Business Registration and Business License in Sint Maarten

Are you thinking about registering or incorporating a business in St. Maarten? Before you start, there are several things to consider. The requirements for business registration and obtaining a business license in Sint Maarten may vary depending on many factors.

We suggest foreign investors looking to start a business in St. Maarten work with BrightPath Caribbean. They can help with corporate services and provide valuable assistance throughout the process. At BrightPath Caribbean you can request a free first-time consultation.

You can choose to meet virtually or in person. This lets you understand how BrightPath’s services and experienced professionals can help your business in the Caribbean. They aim to make your venture smooth and sustainable.

Key things to consider when registering a business in Sint Maarten

Duration of work to be performed

In some cases, foreign companies come to Sint Maarten to work for a short period of time. If the work will be completed within 12 months, it is recommended that the foreign business registers in Sint Maarten and obtains a local business license for the duration of its operations.

On the other hand, if the work will span for years, incorporating a subsidiary or a new entity may be best to support the business activities for compliance purposes.

Before starting the business incorporation, you can request a consultation here to determine if the scope of work will require any specialized licensing or has barriers to entry. For example, gaming, telecommunications, and healthcare sectors may have applicable restrictions.

Business taxes in St. Maarten

Depending on the type of business, several taxes may apply to your limited company in Sint Maarten. The government generally taxes your revenues, profits, dividends, and employees on your payroll.

Revenues

In general, revenues from services and products are subject to a 5% turnover tax. However, certain revenues are exempt due to their nature, such as those related to healthcare and basic needs. Other types of revenues are taxed differently; for example, hotels and Airbnb rentals are subject to a 5% room tax. For real estate transactions, a transfer tax of 4% applies.

Profit tax and dividends

The profit tax rate in Sint Maarten is currently 34.5%, which is relatively high compared to neighboring countries. Recent political campaigns have called for a big cut in this rate to help business growth. However, the current rate stays the same.

However, several fiscal incentives are available, such as an investment allowance (8% to 12% for two years), accelerated depreciation, and the ability to record fiscal provisions. Additionally, businesses can explore fiscal strategies like creating fiscal unities to reduce profit taxes.

Regarding dividends, while there is a withholding tax rate, it does not always apply to foreign investors.

Employee taxes

Employee taxes in Sint Maarten are largely based on Dutch law, resulting in a significant portion of taxes being allocated to social security. As an employer, you are generally required to provide government health insurance, participate in the government old age pension scheme, and contribute to accident insurance and premiums for widows and orphans.

Income tax in Sint Maarten operates on a progressive bracket system, meaning the higher the income, the higher the tax rate. These income taxes, which are deducted from gross salaries on a monthly basis, range from 12.5% to 47.5%.

While the initial impression may be that the taxes are significant, available exemptions and fiscal optimization can reduce these taxes. For advice on which taxes apply to your company and how to optimize your tax structure, please consult our advisors.

Labor Laws and Work Permits

St. Maarten has specific labor laws that govern employment practices, including minimum wage, working hours, and employee benefits. We recommend to familiarize yourself with these laws to ensure your business operates legally and ethically.

As a business owner, having a strong team that meets your standards is crucial. In many cases, this means hiring a qualified employee from another country. Depending on their nationality, they will need a work permit.

The process involves several steps and requires various documents from both the employer and the prospective employee. The team at BrightPath can assist you with the process and will ensure that you meet all legal requirements for a successful outcome.

Registered Address and Commercial Real Estate

For a business to be legally incorporated in Sint Maarten, an address is required. This address will be used for official correspondence and must be a physical location rather than a P.O. Box.

If you decide to open a business in Sint Maarten, using a registered address with BrightPath is a smart choice. A registered address service serves as the official address for your company. Your address is the main contact point with government agencies like the Tax Department and the Chamber of Commerce.

This way, you can ensure that you receive all your important letters and legal notices. If you have your registered address with BrightPath, we will receive them in our office, store them in your designated space, and notify your company for pickup.

Locating the right commercial property can be a daunting endeavor. Whether you need office space, retail locations, or industrial sites, it’s important to consider location, access, and cost. Working with a representative from BrightFuture Realty can help you find the right property for your business needs. They will also ensure it follows zoning laws.

If you are a foreigner starting a business on sxm, you may not know much about the island. In this case, having help from a trusted real estate agency is very important. Depending on the type of business, some factors can be very important. These factors include ease of access, foot traffic, the neighborhood, and the allowance of the business in that location.

FAQ’s

1. What are the key factors to consider when incorporating a business in Sint Maarten?

You need to consider the duration of work, business taxes, labor laws, work permits, and a registered address. If the work will be short-term, registering an existing foreign business might be best. For long-term operations, We recommend creating a subsidiary or new entity. Additionally, businesses must comply with Sint Maarten’s tax system and labor regulations.

1. What types of taxes will my business be subject to in Sint Maarten?

Taxes include a 5% turnover tax on sales, a 34.5% profit tax, room and transfer taxes, and employee taxes based on Dutch law. Certain exemptions and fiscal incentives can help optimize the tax structure for businesses.

1. Do I need a work permit for foreign employees in Sint Maarten?

Yes, foreign employees need work permits, depending on their nationality. The process involves documentation from both the employer and the employee. BrightPath can assist with obtaining the necessary permits and ensuring compliance with local labor laws.

Do you have additional questions?

Contact us today for a free consultation!