Killing off the small investor.

As much as I understand the need to regulate immigrants and abuse of directors licences, these new rules and conditions not only show the island as being incapable of monitoring and inspecting businesses, but it also seems excessive and over the top.

I happen to run a small business, I meet very few of these new requirements. Fortunately I am European, so if it is a problem you all know where I will be re-establishing my business, ie the other side. Is it just me, or do these new rules seem Dickheaded to anyone else?

New rules for Directors’ Licences for foreigners go into effect today - 3rd September 2007

Daily Herald Editorial - The cost of doing business - 3rd September 2007

Click here for updates and discussion
____________________________________________________________

Today Editorial - Hypocracy - 13th September 2007

Letter - Thank you Mr Governor - 5th September 2007

Richards on new license policy - 8th September 2007

Maria - New policy no bearing in 'issuing' directors licences - 6th September 2007

Chamber of Commerce blasts new directors’ licences policy - 4th September 2007

Hady Nufyet's blog | add new comment

Submitted by Hady Nufyet on Tue, 2007-09-04 17:25.

I'd like to see an explanation from emperor Richards for keeping the new policy a secret.

Dutch law is very explicit about its requirements for public bodies (is the Lt. Gov. even allowed to initiate this kind of drastic mesaures) to disclose information on policy, its preparation, and execution - on it's own initiative - as soon as this is pertinent for adequate and democratic governance.

from: http://www.wetten.nl

Hoofdstuk IV. Informatie uit eigen beweging

Artikel 8

1. Het bestuursorgaan dat het rechtstreeks aangaat, verschaft uit eigen beweging informatie over het beleid, de voorbereiding en de uitvoering daaronder begrepen, zodra dat in het belang is van een goede en democratische bestuursvoering.

2. Het bestuursorgaan draagt er zorg voor dat de informatie wordt verschaft in begrijpelijke vorm, op zodanige wijze, dat belanghebbende en belangstellende burgers zoveel mogelijk worden bereikt en op zodanige tijdstippen, dat deze hun inzichten tijdig ter kennis van het bestuursorgaan kunnen brengen.

---------------------------------------------

Babelfish translation of the above.

1. The governing body which it directly contracts, provides from own movement information on the policy, the preparation and the implementation included, as soon as that in the interest is of a good and democratic governing board sheathing.

2. The governing body carries care that the information is provided in understandable form, such manner, which interested party and showing interest citizens are as much as possible reached and at such times, who can notify these their insights swiftly of the governing body.

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De cited text is from the Dutch Law on Transparancy and is (as far as I know) not applicable on the Antilles. For Antillean rules on transparancy of government, you should look at the Ordinance on Transparancy, which might differ a bit from the Dutch law. I think when you ask the Cabinet of the (Lt.) Governor for it, they should give you a copy. Ask their lawyers (see www. governorsxm.com).

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Openbaarheid van wat? Oh you mean open and transparent governance. I have been looking for that since 2005, not saying it was there before, it is just that when the dolphin captivity pools came into play in 2005 I started to seek out this "openbaarheid van bestuur".
I never found it. The only reason that the dolphin captivity pools never materialised is because the main dolphin activist and advocate Mercedes de Windt wrote hundreds of letters to the Federal government and to the Governor General, to the Federal department of environment (yes, they do have one that functions there) and she kept relentlessy questioning their/our own law that they were almost going to break. Remember there was a silent protest calling for open and transparant governance in August 2005.
So if you question where this openbaarheid van bestuur is and I never found it, should we wonder if it is there at all?
I do know it exsists in nice speeches.

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Atlantida, the company that was going to operate the dolphin park sustained heavy losses in Mexico due to Hurricanes!

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Philipsburg- Lt. Governor of the island territory of St. Maarten Franklyn Richards outlined some of the new requirements for persons applying for a temporary residence permit and directors license. Richards made the announcement at a press conference yesterday he said that the application of the new policy will go into effect as of today September 4 2007 are for non nationals who are applying for an N.V (a limited liability company) or a B.V. (a private limited company).

