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Dominica Offshore Company Formation

The Commonwealth of Dominica is a very reputable offshore jurisdiction and tax haven. Dominica as an offshore tax haven incorporates International Business Companies and International Exempt Trusts (both offshore entities will be discussed in further detail in this article). Dominica also provides highly rated offshore banking services. Dominica began incorporating offshore companies in 1996 and the legislation supporting exempt trust formation was passed in 1997. Offshore company formation in the tax haven of Dominica is not a complicated process. There are many offshore service providers in Dominica which acts as agents for individuals who are interested in incorporating offshore business entities in the offshore jurisdiction.

Offshore Companies formation and the formation of offshore trust companies in Dominica must be done through an authorized agent. This agent must be registered with the Financial Intelligent Unit (FIU) which is a government department. The registered agent is responsible for incorporating offshore companies and trusts in the offshore jurisdiction of Dominica.

Offshore company formation is done in a matter of hours. The registered agent prepares all the necessary documents which are a Memorandum of Association and Articles of Association. The Memorandum of Association for incorporating an International Business Company in the tax haven of Dominica must have the following information:

  • The proposed name of the corporation
  • The purpose for formatting the company
  • The name and address of the registered agent
  • The authorized share capital of the company
  • The types of shares to be issued
  • The rights and privileges of each type of share
  • The by-laws of the company which are contained in the Articles of Association. An offshore corporation incorporated in the commonwealth of Dominica will benefit from a tax free environment which is in place for offshore entities. As prescribed by the offshore companies’ legislation of Dominica any offshore company incorporated in the tax haven is guaranteed twenty years (20) exemptions from corporate taxes. Offshore corporations registered inn Dominica will pay zero taxes on incomes gained from abroad. At the moment offshore corporations incorporated in Dominica pay no income tax, corporate tax, capital gains tax, inheritance tax, withholding tax or gift tax which makes Dominica one of the world’s pure tax havens. Offshore corporations formed in Dominica pay no Stamp Duty on transactions made on behalf of the company. International Business Companies formed in Dominica are obligated to pay an annual license fee to the government of Dominica at the end of each financial year. The license fees in Dominica are set at a very low rate which is paid regardless of the authorized share capital of the company.Offshore companies incorporated in the offshore jurisdiction of Dominica become legal on the day of incorporation. These companies can conduct business operations anywhere in the world with the exception of Dominica. Dominica offshore companies cannot do business for or on behalf of the Dominican population but can employ professionals such as accountants, lawyers and investment managers to ensure that the offshore company is managed properly. Offshore companies incorporated in Dominica are not obligated to maintain financial records for presentation to the relevant authorities in the jurisdiction. The financial records of the Dominica offshore company is private and can be held anywhere in the world. Offshore companied formed in Dominica can hold annual general meetings anywhere in the world.

When formatting an offshore company in the tax haven of Dominica only one shareholder (1) and one (1) director is needed. The director and shareholder of an offshore company formed in Dominica can be the same person. Dominica as an offshore tax haven is determined to protect the privacy of offshore corporations and their rightful owners. The offshore business legislation of Dominica states that any person directly related to an offshore business company (agent, director, secretary, or employee) who gives out information without the written consent of the offshore company has committed an offence and is liable if convicted to two years imprisonment and a monetary fine. To protect the privacy of the beneficial owners the International Business Companies Act allows for the use of nominee shareholders and directors for offshore companies in Dominica. Information regarding the beneficial owners of offshore companies in Dominica is not filed as public record at the Public Registry when doing offshore company registration.

The Dominica International Exempt Trust is another offshore entity which is widely used among offshore clients in the tax haven of Dominica. Exempt Trusts formation in Dominica can be formed for the following purposes according to legislation for charity and non charity purposes. Trusts formed for charitable purposes may be for education, religion, the protection of human rights, the protection of cultural heritage and important historical sites, among other reasons.

In order to form an International Exempt Trust in Dominica there must be a protector for the trust and a trustee (s). A Trust protector can appoint trustees or get rid of trustee. That person can also be a beneficiary of the trust. An offshore trust formed in Dominica can have a minimum of one (1) trustee and a maximum of four (4) for charitable trusts. A Corporation can be a trustee for a Dominica Exempt Trust.
When forming International Trusts in Dominica the following information must be sent to the Registrar who keeps a registry of all International Exempt Trusts in Dominica:

  • The name and address of the registered office of the trust
  • A Certificate from a lawyer stating that the trust is an international trust An International Trust formed and registered in the offshore jurisdiction of Dominica will pay no taxes on income gained. Like offshore corporations in the tax haven international trusts are not subjected to Stamp Duty for transactions such as transfer of property and other transactions carried out on behalf of the trust. International Trusts are exempted from exchange controls laws.Offshore company formation in the Commonwealth of Dominica takes very little time and is done in a very professional manner. This process is being carried out by many professional registered agents. To incorporate an offshore company in Dominica the client may choose to visit if they prefer but this is not compulsory. The necessary information documents can be completed on line , sent via fax or telephone or couriered to the registered agent.