COMMONWEALTH
OF DOMINICA
The Commonwealth of Dominica is a new entry to the offshore business,
with the International Business Companies Act No. 10 being passed
in 1996. It does however, have the excellent asset protection features
of many of the more popular offshore centers.
IBC's incorporated in Dominica are completely free of all taxes for
a period of 20 years. It is an independent sovereign jurisdiction
and will not be affected by the impending EU/UK legislation.
The Act provides for total confidentiality with civil and criminal
penalties for any disclosure of information. There is no requirement
for the disclosure of the beneficial owner to any authority and bearer
shares are allowed. There is no requirement to file audited accounts
with the authorities.
While Dominica does have a Tax Information Exchange Act of 1988,
this does not apply to offshore companies (IBC's).
Offshore Legislation
The International Business Companies Act was enacted in June 1996
and provides for the incorporation, operation and regulation of International
Business Companies (IBC's).
The advantages of incorporating in the Commonwealth of Dominica include
the following:
General Information On The Commonwealth Of Dominica
The Commonwealth of Dominica is a ruggedly beautiful English speaking
country located in the Eastern Caribbean, between the French islands
of Martinique and Guadeloupe. (It is sometimes confused with the Dominican
Republic, which is a Spanish speaking island).
Dominica has spectacular hills and valleys, waterfalls and rain forests.
It is a popular destination for American and European tourists, particularly
those interested in diving and eco-tourism.
Dominica has been called the "nature island" of the Caribbean.
Forests cover over 60% of the country and the hills and valleys are
spectacular. There are over 365 rivers and the country has hot springs
and the world's largest boiling lake which endows it with tremendous
potential for geo-thermal energy and/or spa development.
The population of Dominica is approximately 72,000. The capital city
is Roseau. The country's infrastructure is good with excellent water,
power and communications. There are direct dial facilities worldwide
via fibre optic undersea cable; and Internet and data transmission
facilities are readily available.
Dominica does not have an international jet airport so overseas flights
connect to Dominica's international airport using smaller turboprop
aircraft. There are direct flights to and from Dominica from the jet
airports at San Juan, Puerto Rico, Antigua, St. Lucia and the French
islands, with onward connections to North America and Europe. A proposed
site for a new international jet airport has been identified and development
work is underway.
The world's major cruise ships dock at the new port facilities in
Roseau. Over 200,000 tourists arrive by cruise ships each year and
this has been increasing by over 20% per year.
Government
The Commonwealth of Dominica became independent from the United Kingdom
on 3 November 1978. Dominica has a parliamentary style of government
on the UK model and is a member of the British Commonwealth. There
is universal suffrage and elections are due every five years. Executive
power rests with the Prime Minister and his Cabinet.
Legal System
The Commonwealth of Dominica is an independent Sovereign State with
a written constitution. The legal system is based on English common
law.
Monetary System & Exchange Controls
Dominica is a member of the Eastern Caribbean Central Bank. The legal
currency is the Eastern Caribbean (EC) dollar which is issued and
regulated by the Central Bank.
The EC dollar is fixed to the US dollar at the rate of US $1.00 equals
EC $2.6882. US currency is also legal tender on the island and is
readily accepted everywhere.
The banking system is well established and there are both onshore
and offshore banks. There are no exchange controls and funds are easily
transferred into and out of Dominica.
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