Dominica is a jurisdiction that offers favourable conditions for opening offshore companies, banks, and providing financial services. Businessmen who are going to operate worldwide may find an option of establishing a company in Dominica especially suitable.
Major Forms of Legal and Business Presence in Dominica
If you assess an opportunity of becoming present in Dominica, you may actually arrange your business activities in one of the next forms:
- International Business Company (Offshore) - a vehicle that can be established even by one person (natural or legal) of any nationality to operate through Dominica. The authorized share capital in the amount of USD100 is required in this case without any obligations of its repayment at the moment of incorporation.
- Private Limited Company - an entity that can be incorporated even by one person (natural or legal) of any nationality. The liability, in this case, is limited to the amount of the contribution made. Any requirements for the statutory capital formation are absent. Still, for certain types of regulated activities, like banking, the exact amount of the share capital may be required.
- Public Limited Company - a vehicle designed mostly for involving extra financing that can be incorporated by a person of any nationality (natural or legal) whose liability is limited to the amount of the contribution made. There are no general requirements for the share capital in this case too. Still, there are more complicated demands for the company’s management and reporting.
- Branch - an option that enables foreign companies to establish their presence in Dominica and conduct there the same types of activities as abroad.
Registration Requirements and Steps
Opening a company in Dominica may require passing these preliminary registration steps:
- Clarifying your business objectives.
- Choosing and verifying a business name for a future entity.
- Collecting the data about founders, beneficial owners, and the management of a future entity.
- Drafting and formalizing statutory documents.
- Actually providing the registration of a new company.
- Registration for tax and social security purposes.
- Obtaining additional licenses and permits (required for certain types of activities, like banking, financial services).
The actual registration process may vary depending on the exact conditions of running a business.
Legal and Regulatory Framework
The local legal framework is generally favourable for international business. The legislation of Dominica is based on British common law. The major legal acts regulating the process of establishing and running a business are the Companies Act and the International Business Companies Act. The major regulatory bodies are the Companies and Intellectual Property Office, the Ministry of Finance and Investment.
Advantages of the Jurisdiction
If you intend to create a company in Dominica, you may potentially enjoy these benefits the jurisdiction offers:
- Moderate costs for the company incorporation and maintenance
- Political and economic stability
- Confidentiality of corporate details
- Ensuring the safety of holding assets
- No requirements for compulsory audit
- Advantageous tax system.
Tax System of Dominica
If you evaluate an option of establishing a company in Dominica, you may need to be aware of the next tax highlights:
- Corporate income tax rate - 25%
- Personal income tax rate - 15-35% (depending on the income)
- VAT rate - 15%
- Withholding tax rate (dividends/interest/royalties) - 15%
- Capital gains tax rate - not applicable
Offshore vehicles are tax exempted in Dominica for twenty years.
How Prifinance Specialists May Help You
If you want to incorporate a company in Dominica, Prifinance specialists may consult you on whether this can be potentially profitable in your concrete case and offer you alternative suggestions. Reach us shortly for more precise discussions on the matter.
Check and reserve of the company name Obtaining approval from the registrar for the company name