The island Lt. Governor said that the new policy has been approved by the Antillean Minister of Justice David Dick who was on the island last week on a working visit and the Executive Council of St. Maarten.

This new policy is aimed at putting an end to the misuse of the director’s license and business license, which are being used mainly to obtain residence permits. The misuse and abuse has been evident for some time, by certain persons or groups, to circumvent the law on admittance and expulsion and the procedure for securing an employment, after which the process for obtaining a temporary residence permit would begin. Richards said.

The new policy is, more importantly, another step aimed at synchronization of two ordinances; which are the ordinance on admittance and expulsion and the ordinance on employment of non-nationals.

The new policy entails that granting of a residence permit to a non-national or foreign director will only be taken into consideration if it has been proven that the NV or BV, of which the non-national is a director, can offer a minimum added value to the St. Maarten society.
Some of the points of consideration will be based on what the new business could do for St. Maarten’s economy. One of the things government will be looking at is the capital injection and the percentage of employment for locals, along with the minimum annual turnover.

A non-national or foreign director of an NV or BV must prove that he or she or the business will not be or become a burden for the St. Maarten society. The foreign director also has to earn a considerable salary and must ensure the compliance of the NV or BV fulfills its obligations to all legal and fiscal obligations.

The new application process is as follows:

Persons applying for the first time must provide the following documents at Police Affairs (Sun Color Building).

A signed request for the non-national or foreign director of an NV or BV must be submitted by the shareholder and or director or Board of Directors and will consist of the following documents:

One (1) recent passport picture of the person
A copy of the valid passport of the person
A legalized or apostille birth certificate of the person (translated into Dutch or English)
A certificate of good conduct of the person - not older than six (6) months (translated into Dutch or English)
A medical certificate of the person - not older than two (2) months (in English or Dutch)
A copy of the legalized or apostille marriage certificate and or marriage book of the person if is married, or a legalized or apostille certificate of bachelorhood or spinsterhood, or a copy of a certificate of divorce - not older than six (6) months (translated into English or Dutch)
A 5 guilder stamp, obtainable at the Federal Receiver’s office on the E. Camille Richardson street

The future employer will, from now, be expected to add to abovementioned request, the following documents:

Proof that the non-national is able to provide for him or herself, without becoming a burden to society. Meaning that government would need:
(a) proof that the non-national director will earn a salary from the NV or BV at least 75.000 guilders per year or approximately 6.250 guilders gross per month.
(b) a declaration of income tax, supported by the annual figures plus a declaration of profit tax of the NV or BV.
(c) proof that a quotation and or receipt of payment of a private health insurance entity has been taken out for the non-national director. Private is therefore not the SVB coverage, since the director, by definition, falls above the SVB (Social Security) limit.
(d) proof that the non-national director will have proper accommodations, that is either his or her own home on the island ( it may also be a home belonging in ownership to the NV or BV) with a value of at least 275.000 guilders, or a leased home, for which a minimum of 2.250 guilders per month is paid. Government expects to see proof of ownership of the home, or a lease agreement of the home, valid for the duration of the license, must be submitted.
(e) proof that the NV/BV anticipates an annual turnover of at least 500.000 guilders.
(f) the shareholder, and or director or board of directors of the NV/BV must submit a statement to the effect that the non-national director to be appointed must have a salary in of (75.000 guilders gross, annually), specifically by submitting a labor agreement for the non-national director of the NV or BV, or the appointment resolution of the non-national director containing provisions regarding the salary.
(g) proof that an agreement has been entered into with a recognized accountant’s office on the island with regards to the making up of the annual returns and the submitting of profit tax of the NV/BV, as well as the declaration of income tax of the non-national director.
(h) proof that the shareholder of the NV/BV has applied for a CRIB-number at the Inspectorate of Taxes, for the prospective non-national director as well as for the NV/BV.
(i) proof that the shareholder of the NV/BV has submitted a request to a local bank to open a bank account, for the NV/BV, as well as for the prospective non-national director.
(j) submitting of a business plan written or initialed by a recognized accounting office, supporting the anticipated annual turnover of at least 500.000 guilders.
It should be noted that a residence permit may be granted to the non-national director for the duration of one (1) year, only after all of the documentation, listed above, has been submitted in full, at the Bureau of the Local Chief of Police (Sun Color Building)

