WILLEMSTAD - As part of the optimization of the economic permit system in Curaçao, the Ministry of Economic Development (MEO) has revised the arrangement that currently governs the granting of establishment permits to businesses in Curaçao, known as the "Vestigingsvergunning" (establishment permit). An establishment permit is required for a person to open and operate a business in Curaçao (whether it's a sole proprietorship of an individual or an N.V./B.V.).
One of the adjustments in the arrangement for the establishment permit involves ensuring that, starting from August 15th next, the establishment permit will be issued within a maximum of 5 working days after the application has been submitted, provided that all necessary documents are complete. Also, business owners applying for an establishment permit will no longer need a management permit, known as "directievergunning." However, foreigners intending to open a company must possess a valid residence permit.
The establishment permit arrangement has been in effect since 1946 and was introduced as a means to protect our local market. Meanwhile, there are various other rules and regulations in place to safeguard the local market. In practice, the original form of the establishment permit arrangement no longer adds any value and does not align with the government's desire to promote efficiency and offer a "red carpet" treatment to investors.
The changes in the establishment permit arrangement will take some time to be fully implemented. However, once this happens, it will create a space for MEO to adopt a uniform approach that will apply equally to all business owners in Curaçao, without making distinctions based on the type of company or the birthplace of those at the head of the company.
Additionally, the changes will facilitate the effectiveness of inspections carried out by the Economic Inspection.
The revision of the establishment permit arrangement aims to gradually eliminate the current law completely, in order to develop a much more simplified and modern establishment management and law. The minister in charge will establish a Task Force responsible for modernizing the law.
MEO has already paid attention to the fact that business owners indicate that the administrative process to start a business in Curaçao is lengthy and complicated, or better put, it involves "red tape" for investors. As part of the efforts to improve the economic climate in Curaçao, MEO has started a process to review all existing laws and regulations that investors may experience as obstacles to creating job opportunities and hindering our economy from thriving. The idea of moving away from "red tape" and towards a treatment of "red carpet" comes from the perspective that a business owner or investor who wants to establish a company in Curaçao should be able to do so quickly and efficiently if they can contribute positively to the sustainable economic development of our country.