Offshore companies in Dominica

Dominica is located on the volcanic island of the same name in the eastern Caribbean; the nearest islands are Guadeloupe and Martinique. The population was about 72.5 thousand people according to 2008 data. The area of Dominica is about 754 square kilometres; by this measure the country ranks 1285th in the world. Since 1966 the republic has had a democratic system, with executive power concentrated in the hands of the president and 29 provincial governors. The law of this former British colony borrowed much from English law, including the declaration of human rights and freedoms, which provides a reliable foundation for political and social stability.

On 26 June 1996 the International Business Companies Act was signed, starting the development of offshore zones in Dominica. They appeared because the Republic of Dominica meets all requirements for “tax havens”:

Despite their relative “youth”, offshore companies in Dominica today are among the most attractive. Their advantages include:

• speed for offshore company registration — the procedure takes only one day, plus several days for delivery of documents. Personal presence is not required for registration;
• the possibility to create a “nominee” organisation;
• complete confidentiality regarding the owners and top managers of the business due to the closed Shareholder Register. Dominica has not signed agreements on prevention of double taxation, so it is not required to provide any information to tax authorities of other countries;
• anonymity of currency and financial relations. In the Republic of Dominica there is criminal liability for disclosure of any information, with imprisonment and a large fine for persons who violate confidentiality;
• no requirement to submit bookkeeping and audit reports to supervisory authorities;
• full exemption from taxation, including profit tax and capital gains tax (confirmed by a 20-year government guarantee).

In Dominica it is possible to register an International Business Company — a classic form of offshore company.

The name of an offshore company may be in any language; it is only necessary to avoid an identical or excessively similar name to an already registered name.

The minimum authorised capital for offshore company registration is €100; it does not have to be paid, only declared. The company may issue shares both with stated par value and without it. The shareholders or directors may include one or more citizens of any country. Nominee shareholders or directors are also possible. Annual meetings may be held anywhere in the world, and “virtual” meetings using any means of communication are also allowed. For 100% tax exemption it is enough to pay a small state fee once a year, and its amount is not linked to the amount of authorised capital.

Registration takes only a few working days; offshore company registration in Dominica is one of the fastest. The offshore company must have its own Articles.

In addition to registering a new company, it is possible to buy an existing organisation — a “shelf” company; in this case the client receives all rights to the company on the day of purchase.

Investment or trading activity of an offshore company may be carried out without restrictions; for some types of activity, such as banking and insurance services, a licence must be obtained.

Offshore company registration in Dominica is very attractive because of modern, very flexible legal regulation, a high level of confidentiality and full tax exemption.