Would you start a business in Bonaire? 

If you were thinking about starting a business in Bonaire, now is the time to do it.

This is a period of growth and development on the island, a favorable economic climate for profitable commerce and industry.  (See the following article.) 

An investor can establish either a limited liability corporation or a limited liability closely-held corporation here with a local director who is registered in the Bonaire Civil Registry.  This should be someone who can give valuable advice in areas of operations specific to your type of enterprise in the current marketplace.   

In Bonaire, the Notary’s office is charged with establishing the legal entity, registering the business in the Bonaire Chamber of Commerce, and obtaining a permit for the business to begin operations. The local director would follow and expedite these establishment procedures. 

Cactus Accounting Services can help your company start on the right foundation, advising the proper accounting and labor practices to meet governmental requirements.

Working with you to customize the internal reporting and financial administration, Cactus Accounting Services can offer software and software support specific to your business.  We maintain a close personal relationship with our clients, one on one, to work with and know each client’s particular needs.  If necessary, we can make periodic reviews to monitor your administration and suggest improvements or corrections.  At year-end, Cactus Accounting Services can perform the annual compilation, prepare the definitive financial statements and the profit tax return.  We can give fiscal planning and tax advice, and we will keep you up to date on any tax regulation changes.   

Conducting Small Business Activities on Bonaire
Within the Re-structured Kingdom. 

During the mid 1990’s, the Government of the Netherlands Antilles, the Island Government of the respective Islands and the European Union agreed that it was imperative to stimulate small business development on the Islands. 

As we are well aware, in all economies of scale, it is the small and micro businesses (SME’s) who are the back-bone of the economy. Governments recognized the importance of this group and have allocated large sums of money on their yearly budgets to insure that existing and potential SME’s would receive the necessary business knowledge and incentives required. 

We can conclude that this decision was a very good one, because a lot of local entrepreneurs were not only able to profit from the business advisory and training services provided, but also from a special loan facility, which was especially introduced for this program. In addition, if we analyze the economic growth as outlined in the Bonaire Economic Note 2006, it is clearly evident that the SME’s were more active than in previous years. 

Now, the question we would need to ask ourselves is this:  How will the restructuring of the Netherlands Antilles affect small business activities on the Islands? Bonaire has chosen for a direct link with Holland, but will it be able to partake in all of the small business incentives offered to the SME’s in Holland? Do they need enter into a strategic alliance with MKB Nederland in order to benefit from these incentives and grants, or should they seek this alliance closer to home? 

We all know that many of the products and services provided on Bonaire are purchased and/or transshipped through Curacao. Will there be trade and/or special tax agreements between the Island Governments, specially geared towards the SME’s, when the Antilles is re-structured? Has the local Government introduced, or does it intend to introduce, a moratorium on certain small business activities to insure the survival of the local SME’s? 

We need to ask ourselves these questions, because we can anticipate a large exodus of SME’s from Holland to Bonaire. The cost of doing business for the SME’s is very high, due to product volume purchased and little or no tax incentives, strong competition from larger enterprises, and limited market penetration based upon the cost of advertising and promotion.  It would be wise if the SME’s on Bonaire form and/or join a local SME business association.  This will entitle them to organize themselves in order to protect their interest and also to conduct bulk purchasing. It is also eminent that the SME’s on Bonaire should continue to receive up to date business advisory, training, and information services to insure the continuation of sound business practices. 

Nevertheless, the author is positively inclined that if the abovementioned questions can be answered in favor of the SME’s, small business on Bonaire will have a bright future. This assumption is derived based on all the economic developments taking place at the moment, and especially the Social Economic Initiative activities which are in the pipe-line for execution. 
 

Contributed by: 
Anthony Cecilia M.Sc.
SME Specialist
Email: Anthony-cecilia@hotmail.com