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Nominees and their uses
Dominica
 
Company Formation
Company Structure
Privacy
Incorporation fees
 

The Commonwealth of Dominica belongs to a group of islands known as the Leeward Islands which comprise part of the Lesser Antilles island chain. Better known islands in the group include Anguilla, Antigua and Barbuda, Guadeloupe, Montserrat, St Kitts and Nevis, the British Virgin Islands, and the US Virgin Islands. It is important not to confuse Dominica with the Dominican Republic. Dominica is a separate country altogether and the official language is English as opposed to Spanish in the Dominican Republic. For four years between 1958 and 1962 Dominica was a member of the West Indies Federation and the island gained independence in 1978. In 1980 Mary Eugenia Charles became the first female Prime Minister in the Caribbean. The population of Dominica was estimated to be 72,386 in 2007. The legal system, which is based on British Common Law and a constitution which enshrines human rights and freedom, ensures the future political stability of the island. One factor of importance for UK and European clients is that the Commonwealth of Dominica is an independent sovereign jurisdiction and is not affected by UK and EU legislation.  Although Dominica is a relatively new offshore jurisdiction it is rapidly becoming an important offshore finance and incorporation centre in the region.

Company Formation

The Dominica International Business Companies Act came into effect in June 1996 and regulates the incorporation and administration of International Business Companies (IBC's). Any name can be chosen that is not already registered. The word "limited", "Sociedad Anonima", or "Societe Anonyme", "Corporation", or "Incorporated" and the related abbreviations for the above terms such as Ltd, Inc and Corp must form part of the name of every corporation which is incorporated under the Dominican IBC Act.  The only name restrictions concern words such as Bank, Board, Commonwealth, Dominica, Federal, Government, Govt, Insurance, patent or patentee, Royal, Trust and a few other sensitive words.

 


Company Structure

Advantages and Restrictions.

The primary advantages of forming a company in Dominica include the following.

  • There is total exemption from all local income taxes, corporation and capital gains taxes as well as death duties.
  • An IBC in Dominica is exempt from all taxes for a minimum of twenty years. This means that a Dominican IBC can earn interest from a local bank account entirely free of tax.
  • There are no exchange controls relating to the movement of funds by corporations formed on the island.
  • There is no requirement to file accounts or other financial details.
  • Bearer shares are permitted and there are rigid confidentiality provisions.
  • Dominica has a closed corporate registry this means that directors and shareholders details are totally confidential.
  • Meeting of shareholder's and directors' can be held anywhere in the world.
  • There are no statutory requirements for the officers to hold an Annual General Meeting (AGM).
  • Only one director is required and there is no requirement to appoint a secretary. The sole director can also be the sole shareholder. A Director can be a natural person, a company or foundation.
  • Directors and shareholders can be of any nationality.
  • The Corporations assets are protected because the island has rigid laws to restrict seizure, expropriation or confiscation by foreign authorities.
  • There is no requirement for your company to have a secretary.
  • There are no minimum capital requirements.
  • The absence of tax treaties and exchange of information agreements with other countries means no application for information can be made under double taxation agreements because the island is not a party to any.

The only restrictions on the activities of an IBC are outlined below.

The law in Dominica prohibits a local IBC from conducting business with a resident of Dominica although it can undertake the activities below:

  • Place and maintain deposits with either a person or a company licenced to carry out banking business in Dominica
  • Prepare accounts and hold records  in Dominica
  • Use the services of professionals such as lawyer and accountants in Dominica
  • Hold meetings of the Corporations directors or members in Dominica although few companies exercise this option because meetings of shareholder's and directors' can be held anywhere worldwide.
  • Hold shares or other securities in a company which is owned by a resident of Dominica and is either a locally registered company or an IBC.
  • Own shares or other securities in a local company which is incorporated under the Companies Act

Privacy

Section 112 of the IBC act makes disclosure an offence punishable by a fine of US$25,000 and imprisonment for two years of anyone who reveals confidential information regarding a Dominican Corporation except by order of the Dominican Courts, any order granted would be issued only if it was relating to serious criminal activities which does not include taxation matters.
Privacy is further enhanced because Dominica has a closed corporate registry which means that directors and shareholders details are totally confidential.

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Incorporation fees

Total company set up cost £695 $1395 €999
Normal ongoing maintenance cost after the first year £550 $1100 €795
Annual fee for 2 nominees, if required £300 $600 €435
If you require an internet domain registration to accompany the formation click here

ORCA RATING FOR DOMINICA

Corporate registration efficiency    
Cost
Confidentiality
Local banking facilities    
Legal system  
Political stability
Reputation