.Processing of these applications takes at least three months while the person must be off island while the request is in process.

Non Nationals who have already submitted will not be subjected to this new policy but those who would be applying for the renewal of their director license would have to adhere to the new rules Richards said. Those new rules he said are:-
.
A signed request for the renewal of the residence permit of the non-national director of a NV/BV must be submitted by the shareholder and or director or Board of Directors and will consist of the following documents:

A copy of the valid passport of the non-national director;
A copy of the current residence permit of the non-national director
An original registration form of the non-national director from the Census office
A copy of the marriage certificate/marriage book of the non-national director if he/she is now married, or a copy of the divorce certificate (translated in English or Dutch);
A 5 guilder stamp obtainable at the Federal Receiver’s office;
Proof that the non-national director has suitable accommodations. Meaning that either he or she is a home owner on the island (may also be a home belonging in ownership to the NV/BV) with a value of at least 275.000 guilders, or a leased home for which at least 2.250 guilders per month is paid. Proof must be submitted of ownership of the home, or a lease contract for the home, valid for the duration of the license.
Proof of address that is actual evidence that the non-national director is actually residing at the submitted address. This proof may consist of GEBE bills, Telem bills, Cable TV bills, but in any event includes an extract from the Civil Registry.
Proof that the non-national director, as well as the NV/BV, have a CRIB number, or have requested such.
Proof that the non-national director actually pays wage tax and submitting of the declaration of income tax, with stamp of the Inspectorate as proof of receipt.
Proof that the non-national director has a bank account at a local bank; Further, the following documentation must accompany the request for extension of the residence permit for the non-national director:

Proof that the NV/BV is indeed operational. To this end, a statement from the directorate of Economy and Tourism must be submitted to the effect that the NV/BV is indeed operational; this means that the NV/BV has a commercial property and business is actually conducted there in accordance with the objective of the NV/BV.
Proof that the non-national director has indeed drawn a salary of at least 75.000 guilders per year, which is approximately 6.250 guilders per month gross, during the preceding year, from the NV/BV.
The above requirements can be proven by submitting of salary slips, bank statements of the NV/BV (payment of salary), respectively of the non-national director (receipt of salary).
This proof, in addition to the declaration of income tax, must also be supported by the annual returns and declaration of profit tax of the NV/BV in question, in addition to:

Proof that the non-national director has renewed his private health insurance.
Proof that the non-national director as well as the NV/BV has a bank account at a local bank, for example a letter of reference from the bank or bank account statements.
Annual returns of the NV/BV, approved by a recognized accounting office, as proof of the annual turnover of at least 500.000 guilders, as well as declaration of the profit tax of the NV/BV for the preceding year, with the stamp of the Inspectorate of Taxes as proof of receipt.
Proof of payment of fees for the extension of the business license, respectively the directors’ license.
Those applying for the renewal of their director’s license can remain on the island during the processing period, if qualified the applicant will be granted one year. smn-news

