Author: Karel Frielink

A permanent establishment qualifies for tax liability There will be a tax liability when the activities of a foreign company on the Netherlands Antilles can be qualified as a permanent establishment, as on the Netherlands Antilles profit tax (and private income tax) is levied from companies (and one-man enterprises), who carry on a business through… Continue reading FOREIGN COMPANIES AND TAX LIABILITY UNDER THE LAWS OF THE NETHERLANDS ANTILLES

Commercial communication must always be recognizable as such The Netherlands Antilles National Ordinance on Electronic Agreements is applicable on commercial communication. Commercial communication is all forms of offering and recommending goods and services, businesses and persons, among which advertising and direct marketing by electronic means from, or aimed at the Netherlands Antilles, directly or indirectly aimed… Continue reading ELECTRONIC AGREEMENTS UNDER THE LAWS OF THE NETHERLANDS ANTILLES

A silent partner must stay silent Limited partnerships are often used, a.o. for (investment) fund activities. Limited partnerships are not legal entities but contractual arrangements between the general partner (often a limited liability company) and one or more limited (or silent) partners. The principle of freedom of contract as it applies in the Netherlands Antilles… Continue reading LIMITED PARTNERSHIPS UNDER THE DUTCH CARIBBEAN LAWS

It is prohibited to sell notes In the Netherlands Antilles it is prohibited to sell notes to others than licensed credit institutions (Article 45 of the National Ordinance on the supervision of banking and credit institutions 1994). There is a possibility to obtain an exemption. An exemption can be requested with the Central Bank to… Continue reading THE SELLING OF NOTES IN THE NETHERLANDS ANTILLES

There are restrictions The Aruban State Ordinance on the Supervision of the Credit System (‘Landsverordening toezicht kredietwezen‘, the ‘SOSCS’) prohibits anyone from engaging in the business of a credit institution (‘kredietinstelling’) in Aruba without a license issued by the Central Bank of Aruba. In Article 48, the SOSCS also prohibits any natural person or legal… Continue reading SOLICITATION OF FUNDS IN ARUBA

A source of income makes one subject to income tax For Aruba tax purposes a resident private person is subject to income tax for its world wide income based on the Income Tax Ordinance. Also subject to Aruba income tax are private persons who are not a resident, but have a domestic source of income,… Continue reading TAXATION IN ARUBA

Electronic files will not be disregarded as evidence A Dutch Caribbean court may base its decision on facts only. If something is not disputed by the parties it is such a fact, even if it does not correspond with reality. For example, if both parties state that they were involved in a fight in London,… Continue reading SCANNED EVIDENCE UNDER THE LAWS OF THE DUTCH CARIBBEAN

The management board faces limitations The management board has the function of managing the corporation, i.e., making policy and conducting the day-to-day management of the corporation. Except for restrictions in the articles of association, the management board is responsible for the management of the BV or NV (private or public limited liability company) and is… Continue reading MAY THE BOARD OF A DUTCH CARIBBEAN COMPANY SELL ITS BUSINESS?

Board is centre of gravity The management board has the function of managing the corporation, i.e., making policy and conducting the day-to-day management of the corporation. Except for restrictions in the articles of association, the management board is responsible for the management of the BV or NV (private or public limited liability company) and is… Continue reading RESPONSIBILITIES OF THE MANAGEMENT BOARD OF A NETHERLANDS ANTILLES COMPANY

No specific requirements Under Netherlands Antilles law, no specific requirements exist regarding the purchase of shares in a Netherlands Antilles offshore company by a foreign company. The Netherlands Antilles do not have any anti-trust regulations. In the Netherlands Antilles there are no statutory requirements preventing the sale of one or all of the shares issued… Continue reading BUYING SHARES IN A NETHERLANDS ANTILLES OFFSHORE COMPANY

What are the service provider’s obligations? Suppose you are a service provider (operator, i.e., an entity which offers services for facilitating information by electronic means) based in the Netherlands Antilles. One of your customers downloaded a copyrighted movie and (allegedly) offers the same to others without any required permission. The foreign holder of the copyrights… Continue reading THE UNAUTHORIZED OFFERING OF COPYRIGHTED MOVIES UNDER THE LAWS OF THE NETHERLANDS ANTILLES

No license, no business It is required under rules of Netherlands Antilles public law to obtain a business license for establishing and conducting business in the Netherlands Antilles. The responsible public authority in respect of the granting of a business license is the Service for Economic Affairs (‘Dienst Economische Zaken’, “DEZ”). According to DEZ, foreign… Continue reading A BUSINESS LICENSE IN THE NETHERLANDS ANTILLES