Dominica is a rapidly developing offshore center, which has been popular because of the excellent opportunity to protect the assets of the enterprise. Offshore companies incorporated in that country, are completely exempted from tax and have a high degree of confidentiality and protection. The country has a modern corporate legislation (Law “On the International Business Companies” dated June 26, 1996) and a favorable climate for carrying out of the offshore business. The legislation of the Republic of Dominica provides for the possibility of incorporation of companies of various organizational and legal forms. But, as a rule, only the traditional offshore company – International Business Company attracts interest.
Offshore Companies in Dominica have the right to exercise any kind of international activity that is authorized in accordance with the law. The exception is banking activity, insurance and reinsurance, which require a license. It should be noted that Dominica has not concluded agreements for the avoidance of double taxation with any country in the world.
As in any offshore jurisdiction, a company in Dominica could be liquidated because of the non-payment or late payment of the annual state fee for renewal. This fee must be paid no later than the date of incorporation of offshore in the next calendar year. If it is not paid until December, 31 the company is automatically deleted from the Register of offshore companies in Dominica and relevant information is published in the official press. In order to restore the offshore it is necessary to pay the accumulated fees and penalties. In this case the probability of the impossibility of restoring the company does not exclude. So, if someone will reserve a similar name in the Register during a time when the offshore is itemized as deleted from the Register, the registrar is not entitled to refuse the incorporation.