UBO Registration in Sint Maarten: What You Need to Know

If you want to start a business in Sint Maarten, you need to know the legal requirements. Business incorporation in Sint Maarten now requires the registration of ultimate beneficial owners, in addition to the standard process. Whether you’re a foreign investor, entrepreneur, or corporate entity, knowing how this new requirement applies to your business can save you from legal complications down the road.

In this article, we’ll break down the essentials of UBO registration in Sint Maarten, why it matters, and how BrightPath Caribbean can help you navigate the process with ease.

What is an Ultimate Beneficial Owner?

UBO stands for Ultimate Beneficial Owner. This refers to the natural person(s) who ultimately owns or controls a legal entity. In simpler terms, it’s the individual who benefits the most from the company’s operations. If you are listed as owning 25% or more of a company, you need to be properly registered with the local chamber of commerce.

UBO registration is a global standard aimed at increasing transparency and preventing financial crimes such as money laundering and tax evasion. Sint Maarten, like many other jurisdictions, has implemented this requirement to align with international compliance standards.

Who Needs to Register?

UBO registration is a legal requirement for all entities established in Sint Maarten, including:

– NVs

– BVs

– Foundations

– Partnerships

– Associations

The Corporate Services team at BrightPath Caribbean is ready to assist with UBO registration for existing entities, including businesses, Private Fund Foundations, and associations.

Whether you’re updating your records or registering for the first time, our Corporate Services team makes sure that your Ultimate Beneficial Owner (UBO) information is accurately documented and submitted in compliance with Sint Maarten’s legal requirements. We handle the paperwork, liaise with the Chamber of Commerce, and provide ongoing support to keep your entity in good standing.

If you’re in the process of a new business registration in Sint Maarten, the UBO declaration is seamlessly integrated into our incorporation services.

Our services include coordination with a local notary, preparation of all required documentation, and submission of your UBO details as part of the business formation package, where we include notary fees and services, giving you a hassle-free start to your business journey in Sint Maarten.

When and How to Register a UBO in Sint Maarten?

Entities must proceed with the registration of their UBOs within 7 days of incorporation or any change in ownership. At BrightPath, we are ready to assist you and make sure that your business is fully compliant. With us, the process to register or make changes is straightforward. Our corporate services team will complete the initial registration process, make amendments or deregistrations, and submit all the information as we actively follow up on the service.

Always keep in mind that failure to comply can result in delays in your business incorporation or even legal penalties.

What Happens If You Don’t Register?

Non-compliance with Ultimate Beneficial Owner (UBO) registration requirements can have significant repercussions for businesses operating in Sint Maarten. The implications of failing to adhere to these regulations are multifaceted and can severely impact both the operational and financial aspects of a business. Here are the key consequences in more detail:

1. Fines up to CG 50,000: One of the most immediate repercussions of non-compliance is the imposition of hefty fines. Businesses that fail to register their UBOs may face penalties that can reach as high as CG 50,000. This financial burden can be detrimental, especially for small and medium-sized enterprises, potentially diverting funds away from essential business operations and growth initiatives. The fines serve as a deterrent, emphasizing the importance of compliance with UBO registration requirements.

2. Rejection of Your Business Registration Application: In addition to financial penalties, non-compliance can lead to the outright rejection of a business registration application. This means that entrepreneurs may find themselves unable to legally operate their business, which can halt all planned activities and investments.

3. Legal Complications During Audits or Financial Transactions: Non-compliance with UBO registration can create significant legal complications, businesses may find it difficult to engage in financial transactions, such as securing loans or entering into contracts, as banks and other financial institutions often require proof of UBO registration as part of their due diligence processes.

Given these potential consequences, UBO registration emerges as a crucial step in the process of establishing a business in Sint Maarten.

How BrightPath Caribbean Can Help

At BrightPath Caribbean, we understand that navigating the legal and administrative landscape of starting a business in Sint Maarten can be overwhelming, especially when it comes to compliance requirements like UBO registration. That’s why our Corporate Services team is here to simplify the process for you, whether you’re launching a new venture or managing an existing entity.

We offer a comprehensive scope of services tailored to meet the needs of entrepreneurs, investors, and corporate clients:

• Liaison with Notaries and the Chamber of Commerce

We coordinate directly with trusted notaries and the Sint Maarten Chamber of Commerce to ensure your documents are properly prepared, signed, and submitted without delays.

• Preparation and Submission of UBO Forms

Our team handles the entire UBO registration process, from gathering the required information to submitting the correct forms (Form I-F or I-A) on your behalf.

• Business Registration with the Tax Administration Office

We ensure your business is properly registered with the local tax authorities, a critical step for legal operation and financial compliance.

• Business Bank Account Openings

We assist in opening local business bank accounts, helping you meet banking requirements and streamline your financial operations.

• Commercial Real Estate Solutions via BrightFuture Realty

Need a physical location for your business? We connect you with commercial property options through our real estate partner, BrightFuture Realty.

• Accounting and Tax Services with CaribTax

Stay compliant with local tax laws and financial reporting requirements through our partnership with CaribTax, offering expert accounting and tax advisory services.

• Ongoing Compliance Support

From annual filings to regulatory updates, we provide continuous support to ensure your business remains in good standing year-round.

Whether you’re relocating, investing, or expanding your operations, we ensure your business meets all legal requirements from day one.

FAQs

1. Is a UBO the same as a shareholder?

Not always. A shareholder owns shares in a company. A UBO (Ultimate Beneficial Owner) is the person who benefits from or controls the company. A UBO can be a shareholder. However, a UBO can also control the company indirectly. This can happen through voting rights or ownership in another entity.

2. Who is required to register as a UBO in Sint Maarten?

Any natural person who owns or controls 25% or more of a legal entity established in Sint Maarten—such as an NV, BV, foundation, partnership, or association—must be registered as a UBO with the local Chamber of Commerce.

3. What information is needed to complete UBO registration?

You’ll need to provide personal identification details of the UBO(s), the percentage of ownership or control, and supporting documentation. Specific forms—Form I-F or I-A—must be filled out and submitted to the Chamber of Commerce.

4. What are the penalties for not registering a UBO?

Failing to register a UBO can lead to serious consequences, including fines of up to CG 50,000, rejection of your business registration application, and legal or financial complications during audits or transactions.

5. Can BrightPath Caribbean handle the entire UBO registration process for me?

Yes. BrightPath Caribbean manages the entire process—from preparing and submitting UBO forms to coordinating with notaries and the Chamber of Commerce. Their corporate services ensure full compliance, whether you’re starting a new business or updating an existing one

Do you have additional questions?

Contact us today for a free consultation and let us guide you throughout the process!