Dominica

Dominica, officially the Commonwealth of Dominica, is an island nation in the Lesser Antilles region of the Caribbean Sea, south-southeast of Guadeloupe and northwest of Martinique.
Total area of the country is 754 sq. km. The population is 73.449 (2014). Among ethnic groups are 86.8% Black, 8.9% Mixed, 2.9% Kalinago, 0.8% European, 0.7% others.
The capital is Roseau.
The official language is English.
The currency is XCD. 1 USD is equal to 2.69 XCD.
Climate of Dominica is tropical; moderated by northeast trade winds; heavy rainfall.
Time difference with Moscow is -8 hours.
Literacy rate is 94%.
Calling code is +1-767.

Dominica was the last of the Caribbean islands to be colonized by Europeans due chiefly to the fierce resistance of the native Caribs. France ceded possession to Great Britain in 1763, which made the island a colony in 1805. In 1980, two years after independence, Dominica's fortunes improved when a corrupt and tyrannical administration was replaced by that of Mary Eugenia Charles, the first female prime minister in the Caribbean, who remained in office for 15 years. Some 3,000 Carib Indians still living on Dominica are the only pre-Columbian population remaining in the eastern Caribbean.

Dominica is a parliamentary democratic republic.
The head of state is the President, elected for a five-year term by the parliament.
Executive power belongs to the cabinet, headed by the prime minister.
Legislative power is vested in both the government and the unicameral Parliament which consists of the 32-member House of Assembly.
Judicial power comprises the three magistrate’s courts, with appeals made to the Eastern Caribbean court of Appeal and, ultimately, to the Judicial Committee of the Privy Council in London.

In 2008, Dominica had one of the lowest per capita gross domestic product (GDP) rates of Eastern Caribbean states. The country nearly had a financial crisis in 2003 and 2004, but Dominica's economy grew by 3.5% in 2005 and 4.0% in 2006, following a decade of poor performance. Growth in 2006 was attributed to gains in tourism, construction, offshore and other services, and some sub-sectors of the banana industry.
Bananas and other agriculture dominate Dominica's economy, and nearly one-third of the labour force works in agriculture. This sector, however, is highly vulnerable to weather conditions and to external events affecting commodity prices. In response to reduced European Union (EU) banana trade preferences, the government has diversified the agricultural sector by promoting the production of coffee, patchouli, aloe vera, cut flowers, and exotic fruits such as mango, guava, and papaya. Dominica has also had some success in increasing its manufactured exports, primarily soap.
Dominica is mostly volcanic and has few beaches; therefore, tourism has developed more slowly than on neighboring islands.

The legal system in Dominica is based upon the English common law.

The principal forms of business organization in Dominica are:

• private limited liability companies;
• public limited liability companies;
• non-profit companies

For offshore solutions, the most common structure is the IBC.

There is a range of requirements to the company name in Dominica:

• The word "limited", "corporation" or "incorporated" or the abbreviation "ltd." or "corp." or "inc." must be part of the corporate name of every company;
• A name must not be the same as a name already on the register in Dominica;
• A name must not be so similar as to confuse or mislead;
• It must not imply a connection with any part of government (unless approved by the Minister), a political party or its leader, or a university or professional association (unless there is a formal consent).
• It must not give a false impression of the nature of the business, how goods or services will be produced or supplied, who will be employed, or where its products or services will come from.
• It must not be in any way objectionable.

The following steps are required to incorporate an IBC in Dominica:

1. Check whether the name is available
2. Prepare the Memorandum and Articles of Association
3. Register with the Commercial Registry

A company can be established in 1 day.

IBC should not –

• carry on business in Dominica with persons domiciled or resident in Dominica; or
• own an interest in real property situated in Dominica; or
• accept banking deposits; or
• accept contracts of insurance.

However, an IBC should not be treated as carrying on business with persons resident in Dominica by reason only of the fact that it –

• makes or maintains deposits with a person carrying on business in Dominica;
• makes or maintains professional contact with solicitors, barristers, accountants, bookkeepers, trust and administration companies, investment and financial advisers, or other similar persons carrying on business in Dominica;
• prepares or maintains books and records in Dominica;
• holds in Dominica meetings of directors or members;
• holds an interest or interests in real property or properties for use as an office from which to communicate with members or where books and records of the company are prepared or maintained;
• holds shares, debt obligations or other securities in a company incorporated under IBC Act or Companies Act.