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There are groups of business people in our community who have been taking advantage of the loopholes for years in the Application for foreigh workers. Many of the indian cheap labor on the island comes to SXM under the pretence of being an important director, while they are only hired to be delivery boys or sales staff. They do not contribute anything what so ever to the society or bring any needed expertise to our growing island. Enough is enough ! I understand some of the new requirements are harsh and demanding, but to often in SXM we complain about issues and or regulations our island government put in place. Lots of islands in the Caribbean demand much more from non nationals and they pay a pretty penny to bring in people to work unless they have a special skill. They protect their work force and demand from established or new businesses that they train the local work force.
A non national who is of great value to the operation of a company should have no problem providing a statement indicating a salary of fls 75.000 or a rental agreement for Fls 2500.
Another regulation on the drawing board and soon to be made public is that inorder for a non national to get perminant resident, the applicant will have to speak some Dutch. We have been very good to everyone who comes to SXM, even those who over stay their welcome, but when certain groups start to curcumvent the system, then it's time to change the rules. How is possible to process 500-700 director licenses per year. Think about it. It's time to close the flood gates.

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As an artist and I am worried about these new rules, they will crush me. You see back after Hurricane Luis the Lieutenant Govenor made some new rules to quite rightly protect the occupations of Antillians, rightly so he moved to make certain one man business license protected to Antillians only. Meaning one man business in certain occupations were only allowed to be held by locals and not to immigrants. Such jobs were, taxi, bus drivers, mechanics, plumbers, ect and ect, and artists and painters were on the list.
As a painter, I could not get a one man business licence, instead I payed a lot of money to to go to a notary and get a big company license with shares and directors and all that. It was odd for me because I was now a company but its only me painting my pictures and I wondered if I should be signing my paintings under my own name or my N.V.?. Plenty people said to me go to the Frenchside but I loved the Dutchside and know most the local painters here and feel more at home with them. I have participated in many Dutchside art events and exhibitions and was even one of a selected group sent to represent St.Maarten in the Santo Domingo International Art Exhibition by the Cultural Department. I was also included in a book of St.Maarten women artists. Having obtained my license I have found getting my residency very difficult. Each time I went with required documents , new changes and requirments were made. I was also told to go live on the Frenchside while doing this.
I have flown to England twice to get documents but have yet been unable to get my residency papers. You see some of the documents they are requesting from me do not exist at all in England. Take for instance. Certificate for Spinsterhood. We have none and all attempts to get one in England have failed. In England only records of mariages and divorces exist and I have done neither. The other is Cert. of good conduct. We do not have these either. We just have a Cert. that says no criminal record has been found on me. Getting all these papers together has been a nightmare and when I have thought i had it all they tell me to go and get them all again because they are now out of date. Right now I have been demanded to pay 3 years directors license fees plus the bayliff. (I dont know what they can take from me, a fridge, bed, cooker and a whole lot of my stored paintings.) They wish fees from me for a business I am not even allowed to step in St.Maarten to operate. Its just another blow that they are raising the license fees beyond what a little artist like me can afford. I came here to paint, emerse myself in and contribute to the artistic culture of St.Maarten, I am no big business or great money maker sending money abroad. I love art all I want to do is to paint the beauty of the island and its people. How anyone could see me as a leech of advantage taker I dont know. It just seems to me that directly or indirectly non local artists are not welcome on the dutchside. Saying that my dutchside artist friends have always been very warm and welcoming so its only goverment policy that seems is so unwelcoming to artists.
I feel totally caught in a trap. I tried to do the right thing and get legal and orderly but I feel i just cannot win. I am afraid if I have an exhibition on the Dutchside will the bailiffs come and take all my paintings away?. I so wanted to be a part of the Dutchside but they keep making the wall higher and if your not a rich businessman it seems your not welcome

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Only a foreigner would object to this. It's high past time it was done. And I hope it doesn't stop here either. Time to curb a lot of "foreign" ills on SXM!

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Mhmmmm, let me see:

In my home town (250,000) are twice as much Antillean' s then from the whole country of my fellow citizen are here. (I am not Dutch, but European)
- this includes Aruba, Bonaire, Curacao, Statia, Saba and St.Maarten!

I started as a one man company, today I have 10 employees. 30 people live from this income that my "little" company generates.

