Dominica Passport | Caribbean Recipes | Dominica Photos | Classified Ads | Search Jobs | Advertise here!

Experience Dominica – The Nature Island: Dominica Vacations | Exotic Vacations | Honeymoon Destination

Dominica weekly is a personal weblog about the nature island of Dominica.


With Dominica vastly becoming one of the best Tax Haven jurisdiction in the Caribbean, the business of Offshore Companies registration in Dominica is rising at a nominal rate. With that in mind, I’ve put together some information on the different ways an Off-shore company can be used. This information is intended as no more than a general guide – it’s more less as info for beginner’s to the world of off-shore companies and their advantages. Please don’t feel intimidated by most of the technical terms (or jargon), it is meant to give you an idea of how versatile offshore companies can be.

International Trading

Import and Export transactions can be made extensively more tax-efficient if they’re carried out through offshore companies. Using an off-shore company as a mediator between a seller and a buyer of products or services in different countries allows profits to be accumulated offshore. (This is usually called Transfer-Pricing.) Such offshore-companies are generally known as marketing or export consultancies, and, with nominees handling phone calls, emails or faxes, which greatly enhanced the appearance of the company.

Although invoicing is always carried out via the offshore company, the goods can, nevertheless, normally be delivered direct from seller to buyer. Such devices can be particularly beneficial for transactions between European Union countries, with VAT accounting problems solved by registration in a suitable location, such as the UK or Southern Ireland, the onshore company then working in conjunction with another corporate vehicle, for example a Dominica company.

The Consideration of using an offshore company can also offers possibilities to move money from a high-tax to a low-tax area.

Manufacturing

A number of countries have a preferential tax-rate for manufacturers, and this can be exploited by establishing a manufacturing company in the appropriate jurisdiction and separating the manufacturing parts of the company’s operations from its other functions by basing it in such a free-trade zone. If structured correctly, huge savings can be made.

Investment Companies

An Investment offshore company is often used to make investments and accumulate wealth. Just as an onshore company can invest in stocks, shares, property or commodities, so can an off-shore company. The only difference is that the offshore company doesn’t have to pay tax on its profits, nor accumulated taxes when it is passed on to beneficiary.

In many jurisdictions, Withholding Tax is levied on income remitted out of the jurisdiction, but the careful use of double-tax treaties can reduce or even eliminate tax on the investment income. This may enable the investor to make investments in high-tax countries from an offshore base with minimal tax liability.

In some countries, interest is paid gross on tax-free bonds or bank deposits and this can be integrated into the client’s tax planning. In certain instances, interest may be rolled up without income being remitted, and, in some jurisdictions, death duties and capital gains taxes are not levied.

Most importantly, the use of an offshore company also protects the identity of the ultimate beneficial owner. Anonymity comes automatically with off shore companies, and is respected by the law in the offshore world.

Holding Companies

Offshore holding companies can handle dividend receipts from a spread of subsidiaries. This allows a group to centralize its resources and maximize tax benefits. Careful use of tax treaties is necessary to obtain the best results.Various locations, both on and offshore, can be used, with the holding company funding subsidiaries in a tax-efficient manner.

Property-owning Companies

Placing property into the ownership of an offshore company yields many immediate advantages, including the avoidance of Inheritance Tax and Capital Gains Tax. This is because the anonymously-owned offshore company changes hands in the event of death or re-sale, not the property.

Additionally, any subsequent sale is greatly simplified. In some countries the establishment of title is time-consuming and costly; but once title has been established for a company-owned property it never needs to be dealt with again. This is because the sale can be made by transferring the shares of the company, with title to the property remaining vested in the company. In other words, the company can be sold instead of the property.

Sales by share-transfer almost always save on legal fees, together with any transfer or value-added taxes that are levied in some countries. Government stamp-duties and capital gains taxes can also be avoided.

Probate

The ownership of a portfolio of investments through a single offshore holding company greatly simplifies probate procedures upon the owner’s death. Probate can be applied for in one offshore jurisdiction rather than in several different countries where the assets are located.

Legal fees are often significantly reduced and publicity can be avoided for high-profile individuals and families.

Consultancy and Services

Consultants, financial advisor’s, real estate agents, musicians, security consultants, bodyguards and entertainers often receive much of their income from overseas. This income can be remitted to an offshore company, which is the individual’s employer, and, after paying only a modest amount for expenses, thus retains the bulk of the funds offshore.

Employment overseas is often facilitated by the use of an offshore employment company. This can either employ an individual or a group of individuals working overseas. The employee keeps the bulk of his income outside the country of employment. This type of structure can also reduce currency exchange problems and circumvent a number of employment and residency obstacles.

