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Exempt insurance companies of Dominica
Exempt insurance companies can issue a license in Dominica. A company can obtain a license to provide Management Services to an exempt insurance company, including accounting, administrative, brokerage and underwriting services and the processing claims for these type of business.
An exempt insurance company must have a registered office and a Resident Representative in Dominica, who has a statutory obligation to work with the license to ensure compliance with the provisions of the Act. The Act also has provisions for a body corporate under the Companies Act on successful application to be licensed by the Minister to act as a Holding Company. The Holding Company is created to own shares of a company doing activities of an exempt insurance company from within Dominica, one director must be a resident citizen of Dominica.
Of course every company and individual must meet the Due Diligence requirements of Dominica, which main purpose is to protect the financial institutions, their clients and Dominicaâs reputation. Every shareholder, beneficial owner, director and senior staff is required to complete the Disclosure Form. The outcome of the check ups will determine if the license is granted or not.
Special Tax Provisions
They are exempt from income tax, or any other direct taxes on profits or gains, and are not required to submit tax returns in Dominica.
Confidentiality
No information on regards to the affairs of the licensee or the application of a prospective licensee can be disclosed, unless a court of competent jurisdiction so order. The breach of confidentiality can be punished with up to a year of imprisonment.
Compliance Issues
The capital requirements, prescribed solvency requirements, and the statutory obligations with respect to anti-money laundering measures have to be met and complied with, which is why the management company, the Resident Representative / Compliance Officer, and directors of the exempt insurance company must work as a team.
Benefits offered within the jurisdiction to international investors
- Economic and Political Stability
- A legal system based on English Common Law
- English is the official language
- Easy air access to international destinations, and just about 3 hours flying average to Miami
- No exchange controls, and a stable local currency with relatively low rates of inflation
- Cutting edge telecommunication facilities and overall lowering of costs as a result of liberalization in that sector
- Exemption to offshore companies from duties on business-related imports and income tax on their operations. Dominica has a no Capital Gains Tax policy
- A cadre of tertiary level professionals and secondary level trainable graduates
- Accommodating and regular review of legislation and regulations to preserve confidentiality and also to screen out those with undesirable intentions, so you will always be comfortable.
- The presence of international banks including Barclays Bank PLC, Bank of Nova Scotia in most of the islands, and in addition in Dominica Banque Francaise Commercial
- The facility to apply for second citizenship in Dominica, Grenada and St Kitts or permanent residency in Antigua
- A relaxing and friendly environment in which to conduct business