Dominica
International Business Company (Company limited by shares)
Companies incorporated in Dominica under the International Business Companies Act 1996 are entitled to do business activities internationally and shall not trade within Dominica, own properties in Dominica, nor undertake any activity which may suggest an association with the banking and insurance industries, unless the appropriate license is granted.
International business companies benefit from a liberal legislation, confidentiality, no reporting requirements and an exemption from all local taxes, in addition of quick incorporation procedures and low government formation and renewal fees.
Dominica’s IBCs are flexible structures, with no capitalization requirements and no restrictions on shareholders, directors and class of shares.
Certain economic activities such as online gaming, ship management and other maritime operations, and owning and lease of yacht and vessels, require a license from the government.
Dominica has committed to undertake the OECD’s automatic exchange of information (AEoI) through Common Reporting Standard (CRS) by 2018.
IBCs incorporated in Dominica are powerful vehicles for offshore investments, international trade, forex and stock trading or as a holding company, among others.
Legal
Country code – DM
Legal Basis – Common law
Legal framework – International Business Companies Act 1996
Company form – International Business Company (Company limited by shares)
Liability - The liability of a shareholder to the company is limited to any amount unpaid on a share held by the shareholder.
Business restrictions – An International Business company incorporated in Dominica shall not trade within Dominica, own properties in Dominica, nor undertake any activity which may suggest an association with the banking and insurance industries, unless the appropriate license is granted.
Licensing is required for conduct certain activities such as online casino and other online gaming, ship management and other maritime operations, owning and lease of yacht and vessels
Share capital – Share capital can be nominated in any recognizable currency, in any amount (not less than US$ 100). There are no paid-up requirements. Bearer shares are available. Shares may be issued with or without par value. Bearer shares are permitted, although they must be kept in safe custody at the company’s registered office.
Shareholders – The company may be formed by 1 or more shareholders, who can be either individuals or corporations, and may be non-resident. Details of the shareholders are not publicly disclosed.
Directors – At least one director is required, who may be a natural or a legal person, and may be non-resident. Details of the directors are not disclosed on a public file.
Secretary – The appointment of secretary is optional, and may be a natural person or legal personal, and non-resident.
Registered Address – IBCs must maintain a registered office in Dominica and must appoint a Dominican resident as the registered agent.
General Meeting – Annual general meetings are not mandatory, and can be held anywhere. Meetings can be held by telephone or other electronic means; alternatively, directors as well as shareholders may vote by proxy.
Electronic Signature – Permitted.
Re-domiciliation – A foreign entity can continue as Dominica IBC, and vice versa.
Compliance –A company is required to keep accounting records, which can be kept both in Dominica and in any other country of the world, and can be managed by electronic files or programs.
There is no requirement to file accounts, tax or annual return with the authorities.
International Business Companies are subject to an annual government fee (min $150).
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- USD 1 Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2017 AEOI
Taxes
Corporate income tax – Companies incorporated under the International Business Act are exempt from the payment of income taxes, withholding taxes, corporation tax and alien landholding tax for their first 20 years.
There are no withholding taxes on dividends, interests and royalties paid to non-residents.
Personal income tax – Dominica levies personal income tax on a residence and remittance basis:
- Individuals residents or ordinarily residents in Dominica are subject to personal income tax on a worldwide basis.
- Individuals residents but no ordinarily residents are subject to personal income tax on their Dominica source income and foreign-source income remitted to the country.
- Individuals non-residents are taxed on their income from Dominica sources and income from foreign-sources remitted to the country.
Personal Income tax rates are progressive up to a top marginal tax rate of 35% on annual income exceeding XCD 50,000. Capital Gains are not taxable. Dominica bank interests are tax-exempt. Dividends received are included in taxable income but a tax credit up to 25% of the net dividend received is usually available.
Other taxes - Municipalities levy a property tax up to 1.25% of the property value, depending on type, location and use of the property. There is a 6.5% stamp tax on contracts for the transfer of assets. There are no net wealth and inheritance taxes in Dominica.
The Value-added tax rate is 15%. Reduced rates and exemptions applies for certain good and services.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 5 Losses carryforward (years)
- 5.25% Social Security Employee
- 7% Social Security Employer
- 35% Personal Income Tax Rate
- 15% VAT Rate
- 31 Tax Treaties
Country details
Dominica officially the Commonwealth of Dominica, is a sovereign island, member of CARICOM and the Commonwealth. It is part of Windward islands in the Lesser Antilles, Caribbean Sea. Located between the French overseas territories of Guadeloupe to the north and Martinique to the south. It has an extension of 750 sq. km. and a population of over 72,000 inhabitants.
Its capital is Roseau. Its official language is English, although it is widely spoken the Dominican Creole French, a French based sub-variety of Antillean Creole. Its official currency is the East Caribbean Dollar (XCD), pegged to the US$ at a 2.71:1 ratio.
Dominica is a republic with a parliamentary democracy within the Commonwealth of Nations and, since 1979, a member of the International Organization of La Francophonie. The President is the head of state, while the executive power rests in the Cabinet, headed by the Prime Minister.
Dominica’s economy is basically divided in the offshore financial services, tourism and agriculture. Its main export is bananas and to a lesser extent, soap, baby oil, vegetables, grapefruit, tamarind and oranges.
Its second source of income is the tourism, with about 70,000-80,000 visitors per year. Other industries present in Dominica include furniture, cement blocks and shoes. The issuance of postage stamps, mainly intended for philatelic collecting, is also an important source of income for its economy.
Its primary sector is the provision of offshore financial services as trusts, international company formation, payment processing companies, commercial and investment banking, structured financing, among others.
In Dominica are present some of the world’s leading financial service providers and its incorporated offshore companies benefit from a full tax exemption, easy accounting and maximum privacy.
Dominica has also one of the most attractive citizenship by investment programs worldwide. Where through a donation of $100,000 to the government or a $200,000 investment in real estate, a foreign individual can get a Dominica’s passport and travel visa-free to Europe, the Caribbean and part of South America and Southeast Asia.
Tax treaties
Procedures
Description
Dominica International Business Company (IBC) – US$1,400.00 (All included)
We pride ourselves in providing the best possible professional service which includes our honest hassle free “No Hidden Fee” policy. Your incorporation package includes:
- Government incorporation and filling fee
- Bound set of Constitutional Documents
- Certified Copies of Constitutional Documents with Apostille for bank account opening
- Registered Agent & Registered Office Fee
- Corporate Seal
- Courier fees
Time to form: 1 to 2 weeks.
All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.
Bank Account Options
- Offshore Bank Account* (Remotely) – US$300.00
- Mauritius Bank Account (Remotely) – US$500.00
- Bahamas Bank Account (Remotely) – US$500.00
- Curaçao Bank Account (Remotely) – US$500.00
- Hong Kong Bank Account (In-person) – US$1,200.00
- Singapore Bank Account (In-person) – US$900.00
- Cayman Islands Bank Account (Remotely) – US$900.00
- Crypto-Friendly Bank Account (Remotely) – US$3,000
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.
*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia. Other bank account options may be available depending on business profile and turnover.
Annual Fees (2nd year) – US$900.00
Including:
- Government fee
- Registered Agent & Registered Office fee
Additional Services
- Nominee Director (1 year) – US$350.00
- Nominee Shareholder (1 year) – US$350.00