Ship and Yacht Ownership

It’s often advantageous to pass ownership of a vessel to an offshore company. As well as securing significant tax benefits, it can also provide an easy registration procedure for yachts, which in certain countries can only be registered on the major national register with onerous compliance requirements.

A separate offshore company may be formed to operate or charter the vessel, thus separating ownership and income for additional tax benefits.

Intellectual Property

Patents, copyrights, trade marks, franchises and other rights such as those in music, computer software and technical know-how can all be transferred to the ownership of a licensing company, either offshore or onshore. The licensing company enters into licence or franchise agreements with the original company owner and then receives royalty payments and licence fees.

Insurance companies

Most offshore centers will only accept registration of insurance companies which are subsidiaries of existing insurance groups, or which are very heavily capitalized. Nevertheless, in several first-class jurisdictions it is still surprisingly easy to register an insurance company that would not meet the capitalization requirements.

Internet Trading

One of the fastest growing areas of international trade is the Internet. The international nature of the trade and the potential tax complication of dealing across borders can be solved by the creation of a specialist internet trading company offshore.

To obtain favorable tax treatment, it is best to locate the server physically offshore and to have an appropriate domain name. For example if your current domain name is www.jtc-advisory-service.com or www.jtc-advisory-service.info you could opt for a tax free British Virgin Islands domain such as www.jtc-advisory-service.vg.

Though the opinion is often expressed that such operations are ‘all in cyberspace’ and therefore location is not important, it remains a fact that regulation is increasing and planning should anticipate possible future developments. Although the Americans seem determined to keep the internet tax free, no one really knows how it will turn out long term. True to form, EU legislation concerning the sale of downloadable products and services relating to the payment of VAT is making things more complicated. An example of this is eBay: if you live in England you have to pay VAT on your invoices, but if your billing address is outside the EU you don’t. This is the result of EU legislation which was past in July 2003.

Asset Protection

Transferring title to assets to an offshore trust means that the settlor (the person who gives up ownership in favor of the trust) no longer visibly controls these assets. This means that they cannot be seized in cases of insolvency, marital proceedings, professional negligence, or by the taxman.

However, if the trust was set up intentionally to avoid a known current or future liability it may be set aside by the courts. Particular care is needed in the US and, since the 2004 budget; the UK is also looking closely at trusts.

Regardless of problems in some countries, trusts, when correctly structured, are excellent asset protection vehicles, and are extremely flexible in times of political and economic instability.

A further advantage of trust formation is that 100% anonymity is still possible and a trust can perform all the functions of a company without some of the restrictions that apply to companies.

Family Wealth Protection

Trusts are often used to safeguard family wealth by imposing conditions on the use and distribution of money and assets by present and future generations. Such arrangements may also replace a will in certain circumstances. Trusts can be used legitimately to avoid ‘forced heirship’ provisions affecting inheritance. Inheritance, capital gains and income taxes can all be minimized in this way.

For more information about Off-shore Companies and Offshore Services, please visit:offshore-companies-in-dominica.com.

Share this Dominica article with your friends:

Facebook Twitter Google Buzz Google Bookmarks Digg Reddit delicious Technorati Slashdot Yahoo My Web

Tagged with: , , , , , , , ,

Related Post

After my post on Dominica being a Tax Haven and why it’s good to have a Second Passport or Second Citizenship, I received a few emails, one of which asked – What Is Asset Protection? I had no idea what asset protection is, maybe is because I don’t have any a valuable assets to protect. But it’s never too late to learn something new and you never know I might just own some assets.

It is a transfer of the ownership of your assets (investments, property, savings, etc) from an individual to a legal entity, an offshore company in this case. That way you are no longer the owner of your assets and it is much more difficult to be successful in suing you. But you are still in full control of that company.

If you are looking for information on how to protect your assets, Offshore Services, or getting a Tax shelter from excessive taxes, visit www.offshore-companies-in-dominica.com for more information about off shore services in Dominica.

Share this Dominica article with your friends:

Facebook Twitter Google Buzz Google Bookmarks Digg Reddit delicious Technorati Slashdot Yahoo My Web

Tagged with: , , , , , , ,

Related Post

Individuals and/or firms we will find it attractive to open offshore companies in Dominica, because it’s so easy to register an off-shore company via the internet without having to travel to the island, and the best thing about opening at IBC (International Business Corporation) in Dominica – it’s completely tax free. Any transaction(s) made under any offshore company registered in Dominica is completely tax free. Different jurisdictions tend to be havens for different types of taxes, and for different categories of people and/or companies.

