Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in the Caribbean region, Aruba is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Aruba, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Aruba?
1. Favorable Tax System
Aruba offers attractive tax conditions for businesses. The island provides tax incentives for specific types of activities, reducing the financial burden on enterprises. Additionally, the lack of accounting requirements for certain companies makes business registration in this jurisdiction a cost-effective option for entrepreneurs seeking to minimize operational expenses.
2. Stable Economy and Developed Infrastructure
Aruba boasts a stable economy, with a significant portion driven by the tourism sector, creating favorable conditions for investment. Its well-developed infrastructure, including modern hotels, airports, and logistics facilities, supports the attraction of international businesses. This gives companies access to well-established business processes and opportunities in the region.
3. No Currency Controls for Non-Residents
Aruba imposes no currency controls on non-residents, ensuring high flexibility in financial transactions. This allows businesses to make international transfers freely, attract investments, and operate globally without additional restrictions. Such an approach makes Aruba a convenient jurisdiction for foreign investors.
4. Openness to International Business
There are no residency requirements for company shareholders in Aruba, creating favorable conditions for international enterprises. The official status of English as a recognized language simplifies communication and business operations with foreign partners. This openness to global business fosters the rapid development of companies targeting international markets.
5. Legal Stability
Aruba is a constituent territory of the Kingdom of the Netherlands, ensuring legal stability and high standards for the business environment. Its strong ties with Europe allow businesses in Aruba to benefit from international legislation and partnerships. This connection also provides companies with a reputation for reliability on the global stage.
6. Skilled Workers
Aruba actively promotes the development of innovative industries and diversifies its economy. Its skilled workers focused on delivering high-quality services, offer additional advantages for businesses oriented toward technology and modern services. This strategy creates new opportunities for investors seeking to enter a market with significant growth potential.
How to register a company in Aruba and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Company registration
- Choose a company name;
- Appoint a local representative;
- Preparation of company documents;
- Register with the Aruba Chamber of Commerce and Industry;
- Issuing of a Certificate of Incorporation and corporate documents;
- Obtain a tax identification number;
- Open of a bank account;
- Obtain the necessary licenses (Business license, Director’s license).
Requirements for registering a company in Aruba on the example of a Limited Liability Company (LLC) / Vennootschap met Beperkte Aansprakelijkheid (VBA):
- Shareholders: at least one shareholder (can be any nationality and can reside anywhere in the world, can also be a legal entity).
- Director: at least one director (can be any nationality and can reside anywhere in the world, can also be a legal entity).
- Minimum share capital: there is no minimum capital requirement.
- Legal address: a company must have a registered address in Aruba.
- Legal representative: the legal representative must be a resident of Aruba.
- Liability: the liability of members is limited to the extent of their contribution to the capital.
- Accounting: the managing director(s), or the legal representative(s) of and VBA’s is/are legally required to file the annual financial statements at the Aruba Chamber.
What do you have to know about taxes when registering a company in Aruba?
Corporate income tax (CIT):
CIT rates are 28.5% for local companies and 25% for international companies.
Personal income tax (PIT):
In Aruba, the PIT rate is a tax collected from individuals and is imposed on different sources of income like labour, pensions, interest and dividends.
PIT rates:
- the tax-exempt threshold is AWG30,000 (~€15,100);
- 10% applies to income up to AWG34,930 (~€17,600);
- 21% applies therefrom to income up to AWG63,904 (~€32,200);
- 42% applies therefrom to income up to AWG135,527 (~€68,250);
- 52% applies to income from AWG135,527 (~€68,250).
Value-added tax (VAT):
The standard VAT rate of 9% applies to most sales and services in Aruba.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Aruba. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Aruba, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Aruba and pave the way for your business success!
Our contacts
If you want to become our client or partner, feel free to contact us at support@manimama.eu.
Or use our telegram @ManimamaBot and we will respond to your inquiry.
We also invite you to visit our website: https://manimama.eu/.
Join our Telegram to receive news in a convenient way: Manimama Legal Channel.
Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