8 employees are with me from the beginning in 2005,
6 of them are non-nationals. 2 are nationals
Only one St.Maartener doesn't believe he deserves the General Manager position by birthright. With the others I have so my troubles with...

I hired additional 12 St.Maartener's last year and I have been 12 times by the Labor Office. I paid USD 25,000 bye, bye money, even though I "won" all the cases.

I paid USD 53,645.20 taxes in 2007.

It has taken from 2001 to 2005 to legalize my company and myself here in St.Marten with expenses of 6,432.82 to do so.

I pay approx. USD 300.00 per month in business license, director license, chamber of commerce and other fees simply to conduct business.

In re-cap I have to admit that you're right, I have must be ill that I even started here a company in first place.

- and guess what, I am not able to fulfill this new requirements in all it's glory.
I'll be forced to close down IF there is no change in sight. It's thanks god not so dramatic as I only have to move 2km north and there I open a company within a week - having the first two years tax freedom - and I admit, a lot of other paperwork that comes with this package. But at least I'll be able to produce my daily "foreign" ill in peace.

It's by the way this "foreign" that gets bread on the table. It's the USD and Euro that constantly are flow to the Caribbean that keeps you running. Don't take it for granted. There has been times when St.Maarteners immigrated to St.Kitt's and Nevis or to the Dominican Republic to find work and send money home to their relatives in St.Maarten. Keep in mind: History repeats itself.

I have seen other blooming places disappear, leaving them today with a daily struggle to survive. I predict an early exodus of "foreigners" starting this year.
So all what will be archived is that the smaller firms will disappear. You'll call in future 00590 to make an appointment with an chiropractics, as he will struggle with the 500,000 turnover. It's not only the artist's - it's all one or two men companies that sudden will have no existence rights anymore.

All the large business will suffer too as it's the smaller companies that make them going. For skilled service and for supply. Believe it or not.

To top the cake, here the new regulations for 2008 for working permits:

A)
Working permits are only processed for specialized occupations
B)
Working permit will no longer be issued to one person for more then 3 consecutive years or 3x 1 year working permits
C)
Application cost has to paid for the number of years applied. These are non-refundable.
D)
Change of profession of employer is no longer allowed unless the employee leaves the Netherlands Antilles for a consecutive period of 1 year.
E)
The working permit will be issued in connection with the "immigrant-local" ratio. his means that per business sector a maximal percent of the employees have to be local and/or national residents.
F)
For "pleasure girls" a permit for 3 month will be given, this permit can only be extended if the employee leaves the Netherlands Antilles for a consecutive period of 1 year
G)
For "construction-workers" with a short term project, a permit will be issued only for the duration of a particular project. This permit will only be issued for the period of 6 months. this permit can also be extended if the employee leaves the Netherlands Antilles for a consecutive period of 1 year

New conditions that coincide with the application for a working permit are as follows:
1)
The employee must be able to show that they have followed and passed the integration program. this applies for first timers as well for renewals. NOTE: the cost for the integration program are made by the employer
2)
The employer has to show that he can provide adequate housing accommodations for the foreign employee. This will be taken into account with renewals; therefore the employer must submit the house rent contract
3)
The employer must also make sure that all premiums and medical cost be paid for the employee. If the employer fails to show anyone of these has been taken care of, the permit will not be granted.

My answer to this: I do not hire to fire.
Get rid of the 6 month working contract, it's inhuman and the biggest BS I ever have seen in my life time. In exchange for indefinite working contracts give the employer some right too the get rid of "foul" eggs.

Enough for now, I am busy thinking for an good use of the USD 120,000 tax savings for the next years...

The " New French Men"

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No kidding. And of course, you must imagine all 'foriegners' as being the cause of all the ills of the island. Perhaps we should put them all in deportation camps eh? Shackle em maybe?

