Types of Legal Entities
Get familiar with the different types of Legal Entities prior to starting your business.
A sole proprietorship (eenmanszaak in Dutch) is a form of business in which there is no distinction between the business assets and personal assets. Read More
A public partnership is a partnership that carries out a profession or business (or performs professional or business acts) and acts externally in a for third parties clearly identifiable manner under a name used by it as such. A public partnership is referred to as openbare vennootschap in Dutch.
A silent partnership is a partnership that is not a public partnership and is referred to as stille vennootschap. Therefore, a partnership which does not carry out a profession or business or a partnership which does not participate in transactions is a silent partnership.
A limited partnership is referred to as Commanditaire Openbare Vennootschap (CV) in Dutch. The CV is a limited partnership in which there is a distinction drawn between the limited partners and the general or managing partners. In a limited partnership (C.V.), partners have limited liability –that is, their liability is limited to their investment.
A Limited Liability Company (LLC) is referred to as a Naamloze Vennootschap (N.V.) in Dutch. The N.V. is incorporated by notarial deed executed by one or more incorporators before a civil law notary in St. Maarten. This notarial deed of incorporation constitutes the definitive statutes and regulations governing the company and conduct of its affairs. Those statutes and regulations are generally referred to as the articles of association.
A Private Limited Liability Company (PLC) is referred to as a Besloten Vennootschap (B.V.) in Dutch. The B.V. can be organized in such a manner that it is “managed by shareholders”; in that case there is no distinction made between shareholders and managing directors as corporate bodies.
An Association (Vereniging in Dutch) is a common legal form utilized for organizations made up of members having equal contribution in and rights to participation, responsibility, and liability. Read More
A foundation (or stichting in Dutch) is a legal entity in its own right, with its assets and liabilities. The legal concept of the foundation developed ages ago from capital being set aside for a special nonprofit or charitable purpose and was originally used by religious and welfare groups. Read More
Federations are required to operate with in house bylaws before appointing its members.
If part of international Federations/agency such as sports for instance (e.g. Boxing or the Olympics) the Federation must provide said info for which they are a part of. If the Federation is not part of an international agency, then they are considered an “Association” here on the island. Read More