The island of Curacao

Offshore Companies in Curacao

Introduction.

Before discussing the issues surrounding establishing offshore companies in Curacao, here are a couple of brief comments about the island. Curacao is one of the southerly Caribbean islands, off the coast of Venezuela, and is historically one of the islands that make up the Netherlands Antilles. Subsequently, although Curacao is an autonomous country it does come under the influence of the Netherlands (Holland) in some matters, notably with regards to the topic of offshore companies in Curacao – the judiciary and finance. 2010 sees some changes to the constitution of Curacao which you can read elsewhere.

The effect of political history on Curacao and offshore trading.

You will be aware that Holland is a member of the European Community, commonly referred to as the EU. This has an affect on Curacao, namely that as Curacao is tied to Holland for some of its affairs Curacao, indeed all of the Netherlands Antilles, enjoys EU associate membership. No doubt, on reading that, anyone who is looking for an offshore operation that is virtually hidden from view of all and any judicial and financial controls; will be reaching for their mouse to move on from this page! However, don’t be too hasty in moving on, as associate EU membership for Curacao actually brings with it some favorable trading arrangements. Also, Curacao can be a very attractive prospect for people looking to set up perfectly legal and bona fide offshore companies; that comply with OECD and FATF regulations. Indeed the Curacao Chamber of Commerce would positively welcome enquiries of interest from you.

Offshore financial companies in Curacao.

For most people setting up an offshore company anywhere in the world means setting up an offshore financial company. International finance is an integral part of the economy of Curacao and one that, even in these economically strained times, continues to expand. Of course the major concern for any offshore financial company is the tax regime of the country that they wish to move their business to. Therefore, the following comment is of the utmost importance! Within the Netherlands Antilles, and therefore Curacao, it is possible to negotiate individual agreements with the tax authorities as to the tax regime that will be applied a particular company; with standard tax rulings for corporations that are structured as funds. These negotiations are not protracted ones taking months to resolve – but are typically concluded within two weeks. Now if that doesn’t attract you to the idea of forming an offshore company on Curacao, then I don’t know what will?

Curacao offshore company taxes.

So, leaving aside individual personal taxes, which only apply to residents anyway, what taxes might an offshore company in Curacao be liable for? First of all you won’t have to pay any withholding tax on dividends or royalties and most Hedge Funds will be readily granted tax-exempt status. One of the advantages of having associate member status with the EU is that a Curacao offshore business does not need to be concerned with UCITS; which means that unlike other supposed offshore havens like the Cayman Islands – you won’t have to declare any information on your clients to tax authorities in other (third) countries, nor do you need to withhold on redemption.

Curacao offshore fund rules.

Despite having a fairly relaxed approach to taxation the Curacao’s do have rules for establishing funds on the island, the main points of which are as follows. A private limited liability company can be quickly established and incorporated within one day. There is no minimum share issue capital requirement and no requirement to have shares with a par value. There is no requirement to have any employees on the island and no annual government fee, just a one-off incorporation fee, currently below $200. A fund can have just one Managing Director, who doesn’t need to be ‘domiciled’ in The Netherlands Antilles, let alone Curacao itself. Regarding shares and votes, you can decide all the voting rights and different classes of shares can have different voting rights. Finally, there are no statutory requirements to have board meetings. So, despite being an associate member of the EU – would you not agree that Curacao makes an attractive prospect for an offshore company?