Dominica Offshore Companies
The Dominica International Business (IBC) Act of 1996 regulates the registration of offshore companies on the island. Offshore companies are free to operate under this act as long they comply with the laws of Dominica and the laws of the country in which they operate. The government of Dominica passed the offshore legislation in order to secure funds for economic sustainability. Since the act was passed a number of companies have been registered and Dominica has gained a reputation as a very competitive offshore jurisdiction.
In order to set up an International Business Corporation (IBC) in Dominica the company must first be registered with the Registrar of Companies and the following documents must be submitted; memorandum and articles of association. The company must have a local registered agent and registered office. The names of the real owners and directors of a Dominican IBC is confidential and not public information. It is safe to say that an advantage of owning an offshore company in Dominica is guaranteed privacy. All offshore companies registered in Dominica must pay to the Government of Dominica the renewal fees for that company at each anniversary of the company’s registration in order for it to remain in good standing.
An offshore company in Dominica must have at least one shareholder and one director where the director and shareholder can be the same person. These persons do not have to reside in Dominica. Nominee shareholders and directors are also available. Once registered the company can hold it shareholders and directors meetings in any part of the world it so desires. Meetings can be held via the telephone or any form of modern communication mediums available to the share holders.
The authorized share capital in a company registered in Dominica is determined by the shareholders of that company however there is a minimum share capital requirement of US$100. There is no maximum authorized share capital. The legislation for International Business Corporation states that shares can be issued in any currency deemed fit by the directors. Shares can be of different categories such as; bearer shares, preferential, registered and common shares. According to the act shares can be issued for money, services rendered, personal property, real estate, promissory notes or any binding obligation to contribute value.
The law prohibits the use of any name for an offshore company contains any words or phrase that in some way suggest relations or connections with the country or the Government of Dominica or banks, insurance, trusts or other regulated activity. Companies with names already incorporated will be rejected by the registrar. Company name searches are available
The International Business Companies (IBC) act of 1996 guarantees that offshore companies are exempted from paying taxes for at least the first twenty years of registration even if legislation changes. This can be considered a very big advantage considering that most offshore jurisdictions do not offer any such guarantees and future legislation changes are unpredictable. There is no capital gains tax, income tax and other estate taxes charged on income generated outside of Dominica.
Dominica offshore companies or Dominican IBC’s can employ local lawyers, accountants, financial advisors for professional assistance with business. Offshore companies must have an office and local registered agent who becomes their representative in Dominica. Dominican offshore companies by law are not allowed to carry out business with local residents. The companies are not allowed interest in property on the island. Dominican offshore companies cannot conduct business in banking or trust if they are not licensed to carry out these specific activities. Offshore companies can also hold or lease property which can be used as an office.
Dominica offshore companies or IBC’s are readily available at very competitive prices. The use of modern technology facilitates and speeds up communication therefore an offshore company can be set up in Dominica as little as a day.