Dominica

The Commonwealth of Dominica is a Caribbean island between the Caribbean Sea and the North Atlantic Ocean, about one-half of the way from Puerto Rico to Trinidad and Tobago. It 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. Dominica gained independence in 1978.

In 1996, Dominica codified the International Business Companies Act. This law combines flexible company structures with efficient incorporation procedures. Dominica is one of the most highly competitive and cost-effective jurisdictions for incorporation. The island is a stable democracy and, as a former British colony, has a legal system based on English Common Law.

International Business Corporations (IBCs) are exempt from all tax for a minimum of 20 years. To maintain tax-exempt status, the IBC may not do business with residents of Dominica, own real property in Dominica, provide registered offices in Dominica, or carry on banking or insurance activities without the appropriate license. There is no minimum capital requirement. An IBC can be established with only one director and one shareholder who may be the same person. A director is not required to be a shareholder. Shares may be issued in bearer form and do not require a par value.

The IBC Act requires complete confidentiality and provides for civil and criminal penalties for any disclosure of information. Transactions of a Dominica company can only be disclosed when its principal is found guilty of a criminal offense in his or her country of residence and that the principal would have been criminally liable for the same conduct had it been undertaken in Dominica. There is no requirement to disclose the beneficial owner of an IBC to the government of Dominica. Note that the jurisdiction in which the beneficial owner resides may have its own reporting requirements (e.g. United States.)