Aruba pairs a Dutch-style civil-law system with a stable, English-friendly Caribbean base — an accessible launchpad for Dutch, US and international entrepreneurs.
Aruba is an autonomous country within the Kingdom of the Netherlands, with a civil-law system modelled closely on Dutch law and its own legislature and courts. Cases begin at the Court of First Instance of Aruba, with appeal to the Joint Court of Justice of Aruba, Curaçao, Sint Maarten and the BES Islands and final cassation before the Supreme Court of the Netherlands in The Hague. For founders and investors that means a familiar, predictable legal framework in a stable jurisdiction, a short flight from the United States and Latin America.
Most foreign investors operate through a VBA — a limited-liability company comparable to the Dutch BV — or an NV. Since the 2021 modernisation of Book 2 of the Civil Code neither requires a minimum capital, which gives welcome flexibility. That same reform phased out the AVV (the former Aruba exempt company): existing AVVs had to convert to another form, so new structuring today uses the VBA or the NV. Incorporation is by notarial deed — which can be executed in Papiamento, Dutch or English — followed by registration in the Trade Register at the Chamber of Commerce.
Operating usually requires a business licence, and directors who were not born in Aruba or who do not hold Dutch nationality generally need a director's licence (directievergunning) from the Minister of Economic Affairs. Many activities — hospitality, wholesale, water sports and transport, and others — carry their own sector permits. Non-resident staff typically also need work and residence permits through DIMAS. We map which permits your activity needs, and the order in which to obtain them.
Certain service providers must carry out client due diligence, report unusual transactions and keep records under Aruba's anti-money-laundering and terrorism-financing ordinance (LWTF), supervised by the Central Bank of Aruba; Aruba also participates in the OECD Common Reporting Standard. On tax, turnover tax (BBO) currently stands at 7%, and reforms effective 1 January 2026 introduced incentives worth factoring into your structure — including a profit-tax exemption on the first tranche of annual profit for qualifying start-ups in their early years, and an investment allowance.
The 2021 reform also strengthened minority-shareholder rights. It extended the right of inquiry (enquête) to the VBA — allowing the Joint Court to investigate a company's affairs and impose measures — and reinforced exit (uittreding) and derivative-claim routes. For joint ventures and co-investments, these are exactly the protections that keep a minority stake meaningful, and they are worth building into the shareholders' agreement from the start.
This article is general information, not legal advice. Every situation is different, and we would be glad to review yours.
Most foreign investors use a VBA or an NV; the AVV is no longer available for new structures. The right choice depends on your tax, liability and governance goals, and we advise on it before incorporation.
Directors not born in Aruba or without Dutch nationality generally need a director's licence (directievergunning). We handle that application alongside the company set-up.
Tell us what you are planning and we will map the structure, licences and costs in plain language, so you can move with confidence.
Request a consultation → WhatsApp us