Five Things You Should Know About St. Maarten Before Starting a Business
Discover essential information about conducting business in St. Maarten with these key insights.
For many years, St. Maarten has been well-known for its high tourist footfall, making it a leading vacation destination in the Caribbean. With the highest GDP in the region, Sint Maarten ranks as one of the best vacation spots in the Caribbean. It is also a popular vacation and retirement destination, offering a wide variety of businesses tailored to different types of clients, prices, and preferences.
For these reasons, foreign nationals like Americans, Canadians, and Europeans are keen to start a business in St. Maarten.
Understanding the Business Environment
Before starting a business in St. Maarten, it is important to have a good understanding of the business environment. This includes knowing the local laws, regulations, and cultural norms that may impact your business operations. Having the correct advice is crucial and contacting the team at BrightPath for assistance with your incorporation should be your next step. From the business structure and incorporation to the banking, tax advisory with CaribTax, and a great commercial space with the real estate agents at BrightFuture Realty. Finding professional services for your business is possible with BrightPath Caribbean.
Before you incorporate, It’s very important to understand all the legalities of your business, timeframes when setting up, renewals for licenses, and tax responsibilities. Questions like: How often do I have to renew my business license? Do I need a special License? Where can I find assistance with taxes or payroll? Can I change the purpose of my business? Can I bring key personnel from abroad? How does the work permit process start? These are some of the many questions related to your type of business that you should have an answer to before you invest your time and money. Make your business incorporation stress-free with the corporate services at BrightPath. Book a consultation today.
Expanding Economic Landscape
Historically, St. Maarten was known for its salt exports. Then came the era of tourism, which is still dominant. However, as Sint Maarten’s Infrastructure is getting better fast, and with a tax-free structure for imports and exports, we are starting to witness the island becoming the headquarters for many businesses planning to expand or already expanding to the neighboring islands.
St. Maarten has experienced significant economic growth in recent years, making it an attractive location for businesses. The island’s expanding economic landscape offers various opportunities for entrepreneurs and investors in many sectors. Tourism-related businesses might be the most important sector, however other industries sectors like construction, IT Infrastructure, real estate, and manufacturing, have been growing steadily. By understanding the current economic trends and identifying areas of growth, you can position your business for success in St. Maarten.
Transactions in US Dollars
Although the Antillean Guilder or Florin (In 2025 becoming the new Caribbean Guilder) is the official currency in St. Maarten, the U.S. dollar is widely accepted and transactions can be conducted under this currency.
In reality, all transactions on the Dutch side are primarily conducted in US dollars, this means commercial and personal banking, loans, invoicing, and even pricing display for any goods or services. Being able to run your business transactions in U.S. dollars provides stability and ease of doing business with international companies and investors.
The U.S. dollar is overwhelmingly the world’s most frequently used currency in global trade and also the dominant currency in international banking. Over the period 1999-2019, the dollar accounted for 96 percent of trade invoicing in the Americas, 74 percent in the Asia-Pacific region, and 79 percent in the rest of the world. The only exception is Europe, where the euro is dominant, this includes the French side of the island. (Source: Carol Bertaut, Bastian von Beschwitz, Stephanie Curcuru. (2021) The International Role of the U.S. Dollar.)
Duty-Free for Import and Export
St. Maarten has a duty-free policy for both import and export, which can be beneficial for businesses involved in international trade. This policy allows for cost savings and competitive pricing. In other words, this means whether it’s for personal or business, you won’t incur in any taxation fees when bringing goods from abroad as well as sending them. Usually, all the costs are merely, shipping and insurance fees, and those will all depend on the company hired for the service.
Duty-free import and export in Sint Maarten is a great advantage to big and small business operations, letting you ship out any manufactured on-island goods and bring in raw materials for your production.
Always consider that other countries will have different policies and you will pay customs duties. Ask the shipping company of your choice to consider all your costs when importing or exporting for your business.
Opportunities for Growth and Expansion to the Eastern Caribbean Islands
St. Maarten’s strategic location in the Eastern Caribbean offers great opportunities for businesses to expand and grow beyond the island. With its well-developed infrastructure and transportation links, St. Maarten serves as a gateway to the Eastern Caribbean islands. Sint Maarten features the most modern airport in the Eastern Caribbean and the largest port in the region. This gives all businesses registered in Sint Maarten a strategic advantage, enabling them to reach and serve the neighboring islands. By leveraging this geographical advantage, businesses can tap into new markets, collaborate with regional partners, and explore growth opportunities in the wider Caribbean region.
FAQ’s
- Why is St. Maarten an attractive location for starting a business?
St. Maarten is attractive for starting a business due to its stable economy, high GDP in the Caribbean, and being a popular vacation and retirement destination. Additionally, the use of the U.S. dollar for transactions, duty-free import and export policies, and its strategic location with developed infrastructure make it an ideal place for entrepreneurs and investors.
- What are the key legal considerations before starting a business in St. Maarten?
Key legal considerations include understanding local laws, regulations, and cultural norms, determining business structure, incorporation requirements, license renewals, tax responsibilities, and whether special licenses are needed. It is also important to know about the work permit process for bringing key personnel from abroad and the ability to change the business’s purpose.
- How does the duty-free policy in St. Maarten benefit businesses involved in international trade?
The duty-free policy in St. Maarten benefits businesses by allowing them to import and export goods without incurring taxation fees. This leads to cost savings and competitive pricing, making it easier to bring in raw materials for production and ship out manufactured goods. However, businesses must consider customs duties and costs imposed by other countries when importing or exporting.
- What sectors are experiencing growth in St. Maarten’s expanding economic landscape?
Besides the dominant tourism sector, other growing industries in St. Maarten include construction, IT infrastructure, real estate, and manufacturing. Understanding these economic trends can help entrepreneurs identify opportunities for success and expansion on the island.
- How does St. Maarten’s use of the U.S. dollar impact business operations?
The widespread use of the U.S. dollar in St. Maarten simplifies business transactions, providing stability and ease of doing business with international companies and investors. It allows for consistent pricing, commercial and personal banking, loans, and invoicing in a globally dominant currency, facilitating smoother international trade and investment.
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