I would like to ask you where do the politicians come from? Who votes for them? Sure, a few of those 'foreigners' you dislike so much may fund those politicians as we know, do 'deals', but if you think these new regulations will effect those 'big guys' then you are dumber than your comment makes you appear.

Generalising as you do is really a sign of a closed and narrow mind. Are all Americans fat? Are all Jamaican's thieves? Are all St. Maarteners ignorant? Can black men be failthfull? Can white guys jump, or dance?

Seriously, grow up and educate yourself, for the good of the island and your children's future.

Flipper

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It's unfortunate about the issues which the artist is incountering. I think arist(s)(s) should be dropped from the list. He/she has a few valid point as it pertains to documentation not readily avalable in their country;however, the abuse of these directors licenses has been going on for years. And it's time that St.Maarten, or rather the Lt .governor put a stop to the blatant manner in which the abuse takes place. It is his office who signs off on residents permits. There are many foreign folks on the island who have SXM at heart, and are willing or have contributed to a better St.Maarten. There are also those who don't care one damn about the island and abuse the system. I'm sure the lawyers will find loopholes and the good Commissioner of Economic affairs, Marietje has aleady confused the situation by saying that the new rules will NOT affect the status quo. According the governor, you should not have four directors to run a 10'x10' store. He said that on Oral Gibbs the other night.
The Chamber talks about controls of businesses, but the old laws allow any business to take government to court if they don't issue a license- the rules have changed and the burden lies with the business owner, who must produce documents to support the need for such a director. I strongly believe "The Big Boys" as flipper called them will feel the new regulations- we support the Lt. Governor initiaitve and hope this will bring a stop to the abusive bahavior of the system

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I believe Mr. David Dick already retracted his assent to the new regulations, can anyone confirm?

Next to artists, maybe small retailers should be dropped from the list too? I can't imagine many of them meeting the new financial requirements. But, do they provide an added value to St. Maarten society? Absolutely! Would it be difficult to come up with other potential exemptions? - Not really...

In other words: if the goal is to curb abuse of the system, then why not address the specific issues instead of introducing a blanket regulation that penalizes the very people who provide essential services, fuel the island's economy, and aid in diversifying the island as a product itself?

St. Maarten government should stop treating its constituents as if they were idiots: how many instances of his 10'x10' example can the governor name? How did he resolve those particular instances of abuse? If he has not, for which reasons has he been unable or unwilling to do so?

If Maria Buncamper is not even able to interpret the new regulations correctly, will anyone be?

Waiting for the next hammer to drop down...

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I recently spoke to a gentleman who was a former mininster for St.Maarten and he is very concern and outright flabagasted about the recent regulations signed off by our Lt. Governor. He said the issue will be more confusing because the new commissioner in change of Economics affair has no clue and she has obviously not consulted with the govenor before making her statement this week.
He futher stated that the government can't require any director to live in a house or apartment with a minmimum rental of 2500 a month or can the state require that their salary be 75.0000 guilder a year.. Suppose this person is single and may want to live in a one bedroom apartment for less or that he wants to take a lower salary the first year. There are different kind of director in a company, some who invest the capital and others who may be involved in the day to day operations- most directors remain non- residents of the country ( maybe someone can expond on that issue)
The good gentleman also voiced his concerns that if the goverment has identified the problems and know that the Indian and Arab community are abusing the system then they should have simply put in place in requirement where you would only get two director for a store of X size and of X capital invested. Some of the largest insurance companies in the Netherlands Antilles only have 2 directors, so how can an indian merchant submit a request for 5 directors, while the store only sell sneakers and cheap electronics.
Instead of the vision of the government to collect a whole lot of money on wage tax, which will take them a couple years to collect from these directors, they should have instituted a fee of Fls 25.000 for the first director and 50.000 for the second director, this way the Island receiver would be collect up front.
While we very much need some new regulations and controls to combat the abuse of the system, we also need to new requirments to make sense.

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