Why should you choose Dominica in Formation of an Offshore Company? Dominica is among the best ranking offshore tax havens due to its irrefutable advantages to every client.

Here are some of advantages in opening an offshore in Dominica:

Progressive Legislative System

Dominica’s offshore jurisdiction law contains human rights and freedom, which guarantee the future political stability of the nation and based on British common law.

International Business Corporation is also referred to “offshore company” is the main type of company presently being registered in Dominica; these IBC’s help to facilitate international trader and investment activities. Regulated by the International Business Companies Act of June 26, 1996, Dominica’s off-shores activity guarantees complete tax exemption, privacy, flexibility of company’s structure and fast registration.

Taxes and payments

All locally registered offshore companies are absolutely exempt from taxes, because Dominica didn’t sign any agreements on avoidance of double taxation with other countries, so there is no data exchange between state bodies of Dominica and tax authorities of other countries. Running an off-shore company in Dominica is very simple – after you pay all the necessary government duty and fee.

Annual accounts

Under the Dominica International Business Companies Act there is no requirement to give any accounts or to perform annual audit of the company. The only important thing, the registered agent must keep copies of the following documents: Memorandum and Articles of Association, Certificate of Incorporation and copy of Register of Directors.

Privacy Issues

Only the registrar keeps the data on real owners of the off-shore company is not shown at any public report, likewise the data on share holders and directors is not entered to the open list.

The International Business Companies Act (Article 112) provides penalty of imprisonment for two years and fine of 25000 US dollars if any information about the company is disclosed by any clerk (auditor or official registrar). Information about off-shore Company can be provided only by the legal decision of Dominica’s court and only in cases, when the Company’s activity is penal action according to Dominica’s law.

Structure of the Offshore Company

  • To register the Company in Dominica it is necessary to have minimum one Director and one share holder, who can be the same legal or natural person, resident of any country and nationality.
  • Director needs not be the owner of the company.
  • Nominal Directors and Nominal Share Holders are allowed (at your request we can grant these services).
  • There is no requirement to have a local secretary.
  • Share holders’ meeting, should it be necessary, can take place in any part of the world. The share holder may take part either personally or by phone or other means of remote communication.

Authorized capital and offshore company shares

There are no requirements as to the sum of the authorized capital and terms of its payment. It is quite enough to declare a nominal amount when registering. The amount of authorized capital has no influence on the registration and annual duties.

Shares can be issued in the following ways:

  • with declaration of face-value or without declaration of face-value,
  • nominal shares or shares payable to bearer (the original of these shares must be kept in Dominica),
  • In any hard currency.
  • Shares are paid in cash or by the transfer of other assets or by the provision of services.
    To open the offshore company it is enough to issue only one share.

Company’s documents

Since 2003, Dominica has been a member of The Hague Convention of 1961 and all the registration documents can be duly certified by Apostille.

  • It is allowed to make out the constitutive documents at any language (they must be translated into English).

Requirements of companies registered in the offshore tax haven of Dominica. It’s necessary to have a registered office in Dominica and local registered agent (we offer these services).

Company’s name

The name of the offshore company must end with the following words, phrases or abbreviations, which shows the status of the stock-company: “Corporation”, “Corp.”, “Incorporated”, “Inc.”, “Limited”, “Ltd.”, “S.A.”.

It is not allowed to use the following abbreviations, words or phrases, which can be associated with the Government of Dominica – “Government”, “Gov’t”, “National”, “Royal”, “Republic”, “Commonwealth”, “Dominica”, etc., and also it is not allowed to use the following words without special permission or license – Assurance, Bank, Building Society, Chamber of Commerce, Foundation, Trust, etc.

Limitation of offshore company activities

  • There are no limitations on the exercise of any legal trade or investment activity outside Dominica, except activities, which require special license by the law, for example, permission to exercise bank, trust or insurance services.
  • Generally, Dominica offshore companies have no to do business or own property in Dominica.

Time of Offshore Company Registration

Offshore tax haven Dominica offers the fastest registration of companies. It takes only 24 hours to prepare all the documents and register a company with the Registrar of Companies of Dominica.

If you are looking for Offshore Tax Haven Professional Services like business registration, or getting a Tax shelter from excessive taxes, visit www.offshore-companies-in-dominica.com for more information about off shore services in Dominica.

Share this Dominica article with your friends:

Facebook Twitter Google Buzz Google Bookmarks Digg Reddit delicious Technorati Slashdot Yahoo My Web

Tagged with: , , , , , , ,

Related Post




Business Key Top Sites