The Curacao Island

Location

Curaçao one of the Netherlands Antilles islands ,lies 33 miles north of Venezuela and 42 miles east of Aruba, outside of the usual hurricane belt. It is therefore favorably located at the crossroads of Caribbean trade routes and for investors seeking the U.S., Canadian, European and Latin American markets.

Political Climate

The Netherlands Antilles and Aruba form part of the Kingdom of the Netherlands. Since January 1, 1986 Aruba has been a separate country within the Kingdom of the Netherlands. Curaçao has been an autonomous part within the Dutch Kingdom since 1954, has it?s own legal system and court cases can be appealed in the Supreme Court of the Netherlands. Curaçao takes care of its own domestic affairs, common interests such as defense and foreign affairs come under the jurisdiction of the Kingdom government. Curaçao is recognized in the international financial community as a politically stable, safe and competitive jurisdiction for Captive insurance companies.

Infrastructure

The economy of Curaçao is mainly based on tourism, oil refining and international financial services. It has a vast network of banks, trust and investment companies, lawyers, notaries public, accountants, management companies etc. Telephone, telefax and other communication tools are state of the art. Curaçao is easy to reach by air and regular services are maintained from the U.S. and Europe.

Through the BRK (Belasting Regeling Koninkrijk), the tax arrangement of the Kingdom of the Netherlands a Netherlands Antilles company has access to the extensive tax treaties network of the Netherlands. The Netherlands Antilles and Curaçao in particular have therefore over the years developed into a reputable financial center for the offshore world.

Currency

The local currency is the Netherlands Antillean Guilder (NAF) which is pegged to the US dollar. Since 1973, the exchange rate has remained fixed at Naf. 1,79. to US$ 1.00, evidencing a stable monetary environment.

The rates of other currencies are based on their rate of exchange to the U.S.dollar.

Language

The official language is Dutch, however most of Curaçao diverse population of approx. 160.000,00 is quadrillingual speaking Dutch, English and Spanish as well as the native language Papiamento.

Legal Status

A company engaged in the insurance business in the Netherlands Antilles must have the legal status of either a limited liability company, called Naamloze Vennootschap (N.V.), or a mutual insurance company.

The Central Bank (Bank van de Nederlandse Antillen)

The Central Bank is the official supervisor of the Antillean banking system and financial institutions. The Bank was established in 1828 by King William I and is the oldest Central Bank in the Americas.
The Bank’s most important objectives are to maintain the external stability of the Netherlands Antillean Guilder and to promote the proper functioning of the financial system in the Netherlands Antilles.

Insurance Supervision

The Insurance Supervision Act (National Gazette 1990, no.77) regulates the supervision of the insurance industry in the Netherlands Antilles. Captive Insurance Companies and Reinsurance Companies are regulated by separate decree. Supervision is executed by the Central Bank.

Cost of Operation

Generally speaking, the following may be used as a rule of thumb (subject to changes):

Cost of incorporation:

-notary fee, stamp duty, license, registration, Chamber of Commerce US $ 5.400 to US $ 8.600

Cost of operation:

-supervision, audit etc. US $ 4.500 to US $ 7.300
-management services US $ 3.500 to US $ 50.000