Home
       
  Dominica
 
   
Executive Summary
The Commonwealth of Dominica is the country situated on an island in the Caribbean Sea. Martinique and Guadeloupe are nearest islands. Dominica covers a total area of 754 sq km. Roseau is its capital, and English is the official language. The demonym of Dominica is Dominican, the same as of the Dominican Republic, but while Dominican Republic has a stress on the first “i” in the pronunciation, in the demonym of Dominica the second “i” should be stressed.

Dominica is the youngest island of the Lesser Antilles, and it continues to be formed by geothermal-volcanic activity. In addition, it is known for being a “nature island”, meaning that it is relatively untouched by the human activities.

Dominica is a parliamentary democracy, the President is the head of the country, legislative power belongs to a unicameral parliament, executive power belongs to the cabinet headed by the Prime Minister. Unlike many other islands of the region, Dominica has become a republic and is a member of several international organizations.

State economy mainly depends on agriculture and tourism. It has one of the lowest GDP per capita rates among the Eastern Caribbean countries. Approximately one third of the whole population of Dominica is employed in agricultural sector, bananas is the main agricultural product of the country. However, the country is vulnerable to weather conditions, such as hurricanes and landslides caused by heavy rains, which may result in a significant damage to agricultural activities and infrastructure. One of the most popular manufactured products for export is soap. Due to its volcanic origin, Dominica has very few beaches, especially in comparison to its neighbour states. This was the reason to determine a much slower development of tourism than in other Caribbean region countries. However, wild nature, fresh air and beautiful views are attracting always a bigger number of tourists today.

The East Caribbean dollar (XCD) is used on the territory of Dominica.

Geography
Dominica has a mountainous landscape, the highest peak of the country is Morne Diablotins which raises at 1,447 metres above the sea level. Numerous rainforests are homes to a big variety of plants, rare animals and birds. The Sisserou parrot is the national bird of the country.

There are not many sandy beaches in Dominica. However, it has picturesque waterfalls, lakes and diving spots, making the country attractive for tourists. Dominica has a wet tropical climate, to which humidity, hot temperatures and heavy rainfalls are characteristic.

Map, Flag and Coat of Arm


Types of Company

Local Company

This company is incorporated with the purpose of conducting a business activity within the territory of the country, and is liable for local taxation.


Non-For-Profit Company
This type of company has significant tax advantages and registration fees reliefs.

International Business Company
This is the most attractive type of company, which is usually created for the purposes of conducting an offshore business. It may conduct all the legal activities outside Dominica, excluding those which require a specific license, such as banking, insurance or fund management business. It is also referred to as an Offshore Company. It can be incorporated in a short period of time and its registration fee does not depend on its capital. Accounts of the company need not be audited and filed. Corporate documents must be kept by a registered agent in the registered office of a company in Dominica. Public register does not contain any information on the beneficial owners of the company. Many e-commerce businesses are based in Dominica.

A private person and a corporate entity can become a shareholder and a director of a company. In order to incorporate and administer a company, there should be at least one shareholder and at least one director. Shareholders’ meetings may be arranged in any country of the world. A corporate secretary is not obligatory. Different types of shares are allowed. A company name must end with one of the following words: “Limited”, “Ltd”, “SA”, “Inc”, “Incorporated”, “Corp”, “Corporation”.

Taxation

Personal
Income tax has a scalable nature levied at a rate from 0% to 40% and is applied on the territoriality basis, i.e. only on income derived from activities conducted within the territory of Dominica. Social security contributions are payable.

Due to high taxes, it is hard to attract foreign skilled labour, the country might be in need of. Therefore, government has adopted incentive policy for qualified foreigners. An income tax at a rate of 25% may be granted to an individual for a period from 6 up to 36 months within a period of ten years.

Corporate
International business companies, used for offshore business purposes, are fully exempted from taxes. Many goods of Dominica are granted a duty-free entry into the US.
Corporation tax for domestic companies is levied at a rate of 35%. There is no capital gains tax as such. Taxes are paid on retail sales, land transfers and land value. Import duties are paid on many imported food products. Significant export duties are levied on tobacco and rum, and lighter rates are applied on bananas and coconuts.

 
Back
 
 
Global business gate Global internet marketing consultations Publisher Global networks