An IBC shall at all times have a registered office in Dominica maintained by the company or its registered agent.
The following documents must be kept at the Registered Office:

• Minutes of all meeting of its - directors, members, committees of directors, committees of officers and committees of members
• Copies of all resolutions consented to by its - directors, members, committees of directors, committees of officers and committees of members
• Registers of Directors/Shareholders
• Share certificates
• Register of mortgages and encumbrances (optional)
• Beneficial Owner Declaration and passport copies
• Accounting records

An IBC shall at all times have a registered agent in Dominica. Only a barrister and solicitor or an accountant practicing in Dominica can act as a registered agent. No person shall be a registered agent unless he has been licensed by the Registrar to act as a registered agent.
An IBC may, by a resolution of directors, amend its Memorandum to change the place of its registered office or to change its registered agent.
The company that contravenes the requirements above is liable to a penalty of 100 US dollars for each day or part thereof during which contravention continues, and a director who knowingly permits the contravention is liable to a like penalty.

There are no statutory requirements for an IBC to have a seal.

The redomiciliation of companies to or from Dominica is permitted.

The minimum requirement for a Dominican IBC is one director. A director may be either a natural person or a corporate entity. Directors may be either a natural person or a corporate entity. A director and shareholder may be the same person. Nominee directors are allowed.
Director's meetings are not required.

There is no statutory requirement for a secretary or other officers for Dominica corporations; however, if officers are required they can also be directors and shareholders.

The minimum requirement for a Dominican IBC is one shareholder. Shareholders may be either a natural person or a corporate entity. Shareholders may be of any nationality and reside in any country. Nominee Shareholders are allowed.
A Dominica IBC does not need to hold an Annual General Meeting of its shareholders. If such a meeting is decided on, it may be held anywhere in the world and by any means including by telephone or other electronic means, once effective communication is ensured.
Shareholders’ derails are not available to public.

Beneficiaries’ details do not appear on a public profile. Generally, service providers including firm specializing in company formation, trust managers, lawyers, and accountants, keep beneficiaries’ information in strict confidentiality.
The information on the Beneficial Owners is kept at the Registered Office and not available to the public.
The IBC Act under Section 112 makes it an offence punishable by a fine of US $25,000.00 and imprisonment for two years for anyone including an auditor or official liquidator to reveal any information regarding a Dominica corporation, except by order of the Court, and solely relating to criminal activities.

There are no minimum requirements for share capital of a Dominica IBC. The maximum share capital has no limitation and does not affect the registration fee or the annual fees. Share capital can be issued in any currency.
Shares can be issued with or without par value.
Shares may be issued as registered or bearer form.
The standard share capital is US$ 100.

There is no personal income tax for IBCs in Dominica.

There is no corporate tax for IBCs in Dominica.

There is no capital gains tax for IBCs in Dominica.

Dominica IBCs are not subject to VAT.

Dominica IBCs are not subject to withholding tax.

Dominica IBCs are not subject to stamp duty.

Dominica IBC should pay annual fees on the birthday of the IBC and every twelve (12) months thereafter. The amount of the fee depends on the date of payment:

if paid by 30 June	500 USD
if paid after 30 June but by 31 October	550 USD
if paid after 31 October but by 31 December	750 USD
for every subsequent 3-month period	+250 USD

Dominica IBCs are exempt from taxation.

Dominica has exchange of information relationships with 31 jurisdictions through 11 DTCs and 20 TIEAs:

• 11 DTCs: 11 DTC: Antigua and Barbuda, Barbados, Belize, Grenada, Guyana, Jamaica, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the Grenadines, Switzerland, Trinidad and Tobago
• 20 TIEAs: 20 TIEA: Australia, Belgium, Canada, Denmark, Faroe Islands, Finland, France, Germany, Greenland, Iceland, Ireland, Netherlands, New Zealand, Norway, Poland, Portugal, South Africa, Sweden, United Kingdom, United States

There is no exchange control in Dominica.

A company incorporated IBC Act shall keep and make available to the Registrar at all reasonable times accounting records that -
- are sufficient to record and explain the transactions of the company; and
- will at any time enable the financial position of the company to be determined with accuracy
A company shall keep accounting records required to be kept under subsection for a period of seven years from the date on which they are prepared.
The accounting records and minutes required by this section shall be kept in English, at the registered office of the company in Dominica.
In this section "accounting records" means all books, vouchers, invoices, contracts, financial statements, and any other relevant records pertaining to the financial affairs, including the assets and liabilities, of a company incorporated in Dominica.
A company that willfully contravenes this section is liable to a penalty of the hundred United States dollars in respect of each day of part thereof during which the contravention continues, and a director who knowingly permits the contravention is liable to alike penalty.

Dominica IBCs are not required to prepare and file annual return.

Dominica IBCs are not required to file tax return.