Offshore Company Formation – Dominica
Dominica, a well-known offshore territory located on the Caribbean Island with the similar name, is famous throughout the world for its loyal legislation rules concerning opening and running companies from overseas. Launching business in this country won’t take much time or require huge investments either. So, let’s have a closer look at the incorporation procedures.
If you set your heart on starting an offshore company in Dominica, you should think of its organizational form and name. Though according to the current Dominica’s legislation several organizational forms of enterprises are possible, the variant of Private Limited Corporation is the most popular among offshore businesses. It is the easiest and cheapest way to start and run business so we should advise you to follow suit and choose this particular organizational form. Company’s name should not be suggestive of any government bodies and must end with one of the standard words, such as Corporation, Limited, Societe Anonyme, Incorporated, Sociedad Anonima. It’s important to keep to these rules from the very beginning because the names of all new firms are always checked before the registration: if any mismatches are revealed the process of registration will be delayed. The next step is to work out the company’s Memorandum and Articles of Association. These documents must be delivered to the Department of Registrar of Companies. In the Memorandum you should point out the sphere you are going to work in and list all your possible future business activities. In the Association you should describe the organizational structure of the company and state its basic principles. All documents are written in English as it is an official language in the country (Dominica was a colony of England till 1978). The minimum capital for opening the company is 100 US$ and there is no cap for its maximum amount. Every firm must have at least one director, resident or non-resident, and one shareholder who may be the same person. There is no need to hold annual general meetings of shareholders. The copies of the company’s documents, such as Memorandum, Articles of Association, Certificate of Incorporation, and Register of Directors should be keep at the Registered Office. However, there is no requirement to reveal any vital information, for example, about directors or shareholders of the company in public media.
Generally, launching a new company in Dominica takes from 1 to 10 working days. There are a number of companies that can provide help in opening a new company in Dominica. The services of such company will cost you 1000-1500$. This amount includes the following:
- the confirmation of the company’s name;
- filling in all documents needed for the Department of Registrar of Companies;
- finding a nominee shareholder and director (if necessary);
- opening a bank account;
- paying registration fees;
- hiring registered agent and a secretary, finding an address for a year’s period;
- providing stamps and all necessary certificates (Certificate of Incumbency, Certificate of Good Standing).
Off-shore companies in Dominica are free of any taxes (including taxes on income and capital received from outside the country) and charges during 20 years but the annual fees must be paid (405$ US per year).
The company should keep accounts but there are not any requirements for the annual audit and public reports. Off-shore companies are strictly banned from doing business with residents companies and local citizens, they are not allowed to realize their production or services to residents.