Company Formation in Dominica
Updated on Wednesday 05th March 2025
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Dominica company formation can be performed by any foreign investors interested in operating a business here. Prior to registering a legal entity, it is advisable to analyze the basic requirements imposed by the local legislation, on matters related to incorporation, licensing, taxation, reporting and others, detailed below.
Local companies can be registered as onshore or offshore businesses, therefore offshore incorporation is available in Dominica. Our consultants can assist businessmen during the registration process, and can offer legal representation in front of local authorities, as legal entities must be registered with local institutions (Registrar of Companies, the Inland Revenue Division, etc.).
Legal entity suitable for offshore company formation
Foreign investors who plan to open a company in Dominica as an offshore business can incorporate the International Business Company (IBC). The particularity of this business form is that it is incorporated in Dominica following the local regulations, but it can’t carry out any business operations in connection to clients or businesses located in Dominica, this being the main characteristic of an offshore business.
Another particularity of an offshore company, including the Dominica IBC, is its taxation. This structure benefits from a very favorable tax system, in which many customary taxes, imposed to onshore companies, do not apply.
The Dominica company formation is advantageous in the case of the IBC company due to the following reasons:
- the company can be set up by 1 shareholder;
- the shareholder can own 100% of the company’s shares;
- this legal entity benefits from a fast incorporation process, as investors can set up a company in Dominica in only 24 hours;
- it is necessary to appoint 1 director, who does not have to comply with local residency obligations.
How to register a local company
When starting the process of company formation in Dominica, investors must complete many mandatory steps – they need to sign the statutory documents, submit the paperwork with local institution, find an office space (can be provided by our company), open an offshore bank account (for an IBC company) and register a trading name. For this, they need to reserve 3 preferred company names that respect the local legislation. The procedure is done when completing the registration form – Dominica IBC Incorporation Application.
The form requires investors to present information on the intended activities the company will carry out and the countries/regions where the respective activities will be developed. A part of the application form requires investors to present details on the shareholding structure (share capital, shares issued to the nominee shareholder (if applicable), the bearer).
The investor must also add his or her personal details (provided that there are more shareholders, their details must appear on the form as well), while the next section requires the same data, but for the company’s director.
Many registration formalities can be completed online, by accessing the web portal of the Government of the Commonwealth of Dominica.
What are the tax benefits of a Dominica IBC?
The reason for which businessmen can opt for offshore company setup in Dominica is strongly related to the tax benefits. By incorporating the IBC, investors enjoy a relaxed tax system, which exempts the business from the following taxes:
- the income tax;
- the capital gains tax;
- the stamp duty;
- the withholding taxes on dividends, royalties, interest;
- the transfer tax.
Investors who will open a company in Dominica as an onshore business are taxed following a different system (they have to pay the corporate income tax, the VAT, withholding taxes, etc.), therefore, registering an offshore business can be more advantageous. We invite you to contact our company incorporation team for tax advice and incorporation services.