The new Arua LLC has a true hybrid character. It allows for entrepreneurs to “custom-design” their corporate entity to meet current, future and changing needs. The LLC is, depending on the customization of same, suited to serve “mom and pop shops” as well as sophisticated cross-border/multinational joint ventures. This legislation also allows for the formation of LLP’s, a partnership with limited liability, shareholder managed corporations and the option to introduce the 1-tier board concept in Aruba.
Current N.V.s’ and A.E.C.’s are able to seamlessly covert into an LLC without the need of liquidating existing operations and starting new one(s). From a civil perspective, mergers, divisions and conversion, both in and into Aruba as well as out of Aruba are now possible under Aruba law. Some new and practical features include:
– incorporation of an LLC by a single person;
– incorporations documents can now be in English or Spanish and no longer limited to Dutch
– a simplified procedure for the declaration of no objection from the ministry of Justice
– shares can be issued with or without nominal value
– shares can be issued with or without right to profit
– shares can be either voting or non-voting
– protection for minority shareholders
In order to comply with OECD regulations certain corporate documents including shareholders registries and financials are accessible by certain governmental authorities of Aruba.
Local business can take advantage of the conversion feature in order to plan or execute growth or exit strategies. Joint-ventures with foreign partners can now be executed with fewer complications due to the presence of the modern – Anglo-Saxon – elements. International business currently using AEC as part of their structure can convert and benefit from this modernized regime.