Adaptation of law on business licenses

October 24, 2011 7:38 AM

THE HAGUE--The Ministry of Economic Affairs, Agriculture and Innovation has adapted the law on establishment of companies BES.

The adaptation of the law concerns the addition of a number of articles based on which the majority of the applications for business permits can be handled in a faster and easier way. The person who wants to receive a business license submits an application thereto. The Department of Economic and Labour Affairs DEZA reviews if the application is complete. Subsequently, the Chamber of Commerce and Industry will be counselled about the application. If the Executive Council is of the opinion that there is no objection, the permit will be granted.

New in the law is that a decision term of eight weeks will be  applicable. New is also, that when this period expires, the permit will be granted automatically. But the Executive Council will have a period of eight weeks to stipulate additional conditions, even though the entrepreneur may already start his or her business. If, according to the Executive Council, there are objections against the granting of a business license based on insufficient abilities or seemingly insufficient financial means, the Executive Council may reject the application within eight weeks. If, according to the Executive Council, there are objections against the granting of a permit, and those objections are based on the need to protect the general interest, the Executive Council will inform the applicant that the decision term will be extended by a second period of eight weeks.

Within these 16 weeks, the Executive Council will get in contact with the Minister of Economic Affairs, Agriculture and Innovation, and clarify the grounds on which the request should be declined. If the Minister agrees with the decline, the Executive Council will issue a declining decree within the stipulated term. If the Minister does not agree with the decline, a positive decree will still be granted to which the Executive Council may add additional conditions, if deemed necessary. In the past, business icenses have been denied in the general interest for instance with an eye on public health, the environment, consumers’ protection, public order and safety. With the constitutional change of October 10, 2010, the possibility to protect those interests via business licenses have been limited under the assumption that other regulations would be more suitable.

This, however, does not always seem the case. Therefore, it was decided that until those other regulations to protect the general interest have become operational, the Executive Council also has at its disposal the instrument of denial of a business permit, subject to the approval of the Minister of Economic Affairs, Agriculture and innovation. In the law it is also indicated in which situations a business license that has been granted may be revoked. Section 7c of the previous law indicated that a license could be revoked after a business had been closed for three consecutive months. This meant that businesses that were typically seasonal, such as in the tourism industry, were at risk of losing their permits every year. In the new section of the law a provision has been included which allows business owners to notify the Executive Council in writing on the temporary closing of their businesses, which will lead to a six-month extension of the permit.
 
(Source: The Daily Herald St. Maarten)

18 October 2011