps you hire local talent, as well as deal with vendors and service providers efficiently and effectively.
24/7 Surveillance for a Safe Working Environment
There are two Tax and Duty-Free Zones, one at the airport and one at the seaport, in addition to a third Industrial Park. The parks are gated with 24/7 security, and cameras are throughout.
Turnkey Storage, Assembly, Distribution, and Sales Facilities of the Highest Quality
To be able to provide good service to your global clients, free trade zones are full-fledged business parks with multifunctional buildings for storage, assembly, distribution, repair, and more.
You Can Ship in Smaller Containers
The Caribbean and Latin America are populated by small resellers who lack the volume or resources to manage bulk purchases. Your market will be considerably expanded if you give them the option to buy and ship in smaller loads.
Multiple Daily Flights to the United States and Direct Flights to Many North American Destinations
Many small retailers travel directly to the country to pick up their merchandise and have it shipped. Traveling by air to your location is crucial, and Curaçao gives you that convenience.
The island of Curaçao is located off the coast of Venezuela in the Southern Caribbean. A container port that is one of the best in the region and an airport with advanced technology that meets international standards: a perfect combination that makes it the best business hub in the region.
Good Technological and Physical Infrastructure.
A reliable state-of-the-art telecom infrastructure with six submarine cables, Tier IV Data Centers, and good roads make it easy to launch your business.
How to Start a Business in Curaçao
So now, if you’re convinced to choose Curaçao for your business hub, then you might want to know how to start a Curaçao business as a foreigner.
Listed below is a checklist of things you should get into place to start a business in Curacao.
We are your Local Representative
Most likely, you’re not familiar with the Curaçao local market if you’re a foreigner. So, you need someone who can help you and guide you through establishing a business in Curaçao. Van Holland can help you to get started your business in Curaçao. Here we can help you find a facility that meets your needs before you incorporate a company with a public notary.
Open A Bank Account
Generally, you can use major credit cards on all parts of the island, but if you have US dollars, bring small bills since $50 and $100 are rarely accepted.
However, open a Curaçao bank account if you plan on living and starting a business on the island. Depending on whether you qualify for an account, you may need a letter of recommendation from your bank back home.
Get To Know if Your Business Is Regulated and Allowed to Operate in a Free Zone
Van Holland can help you determine whether your products or services are allowed in the Free Economic Zones, as well as what legislation and regulations you should be aware of before you begin.
Find Out if You Need a License to Do Business in Curaçao.
A company must have the following licenses in order to operate legally in Curaçao:
- A license to act as managing director
- A license to operate a business.
In keeping with the Vestigingsregeling Voor Bedrijven (Business Establishment Rules), the government of Curaçao can deny any business license application if that is in the public interest. The business license will only be issued if the business has been running for at least six months from the date of granting. Furthermore, foreign-owned companies can apply for a business permit from the government to establish a branch office in Curaçao to conduct business.
It may be necessary to obtain general or specific foreign exchange licenses or exemptions for certain cross-border transactions. If a non-resident acquires a business in Curaçao, they must obtain a foreign exchange license through the St. Maarten and Central Bank of Curaçao. The Central Bank uses these licenses and notices to monitor the changes in foreign and local currency reserves.
Besides this, Curaçao’s Chamber of Commerce has compiled an extensive catalog of licenses and permits required by each type of business, as well as information on legal structures, resident permits, trademarks, and more.
You can visit the website: www.curaçao-chamber.cw/business to check what type of license your business requires.
We have Local Law Firms to Assist You
Several companies specialize in setting up and registering entities on your behalf, so you can incorporate a business directly with a Public Notary. VanHollan can assist you in finding one.
Determine Which Legal Structure You Need.
Through the economic zone law, Curaçao provides attractive incentives to companies establishing themselves in the Free (Economic) Zone. However, some legal structures do not qualify. Your company may only be able to receive tax incentives if it has the right legal structure. You will be assisted by your lawyer or notary in determining which one best fits your goals.
Set Up Your Business
After you have registered with the Chamber of Commerce and Tax Office and acquired all the necessary permits, you can begin occupying the space and contracting utilities.
Buy an Existing Business in Curacao
If you prefer a little more certainty, then instead of starting your own business from scratch, taking over a current company is a very good option! An island like Curaçao is where there will always be entrepreneurs who retire and, due to lack of succession, offer up their business for takeover.
In these types of acquisitions, a familiarization period is typically required, during which necessary knowledge is transferred to the new owner.
You need not only to purchase the business you can profit from long-term, but you should also purchase the business that you can invest in with certainty and never lose your investment. As your local representative, Van Holland can assist you in finding the best business for you to take over based on your preferences.
Simple Steps to Buy an Existing Curaçao Business
- Decide on the jurisdiction and pick a bank.
- Use the appropriate payment method to pay for the service.
- Get your new company’s credentials.
- Obtain credentials for an account opened with your new company.
- You will receive a package containing documents from DHL.
Taxes System in Curaçao
To register a company in Curaçao, it is necessary to be aware of the following tax highlights:
- Income taxes for corporations: 22 %
- Rate of personal income tax (PIT) – up to 46.5% (depends on the income)
- VAT: 6-9%
- Non-resident withholding tax rates: 0%.
- Tax rates on capital gains: corporate – basic 22%, individual – corresponding to the personal income tax rate
Working Visa For Curaçao
A work permit is required if you intend to start working in Curaçao. On the other hand, if you want to start your own business in Curaçao, you will need to obtain a residence permit.
In this way, you can get a working visa as well as a residence permit. For a work permit, you do not need a residence permit; however, if you wish to start a business in the country, you will need one. Investors with high net worth must check the following boxes in order to obtain a residence permit:
Being able to invest and support yourself as a resident of Curaçao when you have sufficient financial resources.
- A good reputation and a clean criminal record
- An insurance policy- covering health care costs
- An interest in Curaçao in general
Establish that the investment has a real economic benefit to the nation and that it was made legitimately.
Since 2014, Curaçao has been granting investors a residence permit based on the investment. The length of the investor’s permit is determined by the amount of investment:
- A residence permit for three years: Investment from $280,000
- A residence permit for five years: Investment from $425,000
- An indefinite residence permit: Investment from $850,000
Under this program, you may invest in the following:
- Purchase of the real estate
- Investment in the business
Buying securities on the Dutch Caribbean Stock Exchange
Van Holland Curaçao assists with international support, planning, and implementation. If you want to build a modern trade sales organization and make use of the best network in the Caribbean, do not hesitate to contact us!