Open a company in Curacao

Curacao is a small island nation in the Caribbean that has developed over the years into a popular offshore hub for the region. Registration of companies in Curacao is designed to reduce the tax burden of an entrepreneur. This approach contributes to the active accumulation of capital, which favorably affects both the economy of the country and its investors.

Offshore companies in Curacao - a feature of taxation

  The territory of the country is formed by 3 islands. Each of them has an individual fiscal system, which is characterized by differentiated corporate income tax rates. For example, directly on Curacao, this figure is 27%, and on the nearby islands of the archipelago - the islands of Aruba and Sint Maarten - it is 30% and 34%, respectively.

  Registration of a company in Curacao provides an opportunity for a businessman to completely avoid taxation in this state. To do this, the company must meet the following requirements established by applicable law:

• A company opened in the country must specialize in providing financial services. This may manifest itself in providing loans to the local population at a minimum interest rate, advising in the field of financial activities or providing intermediary services in this area. However, such a firm should not be related to banks, credit organizations, insurance funds. In addition, the company must not be owned by any resident of Sint Maarten.
• The quantitative composition of the board of directors of the company must be residents of this country.
• At the time of filing an application for registration of a new company, the founders must send an application to the tax authorities of the country with a requirement to apply a zero rate of income tax.

  The favorable financial position of offshore companies is due to the lack of a taxation system for income that non-residents of the country receive when paying dividends from participation in the activities of an organization registered in Curacao. Such a situation is possible only in the case when a firm in Curacao takes a qualified participation (owns at least 5% of the shares) in the operation of the businessman's subsidiaries in other jurisdictions.

Registration of a company in Curacao: organizational and legal forms of doing business

  This island state is actively gaining popularity among investors from all over the world by providing developed offshore legislation. It entitles non-residents to carry out their activities in the following legal forms:

• Establishment of limited liability companies or Naamloze Vennootschap

  They differ in minimum requirements for the composition of the governing body. A minimum of 1 director and shareholder is required for registration. In addition, the appointment of a managing director is required. He must be a resident of Curacao and have a local license for the right to carry out economic activities in the territory of this offshore.

  At the time of filing documents for registration of the company, the founders indicate the minimum amount of the authorized capital, which is $25,000. Prior to the registration of the procedure for entering the name of the company in the state register, shareholders must pay up to 20% of the declared amount.

  There is no tax on the income of a joint-stock company in the country. It is replaced by the payment of one-time annual fees to the country's Chamber of Commerce. There are also no reporting requirements. The exception is firms operating in the form of banking structures and insurance funds. Their financial statements are subject to mandatory audit every year from the date of registration.

• Private companies with international participation or Besloten Vennootschap

  The most popular organizational and legal form in this jurisdiction. This is due to the simplified structure of the governing bodies – there is no obligation to appoint managing directors.

  Documents on entering the company into the state register are not checked by the Ministry of Justice of Curacao, which significantly speeds up the procedure for obtaining all necessary registration documents.

  Private companies cannot issue bearer shares. However, they are not subject to the rule regarding the mandatory payment of the authorized capital at the time of submission of information to the fiscal authorities of the country. The company is not subject to audits and tax audits, but the management team is responsible for maintaining the register of shareholders.

• Investment funds.

  They are analogues of trust corporations. Funds are created for the purpose of legal protection of property. They also allow you to create the necessary legal conditions for the inheritance of assets in the country where the businessman operates.

  There is no minimum authorized capital for investment funds. In practice, you may encounter a situation in which a businessman pays $100 as a down payment. This is enough to enter the company in the register of organizations.

  Management bodies are represented by the Board of Directors. There can be any number of them, but one of them must be a local resident of Curacao. With regard to the procedure for taxing the activities of the fund, the obligation to pay fees in favor of the state arises if the fund conducts business activities on the territory of the island. The rate will be 27%.

  Positive Invest specialists will help you make a choice in favor of the most profitable form of doing business for a businessman. We will assume all obligations arising from the obligation to organize contact with the registration authorities, search for local residents for their participation in the board of directors of the company, if we are talking about a joint-stock company. Offshores in the country are not subject to income tax, which makes this jurisdiction an ideal area for doing business in the framework of global trade.