The Aruba exempt company (A.V.V.)

Pursuant to the entry into force of changes to the Civil Code on 1 January 2022, the Aruban exempt company (A.V.V.) has effectively been abolished. The A.V.V., which was similar to an N.V., was originally  created with the help of the financial offshore sector of Aruba to provide maximum flexibility with a minimum of formalities.

As from the abolishment, active and existing A.V.V. need to be converted into a V.B.A. or another legal entity by amending the articles of association before 2 January 2024. Until that moment, it is allowed to continue to operate using the name “Aruban exempt company” or “A.V.V.” and the A.V.V. will be governed by the provisions of the V.B.A. As long as the former A.V.V. is not converted, an annual fee is due and a trust office needs to be engaged, appointed and registered as local representative.

Profits and distribution

Unless otherwise determined by the articles of association, the net profits of an A.V.V. are at the disposal of the general meeting of shareholders who can either declare a dividend or reserve the profits. If an A.V.V. has made a loss in a certain year that is not covered by a (dividend) reserve, no dividend can be declared until the loss has been cleared.