Policy residence permits foreign directors of local companies (Monday March 3rd 2008)
Statement by Local Chief of Police, Governor Franklyn E. Richards:
My office has observed, with keen notice, the grievances, criticisms and concerns surrounding continued implementation of the new policy for temporary residence of non-national (foreign) directors of locally established businesses. These businesses can be either an N.V (a limited liability company) or a B.V. (a private limited company), with most of these establishments opting to label themselves as â??small businessesâ??.
My objective here today is, therefore, to give information in regard to the aforementioned to the general public and specifically clarify what the policy and requirements are for obtaining a resident permit as it pertains to foreign directors of existing, operational companies prior the new policy of September 4, 2007.
As had been earlier announced, this new policy is aimed at putting an end to the misuse of the directorâ??s license and business license to obtain a residence permit. Furthermore, the aim is to also support and strengthen the efforts to combat crime and regulate the migration to and from the island territory of St. Maarten.
This misuse and abuse had been evident for some time, by certain groups, to circumvent the law on admittance and expulsion and that of employment for non-nationals.
The new policy entails that the granting of a residence permit to a non-national or foreign director will only be taken into consideration:
If it can be proven that the NV/BV, of which the non-national is a director, can offer an added economic value to the St. Maarten society; aspects such as capital injection, employment for locals, contribution to government coffers by i.e. paying taxes and social premiums.
At the introduction of the policy, I noted that a non-national or foreign director must comply with the â??profileâ?? of a director, meaning that he or she must earn a considerable income and must ensure the compliance of the NV/BV as regards to all its legal and fiscal obligations.
The new application process as laid down in the new policy as per September 4, 2007, is widely known and was widely published for:
A. 1st time applications and
B. Extensions as of September 4, 2007.
It was made clear then that after all of the documentation as required, has been received at the Bureau of the Local Chief of Police (Sun Color Building), and the request has been processed, and the applicant and the non-national director have complied with all the rules and conditions, can a residence permit be granted to the non-national director.
In view of recent developments, my office has taken the initiative to, once more, re-visit the earlier points of departure for considering this policy; we have taken the initiative to evaluate the arguments against the new policy. We have taken note of and will, if necessary, await the eventual filing of a court injunction against the policy, by representatives of these businesses, who claim that they are, or will be, negatively affected.
First of all, my office does not share the opinion that the stipulations governing the processing of residency permit for non-national directors can be termed excessive.
We need yet see to conclusive, unequivocal, evidence that continued implementation of the policy will lead to massive closures of small businesses and therefore, contribute or lead to avoidable economic and significant labor loss for the people of St. Maarten.
In some quarters, the question has been raised if these stipulations are legal within the realm of â??Small Business Development Stimulationâ? agreements of the World Trade Organization (WTO), equal rights policies of the United Nations, and some say, a treaty between the Netherlands and the United States granting equal opportunity.
My office has heard the voices of frustration among many of these non-national directors, who are determined that the policy, as is, should, in any case, be relaxed, amended or done away with.
My office has also taken note of the threat by the (UBA) United Business Association announcing that in protest, many small businesses would be closing their doors in the near future to put pressure on my office and/or highlight the impact this policy will have on the St. Maarten economy.
None of the above is taken lightly by my office.
My office has the strong belief that persons or groups of persons with money, power, clout or influence must never be able to cloud otherwise good, and very needed, intentions.
Instead of â??UBAâ?? making aforementioned threats:
These persons would do well to consider having the general interest of the people of St. Maarten at heart, and consequently putting peopleâ??s interest above special interests.
These persons would therefore do well to help tackle the challenges, such as the burden on the infrastructure, the health care and education system, the public financial-economic and social structure, the traffic congestion, the impact of having a multi-national, multi-lingual, multi-cultural society, and the safety and immigration issues, we face in St. Maarten en route to becoming a country within the Kingdom of the Netherlands, rather than having to instigate civil disobedience.
It should be understood and clearly noted that policies, such as the new policy for temporary residence of non-national (foreign) directors of locally established businesses of September 4, 2007, are not introduced to create hardships but rather to organize and improve situations.
Any new policy could bring with it perceived inconveniences for those having to adhere to such policies â?? that is more than understandable when the norm has been not to have such policies in place.
Nevertheless, suggestions of a positive and enhancement nature thereto are surely welcome by my office!
Having said that, I will await whatever decision is taken pertaining to challenging this policy in a court of law.
This brings me now to the clarification of the handling of requests by my office for the extension of a resident permit as it pertains to a foreign director of an existing, operational company prior to the date of the new policy of September 4, 2007.
As the requirements for obtaining a resident permit for a foreign director of such a company as aforementioned were not published along with the new policy, as it was not found necessary, Iâ??ll now take this opportunity, for the sake of clarity, to make it widely known and have it widely published hereafter:
Requirements for extension of residence permits, as it pertains to a foreign director of an existing, operational company (NV/BV), prior to the date of the new policy of September 4, 2007, are as follows:
A signed request for the renewal of the residence permit of the non-national director of a NV/BV must be submitted by the non-national director or the shareholder 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 Receiverâ??s office;
- Proof that the non-national director has renewed his private health insurance;
- Proof that the non-national director, as well as the NV/BV, have a CRIB number;
- 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 foreign director has indeed drawn an income of at least Nafls. 36.000.00 per year, which is Nafls. 3.000.00 per month through the declaration of income tax, for the preceding year, with the stamp of the Inspectorate of Taxes as proof of receipt;
- Proof that the non-national director has a bank account at a local bank;
- Proof of declaration of the annual returns and 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 directorsâ?? license.
After the documentation listed above has been received at the Bureau of the Local Chief of Police (Sun Color Building), the request has been processed and the applicant and the non-national director have complied with all the rules and conditions, can a residence permit for the non-national director be extended for the duration of one (1) year.
I thank you for your attention.