Aruba
The World of Business
With its modern infrastructure and superb telecommunications as well as fiscal incentives for both offshore companies and manufacturers of non-traditional manufacturers, Aruba offers an extremely efficient and highly stable business environment. It hopes to encourage investments and business activity by quality clients in order to create sustainable economic activity. Moreover, it is an affordable jurisdiction in which to operate.
On the other hand, as a civil law jurisdiction, Aruba does not recognize trusts nor are there any specific bank secrecy laws and numbered accounts are not permitted. Offshore companies must have a certificate of good standing from the Minister of Justice before incorporation and these certificates are only offered to those who produce adequate professional references for all the benefiting owners of an incoming entity. Certificates of good standing are also required for opening a corporate bank account. Also, Aruba has entered into a number of agreements that allow the exchange of information with authorities from foreign states.
Although all foreign exchange transactions must be reported to Aruba’s Central Bank, there are no foreign exchange controls.
Residents of Aruba making payments to a non-resident in a foreign currency with the exception of Netherlands Antilles guilders must pay a 1.3% tax.
Proceeds from the export of goods and services, which may be done without a license, are generally required to be converted into local currency within eight business days or credited to an account with either a local or foreign bank, which then notifies the Central Bank.
All of the following may only be done with a license:
-
transferring profits and dividends;
-
sales to and purchases from nonresidents of domestic securities;
-
foreign investments by resident natural persons exceeding Af 300,000 annually;
-
sales to and purchases from nonresidents of domestic real estate;
-
profits from the liquidation of direct foreign investments;
-
proceeds from loans received from and loans extended to nonresidents;
-
other short- and long-term investments by non-residents in Aruba and residents abroad.
Legal System
The foundation of Aruba’s legal system is the civil law system, which is in use throughout most of the world and is very similar to the Dutch criminal justice system. The main difference between there system of law and the common law system is the fact that they do not have juries or grand juries and as such investigations by the police and prosecutors are checked and balanced by a judge of the Court of First Instance. The investigating judge is responsible for all interrogations of witnesses during the investigation of the crime. While the trial itself is conducted and decided (including sentencing) by a second judge and the final verdict may through the Court of Appeals.
Civil law, also called Continental law or Romano-Germanic law, is the most prevalent legal system in the world. The main difference between civil and common law is that that common law draws abstract rules from specific cases, whereas civil law starts with abstract rules, which judges must then apply to the various cases before them. In other words, historically speaking, common law is based upon traditions and laws are codified following court rulings. On the other hand, in the case of civil law, laws are first codified and then applied.